Nanoco Share Discussion Threads

[noccer] 11/4/2018 15:56

So I wonder who's QD panels this offering uses. I am thinking maybe Innolux.

[redartbmud] 11/4/2018 08:13

They can solve the problem by actually selling the product.
Isn't that the reason for being in business?

[bagpuss67] 11/4/2018 07:39

Tipped in IC as a buy on the back of the interims.

[boris cobaka] 11/4/2018 07:31

And also how the funds are received. Would it be a one-off payment or instalments.

[bagpuss67] 11/4/2018 07:08

Sorry to butt in! I guess that depends on how much of their ongoing costs are related to the new project and how many “shared” costs if any they have negotiated to be funded eg admin?

[boris cobaka] 11/4/2018 07:01

bones -

'Cash burn 0.8m a month cash at Jan 8.7m means out of cash by end of the year'

Is there any merit in considering the injection of cash from the US co. to enable plant expansion? Would this mitigate the need for further cash raising prior to sales hopefully taking off?

[bones698] 10/4/2018 22:54

Just my opinion from outside ghaon it's easier to see when your not invested as you become emotionally attached as soon as you buy a share which leads to a less objective view . ;)
Cash burn 0.8m a month cash at Jan 8.7m means out of cash by end of the year . Just doesn't look enough time to turn this around imo . They should have raised more money to ensure there is no need to raise again so soon . The city will be brutal if they go calling for cash again . Just look at the fall last time prior to the raise .

All depends on how fast sales pick up in the next 8 months but just can't see 6m in 6 months tbh

[ghaon] 10/4/2018 22:49

Cheers bones. Time will tell. Good luck!

[bones698] 10/4/2018 22:39

Don't see that big an uptick so fast as previous collaborations have so far yielded nothing and would have already filtered through into these results . I'm not saying it won't happen but think it will take longer than nano have before needing funds . Unfortunately it's a very common theme on aim companies failing to deliver sales and revenue . Seems most bods are only interested in collecting fat pay packets rather than grow a business.

Then there 8s the fact nano already has a big mkt cap which so far has certainly not been warned given the constant lack of sales so any negative news or delays will impact the share price a lot more than normal . For me it's a sell now and buy back nearer the time as I see this drifting lower until they can prove sales are happening

Then there is the chart which is looking in a downtrend channel already which looks set to continue with newsflow likely scarce for some time . Your money your choice but can see better opportunities selling here and buying back later at a lower price and at the end of the day it's about making a profit and maximising that . Sitting and waiting not the best policy in these markets

[ghaon] 10/4/2018 20:10

bones I'm invested and will stay so until there is some evidence that suggests the business model isn't working. As I see it major companies are prepared to partner with Nanoco because QDs and nanoparticles are in increasingly in demand. Clearly, nothing is certain but to my mind the commercial risk is actually diminishing not increasing. I believe they are on the cusp of success and today's share price will seem very cheap in a few months.

[bones698] 10/4/2018 19:51

Ghoan so you expect them to go from 250k revenue to 6m inn9 months ? Even though some of those deals are already well into their prices but no sales have materialised ????

Sorry but I think a few are looking through rose tinted glasses expecting miracles .

Personally that isn't achievable in the slightest and nano will have to raise more funds before the end of the year and still have very little revenue which should see this crash . In the meantime this will drift lower as the cash is used up fast and that point approaches . My advice is sell now and wait until later and but back much cheaper if you believe the sales will eventually come although based on history that looks unlikely

[epo001] 10/4/2018 19:39

Gut reaction to the webcast is that Edison seems very unenthusiastic about what he is talking about. No liveliness, no enthusiasm, no salesmanship, no attempt to big up Nanoco. At various points he seemed to pause as though expecting (hostile?) questions.

As an inadvertent buyer (it crashed south though a limit buy when I wasn't looking) who is in profit I don't know what to think. On the strength of that presentation I wouldn't think "that is a screaming buy".

"Cress is a big deal"! FFS.

[ghaon] 10/4/2018 18:55

If they start generating that sort of revenue, even if a bit shy of 6m, then getting a decent lending arrangement without much dilution is very achievable.

[bones698] 10/4/2018 18:49

They have a huge way to go to get to 6m revenue this year from those results and if they don't get close they will run out of cash simple before break even which is what I expect to see. Yes they have some good stuff but so have many other companies which have failed to turn that into revenue and profit .for me this will drift lower over the coming months and unless they massively generate revenue next results it's a big gamble to hold in the hope that the story will change as fast as it needs to given past results

[ghaon] 10/4/2018 18:34

"Analysts expect the group to make a loss of £6.4m on £6.1m of revenue in 2018. In 2019, Nanoco is expected to make a profit of £12.4m on £24.1m of revenue."

I wonder if those are Peel Hunt's figures. In any event, the margins in 2019 look particularly healthy. Makes you think what sort of profits the company will make when QDs and other nanoparticles really take off.

