Enteq Technologies Share Discussion Threads

[p1nkfish] 03/1/2020 12:03

Chance it can fall back to the 20p level.
An important juncture at this point.

[1gw] 19/12/2019 17:58

And the oil price holding up nicely for now, so we can hope that demand will continue in China even if the US rig count doesn't recover for a while. If NTQ could establish themselves as a go-to provider in China, then things really would look up I think.

And the good thing about the awful liquidity is that moves to the upside can be exaggerated if we get the right news.

[rivaldo] 19/12/2019 10:58

Excellent - this is the best bit:

"Commercialisation agreements with customers are now under discussion".

NTQ's size is so small that any success with these new products should make a material difference. Especially given $10.7m net cash against the £17.7m m/cap and the $1.5m EBITDA in H1 alone.

The US rig count was unchanged last week. Hopefully a signal that the count has reached a plateau.

[masurenguy] 19/12/2019 05:25

Enteq granted UK patent for PowerHop technology

PowerHop is a system designed to wirelessly log measurements during well drilling and to date approximately $2.7m has been invested in the development of this system. Enteq revealed that it is currently in discussions with existing customers to commercialise the technology which will allow it to offer a broader range of sensor technology to the directional drilling market. Enteq also announced that has submitted patent applications in the UK, Norway Canada & the USA for its DrillLink system, which enables data to be transmitted between down hole tools and the surface during drilling.

[watchlist1] 18/12/2019 13:23

Enteq Upstream granted UK patent for PowerHop technology

[1gw] 12/12/2019 15:24

There you go. I've bought the 25k back again. Oil price seems to be headed in the right direction, what with Aramco and prospects of a trade deal with the Chinese.

[1gw] 22/11/2019 11:26

The liquidity and spread are just ridiculous. I can't get a quote to sell even 1000 shares (on a quote and deal basis), and if I drop the request to 500 shares I am offered 26.0p. To buy 500 shares I am being quoted 30.4p and I can get a quote up to 25,000 shares to buy.

[rivaldo] 14/11/2019 14:46

New Proactive interview with the CEO - a balance between great enthusiasm for prospects from the just-finished trade show in Abu Dhabi and repeat business from international customers on the one hand, and lay-offs by the company in the USA to counter the falling rig count there on the other, even with rising rental kit numbers:

[1gw] 14/11/2019 08:59

It's the liquidity issue again I think. I sold 25k at 31p and then we moved to 28-32 spread pretty soon afterwards. I presume my sell will be shown with a 1 hour delay, and we will soon see how much other (if any) early selling there was.

[masurenguy] 14/11/2019 08:48

Hardly down - the spread has just widened to 4p, which is over 12% !

[fozzie] 14/11/2019 08:39

They need to get someone else to write their RNS', it reads glass half empty when it's actually telling us decent news, overall tone is downbeat and guess what, yes we are down.

[apad] 14/11/2019 08:20

Good point, 1gw. Thanks.

"(2nd biggest holding)" You must be very patient. 1% of my portfolio.

apad

[1gw] 14/11/2019 08:15

The higher depreciation is a function of the new business model - renting rather than selling, I think. They have to depreciate the capital cost of the rental kit, ownership of which passes to the customer at the end of the rental period. You can't really ignore depreciation if that's how you're "selling" your product can you?

The results are still good (IMO) and it would be great if this time the international success is just the start of a steady expansion. Ultimately, if they can keep expanding their international operations they will become a lot less vulnerable to Elizabeth Warren and any other US-specific factors.

Anyway, I've sold a few this morning for portfolio-rebalancing reasons so may have contributed to the spread blowing out again. Still a huge overweight in my portfolio (2nd biggest holding).

[rivaldo] 14/11/2019 07:51

With respect to cash flows and EBITDA - and in explaining the difference between EBITDA and the overall loss, which is due to depreciation rather than margins.

[spooky] 14/11/2019 07:44

Has depreciation become irrelevant?

[rivaldo] 14/11/2019 07:39

To clarify, NTQ made $1.5m adjusted positive EBITDA in H1 - the reason for the overall loss is the $1.8m depreciation charge, which is up $640k on H1'18.

See Note 5 for the detail.

[1gw] 14/11/2019 07:32

Disappointing to see them fall back into loss though, after being profitable in 2HFY19. Seems to be mainly the result of lower gross margin (55% in 1H vs 62% in 1HFY19 and 68% in 2HFY19), which is explained as being due to the sales mix (more international).

[rivaldo] 14/11/2019 07:15

The interims look good.

NTQ achieved $1.5m EBITDA in H1 alone, up from $0.6m - and have $10.7m cash against the £19.9m m/cap.

The "significant growth in revenue (58%) and adjusted EBITDA (143%)" was "ahead of management's prior expectations".

They're also "confident" in meeting full year expectations - great to see the continued increase in rental kits despite the rig count fall in the USA.

The potential for the new products - plus the Shell-licensed technology - is huge relative to the tiny m/cap, and these are products now commercially available, not just blue sky.

This management team have done it all before, and are gently shepherding NTQ through a transformation (note the stable admin costs).

Congrats to management:

[fozzie] 13/11/2019 18:19

Something positive at last!

[1gw] 13/11/2019 17:15

Still a huge spread but I like the direction of travel for the price. Can they raise expectations again tomorrow?

[firtashia] 13/11/2019 16:27

excellent volume today- people getting in at the last minute, hoping for good news tomorrow. GLA.

[rivaldo] 12/11/2019 23:12

Tipped this evening by Mark Watson-Mitchell - personally I think we may see 50p sooner than MWM's time frame below if the outlook is as bullish as is suggested::



Conclusion:

"Proactive analyst Ed Stacey is bullish about the company and its prospects. He is looking for it to see revenue growth of 20% annually up to 2022, and an impressive 28% growth in EBITDA in the same period.

Stacey is estimating revenue in the current year to end March 2020 of $11.46m, then $14.46m for 2021 and up to $17.50m for 2022.

In the same period of time he is going for EBITDA to rise from $3.56m in 2020 to $3.75m in 2021, then up to $5.23m in 2022.

Earnings are due to come out at 0.2c in 2020, then 2.5c in 2021, and up to 4.7c in 2022.

He estimates that the strong cash management will continue throughout the period, at around $11.25m average cash at period ends.

This team of execs has built up and sold off before and it would be sensible to expect them to do the same again within the next few years.

The company is just coming out of losses and going into gradually increasing sales and profits. I anticipate a bullish statement accompanying the interim results this Thursday morning.

The shares are now trading at around the 28p level – I am now setting a 50p target price by the end of next year."

[1gw] 12/11/2019 15:19

My goodness! 3 trades and they look like buys! It continues to surprise me how illiquid this can be. You might have thought there would have been a bit more interest ahead of Thursday's interims after MP getting proactive onboard (and providing them with CEO presentations).

[fozzie] 06/11/2019 13:53

Thanks for posting Rivaldo, i will watch this evening. I have held for years and am averaged at 33p, soo many times i have nearly pressed the sell button but still i hang on.

[rivaldo] 06/11/2019 13:32

Excellent coverage of NTQ's recent presentation in London in a 27 minute video: