It's weird how sentiment has changed in a week or two. By "sentiment" I just mean the buy/sell ratio. There were almost no buyers a week or two ago. The past few days there's been 1.5 to 1.75 buyers for every seller of DEL each time I check. We've gone from 8.5 cents per share to 14.0¢ and the volume hasn't increased much. Maybe EOFY selling was partly to blame. Transactions have been mostly in the hundreds of dollars, with a few thousand dollars being a reasonable sized trade. There's no way DEL is worth 50%+ more than it was early last week, or was worth 50% less last week! I'd be interested in seeing another Bloomberg terminal (?) screenshot of who has been buying and selling. A very helpful poster uploaded that a couple of times previously.
I guess the price will move around a fair bit on sentiment too. This is by far the smallest company I've ever invested in and is fascinating to follow. It's really amazing how quickly our trading has gone from being unloved to somewhat desired. I'm so inexperienced with a company this size. It's certainly an education for me to follow Delorean.
Hamish and Joe seem like guys I could meet at a bio energy convention and easily have a chat with. Very much unlike the CEO of a major bank or large mining company. It makes following the company seem more tangible and real compared with ANZ or BHP.
Myself, l don't care too much about short term sentiment running up the price or day-to-day movement. I'd rather let the fundamentals do the talking and influence the share price slowly.
Its been almost a year (August 2021) since Planum Partners were mentioned as an avenue for arranging finance. I can't fathom how there can be no notable, share price sensitive progress in this time. Even the progression from preferred bidder to winning the Yarra Valley contract took longer than expected. I had hoped and expected too that after the Brickworks announcement last year, we would have secured another contract in the first half of 2022 to build another plant. Yet nothing has developed. Surely SA1 FID will be close. I think that's yet to be finalised.
You'd think that with high energy prices and a strong corporate ESG focus we would have secured another contract or two this year. I'm hopeful that in the second half of the year we'll get a funding announcement, plus a couple of contract wins all at once. I guess with small companies nothing much happens for a while, then everything happens all of a sudden. I wonder also about spreading ourselves too thin geographically. There can't be too many people in Australia with the skills to construct these bio plants. Hopefully we won't run into obstacles finding enough qualified project managers and engineers for each build. I wonder if they'll all need to be flown here from the UK.
I'm not trying to downramp. Just thinking out loud. Like most of us here, I have far more money invested in boring ASX200 companies, but whenever I meet friends, it's Delorean I talk about. Am very happy to hold for the journey, wherever it takes us.
@LongCleanEnergy, I'm confused by who you mean when you write you're 'blaming DEL management for capital raising strategies, not the DEL board'. What's the difference? Surely Hamish and Joe are the major shareholders, directors and management and the buck stops there.
I'm not disagreeing with your point that extra due diligence should have been done before listing. Although perhaps it was/is being done. I'm sure multiple avenues of finance have been/are being investigated. I suspect that a fly on the wall at the Delorean office in Perth would be surprised at the amount of discussion with other entities and not released to market (yet). I wonder how much the rising interest rates and quantitative tightening is affecting the final announcement on financing.
Also, I wonder how much the delay in announcing a financing arrangement is due to difficulties in getting financing, and how much it's due to our management being inexperienced in running a listed company and/or communication breakdown. Although surely if anything substantial happens there's an obligation to disclose. The August report will soon be upon us and will make for interesting reading. I suspect we have good announcements ahead of us to look forward to. Delorean is a great little company, even if, so far, its merits as a great investment are yet to be determined!
Good luck to all of us
DEL Price at posting:
14.0¢ Sentiment: Hold Disclosure: Held
(20min delay)