Deltex Medical Share Discussion Threads

[bigt20] 30/7/2019 10:41

No to a dividend at the moment, have a cash reserve and then use any remaining cash to grow profitably. Share buyback / dividend can come into play much much later.

[nobbygnome] 30/7/2019 08:51

1.53 to buy so the 100k was a buy. I am also tempted although I did buy 250k yesterday. Hmmmm

[parsons4] 30/7/2019 08:49

This is beginning to look very good. I have moved them from my "dodgy list" to my "ones to keep tucked away list" GLA

[janatha] 30/7/2019 08:48

Strangely subdued reaction. Should be shooting up through 2p. I bought in around 1.1p hoping for just this sort of results so am happy with the management. Will in time be reflected in the share price Sorely tempted to top up some more.

[nobbygnome] 30/7/2019 08:15

>> sidam

Good to hear from you.

They will be generating so much cash going forward I am beginning to wonder what they will do with it. Maybe a dividend could be a possibility? That would reward long term shareholders like us.

[sidam] 30/7/2019 08:06

It seems to me that the group appears to have generated £700k of cash in last 12 months. (300k in H1 plus 400k in last years H2) The slippage in sales from June to July would have no effect on cash generation as these would have not be paid for by period end. However, if this is the base level of current cash generation, the shares must be at least very good value.

[nobbygnome] 30/7/2019 07:21

So we now have a sustainably cash generative business. And it appears the second half will be even better with the big orders already received and the fact that the second half is always better. The growth is coming.....

Ridiculously undervalued.....IMHO

[mrc2u] 29/7/2019 10:02

Thanks, Nobby. Any clues why it's so late?MrC

[janatha] 29/7/2019 09:11

Cheers, Nobby.

[nobbygnome] 29/7/2019 08:25

The company is planning on releasing the trading update tomorrow morning.....

[schloo] 24/7/2019 13:40

Thanks Nobby

That's what I expect as well: have bought some more and aiming to pick a few more up

A big, clear positive statement on cash will confirm they are in a good place

BTW did you have any views on my take on the Vizient news? I think it will really help a solid return to growth in second half, but you may have a more recent view

[nobbygnome] 24/7/2019 13:26

I can confirm there will be a trading statement in the next week or so. For the record from previous discussions turnover will probably be slightly down but will pick up in the second half. Overall cash positivity for the first half will be the big news which should move the market!

[schloo] 24/7/2019 09:22

Janatha

Sniff of a little bit of buying this morning too

[buywell3] 24/7/2019 08:54

23rd July More Options and hence yet more shares


Application has been made for the 1,350,000 new Ordinary Shares to be admitted to trading on AIM ("Admission"), and dealings are expected to commence on 29 July 2019. The new Ordinary Shares will rank pari passu with the Company's existing Ordinary Shares.

The total number of ordinary shares in issue following Admission will be 513,618,109.



Don't forget the above does not include shares associated with the loan notes , which continue to grow as the price has been dropped.

dyor

[janatha] 24/7/2019 08:51

Shloo

Good point about them all going on holiday suggests they are pretty chilled. Agree with you trading statement will come out by end of month.

[schloo] 23/7/2019 15:22

Vizient is a very big US GPO (Group Purchasing Organisation). GPOs work for lots of hospitals to combine and maximise their purchasing power. They put products 'on contract' which means that their members can buy the products at lower prices than they would be able to direct from manufacturers and with substantially reduced bureaucracy

Good news for Deltex as it makes it much easier for lots of hospitals to buy their equipment

Also good news for Deltex as they have got into the innovation strand which means Vizient will be giving ODM lots of airtime

Further good news for Deltex that, as always, its evidence base has been assessed independently and found to cut the mustard

Getting on to a GPO contract is a major step for medical device businesses in the US and will be of interest to big potential partners/acquirers as it speeds up the national roll-out as well as reducing the cost

For a company like Deltex that has been selling in the US for some time already, it can be very difficult to justify getting on to GPO commercially as they want you to match or beat your lowest customer pricing. As they have said consistently that they have been working to increase US prices across the board, this is a very promising development as they won't have done it without having first completed the margin improvement and protection efforts

The market price of a similar size US medtech company would have leapt on this news: a major rite of passage and a big step closer to an exit

[arf dysg] 23/7/2019 14:56

The announcement on the 2nd of July was about a technology contract from Vizient.

Does anyone know any more about it? It arrived via RNSNON which (I think) is RNS non-regulatory, meaning that legally they didn't need to announce it.

The only clue about how this benefits Deltex is in Andy Mears's closing words:
"this new contract will provide Deltex Medical with increased visibility and easier access to technology for Vizient hospital members, which will help us expand our pipeline and US customer base."

[schloo] 23/7/2019 14:26

Suspect there will be a trading update in the next week. AIM companies need to get interims out within 90 days which is end of September and are in a close period for 60 days before that so need to do it soon or not at all, which really would be a shot to the foot

Would hope to see:

1. comfortably cash positive over first half
2. confirmation that they expect to be EBITDA positive for whole year
3. warm noises about getting back into growth in second half

That should be more than enough to get this back over 2.0p and stay there

Doubt there will be anything unexpected if they all felt it was OK to head off on holidays at the same time

[buywell2] 23/7/2019 14:05

DEMG chart not looking so hot today

LiDCO however as 60% NHS provider to the NHS should be able to offer more HUP deals to the NHS after the recent DOUBLING of Sepsis cases in the last 3 years and the shocking death rate associated with Sepsis.

buywell has posted on the LID thread regarding the clinical data which resulted in a USA Hospital 'A THOUGHT LEADER' in Sepsis treatment ... switching to LiDCO from their old supplier ... on a 5 YEAR HUP CONTRACT

More NHS Trusts to follow the USA lead IMO

[gumption] 23/7/2019 13:30

I wouldn’t hold your breath for a trading update - on contacting the company last week CEO, CFO and Chair were all on holiday and unavailable...

[mrc2u] 23/7/2019 12:33

Exercise in anticipation of a trading update which must be any day now?These could go up quite quickly if the cash is good which it should beMrC

[gbenson1] 23/7/2019 11:37

Presuming the options were for Ewan ex CEO? Well at least it £13500 in the accounts, wondering if the 250-500k buy person is on a beach somewhere!!