Kromek Share Discussion Threads

[tallprawn] 22/4/2020 07:15

Nice news at BVC this morning.. £31m order for 1000 units. That type of news release could come any day here.

[tallprawn] 20/4/2020 14:56

Always likely to be a few taking profit after last weeks news. Regardless of any selling, this should be in the 20's right now imo. Looks like a decent buying opportunity - A RNS confirming all 2000 machines have been sold could come at any time.

[18bt] 16/4/2020 17:10

Updated note from ST in IC should hit streets tomorrow. Contains this: "The deal is likely to prove a decent earner for Kromek – medical ventilators normally sell for around US$20,000 per unit – although the financial terms are confidential."

[tallprawn] 16/4/2020 16:13

Decent interview with the CEO here from earlier today -https://www.proactiveinvestors.co.uk/companies/news/917433/kromek-demonstrates-nifty-footwork-to-land-breathing-ventilator-deal-917433.html

[tallprawn] 16/4/2020 15:26

The key point is this is not likely to be an one-off though. If they do a good job and sell through the initial 2000, then there will likely be followup orders.Almost all health providers across the world have been exposed as not having enough ventilators - This will be rectified by most countries as they won't want to get caught out again if a new strain appears or a C19 vaccine takes longer than expected to be made available. Thousands of ventilators are needed globally - If KMK do a good job on the initial batch, I'd expect further volume to follow.

[t0pgrader] 16/4/2020 14:40

tallprawn - your estimation of value enhancement seemingly assumes a recurring additional £2pa of profit. But this is more of a one-off so worth less than a 10% increase in market cap.

[tallprawn] 16/4/2020 13:00

Re Ventilators.If they sell the 2000 units (Shouldn't be difficult globally) for a very conservative £5k per unit.This is £10m of sales.If the JV allows them to make 20%, that's £2m of additional profit.The share price should be 45p-50p easily if this is the case.If demand exceeds 2000 units and they can make more than this under licence over the next 6 months, 100p+ is on.Remember, many countries are a long way behind Western Europe with infection rates and demand on ventilators will be high for many months yet.Game changing deal for Kromek imo.

[cerrito] 16/4/2020 11:20

One issue that KMK have is that in the short term the airlines, airports and hospitals will have other issues on their minds than the important initiatives that KMK are involved in.

[culford] 15/4/2020 17:09

There are none made yet and none pre sold either. Their info is that there should be 1,000 ready to sell in 8 weeks and a further 1,000 after 12 weeks. Sales team must now be out trying to get orders and would suspect that this will be next news. Last financial news was interims released in Dec, revenues on line to grow from £14.5m to c£18m and EBITDA to grow from c£2m in prior year. If they sell 2,000 of these units at $10k that would nearly double sales next year and EBITDA would rise to more than £10m. Key is can they now sell them....... They are well connected with UK and US governments (hence the deal which was introduced through UK govt in Japan), so would hope that they sell some into UK which needs somewhere around 20,000 units.

[napoleon 14th] 15/4/2020 14:11

culford's are the only set of figures I've seen on this.
I was wondering "what does that do for eps/ebitda etc?"
Still don't really know as KMK themselves probably would not
like to be held to anything firm at this stage.

Shrewd sell at 26p this a.m.

[kr01] 15/4/2020 14:10

The fact that the RNS had no financial info tells you all you need to know. It's a feel good story and probably not a lot more than that. Good on them but I'm guessing this will make little difference to their bottom line.

[t0pgrader] 15/4/2020 13:10

Culford - good thinking but that margin has to be shared with the licensor. What % goes to a contract manufacturer?

Before anyone attacks me I was fortunate enough to buy @16p last week and sell @26p this am. Looking to buy back in once it settles down

[babbler] 15/4/2020 13:08

Are you ever happy?

[culford] 15/4/2020 11:57

These ventilators will sell for $10k apparently. If they make a 50% margin that is $5k profit not £10k i guessed above. If they sell the 2,000 discussed in the rns that is $10m profit next year. This is a material upgrade and expect shares to head back over 30p.

[costax1654x] 15/4/2020 10:55

Too little too late

[jaf111] 15/4/2020 09:50

looks like the "shrewdies" from yesterday have taken their profits....

[culford] 15/4/2020 09:08

Capital goods equipment typically has margin of c50%. These units sell for c£20k. If they sell 1,000 at £10,000 margin thats £10m, very significant for KMK and would justify stronger price move.

[ayl30] 15/4/2020 08:58

Have held for a while and good to see move this morning. Sold 50% of my ho"ding at 25p will look to buy back in later. This is a solid company and new venture will be good in broadening product offer. Demand will be around for a while, a lot of the world just has nowhere near enough ventilators

[cerrito] 15/4/2020 08:42

Well done to those who were more on the ball than me and who sold first thing.
Obviously this is a great move for society and their workforce but not clear to me how much this will move the dial financially.
I have maintained my holdings here over the last couple of months on the basis they have a healthy Cash position.

[tallprawn] 15/4/2020 08:36

As per previous RNS - Kromek exports to over 40 countries. Plenty of existing export pathways open for three units to be sold through globally in no time.

[jaf111] 15/4/2020 08:20

I'm with you tallprawn....if nothing else this looks a pretty good hedge investment against some rather optimistic bounce-backs in economy.....

[tallprawn] 15/4/2020 08:15

Disagree - C19 will be around in all counties for months yet. Demand on ventilators will be massive given hospitals and heath service providers globally will want more capability for the future.

[2toptrader] 15/4/2020 08:08

Nah, too late to buy into this one. Massive resistance in the 25-30p area and by the time they get the ventilators to market peak corona will have passed and they won't be needed.