Zytronic Share Discussion Threads

[salchow] 15/1/2016 17:45

Hi rhomboid

Yes, I agree that in many cases some shares are retained but with the majority having to be sold to meet acquisition costs and tax bills. However, I do see low cost options exercised and I find it difficult sometimes to relate the cash taken with the costs that may be incurred. The problem is that one then has to start searching through the Annnual Reports to get to the bottom of what has happened. Vislink, in which I held shares, is the recent classic of director's helping themselves with a very favourable scheme irrespective of whether at the end of the day they hoped to eventually take mostly cash or retain shares. I suppose I have a large degree of scepticism regarding company directors although fortunately not Zytronic's. I will look out for specific examples when they arise within my own investments.

[fizzypop] 15/1/2016 16:00

Current fall looks like a classic tree shake. 350p top up time I reckon.

[rhomboid] 15/1/2016 15:57

Hi Salchow

I think you're mistaken, you'll normally see enough sold to offset any tax liability and over time directors stakes increase as a result. This is especially so in growth companies like Zytronic.

If you got any examples akin to what happens at Zytronic fire away

[salchow] 15/1/2016 15:21

I can't understand anyone saying that they don't normally see directors cashing in options immediately on vesting. If you look through directors dealings on most companies this is precisely what normally happens even on the largest FT100 companies.

[rhomboid] 15/1/2016 10:36

Hi Rivaldo all good points but I cannot think of any other company where this pattern of both CEO and FD cashing in options immediately on vesting exists, bear in mind from this year in addition to the 50% bonus they received they'll also possibly earn 60 & 45% Long term bonuses as well, they also hold less stock than I've come to expect as "skin in the game" in other companies I invest in. Put it this way I'd feel uneasy with my modest stake being more than the FD and potentially the CEO as well!

I like the company and got a good feeling after Paul Scott's interview but this makes me hesitate as I don't understand the logic , £190k per annum is comparatively big bucks where Zytronic are based IMHO ...but I'm not denying the value being created by the Mgt.

So any other examples welcome!

Cheers

[shauney2] 15/1/2016 09:07

Good point rivaldo re the liquidity.

Worth reading the recent results again and the positive statements.With a trading update due next month would they dare sell into bad news?

[rivaldo] 15/1/2016 08:51

I completely agree with kalkanite's post 1059 (though ZYT certainly isn't my largest holding!).

It's surprising to me that anyone would care about two directors selling what are really very small amounts of shares arising from options when the sums concerned - especially net of tax - are so minimal, especially in the context of (a) ZYT's very low base salaries, (b) one of them being the FD, who is generally always the lowest-paid exec, and (c) ZYT is also a very thinly traded share, so the timing has to be right (i.e post good results) to actually effect even these relatively small transactions.

The smoke signals from ZYT continue to be extremely positive - just read the expansion news from this week.

[kalkanite] 15/1/2016 08:15

Bb if only investing was that simple? We would all be millionaires

[rcturner2] 15/1/2016 08:15

ZYT is also my biggest holding, mainly because it is up 50%.

I do not think there is any need for holders to worry. The share price will follow the results from the company. Look at how the price rose after the last set of good news. As long as the company continues to deliver growth the share price will grow with it.

[bookbroker] 15/1/2016 08:00

That gap has to be filled from £3.00, the sooner the better!

[kalkanite] 15/1/2016 07:52

My thoughts FWIW

I agree with some of the comments regarding the share option sale, the directors salaries are modest compared to industry standards so I don't blame them for selling as soon as they get them, especially just after the Xmas period. There is a real difference between an investor and a director, they are not one and the same.

With regards to whether the price of the shares are expensive or not, the current PER of 14.6 is (IMO) about right, but what it does not take into consideration are.......

1. The cash element (EV) would put the PE on around 12.5

2. The forecast growth for 2016 is 3.26% which I think is very modest when you consider that Zytronic has recently launched its new larger format multi touch screen and its curved screen products, I think (barring a recession) that this target will be increased gradually throughout the year.

Just my thoughts, but this is my largest holding since I spent the last few days selling 75% of my HOME holding.

[rhomboid] 14/1/2016 22:26

I wanted to buy a stake here today but I'm really struggling with the director sells, I know they did the same last year but I've never seen a similar situation before, I've seen director buys go wrong but I seem to recall more director sells being astute than not.

[topvest] 14/1/2016 21:25

Yes, not sure its that negative given they are just cashing in options. They only get a modest salary so maybe time to take a bit more. Happy to hold and see how they can do in 2016. If you sell these, it's difficult to buy something else as good is the way I see it. Don't mind selling at a high price, but we are not there yet. £5 is what I'm targeting for this quality company.

[thorpematt] 14/1/2016 19:30

I think perhaps the sells are more an indication that the price is at a relative high (and thus a good point to cash in) as opposed to the outlook being poor.

