Market's view on Crimson Tide
Published on April 2024
- Phil Meyers is becoming the group CEO, leading to speculation about JD’s potential departure.
- Cavendish has set a price target of 500p for the company.
- The company is perceived as falling behind its competitor, Checkit.
- The Chairman described the year as frustrating, citing a rise in his golf handicap.
- Concerns about the company hitting all-time low share prices.
- Positive financial indicators noted, with cash increasing by £440k over the last six months and active recruitment.
- Expectations of a recovery year ahead, with the share price currently seen as cheap.
- Anticipation of increased revenue to £6.20m and EBITDA of at least £0.4m for the year, with a healthy cash balance and expected R&D tax refund boosting finances.
- Criticism of the share consolidation as a waste, benefiting only advisors.
- Share consolidations viewed as a strategy to facilitate future fundraisings at a discount by reducing shareholder numbers.
- Discontent with management, described as destructive to shareholder value.
- Expectations of a future cash raise necessitated by previous consolidations.
- Share consolidations deemed desperate and irrelevant, with a call for better sales efforts.
- Management criticized for poor development decisions and high cash burn, with concerns over the company’s ability to engage investors effectively.
- Discussions on spending on R&D despite risks of not achieving critical mass and concerns over client churn, with some optimism for US market opportunities.
- Warnings about the pitfalls of companies quoting EBITDA while heavily investing in R&D, suggesting shareholders might be misled.