Ekf Diagnostics Share Discussion Threads

[wan] 04/11/2015 14:52

Seeing as there is a lot of speculation on here.......how about a listing on Nasdaq for the spun out Molecular division, which may subsequently achieve a much higher valuation.

[kestelmill] 03/11/2015 09:38

Where they will get the money from: this is the RZ factor but I don't know exactly how it will work. DE/JB reached the end of the shareholders patience, hence bring in RZ and the train carries on.

[bigman] 02/11/2015 19:31

Dogs dinner comes to mind.... New Non exec Chairman and previous chairman is Deputy Executive Chairman ..... what is all that about !!!!
smacks of gravel train to me

[interstellar] 02/11/2015 12:54

OK Kestelmill. A reasonable scenario- good as anyother. Any views on where the money is coming from to do all these acquisitions if the major shareholders (institutions etc) are losing patience/ confidence?

[kestelmill] 02/11/2015 10:59

My hunch is this:

-RZ sees this company as his next vehicle
-RZ strategy will be as per his normal strategy - become major global Dx player via acquisition
-RZ is fairly well aligned with DE/JB on strategy
-Hence when DE/JB were challenged by major shareholders they saw RZ chairmanship as a good fall back option
-They now have carte blanche to progress, at least for the time being. A bit like when a football club appoints a new manager - they've got a reasonable period to succeed.
-Major shareholders will realise this and if it doesn't fit with their investment approach (risk, etc) they will bail out. This is happening now hence share price going down.
-I wouldn't be surprised if RZ becomes CEO. It depends on his relationship with JB and how many shares he buys.
-All depends on RZ now. Not such a bad horse to back but share price likely to go down before it recovers.

[interstellar] 01/11/2015 10:24

I would love to know what the executive directors actually do. I mean when they turn up on a Monday morning what is in their in tray for purposeful action. Think about it- you're Chief Technical Officer- you're pulling down a shedload of dosh- you have an established portfolio of products that work pretty much as they are supposed to so what do you do next? What are your objectives short, medium and long term. I have no idea but at Director level we should have some inkling as to what they are. Yes/No?. I mean at one time EKF was doing nicely without a Technical Director but the gap was considered to be so importnat to the business an eye-watering salary with perks was offered? Or you are CEO. Again, all the subsidiaries are getting on with making and selling, selling and making. Not a lot left for you to do actually. Waht do you do next? Past strategies have proved to have had mixed success. So call in the non-exec directors and charge them with dreaming up a new strategy. And the strategy is.... realise value aka sell of the various parts for what you can get. I close my eyes and see a hamster spinning in a wheel. Nearing exhaustion. As we are all becoming while we wait for renewed population growth in China to help us out.

Share prices are, if you like, a sort of running referendum or opinion poll. People who believe in the company (buyers) are in the minority and those that don't are selling out. I really don't know what is going to change this situation.

[bigman] 01/11/2015 08:18

I can't believe anyone would want to invest in this company at above 10p. it is a bag of bones, anyone can buy businesses all it takes is a bag of money and shares, RZ has proved that and DE as well. but it is buying intelligently at the right price that fits into a business strategy which one can add value to and take to a new level after doing due diligence. Then it is about having the quality of management to build and take on a growing business and make money... PROFIT. I am afraid that none of this applies to EKF.

[interstellar] 30/10/2015 18:39

We'll see. Someone needs to do something!

[kestelmill] 30/10/2015 14:46

Asking Ron Zwanziger to not acquire companies is a bit like asking a polar bear to not eat any seals.

Look at his record. The article below describes him as a "barbarian" and "acquisition-hungry". It talks of 25 "major" ones plus "many more smaller ones" by 2009. Many of his acquisitions have been hostile (not just Biosite - Axis-Shield springs to mind).

hxxp://www.bizjournals.com/boston/stories/2008/08/11/story3.html

He even tried to acquire Alere when they ousted him!

On the other hand, you can't argue with his record of growing his company. He's not going to sit there twiddling his thumbs.

