Market's view on Pci-pal
Published on April 2024
- PCIP’s stock is at its highest price in nearly two years, with expectations of further increases as it approaches June, indicating a positive upward trend with increasing interest from new shareholders.
- The bullish outlook for PCIP includes potential for significant scale in the US market relative to the UK, suggesting possible future turnover exceeding £100m over 7-10 years due to the consumer-focused nature of the US economy.
- The recent fundraise for PCIP, conducted without discount in a challenging market, is seen as a strong sign of confidence, especially given the strategic partnership with Zoom and strong growth in the US.
- The fundraising will help PCIP accelerate growth while managing UK legal costs, with expectations of a re-rating in stock value.
- Concerns are raised about the suppression of PCIP’s current share price by parties with vested interests, with expectations of a correction post legal resolutions in the UK and US.
- Sycurio’s legal actions against PCIP are viewed sceptically, perceived as a strategic move to depress PCIP’s share price and attempt a takeover, especially since PCIP continues to show strong growth and profitability.
- The market’s response to PCIP’s recent activities, including a capital raise at market price, reflects trust in management’s growth strategy, particularly in the US where the business is expanding rapidly.
- The imminent appeal and potential resolution of ongoing legal battles with Sycurio are anticipated to increase investor interest and possibly lead to a significant uplift in PCIP’s stock value.
- Ongoing court proceedings are seen as a temporary obstacle, with the underlying strong performance of PCIP, notably a 25% year-on-year growth and strategic partnerships, expected to drive significant upside once legal uncertainties are resolved.