Share prices are volatile, as is the market and thus I cannot blame anyone for converting to cash.

[adamb1978] 14/1/2016 19:08

Glaws2 makes a fair point about their salaries - they're very, very low compared to what you'd expect. CEO on £120k last year and CFO on £85k! That's a long way below market, even for a small-cap

They each earned 50% of their base as bonuses, however they obviously hit targets to earn those bonuses (assuming the targets were appropriate).

Still, in terms of sentiment, it sends a horrible message that they're selling those shares as soon as they're earned. I'd prefer them to be paid higher base salaries

[shauney2] 14/1/2016 14:35

I wouldn't be too concerned.They probably see it as part of their overall package.

[glaws2] 14/1/2016 14:32

Yamaha - no it doesn't but bear in mind their salaries are almost modest compared to many other companies.

[yamaha865] 14/1/2016 14:05

Both Director share awards being fully sold immediately- doesn't instill confidence!

[eezymunny] 13/1/2016 11:48

Had a few of these for the EEZY3 portfolio. FWIW.

[igoe104] 13/1/2016 11:45

Things look well, when you here quotes like this.

Demand for ultra large format touch screens in signage and surface applications drive company expansion


Here the full write-up.

Zytronic invests £1 million to increase touch sensor output

Posted on January 13, 2016 by Alison Blakey



Zytronic-expanded-the-total-ISO-5-Class-100-cleanroom-area-at-its-Newcastle-England-manufacturing-site-sml

Demand for ultra large format touch screens in signage and surface applications drive company expansion

Newcastle, Wednesday, 13 January 2016. Leading developer and manufacturer of advanced projected capacitive touch sensor solutions, Zytronic, has invested £1 million ($1.5 million) to increase its manufacturing capacity, especially for ultra large format touch sensors for digital signage, table surface and other applications.

The largest single investment included a 25% increase in the total ISO 5 (Class 100) cleanroom area at its Newcastle, England manufacturing site. A significant and critical proportion of touch screen manufacture takes place in cleanroom conditions, and the expansion increases the total manufacturing floor area to 10,000 square feet. To increase throughput of ultra large touch sensors of up to 65″diagonal, Zytronic added five new direct write electrode machines and a further automated laminator.

Commenting, Mark Cambridge, CEO, Zytronic Group, said, “In its 2015 financial year, Zytronic grew by 13%. A key feature of this growth has been further market acceptance of our patented multi-touch projected capacitive technology (MPCTT), which enables multi-user and multi touch sensing in ultra large form factor sizes up to 85″. During the year, we made a number of investments in our property, plant and machinery to support this growth, increasing our output capacity, especially in large formats, where we saw demand for large touch sensors increase by 50% in volume terms over the prior year.”

Zytronic has also increased the range of manufacturing activities that it can undertake allowing it to offer its customers more complete and integrated solutions. For example, it can add installation brackets and other elements to a screen so it can be fitted directly into a housing unit on site. Zytronic is also able to provide bezels and other elements if required. An additional CNC computer controlled glass profiling machine has been introduced, allowing Zytronic to extend the range of customisations it offers in the supply of its touch sensors.

About Zytronic
Zytronic Displays Ltd internationally award-winning touch sensors are used globally in ATMs, digital signage, self-service kiosks and gaming machines as well as by industrial and medical OEMs. The company’s success rests on its patented and highly durable touch sensing technologies, which can be provided in custom designs of 85″ and beyond.

In addition to its manufacturing and R&D centre in Newcastle, England, Zytronic has sales offices in Taipei, Tokyo and Atlanta, USA and a worldwide network of representatives and distributors. For further information please visit

[amencorner] 13/1/2016 11:38

Production update regarding Zytronic (not an RNS)
hxxp://www.neesham.co.uk/zytronic-invests-1-million-to-increase-touch-sensor-output/

[igoe104] 13/1/2016 09:51

New gaming product.

Multi-Touch Curved Touchscreen Gaming Unit.

hxxps://t.co/WmzKsLNalx

[igoe104] 12/1/2016 11:25

Sensible blog write-up from stock whittler.


hxxps://t.co/JZUkfTeCt2


Zytronic Top Up

1/11/2016

0 Comments




I have taken the opportunity to top up on Zytronic, the opportunity having been created by an opinion given by Bearbull in the IC. I have some reference to the article but not a copy as such; I don’t subscribe to IC. I understand that the article said that the share was overvalued by 40% or something ridiculous well everybody has an opinion on stocks and after all, that is what makes the market function but it’s not a view I share.

My view of Zytronic is that it is an exciting growth company and to that end is priced very reasonable for a growth business. If you look at the PE(f) as given in Stockopedia this shows a value of 15.6. However, Zytronic has a decent amount of cash on the books and once you strip this out you come to a PE of around the mid 12’s; expensive, well no, I don’t see it that way.

