Ekf Diagnostics Share Discussion Threads

[bigman] 23/12/2015 08:54

Beggars belief..... just can't come to terms with what i have read

[cisk] 23/12/2015 08:18

Jeez those guys (the selah founders) must think Christmas has come early - $35 banked and their original company back. Unbelievable.

Baines et al surely have to go. Absolute disgrace.

[silverfern] 23/12/2015 07:16

and there it is $35m of value sold for $1. Investors might want to consider who in their real lives they would trust if they made such idiotic ill-considered and wasteful use of other people's money

[interstellar] 22/12/2015 14:54

Well the cash had to come from somewhere and slowly RZ is getting EKF into an inescapable stranglehold. Watch this very carefully

[silverfern] 10/12/2015 20:40

who is running this company? A retired millionaire kicks out FD and Tech director- non-execs leave. This is garbage now.

[bigman] 02/12/2015 18:47

Well strange as it may seem the story is FD leaves a few years ago then comes back when the FD becomes COO and now the COO takes back the FD role when the FD leaves.... bit like moving deck chairs on titanic.... still a saving of £200k. but has the right person gone ? to me it is failure of CEO and COO that landed us in the mess... not the guy that does the accounting... question is did he up and leave or was he paid handsomely to go, i think the latter.

[interstellar] 02/12/2015 17:14

The resignation (?) of the Finance Director is very significant. He may contribute to the process of acquisition, dotting the 'i' and crossing the 't' in purchase agreements but he is not a scientist and is not responsible for the purchase of technolgy or its appraisal. He will, however, know where all the skeletons are buried and leaving early (especially if voluntary) could be an omen for more bad news in the pipeline. As for the departure of the two non-execs well I think they are lightweights and will not be missed. I agree they are not much of a saving to the cost of the board either.

[bigman] 30/11/2015 08:17

Sweeping changes !!!! couple of non execs leave !! not exactly a cull or much of a saving as being replaced !! it is Executives who should be falling on swords and being shown the door, Those who bought the pile of poo "Selah" should have gone day one.

[wan] 30/11/2015 07:10

Although not the purpose of today's announcement, I note RZ is now listed as Chairman (not Non-Executive Chairman). Sweeping changes afoot and indeed taking place!

[bigman] 28/11/2015 21:54

I would have thought that the bank is a bit concerned about ability to support the debt in the company, cash will no doubt be required pretty soon.

[interstellar] 27/11/2015 20:00

A word used in the trading update is 'impairment'. There's a very useful and mercifully short article on this here> hxxp://www.investopedia.com/articles/analyst/110502.asp

They describe the 'good, bad and ugly' of this process. I have extracted the 'good' description which I think best describes EKF position.

"If done correctly, this (viz. impairment) will provide investors with more valuable information. Balance sheets are bloated with goodwill that resulted from acquisitions during the bubble years, when companies overpaid for assets by using overpriced stock. Over-inflated financial statements distort not only the analysis of a company but also what investors should pay for that stock. The new rules force companies to revalue these bad investments, much like what the stock market has done to individual stocks.

The impairment charge also provides investors with a way to evaluate corporate management and its decision-making track record. Companies that have to write off billions of dollars due to impairment have not made good investment decisions. Managements that bite the bullet and take an honest all-encompassing charge should be viewed more favorably than those who slowly bleed a company to death by deciding to take a series of recurring impairment charges, thereby manipulating reality."

[interstellar] 27/11/2015 09:13

Nice measured words one and all. This is so like a game of poker. Somewhere in the pot is a bit of cash, a huge pile of shares and the keys to various facilities and divisions around the world. RZ has his cards very close to his chest and he is the only one with enough cash left, and the steel, to up the bet every round. Sitting around the table sweating profusely are the institutions, a few larger investors and the executive management who can see their rich salaries on very dodgy ground (rightly so IMHO -their share options being sacrificed long ago). All these players need cash to stay in the game and the only one with his pockets stuffed with cash is RZ. My guess is he will sweep up the pot without showing his hand. Yes, at the moment he is showing a loss but he can afford that strategically if it means he can pick up a company worth (say) 90 million for less than half that amount.

Analogies aside putting this right will cost time and money. Closing sites costs money (redundancies, contract [penalties, exit provisions etc]). Money which has to be found from somewhere if the receivers aren't to be called in. So the bet is upped again- what are you going to do? See? Raise? or Fold? I folded the lions share of my hand and a lot of my past value and potential value is sitting in the middle for someone else to win.

Never did have the balls for poker.

[wan] 27/11/2015 07:50

Cisk...Yes a few wrong ones are inevitable I suppose, which is indeed acceptable if the majority are right (btw personally I don't regard Plant Impact as blue sky per se, where the management are delivering and are true to their word, a rare breed it would seem!)

Fwiw, oh I think that molecular (Selah) is worth something to somebody, if only the highly paid management (founders) of those businesses!

[wan] 27/11/2015 06:58

All...Obviously I accept that I called this wrong........and by a big margin!

I accepted that the management had made mistakes and I knew this was a risky investment so subsequently I am not overly exposed, but nonetheless the price drop is still quite financially painful.

Reading between the lines, I can't help feeling that certain institutions are at least partly to blame. (Subsequently?) RZ is certainly making his presence felt and hardball is being played, especially with regard to the Molecular Division i.e. we are prepared to shut it if we don't get a reasonable offer and perhaps there will be ramifications beyond any subsequent impairment. Bolick and Co founders....get your 'fat' cheque books out!

EKF's core business and products are excellent and I believe in the long term future and opportunity, which is why RZ has already invested and indeed arrived as Non-Executive Chairman (which might change). Significant opportunity may well exist at these prices, but we need to see more colour and information from the strategic review and from a management that is proving, at present, inconsistent and difficult to understand.

[cisk] 26/11/2015 17:05

thanks Inter - clearly a bag of worms, I now have such a small holding.

maybe it will come good - who knows, but I suspect Ron will try and get the whole lot on the cheap...

[interstellar] 26/11/2015 16:03

Ciak. Try this

[interstellar] 26/11/2015 13:55

I see the Motley Fool has composed an essay on EKF's woes. Speaks volumes and needless to say they are not recommending it as a BUY. I guess there are many on here- including me- feeling somewhat foolish to not see this coming.

[bckttsim] 26/11/2015 10:43

Ask is rising, this is starting to recover.

[bckttsim] 26/11/2015 10:25

This is 8p on ISDX come LSE play fair

[interstellar] 26/11/2015 09:34

Time to dump COS as well? Another DE enterprise which missed its very first target even after a city presentation to the contrary. Bit of a theme going here.. An update of COS trading next week- I am prepared for disappointment there too.

[interstellar] 26/11/2015 09:00

So glad I had the sense to believe my gut instinct- even the 14p I got looks unobtainable now. Trust me the cash call is coming- now it will be at 5p or less

[silverfern] 26/11/2015 08:13

results will now include " the partial or complete impairment of the Molecular division. Discussions regarding the divestment or closure of the Molecular division are still ongoing; -- a provision against, or write off of, specific debtors; and .." That is appalling - it is admission their 'future' as described only last year was in reality a huge waste of money on worthless IP and assets. Revenues down 20% yr on yr across the business. THis won't even be an asset stripping exercise now, just eke out the working capital on director salaries. At times like these I realise it is investors who own companies but all we do is invest trust in others we believe are capable, honest and responsible. Make your own mind up here