Enteq Technologies Share Discussion Threads

[1gw] 16/11/2022 08:46

finnCap also comment on the (still potential) sale of the Houston facility, saying it could be sold and a smaller cheaper leasehold signed.

[1gw] 16/11/2022 08:40

"To support SABER, there is a disciplined strategy to concentrate the MWD business on cash-generative commercial deals. "

Yes, I missed that. finnCap pick up this point as well, commenting that working capital will come out of the MWD business to fund SABER, to the extent that nearly all the debtor book should be converted to cash. And I guess the quote above suggests they may try to license out or sell the (non-SABER-linked) technology at some point. I wonder if Henry Moore, or associates, would be interested in having another go at XXT?

So already $2.5m cash as of today, vs $1.8m as of 30th September.

[p1nkfish] 16/11/2022 08:20

Certainly better than I was expecting.

MWD commoditisation is a real problem and good to read NTQ are making the sensible move out of the way and to prepare for SABER use with existing customer equipment to ease deployment. Killing 2 birds.

[valuehurts] 16/11/2022 08:14

Interesting to see if management buy in now.

[1gw] 16/11/2022 08:08

I guess that second quote leaves open the question of whether they think they have sufficient cash to build up the fleet to optimum capacity. They refer to an "initial fleet" elsewhere in the text:

"The SABER engineering project has progressed with the initial fleet of the latest design of SABER tools being built"

[1gw] 16/11/2022 07:47

More encouraging than I feared, but still being cagey about the timing of the live drilling trials.

IMC presentation next week should add some colour.

"The increase in trade receivables relates to strong revenues towards the end of the period with the outstanding balances being collectable in future months."

"Management expects that the future cash balances are sufficient to complete SABER's field-testing phase and to bring it to a successful commercial launch."

[valuehurts] 14/11/2022 02:09

Could see an absolutely crazy move if basically anything positive is noted

[valuehurts] 14/11/2022 02:06

Looking forward to results. Hopefully should hear more regarding Norway and the commercial agreements in the Middle East that were being concluded in September. China is also opening up and they have really ramped the oil imports. I wonder if they have had new orders from there. Share price is on its knees but lots of potential catalysts could drive buyers next week.

[rivaldo] 10/11/2022 12:18

Cheers 1gw, that makes sense.

[p1nkfish] 10/11/2022 09:59

Some clarity next week with results. A funding round is not impossible no matter what they said in the past.

[1gw] 10/11/2022 09:32

It didn't meet the reserve price as I saw the auction, so suspect it wasn't sold at that price. They may have tried to negotiate to agreement after the auction and I presume they will RNS if and when they can close.

[rivaldo] 10/11/2022 09:29

I was on hols for three weeks, and appreciate the sleuthing here which detailed the auction of the US property for $2.1m.

Why hasn't this been RNS'd? The $2.1m proceeds are after all pretty material for a now £5.9m m/cap company! Perhaps the transaction hasn't yet completed?

[valuehurts] 05/11/2022 14:32

Nice comments and likes on these posts, obviously others are impressed by the technology and management.

[1gw] 04/11/2022 15:36

ADIPEC time again. A few posts on linkedin.

"Are you attending ADIPEC Exhibition and Conference this week? Andrew Law, Neil Bird and Ilia Krivonos are exhibiting in the UK Pavilion, Stand 8431. Stop by to hear all of the latest SABER Tool updates from the team! "

[valuehurts] 29/10/2022 13:10

Seems like the company is aware of this thread

[valuehurts] 29/10/2022 13:09

Interesting insight Sturmey, again very much appreciated

[1gw] 29/10/2022 10:22

I note they've updated the text of the coal mine methane piece to read "SABER is currently aimed at use" instead of "SABER is currently in use".

Now is that correcting an error, or deciding to keep the announcement of "in use" for an imminent RNS? I can hope...

