Kromek Share Discussion Threads

[owenski] 02/5/2018 17:32

Great posts Chimers, always make me larf, and save me wasting my money at the same time, how good is that. :-)

[susiebe] 02/5/2018 17:22

Ha ha Archway7,can see a mile off that its another Chimers alias.Good try though but its so obvious.ps the bad language gives you away.

[chimers] 02/5/2018 16:06

Ahh the ostriches are having A DAY OUT AGAIN!!

[susiebe] 02/5/2018 15:59

Use the filter.He has a problem which I hope hes getting help for.

[alter ego] 02/5/2018 15:54

9 new posts since I last looked - Oh, they're all from Chimers. what a bore. This board is just not worth reading unless you happen to think Chimers knows what he's talking about. I dont so I'm not going to bother looking in any more. Some people just ruin it for everyone else. Shame on him.

[chimers] 02/5/2018 14:58

NOT VERY PRETTY IS IT!!

[chimers] 02/5/2018 14:58

All courtesy of Walbrock who seem to "get" it.

"Walbrock’s opinions on Kromek
Kromek business is growing and will likely break even on EBITDA, but on EBIT you will have to wait beyond 2020. Meanwhile, development costs (capitalised expenses) have risen to £11.6m in 2017 and will rise further. The question investor should ask: “Will the company’s valuation and share price survive when cash balance starts to fall?”

On that basis, I’m leaning towards that the share price will remain under pressure because of the amount of time it will make a profit."

[chimers] 02/5/2018 14:57

"How do you value Kromek as an investor when it is not making any profits? On a price to sales, it stands at 6 times falling to 3 times by 2020.

In terms of cash as % of market capitalisation, it stands at 36% but is expected to drop to 18% in 2018 and falls to 10% by 2020.

On a price to book, the multiple fell to 1.2 times, down from 3 times from 2015.

The purpose here is to say on a sales basis, valuation looks promising, but cash backing becomes less important, as net cash dwindles. Also, the quality of shareholders’ equity will come into question, if the firm capitalisation of expenses failed to produce profits in the future causing a drastic write-down in value."

[chimers] 02/5/2018 14:56

"I think a small company like Kromek is at the start of their business cycle and lots of things can go wrong, as well as things going in the direction of the company.

It is important for investors to ask themselves the following questions on Kromek: –

1). What level of sales are needed to break even?

2). Margins?

3). When will it make a profit?

4). How long will the cash pile last?

5). Is there a “break out” year? (Meaning the year, its sales accelerate)

6). How much will development costs grow as an asset? Will it distort the balance sheet?

7). Will market valuation falls, if the cash position starts declining?

8). How well do you know Kromek and the market it operates in? Have you done the market research to know if Kromek will deliver the goods?

9). Are their rivals standing in the way of Kromek?

These are some of the questions you as an investor should answer. By answering them, you will know where Kromek stands and whether this is a future long-term opportunity."

[chimers] 02/5/2018 14:55

"According to their accounting notes, Kromek decided to amortise their development costs in a straight-line over 2-15 years rather than product sales. The problem is the range. In 2017, amortisation expense amounts to £748k, equivalent to 11 years. But by 2018, amortisation expense expects to rise to a minimum of £862k (using 15 years), but be closer to £1.2m (using 11 years amortisation rate).

Investors should question the range because, at such a wide range, management has saved themselves from scrutiny. For instance, if management decides to accelerate amortisation to 2.1 years, the amortisation expense will jump from £748k to over £6m causing a heavy accounting loss. And management would be within their rights to do so. By then, Kromek’s valuation would have collapsed.

Just something investors should think about!"

[chimers] 02/5/2018 14:54

"The biggest downside is capitalizing their development costs to the tune of £11.6m by 2017, an increase of £4.1m. A potential risk of a write-down if the company don’t deliver on their promises. Also, it raises some questions about the company’s breakeven point."

[chimers] 02/5/2018 14:53

"The company biggest expense is their wages standing at £5.6m in 2017. Average pay per staff is £55,000, that’s just the basic salary."

[chimers] 02/5/2018 14:53

" Kromek will remain a loss-maker, as EBIT will see losses reduced to £1m by 2020. This tells me at £19m sales, the business is still making a loss."

[chimers] 01/5/2018 14:24

Awwww well.................not to worry eh!!


Walbrock’s opinions on Kromek
Kromek business is growing and will likely break even on EBITDA, but on EBIT you will have to wait beyond 2020. Meanwhile, development costs (capitalized expenses) have risen to £11.6m in 2017 and will rise further. The question investor should ask: “Will the company’s valuation and share price survive when cash balance starts to fall?”

On that basis, I’m leaning towards that the share price will remain under pressure because of the amount of time it will make a profit.

[chimers] 01/5/2018 14:23

Oooo errr..........

"According to their accounting notes, Kromek decided to amortize their development costs in a straight-line over 2-15 years rather than product sales. The problem is the range. In 2017, amortization expense amounts to £748k, equivalent to 11 years. But by 2018, amortization expense expects to rise to a minimum of £862k (using 15 years), but be closer to £1.2m (using 11 years amortization rate).

Investors should question the range because, at such a wide range, management has saved themselves from scrutiny. For instance, if management decides to accelerate amortization to 2.1 years, the amortization expense will jump from £748k to over £6m causing a heavy accounting loss. And management would be within their rights to do so. By then, Kromek’s valuation would have collapsed.

Just something investors should think about!"

[walbrock82] 01/5/2018 14:19

Looking at Kromek, I see their business is growing and will likely break even on EBITDA as forecasted, but on an EBIT basis, you will have to wait beyond 2020. Meanwhile, development costs (capitalised expenses) have risen to £11.6m in 2017 and will rise further. The question investor should ask: “Will the company’s valuation and share price survive when cash balance starts to fall?”

On that basis, I’m leaning towards that the share price remains under pressure because of the amount of time it will make a profit.
For more on Kromek and a look at Connect Group, click

[chimers] 01/5/2018 11:54

Really?

Whats "pathetic" about being a professional investor who changes tack with the wind?

I thought all successful investors did that?

I mean, I know you dont.............but the successful ones do yes?

[jacks13] 01/5/2018 11:49

Oh, dear. Pathetic.

[chimers] 01/5/2018 11:48

That post was from Oct 2017.
Then things changed for BANGO.

And not for the good.

Only novice investors fall in love with shares.

Hit them first before they hit you!!

I change my opinions on a shares on a daily basis dependent on new information.

Dont you?


Well...............






































YOU SHOULD!!