Batm Advanced Communicat... Share Discussion Threads

[kooba] 30/8/2023 07:51

Resistance thanks for pointing out the IC piece..this stock has been a struggle for Mr Thompson but take his view that as time goes by the chances of recovery or traction get better.He has..Net cash of $36.3mn (6.6p)Whereas the company hasCash and short-term investments including investments in deposits and other securities at 30 June 2023 were $41.9m (31 December 2022: $44.2m).Seems to be taking the cash net of leases that he has got from Shore..not sure that is the normal way of approaching cash?

[resistance1] 29/8/2023 21:42

Simon Thompson in his Investors Chronicle article published today rates BATM as a BUY up from a hold in his last report. Great news hopefully will trigger some buying tomorrow.

[fse] 29/8/2023 17:05

This is the reported situation with the consumer tech scene from Best Buy in the US.
Whilst this is at the consumer level it does nevertheless have an impact across the board.

Best Buy:“With that said, we continue to expect that this year will be the low point in tech demand after two years of sales declines,”

I think it's important to understand the backdrop of negativity and restraint with the markets. Also investors can get their 5% and sit on the sidelines.

The MDX product has indeed been in development for some time it is actually very significant as it targets smaller clinics. These clinics are expected to take the weight off the hospitals. It's a very meaningful development.

Added Link to full H1 results

[kooba] 29/8/2023 15:56

Do they have undrawn loan facilities? How much for ? And why would they be paying interest equivalent to almost as much as the $42m cash held in undrawn facility fees if they don't need them ..it's easy going could be the could be that ,could be holding long term govt debt could be facility fees..but without knowing thats just guessing at things that really should be better explained by the company.

[fse] 29/8/2023 15:53

The company looks very much on course to me with a few notables.
Margins are attractive which is always a worry for companies with products in the developmental stage also they have not drawn down significantly on cash which would be required to increase their marketing and sales presence.
They are running higher inventory counts which is to be expected due to increased sales and demand. Having the cash to be able to do this is very advantageous.

I would like to know what the numbers are for straight Edgility business. We know carrier ethernet is robust at the moment.
In spite of the buzz around Edge computing and its effect on just about every sector of the economy this is a platform that is just starting to be introduced and implemented in real time.
This is a huge emerging market and Telco systems and Edgility are well placed and should win a decent slice of this.
That looks well in hand albeit revenue is still a trickle at this stage which is frustrating. As explained many times this is a cumulative revenue source and it's a new separate source of revenue.
I noted the reference to business with Advantech that sell Edgility enabled devices.
Apparently there is some traction there and thats a very positive indicator.


I am not certain what the reference to the MDX diagnostics entails. I think this is a previously developed but now enhanced version. maybe someone followed this.

Biggest problem here is Valuation which is a curse for a handful of tech companies in this climate.
A lot if not most companies in H1 2023 have reported lacklustre results. BATM have registered modest gains and have seen revenue from new areas start to trickle in.

[tradeterminator01] 29/8/2023 15:37

The point of yours I reference: ‘Then we have Finance income $u788k Finance expenses $u678k’

[tradeterminator01] 29/8/2023 15:37

I know Kooba your trying to be a ‘forensic accountant’ looking to highlight anything that you feel isn’t right. But at the same time you need to substantiate your queries with comparables to validate your arguments. Otherwise they are just decoy chaff. You ask why are finance costs nearly the same as interest earned? There can be many reasons for this, one being for example large facility fees (not drawn) etc etc.

[kooba] 29/8/2023 14:49

Experience.

[bigjon1] 29/8/2023 14:40

Hey Kooba, Moti is only three months’ post his strategic review. Companies who start on a rebuilding journey take quite a long time – often 3-5 years of turn around. Those companies do not see any growth or cash inflows for a significant period. I think BATM have to be congratulated for the way the business has performed and this is borne by the numbers today and have nothing to do with wearing rose tinted glasses. To throw a cliché back at you, why is your glass always half empty?

