Kiotech Share Discussion Threads

[blenkinsop2] 05/10/2010 14:49

tailgunner2 - you are right; but it is not as negative as you suggest; the purchase price pre-consolidation was (on AIM)4.25p i.e. 98p in today's terms. This has reduced by 8p. So it is less expensive to buy the share immediately post consolidation by about 8%. However the spread has reduced. 3.5p - 4.25p with a mid-price of 3.875p that is just under 20% relative to the mid-price versus 80p - 90p or just under 12%. So the selling price has gone down by only 0.5p in 80p or just 0.4%. On the face of it, the value of our investments (were one to sell) have barely changed and it is, as I write,less expensive to add to them than before. The reduction in the spread was a benefit the Company was looking for and appears to have been achieved, albeit, it is still high. This is something we should welcome so, on balance, I think it is a small plus but I am hoping it will be small beer compared to what comes next!

[spekky] 04/10/2010 17:05

Presumably they will need to get the share price over £1.27 before they can excercise at 69p,it'll be interesting to see how they achieve that.It somehow looked easier in "old" money.

[tailgunner2] 04/10/2010 16:22

YEP.....told you...i dot hold much truck with share consolodation....down nearly 5p on first day.......great idea management......

[morkandmindy] 04/10/2010 15:19

@ spekky.... yep, just what i thought aswell lol!

[morkandmindy] 04/10/2010 15:19

@ spekky.... yep, just what i thought aswell lol!

[spekky] 04/10/2010 15:14

So thats the spread sorted............NOT

[andrbea] 04/10/2010 08:23

found it

23 to 1

[andrbea] 04/10/2010 08:22

is this a share consolidation
anyone know the ratio?

[blenkinsop2] 02/10/2010 12:11

A glance at the ADVFN financials pages suggests strongly that of the three, Kiotech seems to be the least risky and with a share price not yet reflecting the low risk and high future earnings potential. I suppose it will depend on what these investors are looking for but I know where I would prefer to put my money! So, it will be interesting to see if anything happens as a result. I have no idea if we can expect a quick reaction or something more measured or, indeed, nothing at all!

[spekky] 01/10/2010 14:52

CEOHunter

Thanks for that,should be a chance for KIO to get some new investors on board.

[ceohunter] 01/10/2010 14:39

The directors of e-Therapeutics plc (AIM: ETX), Advanced Cell Technology (OTCBB: ACTC) and Kiotech International (AIM: KIO) will be presenting on:
Thursday the 14th October 2010
at the:
Chesterfield Mayfair Hotel, 35 Charles Street, Mayfair, W1J 5EB

The presentations will start at 6:00pm and finish at approx 7:30pm. After the presentations are complete the directors will also be available to take questions during a free canapé and wine reception.

[the_hedge] 27/9/2010 18:38

Fair enough blenkinsop2, that would appear to be a logical answer.
I'd bought into KIO myself earlier in the year, and will no doubt top up during 2010/2011.
There does appear to be *some* trading going on, albeit not daily, but interest does appear to be stirring.
You're comments are informative and no doubt, as PI's we shall be rewarded in due course.

[blenkinsop2] 22/9/2010 17:11

If we on the bulletin board, who can see that the news continues to be positive, are not buying why should we think anyone else is going to buy? If nobody buys, why should the share price move?! Sorry! This is facile and must appear rather rude (the-hedge) - it is not meant to be. I continue to think along the lines outlined in my posts earlier this week. I note that small share purchases/sales can shift the share price by a disproportionate amount but this is typical of a lightly traded share. Once the number of share trades increases (rather than the share volume) I think the price may move slowly up and the spread slowly reduce. But these is just my musings!

[the_hedge] 22/9/2010 13:37

What is it with the share price not getting much above 4p this past while?

It seems a bit odd given all the positive noises coming out.

[spekky] 22/9/2010 12:27

Not sure its even a KIO site to be honest but its just as dull as KIO website so maybe there is a connection......

[ljsquash] 22/9/2010 10:50

A bit weak the style of presentation?
I like the 3 immediate benefits having 4 things, but the linebreaks etc are very low level and error strewn.

