Heiq Share Discussion Threads

[melody9999] 27/1/2021 09:09

MMs must be filling a large sell order in the background

[tole] 27/1/2021 08:58

Admittedly taken a small starter position here.

[dr biotech] 27/1/2021 08:46

Not my greatest effort tbh.

[masurenguy] 27/1/2021 08:42

That's a very tight stop on just a 2 point spread !

[dr biotech] 27/1/2021 08:38

In at 166 £40pp. Spread bet for me, hoping for short term bounce rather than long term hold at the moment. Stop loss 158.

[chateaumusar] 27/1/2021 08:27

Tech firm that's fit for a Queen
Heiq

Gloves have soared in popularity this past year, as men and women alike have looked for extra protection against coronavirus.

The Queen, however, has been one step ahead. Her Majesty has been wearing beautiful gloves for years. And one of her favourite designers, Cornelia James, is now making them with a special antiviral compound, designed to break down viruses and stop them from spreading.

Gloves are on: One of Her Majesty’s favourite designers makes gloves using HeiQ’s antiviral technology +4
Gloves are on: One of Her Majesty’s favourite designers makes gloves using HeiQ’s antiviral technology

The technology was pioneered by HeiQ (pronounced High Q), a Zurich-based group that joined the London stock market just last month.

Founded by two engineers in 2005, HeiQ specialises in devising ways to make materials work better. The antiviral technology has been used to make souped-up masks, for instance, used by hospital staff and careful consumers around the world.

Other HeiQ compounds are used to cool down clothes or warm them up, while another technology helps to reduce the environmental impact of dyeing textiles.

There is even a product that can be incorporated into curtains, carpets and furniture to purify the air around them. Millions of people die from harmful indoor air each year so the technology has enormous potential.

HeiQ is not just a blue-sky tech firm. The Queen is almost certainly its most famous customer but founders Carlo Centonze and Murray Height work with a host of multinational firms, including Zara, Primark, swimwear specialist Speedo and Ikea, which has adopted the clear air technology in one of its curtain designs.

The group reports in dollars, as most of its transactions are denominated in the US currency. This year, revenues of $43million (£32million) are expected with profits of around $8million. In the next few years, however, Centonze and Height expect to take revenues to $300million – and supporters are confident they can do it.

Midas verdict: HeiQ is a young, ambitious technology business so the shares are not for the cautious investor. But the group has already proved that it can create products which customers want and need and the shares, at £1.81, could go far.

Traded on: Main market / Ticker: HEIQ / Contact: heiq.com or 00 41 56 250 6850.

[chateaumusar] 27/1/2021 08:26

Looks so awesome for a trade from here

[chateaumusar] 27/1/2021 08:13

ok cheers melody, but hes only held from dec

[melody9999] 27/1/2021 08:12

unlikely chateau - he is a long term holder

[chateaumusar] 27/1/2021 08:10

Has Leon from Mellow sold out

[bigwig] 26/1/2021 15:26

Once you get over the shock of seeing it drop like a stone, its a great opportunity.
Bought more today myself too.

[melody9999] 26/1/2021 14:13

miti - Cenkos seem to have been quite close to the real story here - credit where it is due. Their earlier note P39 says:

In the short-term we forecast specific HeiQ Viroblock revenues of $13.5m in 2020E
and $11.5m in 2021E, with the YoY decline reflecting the significant demand HeiQ fulfilled during the peak of the COVID-19 pandemic during Q2/20. These forecasts do not include sales of consumer products treated with HeiQ Viroblock or any potential revenues from licensing and royalties.

As noted above, the antimicrobial textile market is expected to grow at a mid-single digit CAGR over the near- to mid-term, becoming a low double digit billion-dollar market by the mid-2020s. As such, at the current sales level, HeiQ’s market share is less than 1% of the total current antimicrobial textile market

Bit surprised Cenkos do not see larger growth than that. And from your comment the CEO is being more bullish ....but in any case my thinking is H2 20 is the low point for Viroblock sales - mainly because everyone bought masks at good prices (for HEIQ) in H1 and had stocks into H2....Onward and upward from here.

[chateaumusar] 26/1/2021 14:00

Wouldn't mind a gap fill to 117p first gap

[2bluelynn] 26/1/2021 13:55

Gaps on a chart tend to always get filled at some point so prob best to get filled now. Can then move up .

[miti 1000] 26/1/2021 13:41

melody9999,
Its worth looking at their updated note today .

Clearly the market is spooked by the inline profits comments. But as you point out, the margins are still very good when you strip out the costs and its a profitable tech stock. They are investing for growth.

The question will be can they sustain the covid induced spike in volumes in 2021.The ceo has made it clear he expects the microbial division , which includes masks to be greater in 2021 than 2020. That's an important pointer as is their acquisition of the mask manufacturer in December. Clearly the demand is there so I expect them to meet and beat 2021 expectations.

If they can get the British Airlines contact they are working on or indeed get more business from IKEA , they should go through the roof.

The fall today is a great chance for investors to buy into this story imo. Annoying for holders such as myself but the churn from IPO holders let alone the hot money that has chased this stock always meant any slight disappointment would be met with big profittaking.I doubt it will last as the revenues and gross margins compare favourably to most similar stocks eg Tristel.

[nw99] 26/1/2021 13:24

Bought more here

[essential] 26/1/2021 13:21

Added more here

[melody9999] 26/1/2021 13:18

Difference between H2 vs H1 - due to high mask sales in H1. P23 of first Cenkos note.

We forecast c$7m of investment into working capital in FY20E - P31 of note.

So in summary H2 revenue should be seen as the base from which the company will increase revenues going forward. EBITDA should improve without listing costs, and perhaps because stock levels are now robust.

And the product suite should be in demand - perhaps more so than Cenkos forecast.

I've reduced a little this morning but I also think this has 'cleared the decks' now - it is also a significant comfort that HEIQ management own some 23% of equity so our interests are aligned.

[chateaumusar] 26/1/2021 12:14

2 MM back at 200p offered

last MM selling at 192p to buy

[otemple3] 26/1/2021 12:13

In the presentation last night they said gross margins were tending up and should be c.60% (not sure if FY20 or 21 as my notes are sketchy). Margins have been increasing YoY since an acquisition led to margin reduction, which as above has been trending back up last few years

[euromedic] 26/1/2021 12:09

The bounce is on

[dr biotech] 26/1/2021 12:02

Have looked at this one after it was tipped a couple of times but it shot up before I had a chance to get in. Biggest concern for me is that it was IPO'd after sales were boosted by the pandemic and its going to struggle to meet this valuation in subsequent years. Will continue to watch though.

Can't help but think increase revenues but inline earnings just means that margins are lower which would explain the drop. Facemasks have become a commodity item and hopefully if/when we get out of this mess there is going to be a huge oversupply. The rest of business does look decent though.

[miti 1000] 26/1/2021 11:57

But then again ,john09, you are clueless dipstick.