Deltex Medical Share Discussion Threads

[nobbygnome] 30/4/2020 19:18

Cheetah a private company who have an inferior technolgy were taken over for the equivalent DEMG price of 10p. A big acquirer like Edwards would value the technology on a multiple of turnover because they know with a bit of marketing spend they could massively increase that turnover. DEMG have spent years building an evidence base which shows their technology works the best in the field. That has a big value to a company like Edwards. LID most definitely do not hav ethat evidence based and their market cap is well above DEMG at present. Oh and their technology is not proven to work in surgery....

DEMG is still cheap at this level. I was buying this afternoon when the price pulled back!

[t0pgrader] 30/4/2020 18:45

" cant get het up about P/E ratios" So you take no notice of underlying value and rely on exceptional events to drive your return? That's a losing strategy

[mrc2u] 30/4/2020 18:17

Good spotSales growth should smash this with a new monitor post CoVid but can't get het up about P/E ratios. This should be taken over for at least 10x sales - more given Cheetah as a benchmarkNeeds new Board & new advisers, new monitor and new marketing story. Results statement was low in energy and entrepreneurship: CoVid is a huge opportunity so would have liked evidence of a desire to really grab itI bought into this years ago when I felt DEMG were driving a new market. Still believe in the technology but not impressed by them acting passively, like minnows and being driven by eventsEasily remedied with new ambitious leadership: shame if that has to come from loudmouth American acquirers but I will take the money when it comesMrC

[euclid5] 30/4/2020 18:08

Thanks for the BN

Long term opportunity –

There remains a strong body of evidence that
Deltex’ technology is most effective in a broad range of treatment
conditions and that randomised trial results support an ongoing
acceptance of the technology within the industry. The improvement in
patient outcomes, limiting post-operative complications and aligning
with industry payers should support increasing demand over time.

Investment thesis and valuation

Increasing acceptance of the technology is inadvertently helped by accelerated use in COVID treatment which helps to highlight the technology’s advantages, providing a strong profile for Deltex’ business and a strong base for increasing demand moving forward as market conditions normalise. At current market cap and with a cash generative business, there is a good long-term equity story here. Buy.

[t0pgrader] 30/4/2020 16:44

According to Arden, Demg's P/E forecast is:

Y/E Dec 2020 P/E 100
Y/E Dec 2021 P/E 36

Only a takeover could sustain such a frothy share price

[mostro] 30/4/2020 16:21

Now down some % on buy 2 days back but hey ho!!
Made more on SNG so will not send Nobbygnome an invoice yet!

[tickboo] 30/4/2020 14:57

A poorly timed buy be me but hey am leaving it there even though I see good value here. 875,000 is my lot. A meagre holding so will ignore until RNSs are published.

[royalalbert] 30/4/2020 14:48

Their wanting 2p, NT above £3000. Crafty these mm's.

[nobbygnome] 30/4/2020 14:37

Just read post 364 from buywell. My God, not only is he duplicitous but also very thick. Gobsmacking. I don't think he understands the basic finances of a business.

Unpleasant and stupid sums him up.....

[jibba jabber] 30/4/2020 14:27

No one has any patience these days, all the sellers probs bought on Tuesday

[gbenson1] 30/4/2020 13:51

Come on mms sort your spread out. Currently 2.00 to sell and 2.039 to buy, how the hell are you supposed to log buys & sells?

[tickboo] 30/4/2020 12:03

Got another 125k

[royalalbert] 30/4/2020 11:17

Couldn't resist it more top up for me.

[tickboo] 30/4/2020 11:01

Ouch, my buys at 2.5 look bad but bought a fair fee sub 2 so holding firm and will leave the 750k alone. Not a trader but wish I traded others I hold like SNG and AVCT as I'd accumulate more shares if I knew how!

