Market's view on Woodbois
Published on April 2024
- A stock watcher is critically pessimistic about the company, describing it as a “cash-guzzling pile of poo” that frequently requires cash to cover losses and pay its directors, suggesting it’s a clear sell.
- Discussion about an unusually high volume of trades for the company, with no apparent news to justify such activity, indicating that something unusual might be happening.
- Concerns are noted about a significant drop in the company’s stock price, observed through large-volume trades that deviated from the closing price, which might indicate underlying issues.
- Mention of the seasonal movement of shares from general accounts to ISAs, aligning with the timing of stock price movements and trade volumes, suggesting this could be a regular financial strategy among investors.
- Criticism of the company’s financial strategy, highlighting a history of cash-consuming operations, a distorted balance sheet, and annual fundraising necessities to maintain operations.
- Positive developments are noted with the company breaking into new markets in North Africa and developing relationships with suppliers in Central Africa, alongside establishing terms with a new FSC-certified plywood manufacturer in China.
- Frustration expressed over poor communication from the company, especially concerning the delay in a quarterly update, which was expected to be improved with the arrival of a new CEO known for shareholder engagement.