That's a massive delayed buy from yesterday |
An important point to consider is how Kromek is shielded from the prospects of tariffs. Having US manufacturing and also being based in the UK allows Kromek to have a competitive price advantage by not being subject to potentially high tariffs compared to competitors. With tariffs of 25% being imposed this situation could be pivotal. |
While the initiation of procurement and the receipt of orders under these programmes has been later than the Group initially anticipated, Kromek is pleased to confirm that it has commenced since period end. |
UK govt contracts could drop any time. With a potential share of an 84 million pound pot this could be a highly lucrative source of additional revenue. |
I'm very happy to be distracted by JakNife who has made some very insightful comments
The reply from Reabank was interesting and JakNife responded to it. If you don't agree with JakNife perhaps you can say why? |
https://x.com/theunsophistic2/status/1886085410020794368?s=12&t=4s-AQzZhMmeWz3Ire1AEsA |
https://x.com/theunsophistic2/status/1885009265246519637?s=46&t=4s-AQzZhMmeWz3Ire1AEsAExcellent kmk telegram group ? |
Well posted cyberdyne1 |
Your accurate in what you say Z1CO it will be an attractive target especially the CZT div. Please don’t get distracted by the only shorter left in town, JakNife. He is getting more desperate by the day and at one point next week he will fold his position. And that will be the end of the blunt old tool |
Valuation thoughts
We are reminded that, after Canon acquired Redlen Technologies Inc. in 2021 to secure its source of CZT technology, and Siemens having in-house capabilities, Kromek is also the only independent source of CZT-based detection systems. The Redlen acquisition indicated an estimated valuation of US$290m (£173m) i.e. a multiple-of-revenue range of 21x to 33x.
The above values KMK in the range of 67.3p to 78.8p |
Latest ST comments after the deal , thanks for posting the link |
It's not the last comment. This is: https://www.investorschronicle.co.uk/content/fd2350c4-9825-57e7-ad45-fb26d7a6d5df |
Last comment by Simon Thompson of Investors Chronicle was on 28th October 2024 after the full year results.
I'm looking forward to what he has to say about this transformational deal.
SMALL COMPANIES & AIM
There's value in these volatile shares
It will turn cash flow positive in the current financial year and is also a takeover candidate
Published on October 28, 2024
by Simon Thompson |
Https://www.venturecapitaljournal.com/canon-completes-buyout-of-redlen-technologies-for-335m/Analysts said: "We consider the most likely use for CZT detectors to be in CT imaging applications, given market trends and the acquisition by Canon of Redlen Technologies in 2021 to secure in-house CZT production for its transition to CZT-based CT detectors."https://www.proactiveinvestors.co.uk/companies/news/1012501/kromek-group-s-czt-contract-a-game-changer-say-analysts-1012501.html# |
Once they receive the initial $25m the debt will be all gone.
The company will make a profit for the first time in it's history for the current year ending April 2025 , EBITDA of £12.3m and adjusted pre-tax profit of £4.9m. |
You will only get more desperate as the price begins to RISE from this level.
Best to cut your losses and close your SHORT , instead of worrying and getting sleepless nights !!!
The price will be above 10p again by the time issue tha next trading update in May or even earlier.
The initial $25m will be paid to the company very soon , so best to close your SHORT before then. |
 Z1CO,
"You can post all you but the fact remains the company is undervalued going by this latest deal.They have only transferred just 15 furnaces to Siemens for $37.5m and still have a further 159 furnaces."
On what basis? It's easy enough to throw out a wild claim but you need to back it up with actual investment figures!
At 6.4p (£41.1m market cap - 641.5m shares in issues):
1. KMK trades at 4.2 x tangible net assets of just £9.9m!
2. KMK trades at 40 x 2027 forward earnings (as per the house broker)
3. It's on a dividend yield of 0% (Kromek has never paid a dividend as it's made a loss every since it was listed)
There's not a single metric that suggests KMK is "cheap", rather it's ridiculously expensive and a stinker of a loss-maker.
The siemens deal represents a last ditch desperate deal to save it from insolvency, otherwise:
* With first half losses of £5.7m, achieved on trivial revenues of a mere £3.7m
* and with net debt of £11.7m at 31 Oct that has since increased materially beyond that
Kromek would have needed a huge placing to save it and to be able to continue to pay the rewards for failure that the current directors enjoy.
Open your eyes, smell the coffee and engage that brain. It's a dog!
JakNife |
You can post all you want but the fact remains the company is undervalued going by this latest deal.They have only transferred just 15 furnaces to Siemens for $37.5m and still have a further 159 furnaces.
Unless you close your SHORT and cut your losses it will only get worse over the coming weeks.
Very soon they will issue an rns saying that the company has received the initial $25m
Share price will only RISE higher over the coming weeks/months. |
^^ apologies the sarcasm may not be 100% crystal clear in the above chart! |
pilkers,
"With the siemens contract now in place valued only slightly below the current market cap this now derisks kmk as a takeover target."
What a load of complete nonsense.
Have you read the background in the posts above?
Kromek did a $58m deal with Siemens back in January 2019:
1. They weren't a takeover target then and weren't taken over in any of the following six years.
2. In 2020, the year immediately after the big deal, Kromek reported its largest net loss out of all of the losses that it's reported in the last six years
Year Loss2019 £0.62020 £16.52021 £5.42022 £4.92023 £6.12024 £3.3
Kromek has reported a loss *EVERY* year that it's been listed which means it reported losses in *EVERY* year following the last deal with Siemens.
3. Get your hands on the Cavendish forecasts. Cavendish are the house broker and yes, they do forecast a profit for the current fiscal year. But can you see what happens in the years after?
Year PBT (forecast) EPS (p)2025 £4.9 0.772026 £2.1 0.342027 £1.0 0.16
Cavendish forecast that a profit is made from the initial sale but that profit then materially tails off. I would bet money that Cavendish have thrown a bit of optimism into their 2026 and 2027 numbers and that actually those years will return to form and be loss-making ones.
Summary
The Siemens deal is described as a "four-year" deal and the house broker, Cavendish, has adjusted its forecasts to predict TOTAL profits (from *ALL* business inc Siemens) over the next three years of £8m, of which a big chunk of those profits are one-off in 2025 and 2026.
Looking at the closing share price of 6.4p, and Cavendish's 2027 EPS forecast of 0.16p, KMK is trading on a forward EPS of 40x!!!!! It's not cheap by a long long way.
Retail punters have got far too excited about Kromek and its deal with Siemens. The reality is that its main importance to Kromek is that it has saved it from insolvency. Without this deal Kromek was running out of cash fast and would have needed a rescue placing.
As it is, Cavendish forecast closing net cash for Kromek of just £1.8m as at April 2025. It's not a big number and it probably won't be long before KMK is back in debt once again!
Now you know why so many have been selling heavily into the recent share price excitement!
JakNife |
This deal has given some potential valuation for the company
The transfer of 15 of its existing 174 furnaces for CZT production to Siemens Healthineers has been valued at $37.5m ( £30m ).
The company still has 159 furnaces.
Taking in to account of other assets including:
Medical Imaging
Security & Industrial Screening
Nuclear Security
Civil Nuclear
Biological-Threat Detection
A realistic take out valuation of the company is in excess of £300m , over 50p |
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