600 Share Discussion Threads

[varies] 04/7/2017 08:12

This is all very encouraging, especially the big rise in orders in both divisions compared with 12 months ago.
I am surprised to see no reference to the holding in ProPhotonix and cannot identify this in the balance sheet. Could one of you posting here kindly point me to it ?

The shares continue to look cheap on about 7.5 x EPS.
I do bear in mind the £8 million of loan notes with warrants attached for subscription at 20p due for repayment in 2020 but hope that the share price will pass 20p long before then.

[my retirement fund] 04/7/2017 08:00

Good progress here better than expected imo

[buywell3] 04/7/2017 07:47

If I start buying it , it might.

I have been looking at SIXH

A couple of things bother me though

1. The debt level which has grown in the last year , and which according to CJohn is US dollar strength related:

My comment to that is , if so then do you expect the $US to weaken against a stronger GBP ?


2. With Brexit and a weak pound , how much of SIXH earnings are from abroad ?

3. I like Surgical Innovations (SUN) BUT only because Nigel Rogers came on board there. He is regarded as 'Mr safe hands' by the institutions and joined SIXH in 2012 as CEO.

He joined Surgical Innovations in Dec 2015 and has transformed the way the company is run.

My question is , why did he leave SIXH ?


My rationale here is that the guy running a small cap company is more important than the company he is running .... he makes it or breaks it.

[simon cawkwell] 04/7/2017 07:07

Gentlemen,

This stock should surely be at least 20p bid right now. More follows.

Simon Cawkwell

[ironstorm] 04/7/2017 07:04

What a good set of results. Glad I bought in a coupe of weeks ago.

Good trading performance with more set to come this year and almost unheard of a £10m pension surplus.

[hastings] 04/7/2017 07:04

First glance decent results forward order book looks positive enough EPS up be interesting to see the FinnCap note.

[my retirement fund] 03/7/2017 12:31

I would have thought there would be a lot of connected parties who have a bloody good idea what the results are likely to look like. As to them buying illegally prior to publication, probably unlikely as they wont have actually seen any figures from auditors prior.Its never fair though is it - unless you are a buy and hold come what may investors lime John Lee for example

[kazoom] 03/7/2017 10:18

Always interesting (but mostly futile) when there is price action like this in advance of results to speculate whether it is just traders "placing their bets" or a little bit of news leak.

BTW - anyone else find last Thursday announcement that results will be this week a little odd? That near to the day, you'd think they could actually tell us which DAY it would be. I quite fancied a lie-in ;-)

[hastings] 03/7/2017 10:00

Little bit of welcome movement, just trying to firm up a post results call with management for an intended write up.

[my retirement fund] 03/7/2017 07:28

Nice to see people waking up to the potential here

[riddlerone] 29/6/2017 07:53

Results next week then

[noirua] 17/6/2017 12:19

EK added to his holding on 15th June.

[cjohn] 15/6/2017 10:55

Yes, good post, Varies. SIXH certainly has options to re-finance debt, assuming they can show profitability and cash flow.

It would also make sense to sell the PPIX shares at some point.

[varies] 14/6/2017 11:03

CJohn
Like you I hold shares in both SIXH and PPIX.
I have been looking at the terms of the Loan Notes issued in Feb 2015 to finance (inter alia) the purchase of 80% of TYKMA. Further notes have been issued since and I believe that the total amounts to c £8.5 million. These have warrants attached for about 45 million shares at 20p valid until Feb 2020 when the Loan Notes are due to be redeemed.
The Loan Notes carry interest at 8% p.a. but can now be redeemed by SIXH at any time. If SIXH could obtain new loans at a lower rate of interest and repay the Notes, then obviously a useful saving might be had.
It seems reasonable to expect that the 2016/17 profits from machine tools will be similar to last year's and the laser marking profits up again. If so, SIXH might be in a good position to refinance its debts.

[cjohn] 02/6/2017 07:43

Hi Buywell, the question is will debt continue rising?


The rise in debt at the last results was due to the increased value of the US debt when valued in sterling (which has droppedagainst the dollar post-Brexit vote.) If they have sorted out their working capital requirements, debt should come down.

Gearing will certainly come down again at the next results, given the dramatic increase in the value of the PPIX holding.

I personally hold shares in PPIX and SIXH. I would currently add to SIXH. It's not one for widows and orphans, but it's clearly undervalued, if they do manage to generate positive cash flow.

[coolen] 01/6/2017 21:49

Noirua, congratulations on your excellent memory !

I have not heard the name "Alfred Herbert" for many a decade. Was it the Daily Mail tipsters that were most embarrassed by Herbert's demise ?

At a guess, I would say that was when the 600 Group last earned just enough to pay a tiny dividend.

A sad pair ?

[noirua] 01/6/2017 21:21

EK in a paragraph recently written about SIXH appeared bemused by the low share price. Said there might be something we don't know that is the reason.

I think it might be just because the company is in plain old engineering which is boring for most people who see themselves with more technological minds. Years ago Alfred Herbert Engineering went to the wall and was bought by the Government - it was boring then and still is. Until of course an unexpectedly good RNS arrives and they all pile in regardless.

[riddlerone] 01/6/2017 15:51

PPIX shareholding now worth £4.3m

[buywell3] 30/5/2017 07:24

PPIX RNS out this morning indicating what looks like an order worth around £1M

100,000 custom made laser diodes for robotics use

If one was investing would one chose SIXH or PPIX ?

With debt on the rise here it looks like a no brainer

[cjohn] 29/5/2017 10:27

And the PPIX shares are now worth close to 3.5m sterling.

[cjohn] 26/5/2017 09:39

Hi Buywell 3,


I agree with you that debt and generating positive cash flow is crucial here. Dollar denominated-debt pushed up(slightly) overall sterling debt levels at the last results. Gearing was down, as encouragingly net tangible assets were up. (Tangible assets will go up again at the next results in view of the performance of the PPIX shares)

The question is can increased turnover be sustained without consequent increases in working capital. The management have had quite some time to get this right and have been simplifying supply chains, rationalising property etc. If they can bring the debt down, there is very clear value here.

(It's worth pointing out, that a large proportion of the debt is convertible at a share prices above the current price.)

[buywell3] 23/5/2017 04:22

From the latest yearly report

'' Chairman’s statement

Financial Overview

At the end of the financial year, group net indebtedness stood at £13.89m (2015: £10.80m), and gearing was 34%, (2015: 31%)''




Net Debt

A measure of a company's ability to repay all debt if it were called immediately. It is calculated by adding short-term and long-term debt and subtracting all cash and cash equivalents.

Many investors use net debt in making investment decisions, as it gives them an idea of a company's financial health and its level of leverage compared to liquid assets. Some industries may have more net debt than others; therefore, investors often compare a company's net debt to others in the same business.

thus:-

In the case of SIXH , Net Debt is growing which implies that its financial health is getting worse.

Hence the poor long term 10 year chart , PPIX is helping it of late , but as to the rest .... not doing it


Try putting this one in the header if you dare

[my retirement fund] 22/5/2017 22:22

What I can tell you other than the healthy and ever increasing net assets on the books it Electrox are one of the best lazer etching manufacturers you will find anywhere in the world.

[noirua] 22/5/2017 15:59

EK backed this stock to go over 20p a share, SIXH not PPIX.

[riddlerone] 22/5/2017 13:32

FYO PPIX just ticked up 2 and a half points so another 600k added to the balance sheet