[ghaon] 10/4/2018 18:25

From today's Motley Fool by Roland Head -

"Big investment success stories can sometimes come from unlikely places. Today’s first stock is a good example. Nanoco Group (LSE: NANO) is a high-tech firm specialising in “cadmium-free quantum dots”.

I wasn’t previously familiar with quantum dots. They’re “fluorescent semiconductor nanoparticles” that are typically around 1/1000th the width of a human hair. They absorb energy from light and re-emit the colour in a different colour. They can be used in LCD displays such as computer monitors and televisions to provide vivid, bright colours.

Unfortunately many quantum dots contain cadmium, which is a heavy metal that’s apparently a proven carcinogen. Regulatory pressure to reduce the use of heavy metals in electronics is growing, so Nanoco has focused on developing cadmium-free quantum dots. I’d imagine that demand for this technology could rise rapidly, if it’s commercially successful.

About to hit the big time?
Nanoco published its half-year results this morning. The group reported good progress on several fronts. The company now has “an increasing number of Nanoco-equipped display products moving through to commercial production with customers in Asia”.

The first commercial products using the firm’s technology are expected to reach the market in 2018, so the company could soon start to receive revenue for commercial sales. Analysts expect the group to make a loss of £6.4m on £6.1m of revenue in 2018. In 2019, Nanoco is expected to make a profit of £12.4m on £24.1m of revenue.

To bridge the gap before sales revenue is expected to start flowing, Nanoco completed an £8.6m fundraising in October. Based on the firm’s H1 cash burn of £4.5m, I believe this could be enough to see the business through to break-even.

Should you buy Nanoco?
Consensus forecasts for 2019 put the firm’s shares on a forecast P/E of 15. That seems quite modest, but it’s worth remembering that we don’t yet know how well Nanoco products will sell in the market.

This is too speculative for me, but if you’re comfortable with the risk, I’d continue to hold the shares following today’s figures."

[warranty] 10/4/2018 14:51

As a long term holder in NANO I'm impressed with both the positive and negative comments from informed posters on here so I can only continue to hold my own view. Despite all the concerns over the financial situation and jam tomorrow statements from the company, I still believe that this could turn out to be a winner. I find it difficult to discount the interest shown by Dow, Merck, Wah Hong and the yet to be revealed US Corporation regarding Nanoco product, let alone the expanding opportunities in medical, farming and lighting sectors that are increasing. Would this US Corporation really invest in expanding the Runcorn facility if they considered Nanoco's existence a risk? I hardly think so. NANO is certainly a frustrating hold but for me it's one of those bottom drawer stocks that will hopefully surprise me on the upside over time.

[notimpressed] 10/4/2018 13:52

bones698

How many of the mega tech stocks in america are cash positive,
all operating at multiple p/e ratios.

The stock market is a futures market not a past and present market.
cfqd and allied materials are a nascent product and industry,
the biggest problem for nanoco is ME and the board have been over
optimistic in their interpretation of the time to market for the
end user's of their product.

Yes it could all end in tears, but given the traction they are
gaining in use of their nano materials, it looks more positive
than it has been, You pays your money and takes your chance,
if stock investing trading was easy everybody would be rich.

[jfacwc] 10/4/2018 13:52

some especially serious criticisms here, and on the other boards. However, the share price hasn't capitulated yet. All so similar to previous years, where the share price recovered soon enough. Why people don't have patience anymore is beyond me, but still, others have benefitted from the briefly lower prices, so I guess that may be the game this time.

[bones698] 10/4/2018 13:13

Mr oz they will learn as this now gifts back down to 20p in the coming months as the market makers lick in anyone stupid enough to buy at such a high valuation whilst delivering sure results and failure . 100m mkt cap for a company selling next to nothing and been the same story for far too long with no sign of changing . The problem I have is I really don't see them being cash flow positive for at least another 18 months and so more funds will be raised .
If that's the case the city will take their pound of flesh at even lower prices than last time and the bod will have again shown their incompetence by not raising enough to get to break even . That's if that point is ever reached

[notimpressed] 10/4/2018 12:55

i figured it out they got the 6 upside down
should read

Nanoco/Dow - 2019 a transformational year for CFQD

[mr.oz] 10/4/2018 12:39

Not of the same world as you and I, bones

[notimpressed] 10/4/2018 12:38

oh ye of little faith, verily i say unto you
wait until 12 months more, and your shekels will
multiply in a most prodigious manner.

[bones698] 10/4/2018 12:37

100m mkt cap with little likelyhood of things improving the rest of 2018 and only 5m in the bank is seriously worrying and I suspect will sees these fall to 20p at some point again this year . Maybe if they end up having to raise more money before the end of the year less than 20p . Looks like another firm where the BOD is happy collecting wages and bonuses and delivering sod all. 100m mkt simply not sustainable without delivering results which they clearly are not