Lidco Share Discussion Threads

[buywell2] 17/4/2019 07:22

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[buywell2] 17/4/2019 07:20

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[multibagger] 16/4/2019 11:48

10p in 2021 from a share price point of view would be an excellent return for someone who has recently invested (like me this time around).

However, this does not change my view on the laissez faire approach to performance related options in LID.

Options cause dilution of equity and to the detriment of shareholders if share price performance does not justify them. Matt has been given a lot of options over the years, but this has not translated into share price performance - what we have seen is a steady decline in share price and good or bad, the buck stops with him.

I am already a share holder / fractional owner of the LID business (knowing fully well that I can easily take a RNS notifiable stake at short notice), however, I will not do so, as RNS today does not reflect good corporate culture or governance in my view.

I am going to see how this pans out, but at this time I am not impressed in the slightest and intuitively a red flag. It feels wrong to me and I heed my intuition.

We may have to agree to disagree on this one buywell2 !

[buywell2] 16/4/2019 10:02

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[multibagger] 16/4/2019 09:48

Well the options are based on a 12% growth yoy in share price over 6 years. Precisely my point that the options are just a giveaway.

For some reason, the Remuneration Committee does not share your optimism about what growth is achievable over a 6 year period or else they would have set a more meaningful target.

Why would that be ? Has Matt got them over a barrel ?

I will raise it if I can be bothered to attend an AGM or if I happen to meet Matt at some investor road show or email him and see if he has the courtesy or decency to reply. Another litmus test.

The flag it raises for me is one of corporate greed and possible corporate governance issues. We have had enough shenanigans in listed companies, big and small.

Anyway, I won't be adding at this time...quality and integrity of management is hugely important to me and these giveaway options package apppear to have failed this test in my view.

[buywell2] 16/4/2019 09:26

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[multibagger] 16/4/2019 08:03

A 12% growth rate from a very low base is not at all demanding...these options are extra generous to an already well remunerated Matt in terms of his annual package and options that he has been already granted...given the size and market cap of the company.No one is so special including the "special one" Jose Mourinho.

Compare these LID options vesting with performance/ share price targets of companies like IDEA set for their key people..there has to be a "stretch" element or it is pointless to paint it as a target.

DoI:IDEA is one of my bigger sized holdings.

[buywell2] 16/4/2019 07:45

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[multibagger] 16/4/2019 07:27

Well Pugugly, this raises questions as to what the Remuneration Committee is actually doing ?

[pugugly] 16/4/2019 07:25

The Company is currently in the process of finalising share option grants to key employees over a further 1,025,000 Ordinary shares. Following these grants, the total number of shares under option will be 20,478,376 representing 8.4% of the issued share capital.


A proportion of the Options may vest and be exercised at 0.5 pence per Ordinary Share anytime between 9 April 2022 and 9 April 2025 if the average share price in the three months ending 9 April 2022 (the "Average Share Price") equals or exceeds 6.00p. At an Average Share Price of 6.00p, 15% of the Options become exercisable, for all of the Options to vest the Average Share Price must equal or exceed 10.00p, and a straight line sliding scale applies to determine the amount vesting if the Average Share Price is between 6.00p and 10.00p.

For an £11 million market cap coy current share price 4.5/4.6 I suspect thosse who bought in th elast 4 months would be happy if targets met but long term holders will be disappointed but many who bought 5 years ago may already have sold out.

[arf dysg] 15/4/2019 15:45

buywell2, are you paid by the word?

[multibagger] 15/4/2019 11:32

7767, I would look at this period of market being dis-interested/not being able to appreciate the developing story or dots getting joined up, as a fantastic opportunity to top up. I'm well into a 7 figure holding now.

The market is driven by sentiment and perception and a contrarian approach usually pays off handsomely.

[buywell2] 15/4/2019 08:33

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[7767] 15/4/2019 08:26

Wish more punters shared our views, would give the share price a push.

[multibagger] 15/4/2019 07:35

Thanks Buywell2 for taking the time and effort to share your analysis of the wider commercial issues being addressed.

In essence, LID will be able to get much better prices from 3rd party suppliers like Antmed and Maicuff, due to the sheer volumes of consumables that LID would be buying from them to service the expanding HUP programme in the UK and USA.

Also some cross selling opportunities will arise, when LID are selling 3rd party consumables to those Hospitals not on the HUP plan, they can flog the LID HUP plan as an cost effective alternative.

The low/very low prices for consumables, safeguards and protects the LID margins in the HUP model.

The downside, if there is one, is the 40% re-seller margin and associated revenues for LID from Antmed and Maicuff consumables to non-HUP hospital will get smaller with the passage of time... as more convert to the HUP plan.

Now to see, what actually happens over the next few years :)

[buywell2] 15/4/2019 06:46

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[buywell2] 11/4/2019 11:32

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[multibagger] 11/4/2019 10:45

Thanks buywell2 for your ongoing input and comedy sketch !

Have I got it correct that the USP for LID is that

LID offers hospital a fixed contract price per monitor for the HUP contract period - circa $8000 per year. This includes the consumables + the monitoring equipment, irrespective of amount of use.

This would then expand addressable haemodynamic monitoring market. As from a hospital point of view, improved quality of care, better outcomes, less complications, alongside known and fixed annual financial costs.

A "no brainer" buying decision as it is a "win win" solution from a patient safety, quality of care and financial perspective.

Other haemodynamic vendors offer

1. Monitors to be purchased at about $14k -16k per monitor

+

2. Cost of consumables as required

- so capital costs + on going consumables expenses

...........this would cap/reduce the size of addressable market.


Not rocket science, but a clever LID marketing strategy....as long as the big boys are not able to replicate that / not worth their while attempting to replicate that.

[buywell2] 11/4/2019 08:05

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[buywell2] 07/4/2019 11:44

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[7767] 05/4/2019 12:19

No real demand for stock buying from mm's at the mid price, surprised Edwards are not buying at bargain prices.

[multibagger] 03/4/2019 11:20

Hi 7767,

It looks like the PDMR buy of 650k could account for one of the big transactions. The other 600k could be a buy ...but who really knows !