[kooba] 29/8/2023 14:34

Don't criticise posts if you don't read them..this is Batm breakdown..so very little in securities..so your point is not correct."Anyway back to interest rates.$u 33.7m in cash and cash equivalent$u 8.175m in short term investment in deposits and other securities."

[echoridge] 29/8/2023 14:21

And I know I've mentioned it already as well, but again, you seemed to have ignored me, but any amount of their cash balance that BATM have put into securities, bonds, etc., would not be impacted by these higher rates, at least insofar as allowing the Company to book more 'interest income'.

[echoridge] 29/8/2023 14:14

kooba - I am genuinely too busy these days to engage in another knock down, drag out battle with you, especially on (ok, relatively) minor points like your 'interest income' 'issue'. Someone else has already made what would have been my further point on the subject, which is that it just isn't a 'thing', as regards a company with offices and bank accounts around the world and bank deposit rates which clearly trail significantly the relevant discount rates in those various jurisdictions. What's I feel is far, far more relevant is that this company is investing in and demonstrating growth in all its important businesses on IMPROVING margins and thus has seen net cash INFLOWS over a half year where, as I've written 3 times now, I feared we would see a significant (though completely understandable) drawdown on cash. This is a significant milestone and I believe - and I think the market will slowly come 'round to this as well - it sets us for a better than 50% chance of an upgrade to full year figures as expected H2 orders get closed. Management will be in London seeing institutions, existing and potential, next week so let's see what kind of message they bring.

[kooba] 29/8/2023 14:11

Read Money Men by Dan McCrum over the holidays ..it hasn't helped my questioning nature and being aware of red flags. Highly recommended read though.Anyway back to interest rates.$u 33.7m in cash and cash equivalent$u 8.175m in short term investment in deposits and other securities.So lions share will be on overnight if they are remotely competent.Then we have Finance income $u788k Finance expenses $u678kWhere does the company need to be borrowing money and why is the interest cost almost the same as the interest on over $u 40m ?Its just that the finance income from the cash is actually more than the operating profit of the whole company so is quite material.Sure theres a good reason

[kooba] 29/8/2023 13:50

Echo i see you mentioned my point on interest rates on the other thread..Anyway for a company where 40% of the market cap is represented by cash and interest rates have had such a dramatic move i don't think commenting on what should be a big positive for companies in such a position is weird...what is weird is why they don't seem to be benefiting.https://tradingeconomics.com/united-states/repo-rateIf you have a breakdown of their fixed interest and deposit positions and currencies to support your views it would help.However what is a weird thing is that the company took a cash hit when the $us rallied on their cash holdings in local currencies last year but didn't get anything back on translation when the $us fell back again.Has this disguised a larger cash draw on translation?https://www.tradingview.com/symbols/TVC-DXY/

[kemche] 29/8/2023 13:35

Even a lowly SME puts its money into an overnight money market account. Larger companies have a dedicated treasury department for the efficient investment of surplus cash.

But I am probably wrong.

[kooba] 29/8/2023 13:35

ADORs product is Natlab .MDXlab looks to be an Adaltis product launch judging by the description. "In particular, the Group is preparing to launch the MDXlab, a new molecular diagnostics instrument based on the real-time PCR method. MDXlab is a fully integrated sample-to-answer nucleic acid detection system. Most of today's laboratories will either have two instruments to undertake the different steps within the PCR process or they will have a large integrated instrument, which is not suitable for small- to medium-sized laboratories or point-of-care. MDXlab is designed to overcome these limitations by offering an integrated, compact, cost-effective solution."Though doesn't seem to feature on their site!https://www.adaltis.net/products/molecular-diagnostic-instruments/

[resistance1] 29/8/2023 12:59

Video worth watching, Moti provides more info on Edgility progress, and the many new pilots underway. Also how Ador's new MDXLab product about to be launched will provide a significant hike to next years revenues.

