Maxcyte Share Discussion Threads

[nanopayments] 31/1/2022 10:31

All good One_Frankel. I'm sure current market conditions have been difficult for a lot of investors. As for raising a lot of capital, that's a good thing if the return on invested capital is higher than the cost of capital. With gross margins on instruments at 90%, and close to 100% on SPLs, I think MaxCyte will generate high returns on the capital they have raised.

[trident5] 31/1/2022 09:50

Why ignore the drivel?

Ignoring the stock based compensation the company's net outflows are c$1m a month, after the two placings there is c$250m on the balance sheet.

Why the need to raise all that cash? It would keep the company going for another 20+ years at the current flow. But -

"MaxCyte intends to use the net proceeds from the Offering for research and development initiatives, to expand its manufacturing capabilities and invest in manufacturing automation, to expand its sales and marketing, business development and field application scientist teams, and for working capital and general corporate purposes".

The cash pile here and that note suggests to me heavy spending to come and big losses.

[one_frankel] 31/1/2022 09:14

Fair point Nano and I doubt many are oblivious to the wider market conditions either buddy!

[adamb1978] 31/1/2022 08:56

All

If the comments in the few posts above are in response to trident5, please just filter him and then ignore his drivel. If people post factually inaccurate things then its best just to not give them the oxygen which they need, and then eventually, when no-one is biting on their comments, they'll go away and find other people to annoy.

Adam

[nanopayments] 31/1/2022 08:34

Gross margins have remained consistently around 90%, so it's also incorrect to say they're diminishing. As for a lack of profitability, R&D represents 68% of total revenue, so this company could become profitable in a hearbeat if it stopped investing for the future. The sharp decline in the share price isn't specific to MaxCyte. There has been a crash in small and mid cap growth stocks across the board, and not just in biotech. Revenue in the core business continues to grow at 30-35% and more of MaxCyte's customers are entering the clinic, so SPLs will also begin contributing more, as Doug Doerfler stated in the press release: "We remain optimistic about the potential for our SPLs to generate meaningful revenue over the next 12 to 18 months and beyond."

[one_frankel] 31/1/2022 08:26

It's a clinical based company that will consume plenty of monies with its progress...What's so difficult to understand here?

[trident5] 30/1/2022 20:05

Evidently not, a big problem here is that management have brought in way too much cash, unless it has massive spending plans and years of losses budgeted.

[edwardt] 30/1/2022 19:54

With "current debt already high"- you actually looked at the balance sheet?

[one_frankel] 28/1/2022 17:05

Well the concerted demise does seem very unreasonable then!

...Having research this a little further, MXCT has been incurring losses since its inception in 1998, and it expects to remain unprofitable until at least this year but with its limited offerings and rising costs, margins are quickly diminishing and with current debt already high whilst expected to rise even further in future with its proposed R&D spend, the concerted ddemise here is likely to be due to rotational investing away from highly indebted relatively early stage growth!

...Also, many of MXCT products are yet to receive full FDA approval without which they cannot be commercialised so there too remains an added risk.

[davep4] 28/1/2022 17:02

Market cap approx US$ 650m with appox US$ 250m cash.

[one_frankel] 28/1/2022 17:00

RNS stated but I think i may have misinterpreted it as going forward instead of their previous years milestones, my apologies!

"This includes raising $257.2m in gross equity proceeds, the completion of an initial public offering in the United States, and commencement of trading in our common stock on the Nasdaq, continuing significant organic growth in our core business, and our ongoing success in signing strategic platform licences with innovative cell therapy developers.

[assagai] 28/1/2022 16:56

Proposed IPO? Do elaborate!
Sensing a floor soon, time to return?

[one_frankel] 28/1/2022 16:36

This concerted demise does seem to be getting unreasonable with MaxCyte now but i think its just all the uncertainty with the proposed IPO in the US that is causing some distress amongst investors.

[adamb1978] 24/1/2022 19:42

Hi nanopayments
Agreed - the KPIs are all trending in the right direction and strongly, so I dont think you need to over think this. Take a position and just forget about it for a few years
Adam

[nanopayments] 24/1/2022 15:11

Core revenue continues to growth at around 35% annually and more customers will be entering the clinic in the coming months and years, so SPL milestones will begin contributing more meaningfully to the core business. I can't imagine there's much cyclicality to that either, unless customers lose access to capital and put trials on hold, so the fundamentals are going to catch up to the share price, and as long as they are improving we will find a floor.

[trident5] 24/1/2022 09:09

Decent figures? No mention of costs or losses. And do we know what they plan to do with all the placing proceeds - they do suggest a very long period of operational losses still to come.

[adamb1978] 24/1/2022 08:19

Decent figures and pleased that they've updated their KPIs (SPLs, milestone revenue potential etc). Around a third of market cap in cash now given the falls!

Would have been useful to have some 2022 guidance, but they seem quite conservative

Happy to let this one run for years

[jones1961] 21/1/2022 14:00

Does anyone have a clue as to why the share is under pressure? All I can see is that since 30/11/21 to 31/12/21 the short interest increased from 2.295 mln to 3.444 mln shares. Given the performance this year, it is probably even larger now.

[edwardt] 13/1/2022 14:47

whoops! sorry was reading an older report!

[rgmgo] 13/1/2022 14:43

edwardt I would hope you are somewhat on the low side there. MXCT had $255mn of net cash and equivalents at the end of Sept 2021, around one third of mkt cap @ 575p, or approx 28% of mkt cap fully diluted for options. Remember (predominantly) US investors kindly boosted coffers by around $200mn (including over allotment), at $13, in July.

[edwardt] 13/1/2022 14:05

£80m cash or thereabouts. 19% of market cap. tempted to add tbh..

[edwardt] 13/1/2022 11:40

cash on account vs market cap?

[edwardt] 12/1/2022 11:04

that should be good news.

[davep4] 11/1/2022 12:24

The whole sector has been rerated downwards since the Allogene clinical trials were put on hold.

[multibagger] 10/1/2022 16:50

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