Ekf Diagnostics Share Discussion Threads

[wan] 26/10/2015 15:26

Interstellar...You may or may not recall that I sold out a few years ago and re-entered recently, whether you describe that as blind optimism or indeed foresight remains to be seen.

The strategic plan, which came out of the Strategic Review, has yet to be implemented, so describing it as a waste of time seems harsh at this juncture.

[interstellar] 26/10/2015 13:57

Sometimes blind optimism in the face of overwhelming evidence to the contrary is just plain foolishness. EKF is now at 19pence, 5 years ago it was at 22p. How much patience is needed. The results just continue to disappoint and any decent return on a very risky investment goes out further and further. The strategic review, started at a time when the company reported some lack lustre results, has been a complete and utter waste of time, producing no fresh insights and nothing of any worth except this aborted attempt to find a buyer. we are promised at the half way stage more jam tomorrow in the shape and form of big contracts but nothing seems to be coming together - certainly no announcements and just 2 months to go to year end. Meanwhile just check out what the senior management are trousering by way of salaries and such. I think heads should start to role

[wan] 26/10/2015 12:35

Briefly; because I am patient and I believe that there is a much better chance of value creation (beyond what a takeover offered). Clearly the management and indeed RW think the same!

[bigman] 26/10/2015 12:06

why on earth WAN is your preferred option having a share in a business with a drop in value

[wan] 24/10/2015 06:04

Well, I have got my preferred outcome!

It's back to business proper for management and indeed the strategic plan -

In the event that the interest shown does not lead to a realisation event in the short-term, then it is the Board's intention to firstly invite Mr Ron Zwanziger onto the Board as Chairman, with the current Chairman becoming deputy Chairman, and then secondly to spin-off the Molecular Diagnostics division (including biomarkers) into a separate vehicle focussed on personalised medicine, a process which will be led by the current Chairman.

In the absence of a realisation event in the short-term the Directors believe that this route represents the best way forward as it will enable Shareholders to benefit from:

a) the Point-of-Care business (being both the Point-of-Care and Clinical Chemistry divisions), having a clear focus, with its earnings profile undiluted by the current investment (and related losses) associated with the Molecular Diagnostics division. The Directors believe that a number of growth opportunities, which the Company currently cannot realise, will become achievable, with Mr Zwanziger as Chairman. This will ensure that EKF's growth trajectory can be accelerated.

b) the Molecular Diagnostics division (including biomarkers) having a singular focus not impacted by the other activities in the Group and which, with the necessary investment, will increase the value currently attributable to this business.

[papy02] 23/10/2015 17:35

So takeover is off the table, but JinJing RNS also says discussions with JinJing have been terminated.
So we are presumably back to the one remaining other preliminary offer/discussion?

Edit: ah - all offers off according to EKF RNS ?

[mull3r] 20/10/2015 15:16

I reckon that if a deal is going to happen it will be for the point of care business at a price that gives us the rest of the business for free. I also think that if a deal is forthcoming it will happen this week whilst Chinese President is here - he leaves Friday which just so happens to be the revised deadline.

[interstellar] 20/10/2015 12:54

Yes I agree. RZ would not be buying at 21p if he thinks the offer will be at the same level. What would be the point. My guess is that the offer will come in around 25p. We have to wait until friday but there could be a quick 15-20% profit here.

[wan] 20/10/2015 09:52

The possible permutations make the outcome not an easy one to call, hence the markets reaction/position. Plus EKF have a number of significant tenders that are expected to conclude in the current half (ending Dec 31st), so these must surely have a bearing on things i.e. either a hefty discount will be applied or discounted completely in terms of valuation, albeit there will be a plethora of consideration/DD. However, one also wonders if it's possible the shares are being artificially held down in any way, or is it just the uncertainty which the market hates, which can obviously cause price anomalies.

I note Ron Zwanziger has been regularly mopping up stock at 21p (albeit that his most recent purchase was 20.5p), so perhaps this is a guide given his knowledge of the business and its markets in other words, he sees value/opportunity at this price range in any of the potential scenarios?

[cambridgedon] 20/10/2015 08:44

Papy
Agree it's strange. The market seems to be pricing in less than nothing!
Suggests it doesn't believe it'll happen, but weird never the less. Under normal circumstances this looks like a great time to add.

CD (confused)

[papy02] 19/10/2015 11:22

The market isn't pricing in much of a "takeover premium". Is it right to do so, or do you expect a significant rise in SharePrice if a JinJing offer is made and accepted?

The 3rd party offers mentioned in the Half Yearly report ($110 and $125m for Point-of-Care) I guess represent a 10% to 25% premium to the POC share of total mkt cap but I made some huge inexpert assumptions, so very low confidence. I assume the JinJing negotiations are viewed by management as more attractive than these offers.

Any advance on the above (OK, pitifully poor) analysis of possible profit potential for an investment in EKF shares made now?

Many thanks for any views.

[wan] 19/10/2015 07:26

Another shorter extension of time announced today (5 days), with the key update being -

The parties are working together to conclude confirmatory due diligence and to agree the terms of a possible transaction, which includes, amongst other things, continuing discussions on the offer structure. Alternative structures under consideration include a cash offer by Jinjing for the entire issued share capital of EKF in combination with a distribution by EKF of its interests in its Molecular business to existing shareholders or a sale of certain assets by EKF to Jinjing in combination with a return of value by EKF to existing shareholders.

Interesting times!

