Deltex Medical Share Discussion Threads

[buywell3] 22/8/2019 10:50

RNS 10:45

More shares issued today and more to come

514,868,109 shares now , how many more options ?

Then there are the loan notes to think about which does not get talked about on the rampers only thread

[doglover2003] 21/8/2019 20:18

I suspect that the profitability will be insufficient to suggest the possibility of a dividend. Therefore, I don't see why there would be a market re-rating.

However, I hope you are right.

The profitable base really presents a platform based on which the company can go forward without the necessity of further funding. Good news-flow suggesting future additional orders would then look more encouraging of a re-rating.

That seems to be where we are at present and today's drift in the share price suggests impatience in some quarters.

[nobbygnome] 21/8/2019 15:22

Slow organic growth by a profitable company. Yes nothing will happen quickly but when this starts to become clear in the second half , the market will realise DEMG are fundamentally undervalued at less than 2xs sales.

[doglover2003] 21/8/2019 14:35

Nobby

Even if that is true, that does not alter the fact that there are willing purchasers of the technology and there is margin generated.

There is value in LID which could be put to good use and the saving s in overheads would be significant.

Otherwise the hard slog continues with the consequent market apathy.

We need some magic,.

Where else will it come from?

[janatha] 21/8/2019 10:50

SP bit in doldrums.

[nobbygnome] 20/8/2019 14:42

The only reason DEMG would take over LID is to remove the technology from the market. Don't forget that their machine can also do the PPW measurement now. What is the point of having a technology on the market which on its own doesn't work. Probably not a bad strategy to take it over and bin it but it's not going to happen.

[doglover2003] 20/8/2019 14:35

I thought I would add a viewpoint which seems to lack currency at present.

It is blindingly obvious that a merger between LID and DEMG would be in both companies interests with significant synergy possible. Cost saving on marketing alone would provide scope for a modest dividend or a more focused effort to secure growth.

Alternatively, they can struggle on independently with no clear exit strategy.

I made this point to Ewan on several occasions and he countered that the difference in share prices was a barrier.

Any thoghts?

[yump] 20/8/2019 12:12

Given that the idea of the products here is to sell them profitably and that demand clearly hasn't just increased over xx years, despite plenty of effort from DEMG, I don't see why anyone would want to buy DEMG and pump a load of marketing money into it. It makes no business sense. If it can only be profitable at EBITDA level by cutting back on marketing spend, then its not a scalable business. It doesn't matter who is running it.

As to getting a bit of my investment back at a somewhat increased share price because it gets bought - now that's a different matter.

Re: LID
Investment roadshows, capital markets days, etc. etc.
Never needed by a company that is growing nicely.

Lets face it they are not designed to make pi's money. Its PR, simple as that.

[mrc2u] 20/8/2019 11:50

At least it looks like LID are pushing their story - always good to see companies wanting to tell their story and DEMG should be doing this with their (better) story. Not to mention that DEMG need to get value from their 2 brokers and 5 non-execsHowever, capital markets day between trading update and interims does smell strongly like prep for a fundraise, doesn't it? To be announced with interims perhapsMrC

[arf dysg] 20/8/2019 11:41

Oh, look, LID is holding a "Capital Markets Day" to distract investors from their continuing grief over LID's non-profit status.

"Dr Frederic Michard, MD, PhD, Visionary critical care Doctor"

Wow! They describe him as "Visionary" ! I am in awe.


In the actual results (surely a mere footnote to the Capital Markets Day), they say that they have the "objective of creating a profitable business".

Investors will be impressed at that.

[nobbygnome] 20/8/2019 07:20

I see there is another poor trading statement over at LID. Sales down and cash burn still high. It seems that indeed a placing is imminent IMHO.

The contrast with profitable DEMG could not be starker.....

[gbenson1] 14/8/2019 15:57

Nice large buy trade, wonder if it was from across the pond? I think the Vizient tie up is starting to pay dividends, hopefully a few more large buys to come, nice to see that trade wasn't delayed & reported to the market as it happened..

[gnnmartin] 14/8/2019 15:55

I think the 1.35M buy was filled over time. I don't have access to historic spreads, but I guess that while the 1.35m buy was being filled, the spread was narrow. Once the MM has got all the share needed to fill the 1.35m order, they drop the bid price back to a level appropriate to a thinly traded stock.

[mrc2u] 14/8/2019 15:21

Bit surprised that these are down with a nice big 1,350,000 buy at full offer priceSilly season?MrC

[nobbygnome] 10/8/2019 10:23

Yes the inevitable is happening, DEMG is slowly increasing in value and LID is reducing in value. How LID can possibly have a market cap higher than DEMG is a complete mystery. After all PPW has been proven not to work in surgery whereas numerous clinical trials have shown the benefit of ODM. Plus DEMG is now a sustainable profitable company whereas LID is burning cash hand over fist. Placing ahoy at LID without a doubt!

[buywell3] 09/8/2019 12:38

Jam this year

Honey the year after

nor dry bread and water like you loss making paupers




yes 1.7M cash left and NO DEBT


How much have DEMG got ?