[gbenson1] 30/4/2020 08:41

Nobby there you go 2.30!,

[tickboo] 30/4/2020 08:07

They've cut more cost than the revenue has fallen hence they're generating cash so improved the balance sheet. I expect costs to be in-line this year and they expect sales to increase. Therefore I'd expect more cash being generated this year than last and a further strengthened balance sheet.I imagine once units have more TV D Systems in place more will follow as people do talk and word will get around. -- the Group posted an operating profit (excluding exceptional items) of GBP90,000 (2018: loss GBP943,000) - an improvement of GBP1 million-- positive adjusted EBITDA of GBP0.4 million (2018: loss GBP0.7 million)-- revenues GBP4.3 million (2018: GBP5.0 million), reflecting a focus on profitable business, lower sales & marketing spend and cessation of a third-party distribution agreement-- overheads (before exceptional costs) decreased by GBP1.3 million to GBP3.2 million (2018: GBP4.5 million)-- cash and cash equivalents at 31 December 2019 of GBP0.9 million (2018: GBP0.6 million)COVID-19-- demand increasing for Deltex Medical TrueVue Doppler systems in intensive care units in the UK and USA as a result of the COVID-19 pandemic

[schloo] 30/4/2020 07:55

DEMG has ALL the best and highest quality evidence re the massive surgery market and no other company can come close. The evidence is clear that patients managed with ODM avoid more complications than those on whom it is not used. The cost of ODM is paid back many times over in the hospital episode when it is used as well as in QALYs

After 30 years DEMG is now profitable and generating cash

DEMG's market cap has just recovered to around £12.5m. A direct competitor which was gushing out cash and treating the same number of patients at similar margins was recently bought for £170m, more than 13 times the DEMG market cap. DEMG's platform approach offers the same bioimpedance technology as well as the gold standard ODM and the entry level PPWA

Cheetah aside, big medtechs mostly only buy small medtechs once they are cash positive. DEMG is

CoVid is hammering home in the most brutal way possible that getting haemodynamics right at a time of crisis is a matter of life and death and DEMG has the only technology that actually and directly measures central blood flows

Brilliant technology at very low prices with a massive global crisis setting it up for a surge in sales as well as a takeover

Suggest you sit back, shut up and enjoy the ride

PS you really are very very thick, aren't you? If all the costs stay flat, to achieve a standstill in profits, you need, er, flat sales

[gbenson1] 30/4/2020 06:33

I wonder what today holds for DEMG, I was heartened yesterday that although circa 3.5 million share were sold the Sp held up quite well. The most important thing I took from it was that since the TP broker note the volume has increased considerably in the last 2 trading days and even more interestingly that the BOD didn't issue an RNS to say they didn't know why the Sp has reacted in this way or to deny any interest/potential takeover contained in the broker note on Tuesday. I've been holding these shares since day 1 and these are interesting times for DEMG.

[buywell3] 30/4/2020 02:43

To anyone with an open mind the picture tells the story here




The reason that DEMG have managed to turn a tiny profit this time is because they have slashed costs by reducing staff.

Turnover if you look has dropped year on year for quite sometime now

As has DEMG market share in the NHS , which IMO is why they talk about USA and other sales outside the UK

France was pushed as being hot potatoes on the other thread a year or two back , a game changer

Now it seems to be a damp squib

If you do the maths on monies saved by slashing staff at the expense of turnover

An open mind might surmise that this can only be done once

Do the maths and see with current spend and without any further staff reduction/cost savings , assuming things stay flat in other words regarding outgoings , the question is:

How much must sales improve from these latest results to achieve a standstill in profits just announced ?


Come on schloo answer that one


IMO dyor

[bmnsa] 29/4/2020 21:44

Disappointing share price reaction today,hoping for better tomorrow.

[parsons4] 29/4/2020 12:42

Sold one third of my holding this morning as the value became too high. Happy to run the rest though. GLA

[bmnsa] 29/4/2020 10:36

CNR permit news through today,food for thought for au lovers.

[nobbygnome] 29/4/2020 09:45

Yes there is a healthy market here now. TP's note put a cat amongst the pigeons and I am sure there is some substance to their takeover claims but there are bound to be some stale bulls.

[tarny] 29/4/2020 09:41

It looks like a few got spiked here. You could tell from the trades yesterday with the dumping of 250k, 200k chunks that the long term shareholders got a chance to get out IMHO