[wan] 15/10/2015 07:15

When also taken into context of my previous post, not to mention the experts/institutions involved in the study, today's announcement is very very encouraging indeed -

Julian Baines, CEO of EKF Diagnostics said: "This is the first published article to feature PointMan and, importantly, the authors are primarily from four US cancer centres that are instrumental in the 'Stand Up to Cancer' programme. These results show that liquid biopsy is well on the way to becoming a realistic diagnostic alternative to tissue biopsy, particularly when several samples need to be taken during the treatment period. Importantly this study shows that PointMan enrichment technology could become an essential part of routine blood tests for cancer diagnosis and treatment monitoring."

[wan] 08/10/2015 07:59

Oct 07, 2015
Survey of Lab Community Predicts Greater Adoption of Liquid Biopsy; Increasing Focus on NGS Premium

A majority of respondents said liquid biopsy is poised to become a widely used tool for assessing cancer mutations within the next one to four years, with NGS-based analysis preferred over other testing modalities.

[interstellar] 28/9/2015 12:21

It's difficult picking through these carefully worded statements. Clearly the Selah acquisition (as the market judged at the time) has been a disappointment if not a disaster. As for "One can't help to notice the managements improving confidence in delivering in the second half (end Dec 31st)" seems to me to be just another "jam tomorrow" statement. Sales at a standstill, diminished cash in the business and uncertainty about what is happening with the sell off and when is going to put a cloud over the shares for a little while longer I feel. I just want to cash in and move on but I am waiting for a clear bit of positive news before I jump.

[wan] 24/9/2015 13:36

I note Ron Zwanziger keeps adding.

[wan] 18/9/2015 07:27

Today's announcement that Jinjing has engaged in an active phase of due diligence with the Company and has requested another month to complete this work, confirms that the interest is very firm. This also gives more time for EKF to hopefully realise a few more milestones/contracts etc, including the CE regulatory approval for Pointman, which was also announced today -

"The increasing body of scientific data that is being generated to support PointMan will be particularly important as we commercialise the technology following CE regulatory approval anticipated later this month."

[kestelmill] 14/9/2015 12:13

Hi there, I found an RNS on EKF's website May 2014 leaving Bolick at 4,952,957 shares, which is less than just announced, so could mean he has taken on more shares. However, it could also be that he is exercising share options - not sure if this would be stated in the update you mentioned. Either way, looks like he is not offloading.

hxxp://www.ekfdiagnostics.com/InvestorStories.aspx?id=119

Not sure about the Diaspect guy.

[interstellar] 11/9/2015 16:58

With so much currently in negotiation behind closed doors so to speak it is important that we smaller investors keep an eye on what is going on. With that in mind there have been two form 8.3 disclosures in the past two or three days. One by the CEO of Selah and one by a director of Diaspect. I don't find them very self explanatory. Are they buying shares in advance of a potential takeover or dumping them? Can anyone clarify for me or have views?

[wan] 07/9/2015 07:48

Confirmation that any offer will be in cash suggests that discussions have advanced a bit further, perhaps even firming up a notch.

Not that I am an outright supporter of EKF being bought out, but lets get a few more tender wins under our belt first!

[interstellar] 03/9/2015 10:10

Interesting isn't it how we all see different meanings in a simple statement.

I read the statement "We are delighted to announce these two new business wins. The hemoglobin testing market is highly competitive'' as "Despite being highly competitive we have won busines (perhaps emphasising how good the product is" whereas Buywell2 reads it as business won in a non competitive loss leader fashion and then goes on to worry about the entire tender process with a price war looming. Glass half full/ glass half empty- you pays your money and take your choice.

For the record I'm with Wan on this- it's early indications that the management are expecting a good second half.

[wan] 03/9/2015 07:47

Buywell...I don't intend to get into too much debate with you, but if you read the trading update, which I highlighted further above, EKF has developed the strongest tender pipeline it has ever had and a number of these tenders will be decided in H2, obviously we are now in the second half and clearly we are going to get further announcements of tender wins!

[buywell2] 03/9/2015 07:32

I wonder if these are loss leaders ?

"We are delighted to announce these two new business wins. The hemoglobin testing market is highly competitive''


I would have thought they would have to be to get the product out there

How many others will also have to be won in the same manner ?

That is the question

And will the BIG established companies care re such tiny orders lost ?

If they are they will drop their next tender price

[wan] 03/9/2015 07:25

Not sure why EKF's announcement is not showing on ADVFN, but here it is -

RNS Number : 9191X
EKF Diagnostics Holdings PLC
03 September 2015


EKF Diagnostics Holdings plc
("EKF", the "Company")

New tender wins for Hemo Control

EKF Diagnostics Holdings plc (AIM: EKF), the AIM listed point-of-care, central laboratory and molecular diagnostics business, announces that it has recently won two new tenders for its Hemo Control point-of-care hemoglobin analyser.

In Turkey, EKF has been awarded a tender by the Red Crescent, the humanitarian organisation that runs the nation's blood banking service. Under the terms of the tender EKF will supply 668 Hemo Control analysers and 160,000 boxes of cuvettes over a three year period, in a contract worth a little under €1 million.

The second tender has been secured by EKF's US sales team from the State of Colorado's Women, Infants and Children programme. The tender to supply Hemo Control analysers (sold in the US as HemoPoint H2) and related cuvettes is valued at $450,000 over a five year period with additional incremental tenders expected for further analyser accessories.

Julian Baines, CEO of EKF Diagnostics said: "We are delighted to announce these two new business wins. The hemoglobin testing market is highly competitive and in winning both of these accounts we have demonstrated once again that we have a world-class product that can compete with the market leader. In addition, we anticipate that we will be able to announce further tender wins in the near future."