Kinovo Share Discussion Threads

[sooty snipes] 08/3/2024 09:02

This in my opinion opens up a great buying opportunity long term. Cracking business. We just need to get this bloody DCB disaster out the way.

[mr hangman] 08/3/2024 09:01

One would imagine some of the Twitterarti have learnt an important lesson today

[sooty snipes] 08/3/2024 08:57

Deary me. How about you go and do one.

[sooty snipes] 08/3/2024 08:54

Hence why Tim Scott bid 56p a share highlighting the DCB risks at the time of his offer to buy the company at a knock down price.

[tiswas] 08/3/2024 08:52

Why would anyone buying it have a better understanding of the potential liabilities than existing management and therefore know what price to pay?

[dope007] 08/3/2024 08:46

Unfortunately yes

[sooty snipes] 08/3/2024 08:41

The company is now at serious risk of being bought out on the cheap.

[qs99] 08/3/2024 08:21

tbf there seem to be some buys coming in at this level as well, let's see where the dust settles and what management have to say next week on the investor meet...DYOR

[dope007] 08/3/2024 08:17

Due to the strength of the underlying business I'll let this settle and probably add a few as I see this as a long term holding

[tiswas] 08/3/2024 08:12

Have any heads rolled for getting the company in this mess in the first place?

[aldriglikvid] 08/3/2024 08:06

What are DCB building? I mean, can it be a £20m liability? £30m? What's the limit here?

[qs99] 08/3/2024 08:06

Your 10-15% drop thought looks spot on....! Re-reading the RNS, the management need to reassure market as to last contract risk and show a route through to say 3-5 year plan of delivering say £10m EBITDA from underlying business (reckon they need to be "ahead" for full year to offset disappointment of DCB if they can, so near £7m EBITDA)....

which would then at least give market/investors line of sight on an underlying business that should be on a good growth rating generating net cash!

DYOR

[qs99] 08/3/2024 07:56

So interims EBITDA was c.£2.9m, full year should be materially over £6m so £3m++ of EBITDA, cash conversion lets assume at 100% it had net cash £1m at interims...

So we should have more than enough cash IMO to cover these extra costs no? Any views on my maths? Would have been useful for management to have highlighted this.

DYOR

[villarich] 08/3/2024 07:55

Also expecting a significant drop today even though the statement ends with a near upgrade in end of year outlook "trading will be at least in line with expectations"

[qs99] 08/3/2024 07:54

Agreed, which, tbf, then opens up another buying opportunity that I didn't think I would have!

Finals will be interesting, one more legacy contract with 2 years to go, how can they assure market those 2 years won't throw up umpteen million of more cash costs? THAT is the key issue.

THEN market can start to value underlying business and net cash appropriately.

DYOR

[aldriglikvid] 08/3/2024 07:46

29m mcap (2-3m net cash?) at close yesterday. Emotions will take overhand today and send the stock down another 15-20% i.e. 23-25m mcap (2-3m net cash?) at tonight's close.

Tragic, but here we are.

[qs99] 08/3/2024 07:34

Net cash at interims and highly profitable underlying business so cash should not imo be an issue, more management credibility no? DYOR

[qs99] 08/3/2024 07:33

Indeed. Blimey is all I can say, that’s a material miss

Only upside is they are hinting at better underlying trading and cash should be able to more than cater for this

Trouble is have management got a grip on what ACTUAL final costs will be? I’m not so sure now and final contract has 2 years left to complete!!

Views?

[lord gnome] 08/3/2024 07:28

I think the reason for yesterday's late sells has just emerged.

[dope007] 07/3/2024 19:28

Not many, but why a sudden rush. Our takeover on the cheap merchant out to damage the stock price with few buyers around?

[forensic] 07/3/2024 18:14

A load of sells after 4pm

[qs99] 29/2/2024 22:33

I haven’t yet no. Zero free cash. Waiting for some cash to clear and will look to add sub 50p👍

[barnesian] 26/2/2024 13:16

I've just topped up at 48.74.
I believe the downside on sorting DCB is manageable and leaves a profitable cash generating business that is ripe for takeover.

[forensic] 26/2/2024 12:45

Have you bought anymore QS99?