[interstellar] 30/10/2015 13:47

Acquisitions galore! Heaven forbid. It's Acquisitions galore (Selah) that's got us into this mess. And where pray does the money come from. Cash in hand is paltry so more paper will be issued increasing the pressure on the price when the acquirees want to get out- usually after a lock out period that's all too short.

[kestelmill] 30/10/2015 13:18

On bringing in Zwanziger as Chairman. He grew the hell out of Inverness Medical and Alere. He's definitely a grower/acquirer; I suspect it's in his blood. Note that Alere have been divesting like mad since he left, as the company had grown to the extent it was chaotic and also had a crazy amount of debt. This isn't a criticism - he'd grown the hell out of it and it needed a more boring type to consolidate and take it forward.

I suspect he sees EKF as his next Alere/Inverness Medical-type project and the strategy will involve acqusitions galore. EKF ticks the boxes as it is already a conglomerate of multiple companies in the right sector - a sort of mini-Alere.

I doubt Zwanziger is going to enable specific sales opportunities so his contribution is going to be more around strategy.

[wan] 30/10/2015 12:56

Talk of 10p is at best an overreaction when there were unbinding offers just for the POC business of 16-17p

I don't think the management are under any illusions, they know they have to deliver, but some of their time has been diverted of late (which was acknowledged in one of the market updates).

Hopefully focus has been regained and RW can also have an effect, a reminder -

The Directors believe that a number of growth opportunities, which the Company currently cannot realise, will become achievable, with Mr Zwanziger as Chairman. This will ensure that EKF's growth trajectory can be accelerated.

David Evans, Executive Chairman of EKF Diagnostics Holdings plc, commented:

"I welcome the conclusions of my Non-Executive colleagues and, as a Board, we are well aware that we are custodians of shareholder value and as such will remain focussed on realising this value if practically possible. If this cannot be achieved in the short-term I am confident that Ron Zwanziger, a shareholder and an individual with a strong history of growing point-of-care businesses, will open up a number of opportunities for the Company as Chairman, and that the Molecular Diagnostics division's move to become a distinct and separate business will allow us to deliver greater benefits for shareholders."

EKF Diagnostics Holdings PLC Conclusion of Strategic Review


Hence in my view RW was content to buy at 21p, and I assume he is now somewhat restricted from such purchases.

[cisk] 30/10/2015 11:45

I'm extremely disappointed in the situation.

Baines et al promised much and really have failed to deliver on any of it.

We're getting to the stage when Ron might mount an opportunistic bid at 10p - which I can see people taking. I've held for many years and really thinking of cutting my losses and dumping this stock. Because we could well end up at 10p through a series of small sells which the market makers use as an excuse to keep dropping the price.

There is undoubtedly potential - but what does anyone think is a fair value price for the shares?

I can't understand why, with all the apparent potential, that so little has translated into solid progress with the company.

[interstellar] 30/10/2015 11:40

Well Wan. You should be a very successful investor with such a strategy since a general consensus is populations are growing everywhere (except perhaps Germany and a few other developed territories). Sorry I am feeling grumpy. As I write the share price is down to 17pence (albeit on a small sell) and there is no word from the company on the situation they have plunged us in. David Evans said words to the effect that they would keep us informed of progress against tenders submitted when they were able to do so. No information can only mean no progress.

[wan] 30/10/2015 10:38

Kestelmill...I think the 'overall' opportunity in China is potentially very large, EKF already have an established route to market, so as I said, EKF's maternal offering 'might' get a boost.

Interstellar...Well my comment wasn't about population growth per se, but it was about China 'focusing' on addressing an issue, which may present opportunity. Btw, population growth is very much part of my investment rationale generally.

[interstellar] 30/10/2015 10:20

Clutching at straws indeed. This argument could be applied to every technical or manufacturing stock in the world. How can population growth or contraction ever be a basis for investment decisions.

[kestelmill] 30/10/2015 10:15

Thanks for the info Wan. The bit I thought you were clutching at straws at is the ramifications of the removal of the one child policy. How do you think that will play into upside for EKF in the short/medium term?