Thanks again though Spekky for the finds!

[spekky] 22/9/2010 10:12

I did not realise there was a dedicated site.

[ljsquash] 21/9/2010 09:45

Have to agree blenkinsop2 I can only see a growing reliance on food and fish production technics for the future.
The only question is how long before Kio get themselves noticed?
And will it be for the dividend or some great news from China, Vietnem etc?

[blenkinsop2] 20/9/2010 17:08

If KIO were on the same P/E as EAH, the share price would now be around 30p. Looking to the future, I don't see that EAH has anything better to offer than KIO - so maybe KIO's shares will take off sooner rather than later! However, I believe EAH is a more established company than KIO so has a certain track record and KIO has yet to establish its own. It has made a very good start but another year or so of steady growth with improved profitability is needed. A 30p share price translates to a market value for the company of over £120M. Is this reasonable or does it smack of the dot.com boom?! Personally, I would be surprised if the global market for these sort of products was not able to support several companies with this scale of market value. Here's hoping!

[spekky] 20/9/2010 16:43

Hope your right.... :-)

[alsmyth] 20/9/2010 15:45

I get the feeling that 12 months from now the profit will show as nearer 20% of T/O as they grind down expenses and up sales with less overhead per £.

[spekky] 20/9/2010 14:01

blenkinsop2

Thanks for taking the time,I agree they need to up the profitability and hopefully some of the measures taken will start to bear fruit.New products,new geographies and a result with Aquatice (one day) and I'm sure we'll get the sentiment to turn in our favour.

[blenkinsop2] 20/9/2010 13:42

Speckky – re your 656

"If you have time (post KIO results) could you give an opinion here on whether you can see KIO's turnover/pbt at least matching that of EAH.Obviously I'm hoping both metrics will be on the up."

I take it that you are referring to the P/E figure.

I find it difficult to make any really convincing comments because it seems to me that this ratio is driven more by sentiment than by hard figures of company performance.

EAH turnover to March 2010 £21.77M, pre-tax profit £2.00M (9.21%)
KIO turnover to June 2010 10.96, pre-tax profit £0.74M (excluding one-off sale of Ultrabite)

The KIO turnover for the first half of this year is almost exactly half EAH's for the whole of last year so the two companies appear to be comparable now on that basis. Profitability is lagging but this can be attributed to Optivite performance rather than KIO as a whole. So sorting out Optivite remains a key task for the management.

However, whereas the P/E ratio for KIO is presently between 9 and 10, the P/E figure for EAH is over 70. This suggests to me that optimism for the future has driven the share price 7 times greater in relation to earnings for EAH than for KIO – hence my comment about sentiment. One should note that the latest dividend for EAH was 1.24% and was covered by earnings to the tune of only 1.12 (i.e. very little retained within the business). By contrast the last dividend for KIO was a little higher at 1.33% but was covered about 4.2 times excluding the Ultrabite contribution (included, it brings the figure to 8.2 times). I am sure the share price would move up if the percentage dividend were to be increased. That at least would gear the share price to company performance rather than to sentiment.

At some point, the potential for KIO will be recognised as it already has been for EAH but until then, this remains a good investment opportunity. I am not sure that EAH still is but am not a shareholder so any comment beyond that would be inappropriate.

I comment on some of the messages above: - It is the shareholders and their sentiment that dictate share prices. The company performance, of course, affects the sentiment but not the share price directly. The only time that the company is directly involved is when the company raises money by selling shares. Thereafter they are traded without further reference to the company. However, many things affect sentiment amongst which are: good or bad results, takeover talk, bankruptcy talk, dividends and calls for finance. I am sure there are many others but these come immediately to mind.

Finally, we are told in the KIO half yearly Report that although sales increased three-fold, profit only went up by one and a half times i.e. profitability was halved. KIO needs to slog away and bring the whole company up to Agil's level of performance, and then our investments will pay off handsomely. When? My best guess is around this time next year but there is still a lot for them to do.

[spekky] 20/9/2010 07:11

Well done Karen,now what about the rest of the board ?