Deltex Medical Share Discussion Threads

[bigt20] 16/10/2019 17:19

To think I was offered £7 per share about a year or so ago......

[arf dysg] 16/10/2019 15:48

TrentEndBoy, which of buywell's many personas are you talking to?

[schloo] 16/10/2019 13:50

>>gumption

Ha ha ha - no!

Always open to offers, mind, but doubt they would want to make me one

schloo

[gumption] 16/10/2019 12:52

Gosh Shloo - are you on DMG payroll? You sound like you should be!

[janatha] 16/10/2019 11:10

mrC2U

Agreed.

schloo

Thanks for that.

[mrc2u] 16/10/2019 11:06

Indeed - value isn't going to go up much more and is already miles ahead of price so they need to focus on getting price closer to value pdq whole getting on with saleThis seems much more ready for a big company than Cheetah wasMrArf

[trentendboy] 16/10/2019 10:49

Buywell - that is funny.Took them to where there are now lolOn the verge of going bust - funny

[rafboy] 16/10/2019 10:17

Excellent post schloo and very informative. I look forward to developments.

[schloo] 16/10/2019 09:54

Just wanted to make a few observations about the grant award announcement the other day, which was excellent news

1. the way these grants work is that the company submits total project costs which include its own fixed and variable costs. So although they 'only' get 70% back, this involves a significant contribution to costs which would otherwise have been funded out of operating cash flow (which is, anyway, positive!)

2. DEMG has already spent over £2m on its next monitor platform: £1.4m on the box plus £0.2m on the suprasternal plus £0.2m on the velocity pressure loops display plus £0.3m on adding the impedance cardiography modality (that Baxter now have after $230m acquisition of Cheetah). This grant means that the next generation monitor will be available even sooner

3. Once DEMG has a new shiny, multi-modal box, it will be able to once again have a revenue stream from capital sales which is where it has been losing out to competitors in the last few years. Crucially its box will be highly competitive because it will offer the same modality as Edwards and Lidco, only better, the same modality as Cheetah, only better as well as the oesophageal and supra sternal Doppler ultrasound modalities which are unique to the Company and come with all the best evidence in the area

4. This next generation box is truly a big company device with which it will be possible to become the sole supplier of haemodynamic monitoring equipment across whole hospitals. As it includes best in class versions of all the main modalities, it should have at least a three to five year window in which to gain a substantial market share

5. There is very little development risk left in this new box because most of the work has been dine already, the rest is now well funded and all the difficult bits of adding in the PPWA and impedance technologies has already been done, approved by regulatory bodies and are is use in major arcounts, albeit with the current 20 year old box

To sum up: this announcement makes a take-over by a major both more likely and more imminent

[schloo] 16/10/2019 09:33

I have it on very good authority that the 2m sale last week was not of any option shares and that at no stage have any recent option exercises created an overhang. We should also see another option exercise, meaning more cash for company, before long and this will also not create an overhang

If you read the accounts properly, you would see that the only outstanding options these exercises could possibly relate to, arose because the last CEO agreed to settle an amount of close to £150,000 owing to him re historic bonuses by taking options at a premium of over 1p per share - an effective premium of over 400% to the then market price

It would, of course, be good to see a similar level of confidence in the company from the remaining directors!

[arf dysg] 15/10/2019 22:47

mrC2u, far be it from me to accuse you of taking the Michael, but some would suspect you of 'avin a giraffe.

[arf dysg] 15/10/2019 22:42

Nobbygnome, that was an interesting phrase. Now who was it who kept saying "none so blind as those who won't see" ..? Was it our acquaintance Crywell? Maybe it was his friend Trent Bell End.

[mrc2u] 15/10/2019 21:16

Well said, Arf, well saidMrC2Dysg is, bizarrely, my real name but these days it'sMrC2U

[nobbygnome] 15/10/2019 20:50

I think DJ's glass is half empty.... A cash flow negative competitor with an inferior product was taken over at about ten times turnover (from memory). Yet he doesn't see the potential here..... None as blind as those that can't see....

[arf dysg] 15/10/2019 20:21

DJ Trading, do try not to confuse me with mrC2u.

One symptom you might find useful is that my name starts with Arf and ends with Dysg, while mrC2u's name doesn't.

[mrc2u] 15/10/2019 19:10

Look at cash flow from operating activities lineH1 last year was 0.9 negative. H2 last year was 0.2 positive and H1 this year was 0.1 positive. That's 0.3 positive in last 12 months. These are all before working capital movements (also interest & capitalised costs and R&D tax credit which net totaled less than 0.3m last year). Very hard to see how they won't throw off cash in H2 this year: it's always stronger, costs are lower and now they have grants against R&D and we know they had a great start to H2Just saying these are cheap. Cheetah were bleeding cash when got bought for $230,000,000MrC

[dj trading] 15/10/2019 17:51

Nobby -
Agree that they might be cash positive in 2H if you include one off contract canc receipt of circa £0.2m and any grant income that falls into 2H.

Personally I don't think they will be cash positive for the whole year on an "other working cap adjusted basis" and certainly not if one off receipts excluded.

Anyway we will find out in April - or January if we can unravel the TS - but that isn't usually possible!

I hope they can turn this around but appears a little late after 20+years of trying

[nobbygnome] 15/10/2019 17:30

Anyway because there is always significantly more turnover in the second half plus we know there were good sales in July, cash flow positivity for the whole year is a given IMHO.

[mrc2u] 15/10/2019 17:28

GarbageEmployees & ex-employees pay income tax on exercise and CGT on any gain between exercise and sale. True newsAs I recall your cash positive argument was dealt with at the time and that was before news of grants which will only help moreMrC

[dj trading] 15/10/2019 17:04

MrC aka Arf
Who said anything about raising cash imminently - try reading before getting so excited. DJT above "Although with grants and canc contract cash receipts I'm not expecting a fundraising in the next 6 months possibly 12?"

As for options - No tax payable until sold and then it's CGT not income tax!
So in answer to your question above Yes - Clearly it is You that doesn't have any idea how options work. I assume the person or persons that exercised options 2*1.25m in Sept was/were expecting them to go up.

As for cashflow positive that you and Nobby keep saying - care to explain. Here is my post from 1H results day

"Cash gen of £20k/month in 1H mainly attributable to other movements in working capital ....... "beneficial move of other working cap items - stock/debtors and creditors of £61k/month" so an adjusted monthly burn of around £40k/month"
dyor

[mrc2u] 15/10/2019 16:28

>>DJGarbageWhy would an ex-employee exercise options for 1.00p plus 47% tax and then wait a while to dump them all at once for a loss? Do you have any idea how options work?Why would a cash positive company that has just announced a good chunk of non dilutive grant cash choose to raise more cash it doesn't need at a fraction of its value?You should be more careful not to confuse analysis with making stuff upMrC

[arf dysg] 15/10/2019 15:14

buywell, are you perhaps the evil twin of



[posting discontinued as I am losing the will to live]

[arf dysg] 15/10/2019 15:09

By the way......


This has always been a jam-tomorrow company. But this is going to change, because tomorrow, my friends, we will have Jam!

[nobbygnome] 15/10/2019 14:05

They are cash flow positive and the growth will come mainly from the US. It will be nothing stellar but slow steady growth. The CEO had assured me there won’t be further fund raisings.

[gbenson1] 15/10/2019 13:41

You're assumptions are laughable!!