Enteq Technologies Share Discussion Threads

[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:

[rivaldo] 16/10/2019 10:20

Nice 50,000 share buy at 29p has caused the move up this morning.

[rivaldo] 09/10/2019 14:49

NTQ will be presenting at the Oil Capital Conference on 31st October if anyone fancies seeing them (along with various other companies):

[rivaldo] 07/10/2019 15:08

1gw (or anyone), do you have the email address of the FD or the CEO please? If you don't want to post it on the bb, just email me privately through the ADVFN message facility.

Cheers.

[p1nkfish] 26/9/2019 19:12

Nothing is ever plain sailing.
Survey.

[masurenguy] 26/9/2019 15:35

Cheers Riv - I topped up @28p yesterday although the ADVFN formula showed it as a Sell.

[rivaldo] 26/9/2019 13:38

Brief interview with the Proactive analyst FYI:

[rivaldo] 26/9/2019 10:04

Let's see if this direct link works:



The 66p price target for 2022 (or 49.6p in today's terms) are realistic if NTQ performs as at present. As long as the oil price remains steady at current levels - or above - then these targets might prove very conservative if the new products are successful and geographic expansion continues.

I have great confidence in the management, who've done it all before and whose interests are aligned with ours given their shareholdings.

It was good to meet you 1gw. I thought the AGM went well and the body language/tone of the meeting was upbeat with the appropriate caution.

[1gw] 25/9/2019 15:10

14-page report by Ed Stacey of proactive investors just published.

MP referred to this at the AGM and said that this was in part an attempt to get analyst information on the company into the public domain, as many PI's were unable to access the Investec reports.

In terms of valuation, Ed Stacey comes up with 87% upside potential, based on EV/EBITDA multiples on FY22 estimates, discounted back to today. Lots of assumptions in there of course, not least impressive revenue growth between now and then.

Good to see some numbers and associated assumptions in the public domain, and I would imagine the nearer-term ones (e.g. 2020 estimates) are not going to be a million miles away from the Investec ones, which perhaps gives some idea of "management expectations".

[Edit. see link to report in rivaldo's post below]