How do the other numbers that attract me to this stock stack up?•Revenue and profits increasing year on year.

•The ROCE is decent at 20.1

•Operating margin of slightly over 20%
•Cash-flow ps appreciably higher than eps and also lots of free cash-flow.
The dividend which is around 3.4% is growing by around 10% per year and has a conventional cover of around 2. However, as I have mentioned in earlier blog notes my real comfort with dividend cover is when the FCF easily cover dividend payments and with Zytronic that is the case.

We have a very healthy Piotroski at 9 which gives me confidence. Also, the Stock Ranks given in Stockopedia look very healthy SR of 96. Cross checking to see if that confidence is echoed by Sharelockholmes and I am pleased to say it is as they have a market score of 2 (1 is the best score with Sharelockholmes and 100 the worst). So all in all, I am comfortable with what I see.

Also just to keep me up to date I listened to an excellent interview of the CEO, Mark Cambridge, that Paul Scott did in the middle of December; all reassuring stuff.

Personally, I am in no rush with this one as I think it is a grand little company and am taking a view of at least a couple of years rather than a few months. To that extent if the share price does ease further then I may be tempted to top up again.

[bookbroker] 12/1/2016 09:31

Kalk. - I love this co., I'm just sorry I took profits at £3.00, it is very well-run by a management which really understands its product, and is a flag bearer for small UK cos., the same could be said for PUR and KBC, both of which I used to hold, but who was to know that a fire and an insurance policy would be the eureka moment for PUR!

[igoe104] 08/1/2016 12:27

Touchscreen Solutions In the Expanding Interactive Kiosk Market Thursday 07th January 2016 01:18pm The global interactive kiosk market will more than double in value from $1.2bn to $2.88bn over the next eight years. The forecast comes in a recent report by Market Research Store.com (MRS), which says the industry will experience significant growth at a compound annual growth rate (CAGR) of 14.63% during the forecast period 2014 to 2022. But there will be major challenges along the way in the form of mobile technology, persistent concerns around cyber crime, and the sheer pace of technological change. The report highlights the importance of having a better in-store customer experience to dilute the significance of smartphones as being critical to the growth forecast, as the retail sector currently accounts for 40% of the total value of the interactive kiosk market. And there is an increasing demand for a cross-channel experience throughout the retail sector. A 2015 study by SessionM surveyed 12,000 smartphone users in the US and found that 90% admitted to using their mobiles in a retail store to help make buying decisions, while more than half said they used their mobile devices for price comparisons at the same time as being in a store. This has led retailers to adopt interactive kiosks to help the decision making process in store, rather than as an alternative or competitive source online. This is typified by how retailers are utilising digital technology in-store to enhance the shopping experience with interactive installations such as digital signage, touch tables and kiosks. Another advantage for brands and businesses turning to digital kiosks is the platform to provide more detailed information about product pricing, availability and feature comparison for customers. They can also help satisfy demand during busy periods, perhaps when sales staff are occupied with other customers or to assist with general browsing enquiries. In 2014, Zytronic’s patented projected capacitive technology (PCT™) helped high street optician Kite GB engage with their customers via an interactive point of sale system. At Kite’s flagship store in the East End of London, touch screen functionality was integrated into a durable glass surface which encouraged participation from customers. It allowed them to take photos of themselves wearing different glasses frames and share the photos across their social media profiles. This is one of many examples that demonstrates the emphasis that retailers are putting on immersing digital technology within traditional stores to help analyse consumer behaviour, enhance the customer experience, and ultimately increase sales. Outside of the retail sector, interactive kiosks are proving popular where 24/7 indoor and outdoor touch screen functionality can benefit both vendor and user. Numerous manufacturers operating in different sectors have chosen Zytronic’s versatile touch sensing solutions for their applications. Dong Hwa Prime, one of South Korea’s leading fuel-dispensing equipment developers selected Zytronic’s ZYBRID® touchscreen for their self-service petrol payment systems. The point of sale unit, titled Merit, was incorporated because the technology eliminated the need for external mechanical components and provided a toughened glass surface that is extremely durable and resistant to damage or harsh weather conditions. Zytronic’s PCT™ was also chosen by the Edinburgh Transport Group to be applied to the Tram system point of sale kiosks. The rugged touch sensors are available to general public across Scotland’s capital city on a 24/7 basis while minimising staffing and downtime costs for the operator. This reinforces the versatility of Zytronic’s projected capacitive technology (PCT™) and highlights the flexible nature of production that allows us to supply innovative and customised applications to meet the varied needs of our customers around the world - See more at: hxxp://www.zytronic.co.uk/news/blog/touchscreen-solutions-in-the-expanding-interactive-kiosk-market#sthash.LLVBRKVN.dpuf