Ekf Diagnostics Share Discussion Threads

[p1nkfish] 17/6/2022 10:19

Bound to be a wash-out sometime but given the recent bounce and fall, and the total fall so far, we might have seen it. If it goes lower will be watching the volume as if it drifts very low on low volume its just lack of interest not a rush for the door.

It needs a catalyst and if that's via the results we drift for 12-18 months imho. Good for patient investors looking to add on drifts downwards and adding carefully not to push the price.

[tongosti] 17/6/2022 10:14

It's only 24 hours - if you catch my drift - but wish you luck pal. Hopefully you have nailed the bottom!

[cheshire man] 17/6/2022 10:06

Well I bought in yesterday and very happy with the price I paid :-)

[tongosti] 17/6/2022 07:45

Just when I started to think about giving you credit for critical thinking pal. That's a shame. Wan - your posts are hardly thought provoking fella. Not me saying this but Mr Market - hard to argue with him ain't it. Some of the best in the world must be on to something when they say very few make money consistently in this game (not because they're not intelligent per se) but are unwilling to accept mistakes (ie ego gets involved) early and fix them. Someone is 63% down and still is happy to stay the course?! Lol. Basic maths tells Wan he would need 166% return (assuming this is not going down further South - big ask) just to get back to break even. Small feat eh? P1nkfish - the bottom won't be reached until naive players (who confuse bull markets with you know what) genuinely throw on the towel. Am sure we both agree on this one

[wan] 17/6/2022 05:33

Pinkfish...Generally my posts are meant to be thought provoking, and as you say, at best information to add to a reader's own research. So, my post was indeed a bit negative, it was meant to be, but being in the same club as Chris Mills, and probably others, is hardly admitting to becoming bearish overall on EKF, nor indeed was it a criticism of Chris Mills, having also bought at recent lows myself (and higher lows and indeed much lower lows).

I never expect plane sailing with investments, and I understand and accept that sometimes we do have to endure stormy seas to use your analogy. But importantly, I also accept that my investment decisions can be wrong, and therefore it's wrong to sail on regardless! However, I am not currently looking to change course.

[p1nkfish] 16/6/2022 21:35

When the biggest bull on something becomes more towards negative its often time to look to buy. Mills underwater is no big deal. He basically said it's a couple of years before the results really shine through. Bio-tech in general is taking a beating.

Get a hobby & forget EKF for a while. If you bought the right thing, ideally at a good price, then leave management to get on with the job. No posts here will make a blind bit of difference and the exterior world is beyond our control except for your teeny part of it which comes down to deciding to buy, sell or hold.

I'm on this ship, didn't expect plane sailing, tied to the mast and shouting expletives at the storm. However, I do consider I was lucky with my buy price which certainly helps.

[tongosti] 16/6/2022 21:12

Took you 70% south to ask the obvious old chap. Markets react way before fundamentals do - by the time most think there is a problem, they've lost their shirts. Said this at 80+ and was laughed at them. Not now. Glad you've come around - your best teacher is your last mistake. Think about that pal

[wan] 16/6/2022 16:21

Here we are 'again' plumbing new recent lows.

However, this time I have to ask if any of this is 'beyond' the wider market ructions.

In this regard, several things come to mind. The first being the recent RNS regarding the cash payment of $5.5m in relation to COVID-related contract manufacturing inventory. And the somewhat less-than-clear commentary regarding the quantum -

"The accounting effect of this payment will represent an enhancement to both revenue and adjusted EBITDA for the current financial year ending 31 December 2022, however the quantum of the enhancement is not yet confirmed. Therefore, the Board is not seeking to change guidance to analysts on trading and outlook for 2022 at this stage, but expects to provide an ordinary course of business update within the interim results announcement in September."

That means its too early to bank it! In short, meaning there could be other elements/aspects that counter any enhancement.

The second element is Verici, in which EKF recently invested £2.5m and is now well underwater in investment value terms and the last recorded valuation. The same 'currently' applies to Renalytix, in terms of its last recorded valuation.

If my thinking is anywhere near close to being correct (I am not an accountant), and dependant upon what happens to the value of those two investments in the interim of the next results, there will surely need to be a non-cash transaction entry in the accounts, in turn potentially affecting the quantum of effect from the $5.5 payment.

In accounting, a non-cash item refers to an expense listed on an income statement, such as capital depreciation, investment gains, or losses, that does not involve a cash payment, and thus does not affect Cash flow or the amount of cash held. Because in accrual accounting, companies measure their income by also including transactions that do not involve a cash payment to give a more accurate picture of their current financial condition.

The final point is the choice of words from Mike Slater, CEO -

"The receipt of this cash payment is a significant move towards a clean break from COVID-related services for our Contract Manufacturing business as we transition into new areas."

There is both a positive and a negative in there, the quantum of which is yet to be confirmed!

Even Chris Mills is underwater with his recent EKF purchases.....welcome to the EKF (scuba) club!

[tongosti] 16/6/2022 10:11

In theory you're right. In theory.

[p1nkfish] 16/6/2022 10:09

Anyone buying on the basis of posts on a BB is screwed anyway. Ramping only works if the reader is a bit thick.

The posts are not ramping, just info to add to an individuals own research.

[drew lonmenob] 16/6/2022 09:39

sharw28 Apr '22 - 13:03 - 2688 of 2794
0 6 0
wan and Drew - please do what the rest of us did long ago then all you will see is:

tongosti 28 Apr '22 - 11:06 - 2682 of 2687 (Filtered)

tongosti 28 Apr '22 - 11:12 - 2683 of 2687 (Filtered)

and this board will be less cluttered

[tongosti] 16/6/2022 09:10

Is our resident darts "champ" watching this fine morning chaps?

[tongosti] 16/6/2022 08:18

Floodgates to open today chaps?

[tongosti] 14/6/2022 15:56

Hahahahaha

[se81] 14/6/2022 15:53

Close above the recent low in May would be interesting

[sooty snipes] 14/6/2022 15:31

I see today as a great buying opportunity. Thanks can't believe my luck. This was already on a steady rise pre-covid so I see no reason for it not to continue. Recent very large director buys so plenty of skin in the game.

[tongosti] 14/6/2022 14:02

Post 2786. This is indeed "transitioning". In all likelihood towards 16p in light of today's brutal reversal.

[tongosti] 13/6/2022 15:19

Out flat chaps. Hardly enticing wider markets and share. Cash is King in this market - time to play the spectator.

[wan] 13/6/2022 09:24

EKF is indeed transitioning!

Put another way, one assumes that a good slug of that capacity will transition to Direct-to-Consumer test kits, which as previously covered, represents a substantial growth opportunity.

EKF have already stated that its facilities and knowledge is to be utilised to provide services to diagnostics developers in the US and UK, with part of EKF's updated Growth Strategy to invest in expanded production and kitting capabilities to offer a suite of diagnostic Contract Manufacturing solutions to third party businesses.

[se81] 13/6/2022 08:25

And importantly...

"The receipt of this cash payment is a significant move towards a clean break from COVID-related services for our Contract Manufacturing business as we transition into new areas"

[wan] 13/6/2022 08:11

A welcome update today on the improved and strong cash position, importantly which also reflects the successful execution of the Company's GBP4m buyback programme and the further GBP2.5m investment in Verici Dx.

According to my math, when taking those execution factors into consideration, effectively demonstrates the 'underlying' positive cash flow in the 5 months to 31 May.

[p1nkfish] 11/6/2022 10:56

I think we need to break through 38 as a weekly close and 42.5 on a monthly.

[tongosti] 10/6/2022 18:58

You're excused pal - just don't do it again will ya :)