Enteq Technologies Share Discussion Threads

[masurenguy] 08/4/2020 16:48

Market cap at the close today was £8.8m. Cash balance at March 31 was £8.2m so the business, including intellectual property and forward orders, is valued at only £600K !

[bio_tango] 08/4/2020 15:39

Rivaldo, completely agree. Key people remuneration has also moved to shares. Let's see whether we revisit the 10.5p levels from last crash and whether it can bounce off those levels.

[rivaldo] 08/4/2020 12:18

The timing of all this is such a shame for NTQ - having produced today's numbers of $11m revenues and $3m EBITDA to 31st March, they were in a fantastic position to push on and really make some big breakthroughs.

With $10m net cash, against an £8.9m m/cap, NTQ are in a strong position and, once again, have shown their acumen by employing many staff on easily releasable contracts, reducing their workforce by 60% etc.

Judging by the previous downturn NTQ should be able to retain most of that cash pile ready for the recovery.

There's a new interview with the CEO here. He's optimistic about prospects outside the USA, including the new Saudi deal and also following discussions recently with Chinese customers in that market which is now recovering. And NTQ's new technologies, including the new partnership with Shell, are in the price for nothing at present:

[1gw] 08/4/2020 07:19

Could have been worse. They've still got most of the cash and are implementing the cash preservation playbook. The new Saudi partnership sounds promising although obviously overshadowed by other things.

[1gw] 26/3/2020 16:42

Bought some more today. £ strengthening since my previous post means the cash is not worth quite so much in p/share terms, but still pretty good protection I think given the management's track record in conserving it through the last downturn.

[1gw] 18/3/2020 17:13

The £ is now trading at £1 = $1.1536 according to Yahoo! Finance. By my calcs that makes the $10.7m cash (as of 30th September) equal to around 14p/share.

So a fair bit of downside protection thank goodness. But their US shale patch must be pretty trashed right now so I want to see what they say about debtors in the (presumably) upcoming TU. Let's hope China is pushing plenty of stimulus at its own oil patch to tide over its drillers - and that some of that finds its way to Enteq in the form of further contracts.

[1gw] 13/3/2020 16:36

Yes, this is getting silly again (imo) in terms of option value. $10.7m cash is 13p at £1=$1.24 and I make net assets as of 30th September around 30p.

They have the commitment to fund the Shell investment and I suppose there might be some risk of default from their debtors or return of rental kit before the term is up - but even so.

So that was me buying more this afternoon at around 16.7p average.

[masurenguy] 13/3/2020 10:08

Excellent and succinct summary. They can sit this one out with plenty of cash and a current zero valuation placed upon the actual business, intellectual property and its non-cash assets !

[rivaldo] 13/3/2020 09:35

The m/cap here is now £10.8m, against which NTQ had $10.7m net cash at 30th September and likely more now given another 4 or 5 months of profitable trading after $1.5m EBITDA in H1.

I assume NTQ's management team will now have gone into cash retention/survival mode once again, having been through this successfully before.

However, there is a difference between then and now in that NTQ have a range of new products, collaborations and licence agreements which may produce positive news flow even while this crisis persists, given the need for the industry to lower costs and increase efficiencies.

[masurenguy] 28/2/2020 11:10

Funds hold circa 50% of the shares but collectively this amounts to just circa £7m in value, which is just petty cash to them. I can't really see it being worth selling this stock to any fund redemption's.

[1gw] 28/2/2020 11:03

Interesting one this. No pre-close TU as yet, but the current oil price environment isn't exactly helpful for next year's US capex outlook I imagine. It will be very interesting to see what's happening with Chinese demand for Enteq kit.

The shareprice has held up relatively well, but there is again no liquidity I suspect. So if any fund does need to sell to meet redemptions, or any individual investor for risk management reasons, then we could be in for some distressed selling. Nothing much to be done (for me) I think except to sit it out and hope for the best.

[1gw] 22/1/2020 12:04

Some buys (I think) going through at last.

[masurenguy] 18/1/2020 15:20

"The age-old problem with NTQ - hardly ever any liquidity, so if you need to sell you may have to take a severe discount."

Quite agree. The really profitable exit for patient shareholders will be sometime in the future when NTQ is subsequently acquired at a premium by a predator !

[1gw] 17/1/2020 19:13

Sells? I can only see the one below the bid: 108,000 shares going through at 20.5p. A whole £22k's worth!

The age-old problem with NTQ - hardly ever any liquidity, so if you need to sell you may have to take a severe discount.

It seems to me MP was pretty upbeat at the interims, in particular the comment on being confident of meeting full year expectations. China/international success and expansion of scope are battling against declining US rig count. So the next results (or TU) could go either way I would have thought, depending on whether they can follow through on their international success with more sales or whether declining US sales become the dominant factor.

[jeevsje] 17/1/2020 15:38

Morgan Stanley dumping? Sells going through well below bid.

[jeevsje] 17/1/2020 15:38

Morgan Stanley dumping? Sells going through well below bid.

[p1nkfish] 13/1/2020 06:52

What overall $ exposure?
Expect weaker $ vs £ going forward.

[p1nkfish] 10/1/2020 22:22

Someone's stop hit or just can't wait for a trend change.
Either way it's down. Depending on the trend into March there might also be some tax loss selling for those having bought in higher.

Doubt it will see the teens though.

[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.