[kooba] 29/8/2023 12:54

Well Echo tell me what is different with this than for the last decade!! "Renewed its strategic vision.."Those predicting any near term refocusing may be disappointed as it appears nothing is changing to me.As to structure..it is something you have criticised yourself many times...Strategy UpdateDuring the first half of the year, an in-depth process was undertaken to assess the Group's business, strategy and markets. Through this exercise, BATM renewed its strategic vision as a global enterprise that intends to maximise its top assets while providing high-quality solutions in growing markets with innovative technology backed by strong IP and unique know-how. Accordingly, the Networking, Cyber and Diagnostic lines of business have been established as the Group's core areas of activity and prioritised for resource allocation. Over time, the Group may add capability through M&A to these core businesses, and divest other business units where the Group can secure attractive terms. In the near term, the Distribution and Eco-Med business lines will be maintained, with the Group continuing to pursue growth in those areas as appropriate.

[echoridge] 29/8/2023 12:34

you don't have to price in any bullish narrative. They're investing in growth - sales and marketing - and yet their net cash hardly fell. that means they're seeing positive cash inflows, and Moti confirmed this in the video. I know you have the shore cap report, kooba, and I know you know how circumspect the analyst there has been for a long time now, so you must be even more conscious of how bullish he's becoming as well. Otherwise, its just plain unfair to assert that '...they seem to want to stick with the existing messy structure...'. Where the heck does that come from?? They had nothing to say on acquisitions/disposals yet, so they said nothing, but the reorg set out in the annual report and re-iterated in the Capital Markets Day continues as far as anyone close to the company is concerned. To assert the exact opposite is just plain unfair.

[kooba] 29/8/2023 12:17

I would counter that most on here have very rose tinted glasses and always try to find positives in the disappointing performance this company produces.We are trading from an extremely low base after 3/4 revenue/ profit warnings over the past 18 months , i thought they had kitchen sinked the expectation ( to help Moti going forward) so they could start to boost confidence ..instead we are trading in line with the very modest expectation that we got down to and i thought nothing in todays numbers surprised at all on the upside.The company will not regain a growth rating with a performance like this and the very slow uptake of the much vaunted new technology gives little glimpse of what they continue to promise.Apologies if i focus on the actual numbers and not the always optimistic narrative...i have unfortunately like many in the market ( judging by the share price ) given up on pricing in their bullish outlook realising it never happens..they need to deliver revenue growth not just talk about it.

[paulisi] 29/8/2023 11:41

On twitter:Our CEO, Moti Nagar, discusses our strong performance in our results for the first half of 2023. youtube.com/watch?v=los_cO...

[resistance1] 29/8/2023 10:57

I always welcome your critique Kooba, but in these cases you seem to be looking through a very negative and somewhat distorted lens. A SWOT analysis that only focuses on the W+T, and therefore not balanced.

[kooba] 29/8/2023 10:36

We might want to consider BVC revenue "growth" relative to global inflation too !After significant downward revisions in guidance on multiple occasions over the past 18 months the latest results really do no evidence that the company is back on anything like a growth trend that demonstrates that the company's strategy in building commercial revenues on the back of their now rolled out "disruptive new technology" is getting traction in any way.Strategically they seem to want to stick with the existing messy structure that lacks any real transparency that has been created over decades. No new broom just more of the same ..confidence growing order book etc etc rinse and repeat.

[kooba] 29/8/2023 10:27

Can't give an off the cuff example but we know the company kept cash in local currencies such as euro and £ as they wrote over $5m dollars off last year as the us$ surged and it cost them on translation to us$ accounts...see last year interims.https://www.batm.com/media/1525/batm-h1-2022-results-presentation.pdfI note much of that us$ surge has now unwound against most major currencies..but we don't appear to have got that FX loss back...so perhaps switched into us$ now!?Whatever currency held interest rates have jumped sharply.So whether euro , £ or us$ the interest received from deposits and financial instruments should have jumped sharply..unless they are locked into long term fixed interest...which would be another mistake.Getting net $100k interest with $42m in cash and equivalents doesn't seem right. Unless they have very expense debt facilities sitting against sitting alongside lower yielding cash..but why would you?