Kromek Share Discussion Threads

[ark87] 05/8/2022 12:19

This doesn't look great. Unless there's some incredible news lurking it's looking grim here. "The Loan Note holders have the right to elect to be repaid in whole or in part in Ordinary Shares at the lower of the closing mid-market price on the repayment date, and 15 pence per share."

[estienne] 05/8/2022 11:38

In any case you would have to wait a while and you might just as well invest in some of the divi paying blue chip stocks that are at a discount

[aqc888] 05/8/2022 10:54

Just took the decision to sell 40% more of my remaining Kromek holding. Too risky and too much failure. I would have held on if the founder and ceo didn’t have such a minuscule stake in the business. But I can’t keep holding here with Kromeks history of failure and the CEO never buying no matter how low the price goes. Big warning sign imo. Will keep watching with interest.

[dougmachin] 05/8/2022 10:53

finnCap have reiterated this:

"We leave our target valuation of £118m (27p) unchanged, with nearterm catalysts (e.g. a second long-term supply agreement with a major OEM in medical imaging and/or radiation detectors) helping to drive the valuation."

Do they know something for sure...?

Have I missed something pointing to this second long-term supply agreement...?

[dougmachin] 05/8/2022 10:51

finnCap - "Kromek announced a £1.7m fundraise by way of the issue of convertible loan notes (8% coupon, 18-month conversion period at 15p per share), which will allow the company to minimise any potential supply-chain disruption to the delivery of contracts during the year. We make only minor changes to forecasts to reflect the additional interest (c.£0.1m) accrued, with adjusted pre-tax loss increasing to £5.0m. We leave our target valuation of £118m (27p) unchanged, with nearterm catalysts (e.g. a second long-term supply agreement with a major OEM in medical imaging and/or radiation detectors) helping to drive the valuation. As the only independent supplier of CZT for imaging systems, we believe there is substantial strategic value in Kromek. Long product life cycles (c.20 years) from its OEM customers, particularly in medical imaging, should provide visibility to cash generation, and are attractive value drivers."

[aqc888] 05/8/2022 10:34

The markets Kromek operate in do seem to be moving in their favour. However the financial situation seems a bit worrying in the near term. Was the fundraising so small because that’s all they could get their hands on - or was it so small because they are expecting an improvement to their situation soon? Nobody here knows the answer to this question. Looking at Kromeks history we should expect more failure. However things do seem to be improving and there is a huge information void in regards to the biological pathogen detector. Last time Kromek has an information void on ventilators it was a precursor to failure. Kromek is definitely a high risk gamble with not enough information available to make a certain call either way. In three years this could easily be 0p or 100p in my opinion.

[mdchand] 05/8/2022 08:15

Finncap have a target valuation of £118m (27p) and in an updated broker note, mention near term catalysts (e.g. a second long-term supply agreement with a major OEM in medical imaging and/or radiation detectors).

They conclude, as the only independent supplier of CZT for imaging systems, we believe there is substantial strategic value in Krome based on long product life cycles (c.20 years) from its OEM customers.

[strategicinvestor2] 05/8/2022 07:44

Excellent that company was able to raise the debt finance at 15p per share conversion. Shows the confidence in future prospects.

[quepassa] 05/8/2022 07:41

That is a diminutive amount for a fund-raising in my opinion. A mere £1.7m

It is not clear whether the amount raised of £1.7m is gross proceeds or net proceeds.

This latest fund-raising may or may not be telling you something about the current market/investor appetite for Kromek obligations. It may or may not be telling you something about Kromek's need to raise funds.

And it's not even equity which they have raised. It's short-dated convertible senior debt.

Those are SHORT-DATED CONVERTIBLE LOAN NOTES with just an EIGHTEEN MONTH MATURITY plus a miniscule THREE MONTH EXTENSION OPTION.


JUST LOOK AT THE EYE-WATERING COUPON/INTEREST RATE ON THE LOAN NOTES.

EIGHT PERCENT.

EIGHT PERCENT.


The stated purpose is for "additional working capital" reasons......




ALL IMO. DYOR.
QP

[bubloo] 05/8/2022 07:35

have had raise after raise and nothing to show for it.

[ali47fish] 05/8/2022 07:22

fund raise- loan notes not good

[strategicinvestor2] 04/8/2022 23:35

Was it in the paper IC or exclusive to the website ??

[quepassa] 04/8/2022 21:57

One point of clarification.

The IC did not themselves say/suggest 69p.

They just reported that new house-broker FinnCap wrote in their latest recent note that there is potential value up to 69p in 3 years.


Think about that......


ALL IMO. DYOR.
QP

[estienne] 04/8/2022 20:48

I'm tempted to buy the IC just to see what ST has said. They'll need some big orders to reach 69p

[strategicinvestor2] 04/8/2022 10:38

Let’s hope so Acq888. Most of us have seen the unlocked value but has tested out patience !! Wonder if will be in IC print edition, readership c30,000 I think

[aqc888] 04/8/2022 10:25

When print edition comes out Friday there could well be further gains. Good to see Simon Thompson, Finncap and HSBC all seem to agree Kromeks problems are short term while the longer term future could well be a lot better than the current share price suggests

[dougmachin] 04/8/2022 02:49

It's nice to see that IC have an investment horizon longer than 5 minutes.

[ark87] 04/8/2022 02:43

Investor Chronicle say 69p in 3years? Well they where 51p when first listed 9 years ago and apparently where “ready to begin harvesting value” back then. 80% loss in one of biggest bull markets ever and Basu banking mega wages the whole time. Sickening stuff.

[strategicinvestor2] 03/8/2022 21:37

I think about 60% of Kromek shares are held by just 10 investors so any demand is likely to push share price a lot higher with few available given ongoing large investor support. Also acts as good defence. IHMO DYOR

[strategicinvestor2] 03/8/2022 16:33

Revenues targets at £18m for current year with great
visibility - anything not in commercial pipeline would be upside to this…. I also think key is the value of being the worlds only independent supplier….

[talk2tony] 03/8/2022 13:05

Seems like both AB and ST have some form of amnesia. No mention of the pathogen detector by either. Big Brothernomics I guess. Kromek has never been involved in pathogen detectors. Oceania has always been at war with Eurasia.

[senttothegallows] 03/8/2022 12:55

Some just don't like the thought of Kromek going up, been that way for a long time. For one of the large players with visability of turnover and cash flow positive it is a no brainer. I suspect they will be taken out in the 20-30p range IMHO

[slicethepie] 03/8/2022 12:37

10 posts in 24hrs suggests an agenda !ALL IMO DYORSp

[slicethepie] 03/8/2022 12:35

Post 6278 To quote you?.Not worth wasting ten minutes of your life watching it.Clearly this does not apply to the time you spend boring us with your observations ?.surely your time is more valuable ! ALL IMO. DYORSP