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Interesting RNS

lse:trx

#21

You may be right, in which case why would MidCap withdraw funds?

The 2018 report included an outlook of nearing “sustainable profitability” in 2019 but that does not seem at all likely from the reported numbers. I must have missed the rns saying a second production shift was up and running, investment in which would surely increase costs ahead of revenues. The update 4 weeks ago said …

The increase in throughput is now expected to become available during Q4 2019

Even growing sales at the 33% headline rate it would take another year or two to make first profit. But the update 4 weeks ago said

revenue for 2019 will be below current market consensus by approximately 15% to 20%, with a corresponding reduction in margin

Take those comments together and overall losses may have widened this year rather than narrowed. You obviously read things differently though, and you are not alone looking at trading today.

You suggest they might raise funds with a listing of new shares but that would be difficult to sell even at 1.09p unless there are really good hard 2019 numbers to report next February.

Indeed I may have made a slight error in my analysis, it would not be the first time, but I will continue to err on the side of caution in this case. Good luck to you though.


#22

Oh dear, TRX has lost its newly instated CFO Mike Barker after just three months “for personal reasons”.

I wonder if those reasons include the way he handled renegotiation with MidCap Finance leaving TRX at risk of running out of cash in 3-4 months, or the idea that he is not likely to be able to attract replacement funding.

It doesn’t sound as if the board have a C level replacement in mind, which must leave TRX highly vulnerable to being snapped up on the cheap. But who might fancy the gamble?


#23

I think we’ll have to wait for the next results (or maybe the ones after that) before we can get a clear picture of likely future profitability. With TRX (as with anything medical/pharmaceutical) progress is slow as new products and markets are explored. They are still, even now, early stage. The real change will only happen a long way down the road.
Meanwhile, it’s a case of staying alive. I suspect I’d cap were a bit miffed that TRX had drawn down cash knowing they were in imminent danger of breaching the covenants. (May also be why the CFO has departed).
If you believe the company has a future it’s worth hanging on at these levels or even buying more !
Gods luck to all invested
TP


#24

Bit of movement this morning (+10%) after a quiet period. Is this the start of the recovery? Hope so! Topped up quite a bit whilst it was sub 1p. :clap::clap::rocket::rocket:
TP


#25

Prepare for take off 1.20 today, had a top up at .96recently. How’s that?
Onwards and upwards.
Value will out :rocket::rocket::rocket:


#26

Closed at 1.70 today, +36%. What will it do when the numbers start coming through? :clap::clap::clap:
TP