Kromek Share Discussion Threads

[quepassa] 21/7/2016 09:11

Issuing an RNS which talks of a $159million contract is absolutely monumental for such a tiny Company as Kromek in my opinion.

Almost certainly price sensitive news in my opinion at the time of issue in April 2014.

If what you are saying is correct whereby you are suggesting that the $159million contract is now different and you are saying that the "Chinese supplier has clearly overstated their reach", in my opinion Kromek need to issue forthwith a new RNS clarifying the ongoing status of the $159million contract.

All in all, with the shock announcement so soon after their flotation and now some questions over the performance of the referenced April 2014 $159million contract, I personally am left wondering to myself to what extent I personally am comfortable enough to rely fully upon forecasts and projections from Kromek.

It is noted that you are now somewhat back-tracking from Kromek as being on the "tipping point/tip of the iceberg/having a customer base which is envy of any AIM company/potential to be ARM of tomorrow"

to a tech company where

"it's also worth noting that getting traction for new tech is notoriously difficult."


That is a statement which seems more realistic to me.


No response necessary.

ALL IMO. DYOR.
QP

[trotterstrading] 21/7/2016 08:22

1. The contract you refer to was struck with a Chinese SME manufacturer, it's an exclusivity based contract whereby the SME received preferential rights to supply Kromek CZT tech in Chinese territories, in exchange for royalty payments. Let's not kid ourselves this is not the US Govt and the Chinese supplier has clearly overstated their reach and selling potential. As such they have not made the expected payments to KMK in year 1 and 2. That said its a seven year so still another 5 to go, it's also worth noting that getting traction for new tech is notoriously difficult.2. This one is simple. The RNS clearly states that the contract COULD be worth $159m. Big difference to the $12m deal that IS guaranteed over 5 years.

[chimers] 20/7/2016 15:19

Use some common sense ffs

[quepassa] 20/7/2016 15:13

No.

Please respond to the two specific questions.

1.If the Company had an agreed $159m contract which they broadcasted by RNS in 2014, where is the money?

2. Why do they call a $6m and a $12.6m contract their biggest contracts ever if they had already announced a $159m contract?


I would be grateful for your assistance in this respect please to capture the bigger picture which you seemingly suggested I couldn't grasp.

Come on. Answer the two questions.

Thank you.

ALL IMO. DYOR.
QP

[trotterstrading] 20/7/2016 15:00

QP, no one is arguing that it's been a long hard road and by anyone's admission they have not delivered to expectation, that said, the past is the past. I'm only interested in the future. The DARPA contracts are getting bigger and bigger and the SIGMA program want all US cities covered. (this is coming from the US govt, not Kromek which is very important point). If, as expected DARPA continue with larger and lager orders Kromek will become a highly profitable company.Surely you can see this?

[chimers] 20/7/2016 14:42

And on that bombshell.........................

[quepassa] 20/7/2016 14:31

Trotters.

I have been trying to see the bigger picture on this share since flotation but the picture appears to me in my view to be less and less clear. But I keep it on my personal watch-list, as I do many small companies.



You say "we".

I can only assume that you have some connection to the Company.



Whilst I may disagree with the language choice of certain other posters, the track record of KMK, in my opinion only, is indeed of losses and more frustratingly in my opinion of not necessarily delivering on forecasts or indeed on projections.

Did they not almost immediately after their 2013 flotation disappoint with a real shocker in early 2014 on their on their forecasts?

There seem to have been so many tips of the iceberg which have been mentioned.

This was the most impressive iceberg. A $159m contract mentioned by the Company in an RNS dated 4/4/14:-

"Kromek has been working with the manufacturer for the past nine months to agree the suitability and detailed structure of a long-term supply agreement. For continued exclusivity the contract provides for revenues of $1.4m and $10.2m in the Financial Years 2014-15 and 2015-16 respectively and the overall value of the contract over the next seven years is up to $159m, subject to the customer meeting its contractual revenue targets. Advanced cash payments totalling $260,000 are expected from the customer in the current Financial Year, part of which has already been received. The first supply commences in October 2014."

This RNS mentions revenues from this contract alone of $10.2m in 15/16.

And yet THE TOTAL REVENUE from all contracts for the full 15/16 year as just released to 30/4/16 was only £8.3m.

In my opinion, you are woefully wrong when you suggest any analogy to ARM Holdings.

I have looked very hard but I certainly have never seen a KMK security scanner at an airport but I see lots of other brands of scanning equipment in this increasingly competitive field.

