Market's view on Itaconix Plc
Published on April 2024
- Concerns are raised about the company’s current situation, described as treading water with a valuation suggesting a lack of hope, despite being rich in valuable patents, cash, and capital equipment.
- The company is highlighted for having turned away low-margin business, which is seen as a sign of confidence, suggesting potential upcoming positive developments.
- Itaconix has launched biobased functional additives for decorative paints.
- The stock is noted as illiquid due to a much-reduced float from a 50-1 consolidation, and there is speculation about its transformation with a decent contract from a major corporation like Unilever.
- There are mentions of a possible future ban on phosphates in consumer products by Brussels, which could benefit companies like Itaconix if they own the right patents.
- Observations include the company’s appearance on Sky business TV and discussions about its revenue trajectory, which should be improving given a 38% gross margin.
- There are criticisms about the company’s performance being typical of AIM stocks – long on promises, short on delivery, with a market yet to be convinced of its potential despite improvements in figures.
- Comments are made on the stock price fluctuations and trading volumes, suggesting that market reactions might be based on speculative trading rather than company fundamentals.
- A ‘Batman pattern’ on the stock chart is identified, indicating a very bearish outlook.
- Finally, discussions touch on the company’s financial management concerning interest rates on business accounts and potential risks associated with investment strategies.