TRP (ASX) $1 party

Originally posted by friendlydwarves ↑

Well, I've received exactly nothing back, so here's the text of the letter. Full disclosure, I have redacted a couple of names to protect people's privacy. Also the formatting has turned out terribly. Copy / paste does that in HC Land. Rest assured the original letter didn't look like this.

Dear Directors

Like anyone who has paid for their TRP shares, given where the share price languishes, I am currently underwater.

I have listed below some actions that TRP might take in order to bolster TRP’s share price,on the off-chance that some of these actions have not yet been considered.

1.Promoting TRP to fund managers who focus on biotechs

Currently TRP does not appear to have a single fund materially[1] on its register.Like the lack of director buying discussed further below, that massively affects confidence in the stock.Having no cornerstone professional investor shareholder will also present TRP with a much greater challenge if and when it looks to raise further capital.

2.Promoting TRP generally

TRP has made one announcement of substance since IPO, that presumably being an announcement that was drafted before listing.
The sole post-IPO mention of TRP that I have been able to find online, other than swags of negative press about TRP’s drastic share price fall upon listing, is a Youtube video with 86 views[2].That video does not appear to have been promoted by TRP – indeed, TRP does not appear to have engaged in any promotional activity since IPO.

If no-one knows anything about TRP other than the fact that its listing bombed, how can any share price recovery be expected?

I appreciate that there may be limited new news regarding TRP.That does not stop TRP releasing information to ASX, for example presentations including detail on its technology, Phase II results, addressable market, etc etc. Such presentations could also expressly reference TRP’s per share cash backing and EV, and how those compare to peers targeting a similar addressable market and/or companies not in the same market but which are at a similar developmental phase, ie starting Phase III trials.

3.Additional director share purchases

TRP is trading at around net cash backing, valuing itsIP at $nil.

That being so, why have there been no on-market share purchases by directors other than those immediately post IPO by Messrs Charara,Lowenstein, and Johnston?

The lack of director buying at these price levels inexorably leads to the conclusion that TRP’s directors have no confidence in the very company they are charged with (and each year paid a total of $280,000 for)directing.

4.Buyback

Again - TRP is trading at around net cash backing.Presumably when TRP traded briefly at 41c, that was below cash backing.

TRP should announce that it will look to buy back its own stock when it sees value in doing so,with consideration being given to factors including its net cash backing, lack of debt, and EV.

TRP could say expressly that its current intention is to actively buy back stock if the share price falls materially below net cash backing, which is currently $0.XX.

Doing this would come with several positives.First, it would give TRP the flexibility to buy back stock when doing so is accretive even assuming TRP’s IP were to be valued at nil.Secondly, it would draw attention to TRP more broadly.

Notably also, TRP would not necessarily need to ever buy back a single share.But why not have the flexibility to do so, and tell the market clearly why?

5.TR Pro+

Promote, and focus more heavily on progressing, TR Pro+.Potentially / actually having the ability to generate material income in the short/medium term is an uncommon and desirable attribute for biotech in a position like TRP. I wholly appreciate that Phase III success is the primary and long game, but progressing TR Pro+ (and keeping the market very well informed about your doing so) will give TRP a point of difference, something to shout about, and maybe even a material revenue stream.

6.IPO Brokers

Look to the brokers on your IPO, Bell Potter and Morgans, for support.It currently appears that neither of them is providing any post-market support (and frankly that neither of them ever did). A constructive discussion with them as to why that is could be of huge benefit, enabling TRP to position itself such that Bells / Morgans then are willing to promote the stock to their networks.

[1]WHSP’s 3.4% / 2m share / <$1m stake cannot properly be described asmaterial, especially given its own MC of some $10b
[2]

Expand

Very good analysis - maybe you need to be on the board. I’m surprised that they responded to my crap but did not respond to this, maybe they are preparing a response. I will be sending an email blast off next week about lack of director trades.

(20min delay)
Last 34.5¢		Change -0.010(2.82%)		Mkt cap ! $20.86M

Open	High	Low	Value	Volume
35.0¢	35.0¢	34.0¢	$9.58K	27.83K

No.	Vol.	Price($)
1	6600	0.335
3	164651	0.330
1	15873	0.320
2	8225	0.310
1	3000	0.305

Price($)	Vol.	No.
0.345	2556	1
0.350	19078	1
0.370	5000	1
0.380	4000	1
0.395	10000	1

Very good analysis - maybe you need to be on the board. I’m...

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