How can it be that revenue is so miniscule? Just £8.3million and barely up from £8.1m? This is not a Company which is growing fast or where those iceberg contracts are hitting.

So let's keep things simple.

Two question for you please:.

1.Where is the money from the $159m contract mentioned by Kromek in their 4/4/14 RNS?

2. How does the 4/4/14 RNS about the $159m contract square away with the Company's latest RNS yesterday which contained the following words about the largest contracts in the Group's history of $6m and $12.6m:

"The year was characterised by the award of two of the largest contracts in the Group's history in its key growth markets. Firstly, in Nuclear Detection, Kromek was selected as the sole source supplier by the U.S. Department of Defense agency, DARPA, to supply its D3S radiation detectors as part of the SIGMA programme in an agreement worth $6.0m. Secondly, in the Medical Imaging sector, Kromek secured a five-year contract totalling $12.6m with a long-standing OEM customer in the BMD sector."


$159m, $6m and $12.6m -Please explain.



ALL IMO. DYOR.
QP

[chimers] 20/7/2016 13:18

Not how it works.

[chimers] 20/7/2016 13:14

It gets the Gold medal for that one must admit.

[trotterstrading] 20/7/2016 12:59

QP, if you can't see the bigger picture here then I perhaps this is not the share for you? Kromek has the potential to be the ARM of tomorrow, just look at our customer base?! The envy of every AIM company, surely? We have a track record of securing huge contracts, the last being over $12m and according to the CEO it's just the 'tip of the iceberg'Our tech is market leading, and we are entering a tipping point the CZT technology. The next 12 months will be huge for KMK, and better yet no funding required according to the broker note. The only reason KMK have not made a profit is because they are investing for future growth - that growth is here, now and over the coming weeks and months it will be proven to the right decision by the company.

[philjeans] 20/7/2016 12:15

Great time to BUY - follow the money!

[quepassa] 20/7/2016 10:57

for me the question is rather the price at which he can buy the shares being 1.5p.

Yes one and a half pence.

Cost 800,000 shares at 1.5 pence = £12,000

value of exercised shares 800,000 at c.25p = £200,000

Capital Uplift on share exercise is around £190,000.

I am all for company executives getting paid well for doing well.

But the Company continually makes losses. The shares floated at 51pence in October 2013 and the shares are at or near their all-time low back at c.25p.

Why do management get rewarded when shareholders have lost money?

ALL IMO. DYOR.
QP

[pistonbroke1] 20/7/2016 10:30

CEO exercising options of 800K shares, positive sign.

[rochdale] 20/7/2016 06:43

hxxp://www.thenorthernecho.co.uk/business/news/14629100.Kromek_s_US_terror_deal__just_the_tip_of_the_iceberg__vow_bosses/ some context here

[quepassa] 19/7/2016 15:24

Everything hunky-dory as usual EXCEPT the ongoing losses -- but let's brush that minor detail under the carpet.


ALL IMO. DYOR.
QP

[philjeans] 19/7/2016 14:06

Close your shorts - buy.

Bargain now down here - blue sky for miles above!

[chimers] 19/7/2016 13:05

Its LIFESTYLE company for now.

[trotterstrading] 19/7/2016 12:19

JoA,

the signs are all there, if we choose to look for them.

The DARPA deal alone is a company maker, we are talking about a $Bln program, and that's not coming from Kromek, that's coming from US DARPA agency themselves!

The SIGMA program is accelerating in the face of unprecedented global threats, and Kromek are the preferred partner. (no one comes close to Kromek's technology and price point). Re-read the results... its there in black and white, in fact it goes further to now include Europe as in-scope (hardly surprising given recent events)

"The Group is collaborating with its partners in the SIGMA programme and making arrangements to commence full-scale deployment in cities across the US and Europe over the coming years."

Profitability is forecast by FY17, but with big contracts lined up in the 'near term' the current share price is an absolute bargain IMO

[joan of arc] 19/7/2016 11:14

Apart from Chimer's sweet talking ways (he's filtered)these results do beg the question of when is KMK ever going to show a profit.

[chimers] 19/7/2016 08:55

And Poor old Gervaise has LOST HIS TOP TEAM at MITON

[trotterstrading] 19/7/2016 08:53

Nice update from broker note. That should put to bed cash raise fears. All upside from here folks, no wonder Miton upped their stake to a chunky 11% I shall be following their lead. Great company about to come into its own

[gnnmartin] 19/7/2016 08:38

Does look like they'll need more money, and the market looks like making it expensive.