Kromek Share Discussion Threads

[quepassa] 06/8/2022 12:04

once a Bully, always a Bully......

[slicethepie] 06/8/2022 11:40

Hey passa , the only thing I have called you is a repetitive bore and there is plenty of evidence to support that ie 10 posts in one day..... hardly bullying!ALL IMO DYORSp

[slicethepie] 05/8/2022 18:09

Horrible week if you have been short! Tootle pip....ALL IMO DYORSP

[slicethepie] 05/8/2022 18:08

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

[quepassa] 05/8/2022 17:50

Perspective.

1. More than seven years ago as at 30/4/2015, the CEO owned 2 million shares in Kromek representing 1.8% of The Company at that time.


Now his holding has diluted down to just 0.7% of The Company

A reduction of 60% in percentage shareholding.


2. As at 30/4/2015, The Company had 108 million shares in issue

Now the Company has MORE than 430 million shares in issue (30/4/21)


Anyone care to work out the dilution factor for early shareholders over that time period?


ALL IMO. DYOR.
QP

[paul_butcher1999] 05/8/2022 15:25

AQC888 - take your general point - and agree with it. But just to note the CEO's salary is £226k inc benefits and pension contributions (not £350k+). He also owns 2,988,750 shares (0.7% of the business) - admittedly that's worth only £448,313 (ie 2x his yearly salary) using the recent loan option price of 15p a share.

[quepassa] 05/8/2022 14:35

1. Equity Development are forecasting a full-year 2023 Adjusted LOSS Before Tax of
negative £4.9million

2. No mention or no Discussion about forecast Breach of Banking Covenants

3. No mention of pathogen detectors.



Equity Development point out that their information is " Non-independent and categorised as Marketing Material".


ALL IMO. DYOR.
QP

[edmonda] 05/8/2022 14:05

New research report (free & accessible) from Equity Development:

For the year to 30 April 2022 Kromek reported results in line with the Trading Update of 16 May: revenue of £12.1m +16.5%YoY, and an EBITDA (adj.) loss of £1.2m. We estimate revenue in the Advanced Imaging division grew 28% YoY to £4.6m, whilst the CBRN segment grew 1.5x to £5.4m.

Kromek reports that it expects growth to accelerate in both its core segments – security-related CBRN and advanced imaging – with the prospect of “a substantial year-on-year increase in revenue”. The CBRN segment in particular has seen an increase in interest from government agencies, as current levels of geopolitical instability would indicate.

There is very encouraging visibility of the current year with 53% of contracts sealed, with a further 37% under negotiation and 10% underpinned as repeat business. Kromek also announced two new orders worth a total of US$0.751m and a convertible loan note to raise £1.7m.

Our FY23 outlook remains unchanged, as does our Fair Value at 26p/share.

Link to full research report:

[aqc888] 05/8/2022 13:52

It’s all a bit mysterious with Kromek. I find it a very interesting one to watch. However the deeds of the CEO speak far louder than his words throughout the history of Kromek. By that I mean his purchase of shares remains very little, as the share price collapses he should take the opportunity to buy a significant amount - that’s if he believes his view of how great things are going to be.

The share ownership of the ceo has tipped my view into believing the worst. It’s with great disappointment I sell a big chunk of my remaining Kromek, especially as someone who once believed so much in Kromek I allocated 10% of my portfolio in it (reduced to 2% at 16p).

The CEOs decision not to invest has been the correct one looking at Kromeks history. His continued decision not to invest would seem to be the clearest indication of where Kromeks future lies and whether the current share price weakness is a bargain or not. He should lead with his actions as the share price collapses. That’s just my personal view of what a founder & CEO should do if his share price is collapsing and he genuinely believes the market has got it wrong. Perhaps a bit of an unfair view…

[strategicinvestor2] 05/8/2022 12:54

Glad you will still have an interest ACQ888 as like your perspective. Am hanging on to belief next 6 months will see the pivotal turnaround based on recent green shoots.

[b00mb0y] 05/8/2022 12:22

Good luck AQC888. I’ve been here since IPO so I’m holding and hoping.

[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