Whilst I am at it , many posters have had a pop at LiDCO regarding the use of Lithium


LiDCO was developed by the NHS at St Thomas's Hospital , the NHS chose Lithium to be used .


''With further development, we hope that lithium dilution may prove to be an accurate method of measuring cardiac output, while avoiding the hazards associated with pulmonary artery catheters. It would allow measurements to be made within a few minutes in patients in whom central venous and arterial catheters are in place, without exposing them to any further risk. (The sensor is the subject of patent applications held by Monitoring Technology Ltd, United Medical and Dental School, St Thomas's Hospital, London SE1 7EH.)''





'Lithium is a naturally occurring alkali metal, which living organisms ingest from dietary sources and which is also present in trace amounts in the human body. In much higher concentrations, lithium is effective as a medication for mania and mood swings including manic depressive disorders.'



I suggest you DEMG rampers try it

[mrc2u] 09/8/2019 12:27

LID slipping down, ByeByeWell having kittens, although he probably thinks they are fully grown tigers

[mrc2u] 09/8/2019 12:25

So it's jam tomorrow for LID?1.5m cash consumed, 1.7m left at end January. Over 6 months gone. Fundraise coming. The only question is the size of discountDEMG is in the enviable position of having been there, done that and now cash positive, profitable and worth at least twice current market valueByeBye ByeByeWell

[buywell3] 09/8/2019 12:00

You do not understand the way LiDCO High Usage Plan (HUP) recurring revenue model works, like the rest of the market.


Watch how from now revenue ramps up , as each year of the HUP contract a payment is made to LiDCO


For example on a 5yr HUP USA Hospital contract their will be 5 HUP payments made , one each year.


LiDCO are in profit on their HUP deals after the first payment is made - the rest is gravy.

LiDCO started selling US HUP contracts of 3 to 5 yr durations around 2 years ago
Another way of trying to explain this to numbnuts here is to say this:


First year , USA Clients pay LiDCO a total of HUP deals = $A (LiDCO in profit)
Second year, New USA clients pay LiDCO $B for new HUP deals = $A + $B
Third year , New USA clients pay LiDCO $C for new HUP deals = $A + $B + $C


etc etc etc


So 6 years down the line we have = $A + $B + $C + $D + $E + $F

Get it now ?


Hence you will see recurring revenues from the USA RAMP UP as of NOW



Plus the same thing is happening in the NHS where the bigger Hospitals are changing over increasingly to HUP contracts , hence same thing as for HUP USA deals now happening in the UK NHS as this is year number two when NHS Hospitals are opting for HUP.


Circa 20% plus of UK NHS will be on long term High Usage Plans (HUP) this year


Don't forget HUP allows a Hospital to have all the monitors they require provided together with free consumables plus software as a service (SaaS) free so that monitor upgrades are also provided free of charge, plus they allow the Hospital to treat as many patients as the wish .



This was the reason that the:

USA NUMBER ONE rated CANCER TREATMENT Hospital , out of the USA TOP 10 LIST


Changed to LiDCO from Edwardslifesciences in the first year of the LiDCO sales team selling HUP into the US

[nobbygnome] 09/8/2019 10:09

Only 151k on offer at the full ask whereas they are bidding up for lots of stock at 1.665 and 1.655. Any buying will lead to another tick up...

[mrc2u] 09/8/2019 08:37

LID clearly needs to do something. Cash at year end of £1.7m having consumed £1.5m in the year. Flat sales in US and falling everywhere else. Max of 5 or 6 months until cash runs out. Newsflow suggests H1 trading update will sound promising so they would be mad not to fill up the coffers at whatever price they can getAs ever, LID are following DEMG so one more fundraise, a bit more pushing the elephant up the hill and then the reality of cost cutting to get to cash positive. It could be a two year short

[nobbygnome] 09/8/2019 07:18

Also interesting to read about a potential fund raising at LID. I guess it was inevitable when you have a technology which doesn't work and yet the company is still trying to expand beyond it's capability. I expect there will be a rush for the exit this morning. I might even try to take out a short if Spreadex will let me.

[nobbygnome] 09/8/2019 07:06

>> mrC2u

I completely agree about the timing. Now is the perfect opportunity to sell the company. A big acquirer would expect to increase sales massively with more sales reps and marketing and better product development, which as you say DEMG will not be able to do.

Your point about the multiples of sales is also a good one but unless they can get the price up PDQ I can't see an acquirer offering a massive premium over the current price. Of course if it is a competitive situation then who knows.

However, this is all probably a vain hope....but you never know.

[mrc2u] 08/8/2019 15:28

BigTThey should sell as the position is about to get as good as it ever will be to sell - cash positive, profitable and with a bit of growthThe alternative requires huge amounts of capital to roll out next generation monitor and rebuild sales teams but reality is that the fluid management story needs fresh faces and a huge huge huge marketing budget which DEMG will never haveGetting out at 4x last fundraise or higher would be a job respectably doneNb CEO and chairman have both been with company for over 30 years so it does seem unlikely they haven't tried their best ideas yetMrC