600 Share Discussion Threads

[parsons4] 16/3/2017 08:43

I am now in for the first time today looks interesting !!

[pugugly] 16/3/2017 08:41

In free fall - Termination of Conditional Agreement


So haow much further could it have to drop ?

[wynmck] 20/2/2017 15:25

and again.....recent entrants at lows being rewarded

[wynmck] 17/2/2017 12:19

ticking up again

[cjohn] 11/2/2017 12:54

Hi Simon, The bid would certainly have to be over 20p. A lot of convertibles at that price.




Blockage? I think the management think the shares are worth significantly more than 20p, despite the debt. There were protracted negotitations a few years ago with a Chinese company for a buy out at around 30p. (I got out during the negotitations which didn't seem to be going anywhere. I've recently bought back in.)

[pugugly] 11/2/2017 12:53

Pension liability I think plus prefs from memory.

[cjohn] 11/2/2017 12:47

Hi riddlerone, yes, I mean PPIX! Sorry.

[simon cawkwell] 10/2/2017 00:39

Gentlemen,

My bet is that DCI will bid for SIXH and over at least 20p. But there is clearly some blockage within SIXH to stop a bid being tabled right now. Does anybody here know what this blockage is?

SC

[riddlerone] 09/2/2017 10:36

Hi CJohn,I assume you mean PPIX not TYKMA
" In August 2014, the company acquired 26.3% of the issued share capital of ProPhotonix Limited ("ProPhotonix"), a manufacturer and distributor of LED and laser diode arrays for industrial, medical and security applications. ProPhotonix is an AIM listed company registered in Delaware, USA and accordingly is not subject to the Takeover Code. Shareholders may be aware that ProPhotonix has subsequently announced the adoption of a rights agreement designed to discourage the purchase of further shares in the company without the approval of its board of directors."

[cjohn] 09/2/2017 10:09

Yes, Varies you're right, it's not clear that there are very close synergies between machine tools and laser marking. ((Having said that the sorts of capital goods company that need machine tools often need laser marking too.)) One or the other could be sold off to eliminate debt. However, the rump company would be very small-scale and central costs would weigh heavily. A sale of the machine tools business would have to be followed by an acquistion in laser marking. TYKMA management, as you're probably aware, have taken pre-emptive action agaisnt a SIXH takeover.

The machine tools business is back into the blue, but always requires a heavy load of working capital. One of the main aims of the restructuring has been to simplify supply chains and hence reduce inventory. This should allow cash to be released and debt to be brought down.

[riddlerone] 01/2/2017 12:30

Could it be that TYKMA and PPIX are the prize,would certainly make sense looking at the strong sales performance of both.

[varies] 01/2/2017 12:16

CJohn
I am glad to hear that you take a positive view and hope this share comes right soon at last.
I had a modest holding for years bought at over 50p but, like you, have bought a fair number at or below 10p recently. I have added more this week at about 12.80p.
I also have shares in PPIX.
The machine tool distribution business never seems to make much money. Perhaps the new management (if there is one) might sell this off and concentrate on laser marking. If so, PPIX would fit in better.

[cjohn] 01/2/2017 11:10

Hi Varies,

The main problem with SIXH is that they have built up high debt levels during re-structuring that has continued for several years (with at least two false starts.) It looks to me like they should be able to bring the debt down in the next half with a reduction in working capital and likely profitability. They could also sell off their stake in PPIX at some point, though PPIX shares are still undervalued in my view.

The reason I've bought (back) in heavily below 10p is that a close reading of the balance sheet and recent results suggests that they have actually added real equity over the last year and a half. This is in spite of restructuring costs and quite unfavourable market conditions.


There is obvious potential in view of the improved performance of particularly the laser división and hopeful signs in the machine tools división as well.

Disruptive's participation merely supports the above.

[riddlerone] 31/1/2017 07:12

Looks like we are not alone
hxxps://masterinvestor.co.uk/evil-diaries/not-happen-uk/?utm_source=Daily+Bulletin&utm_campaign=590f6b6616-MI_MR_20170130&utm_medium=email&utm_term=0_25eff0bb7f-590f6b6616-34911757

[riddlerone] 30/1/2017 19:19

varies,
Yes I think they have lots of options and by the looks of it deep pockets.

[varies] 30/1/2017 18:19

riddlerone
The same thought occurs to me and it will be very interesting to learn what Disruptive's plans for SIXH are.
We can at least now deal in the shares after Friday's virtual suspension and I have bought a few more at 12.7p.
Curiously enough I spent an hour on Friday morning trying to convince myself that the shares were worth buying at 10.25p and deciding that they were not ! Luckily I had bought a fair number at about 10p in the week before.
The arrival of Disruptive does change the picture. This share has been very sleepy with a 10% spread for some 12 months but I now see the company in a rosier light.

[riddlerone] 30/1/2017 13:01

So when this all shakes out you would think that Paul Dupee who is a Managing Partner at Haddeo will resign and Disruptive Capital will then have a seat on the board giving them representation.

[cjohn] 30/1/2017 11:09

It's also worth noting that Prophotonix have recently put out a very impressive trading update.

It's surprising that both SIXH's recent acquistions (28% in the case of PPIX) have actually proved a plus.

[cjohn] 28/1/2017 16:11

The tangible net asset value _ not including the pension surplus - is about 4 million sterling from memory.

Recent results have seen an increase in tangible equity - ie a real profit - but also debt. (About a million and a half of the equity is the value of the PPIX stake.)


The debt increase in the last results can be put down to working capital timings and exchange rate effects - ie drop in sterling contra dollar leading to an increase in the sterling value of dollar-denominated debt.

Wynmnck refers to the appraoch from PTG in 2007 - which was before present management took over. There were also extensive negotiations with a Chinese company some three years ago with the current management, which didn't lead to a bid.

I've been very happy to pick up shares in single figures here. The debt is a clear risk. It's worth noting that more than half is convertible at around 20p.

[coolen] 27/1/2017 16:23

Re the nav figure above, is there not a dilutive convertible traded on the Bahamas or Cayman Islands Exchange ?

[riddlerone] 27/1/2017 16:00

Heres the one i have
Year Ending Profit (m) EPS P/E PEG EPS Grth. Div Yield
31-Mar-17 1.95 1.87 5.2 0.5 +10.84% n/a 0.0%
31-Mar-18 2.24 2.14 4.6 0.3 +14.49% n/a 0.0%

[callumross] 27/1/2017 15:52

The interesting question is at what premium the shares were sold. Net assets are around 40p per share but that is not really helpful as much of this is the pension surplus. Taking this away, we are talking about 16p per share I think. Also as an earnings play, this one is dirt cheap. The only broker forecast I have seen (Farady or finncap?) was for £2.2m and 1.9 per share for the year soon ending so a P/E of around 6 even after the tick up this afternoon.

[riddlerone] 27/1/2017 15:47

Thanks wynmck,had a look.What a disastrous decision but does show you the value that Disruptive Capital can see

[wynmck] 27/1/2017 15:39

+ there was a good.. offer from PTG as far back as 2007 which was withdrawn as (the numpties) on board wouldn't allow them to do due diligence....the share price then was around 60p