[sturmey] 27/10/2022 23:18

ValueHurts

You are correct. I am a retired analyst, head of research and head of regional research. All in Asia. In the past 20 years+ managing my own money I have tried to use my CFA skills. Not always successfully. But to have big winners within a portfolio, you should expect some big losers. All part of the bell curve. Many of my mistakes have been made following other investors (examples include Carclo and Aminex). But many of my winners have been backing my own judgement. I now avoid any small stock with a following on the bulletin boards. NTQ does not fall into that category and is an additional attraction. I am very much long term buy hold. Which is why I have held NTQ since 2013!

Regarding your question about lack of management buying, today I checked the stock exchange "closed period" rules. My interpretation is that management are prohibited from trading within 30 days of any results announcement. This suggests that after results on November 16th, management would be free to trade. The last recorded insider purchase I can find was in April when Andrew Law bought around 300,000 shares at around 14p. If he were allowed to, I would expect him to be buying at the current price of 8p.

Sturmey

Sturmey

[valuehurts] 27/10/2022 19:15

Sounds a bit like a slip of the tongue but does seem to show how confidant staff are of success. I don't think they employ any PR people to write these. And when was this coal bed test? V odd...

[valuehurts] 27/10/2022 19:12

Good post Sturmey. You sound very much like a fund manager or analyst? Do you have any thoughts on how a management buyout may play out if it was to occur? What percentage of shareholders would need to agree to force the remainder into a sale? I know Gervais Williams would be keen to protect his holdings value. I have been thinking something may be in the works due to lack of management buying. Do you have any insight on this?

[1gw] 27/10/2022 16:06

"SABER is currently in use for its more obvious applications in the oil and gas industry, but it has also performed initial testing for its use for methane abatement."

That (i.e. "is currently in use") is an interesting comment on SABER, slipped into today's blog piece on coal mine methane.

[sturmey] 27/10/2022 13:32

As a holder since 2013 (first purchase 10,000 shares@52p - ouch), NTQ has been one of my worst investments. Almost as bad as some of my forays into oil E&P (eg Aminex - ouch).

Over the past 9 years, I have probably read every single RNS and perpetually looked for "light at the end of the tunnel". Good example of "jam tomorrow"?

But I have kept faith with the management and have not given up yet.

I recently re-read 1gw's notes of the AGM and also watched the recent video (available on youtube) of a couple of months ago, where Andrew Law sums up the SABER situation.

1gw draws the analogy (IIRC) with biotech companies where success is a binary bet on one product. But a difference with NTQ is that NTQ is cash rich and has no debt.

Whichever way you look at it, NTQ has elements of a binary bet on the success of SABER. But with the stock trading at just over half tangible book value, I would argue that the upside is considerably greater than the downside.

Add the possibilty of a management buy out or a takeover, and I think there is a compelling case to buy at the current price of 8p

I have put my money where my mouth is and increased my own shareholding considerably over the past few days. There appears to be more stock on offer at 8p despite ADVFN showing a spread of 7.50 to 8.50.

[valuehurts] 26/10/2022 18:40

Maybe they sell the XXT side as well. If they do need funds I think Hunting would be keen to partner with them. They have the engineering skills, loads of cash and all the management know each other. They also sold their own drilling side probably because of the existing monopoly but this product is a a bit special and would disrupt. Hunting could help with distribution and would bring something to the table.

[valuehurts] 26/10/2022 18:34

Yeah they aren't selling it because of the delay. They will need funds to accelerate the saber fleet build out. They will get 1m overdraft from HSBC once they have a firm order but to really ramp they will need more cash. Looking forward to future RNS about trial success and commercial agreements...

[1gw] 26/10/2022 17:38

According to this site, the Enteq Houston site was on the market as long ago as May, with a $4.8m asking price. So that perhaps explains why the reserve may have been set above $2m. It also suggests sale was a plan worked out quite a while ago, not a response to a more recent SABER delay.