KM

[wan] 30/10/2015 09:45

Kestelmill...Your opening sentence is a contradiction in terms considering the rest of your paragraph! EKF has established a presence in China, plus one wonders what home bred opportunity Chinese company Jinjing saw.

EKF's Quo-test has market approval in China, plus this is from July 2014 -

Contract Win

The Company has signed a new distribution contract for Biosen C-Line, its glucose and lactate analyser, with Tianjin Multiclone Trading Company in China, which could significantly increase its installed user base. The initial contract is for 1,900 analysers worth approximately EUR4.0m over a two and a half year period, commencing immediately. The end customer will also need to purchase consumables for the analyser, and it is anticipated that this could generate a further EUR2.0m of revenue over the same forecast period. Furthermore, whilst these initial revenue expectations are extremely pleasing, it is expected that these instruments will have a useful life of up to 10 years, which would significantly increase the consumables revenue for EKF.

Regulatory Approval

Additionally, EKF announces that its global German partner has received regulatory approval in China and Japan for its CompoLab TS haemoglobin instrument, which is manufactured by Diaspect, a wholly owned subsidiary of EKF


And more recently from the FY Results -
We have recently enhanced and expanded our regional structure, including in China where we are about to open a representative office in Shanghai.

[kestelmill] 30/10/2015 09:04

Now you are really clutching at straws! Seriously though, the demographics of China do play into rapid growth in the disease diagnosis market. Millions of additional people per year are entering the middle classes and becoming able to access disease testing. This should benefit companies in the sector like EKF (notwithstanding the stiff competition). The main areas benefiting are basic cancer and cardiac testing. To be honest I don't know how active EKF are in these particular areas or if they are trying to break China. Perhaps someone else on here knows?

[wan] 30/10/2015 07:06

With China now allowing couples two children to counter an aging population, EKF's recently established China operation might get a boost, with perhaps EKF's maternal and women's health offering benefiting. With the baby milk scandal and subsequently expensive baby milk imports, perhaps also playing a part.

[interstellar] 28/10/2015 07:54

Yes Bigman- my point entirely. No one objects (least of all me) to competitive salaries but they come with responsibility to deliver and this is outrageous non-performance. Way too cozy. The bottom line would look healthier without these expenses and it is us shareholders that are paying for it. Personally, with no positive evidence to the contrary, I think the year end is going to be awful. There has been little or no improvement in the exchange rate (if anything the pound is stronger) especially against the rouble meaning that accounts are going to take a hit again. There has been no announcement of big contracts won as heralded at the half way stage and here we are in week 44. A potential suitor has performed extensive due diligence and walked away from the negotiation table (not a good sign when the company has lifted its skirts to show all) and the share price has taken a big hit. And the institutional investors are losing patience. Brace yourselves.

[bigman] 27/10/2015 18:45

interstellar I agree entirely with your post, oh and checked out the directors packages and i think they are way way too high for what they have delivered i.e. in year end december 2014 coo £262k fd £182k coo £201k and wait for this Tito who is technical scientific on a package of circa £330k so a cool £1m for these 4 directors... they should have a strategic review on shareholder value delivered by a very expensive board.

[wan] 27/10/2015 07:06

EKF has a new website -

[silverfern] 26/10/2015 17:23

it's now a punt on someone who has retired and is dabbling in this company - it's the recruitment of a mr fixer imho. The poor insights by Evans and Baines into the markets they are meant to know something about led me to conclude any upside would be an accident - buy enough mud and some will stick. They talk strategy now but clearly had none. I was v lucky to get out when I did having been an investor since they initially took over the sports company shell.

[wan] 26/10/2015 15:26

Interstellar...You may or may not recall that I sold out a few years ago and re-entered recently, whether you describe that as blind optimism or indeed foresight remains to be seen.

The strategic plan, which came out of the Strategic Review, has yet to be implemented, so describing it as a waste of time seems harsh at this juncture.