Omega Diagnostics Share Discussion Threads

[specialistwasagypsey] 11/6/2023 21:50

🤣🤣🤣

Special needs has been destroyed 👏🏻👏🏻

[specialistwasagypsey] 01/6/2023 21:47

Where is global the little 🐀

Still sleeping rough in Green Park? 🤣🤣🤣

95p 🤡

[specialistwasagypsey] 15/5/2023 21:41

Special needs was cleaning my shoes today before I had lunch at the Dorchester. 👞

She did an excellent job. The money will pay for a new cardboard box 📦 for tonight.

[blackhorse23] 27/4/2023 08:23

Added some HOV

[specialistwasagypsey] 26/4/2023 21:33

Poor specialist she lost her dignity on ADVFN.

🤣🤣🤣

Who went long at 95p? 🤡🤡🤡

[carlisle44] 17/4/2023 11:27

How to make a pig's ear from a silk purse.

[clocktower] 17/4/2023 07:32

Nothing much to like in today’s news other than there is still a decent amount of cash in the pot but that could dwindle very quickly imo.

How low will this go today?

[indianlintardandgoatrizbankrupt] 04/4/2023 08:43

Seems my idiots in the dark the goat 🐐 herder Riz and the smelly Indian Lintard have all gone bankrupt. Bad luck peasants - the rest of you will go bankrupt soon. The SPECIALIST is the only person who commands the total sum of human knowledge.

Praise be to the Specialist.
Praise be to the Messiah of Knowledge

[indianlintardandgoatrizbankrupt] 04/4/2023 08:42

Poor Goatherder Riz and his husband Lintard who went bankrupt here by the Messiah are now living in a bin together in Green Park. Throw these two lovers your leftovers so they survive and remember their stupidity.

Hahahahaha hahahahaha

Praise be to the Messiah of Knowledge

[indianlintardandgoatrizbankrupt] 04/4/2023 08:38

Seems my idiots in the dark the goat 🐐 herder Riz and the smelly Indian Lintard have all gone bankrupt. Bad luck peasants - the rest of you will go bankrupt soon. The SPECIALIST is the only person who commands the total sum of human knowledge.

Praise be to the Specialist.
Praise be to the Messiah of Knowledge

[dennisbergkamp] 22/3/2023 18:51

Pure punt for me based on gdr moving up a few weeks ago

D

[xtrmntr] 21/3/2023 07:01

The cash flow statement is the first thing I go to when looking at the financial statements.We're going to do a walkthrough on a company that was popular last year called Omega Diagnostics (ODX).What went wrong?This is a company that got caught up in the testing hype, then failed to deliver on its revenues.Some blame the government. Some blame the board.But regardless of who is to blame, the warning signs were clear in the cash flow statement.Cash flow statements show how cash moves through the business and can tell us if a company:may need to raise moneyconverts its profits into cashis spending hefty amounts on capexBy the end of this email, you'll know how to work your way around the three parts of the cash flow statement.Let's get started on the first part: the cash flow statement of operations. Operating cash flow statement (OCF)The operating cash flow statement shows if a business is self-sustaining in its ordinary course of business.It starts with the company's bottom line (net income/loss) and then works its way back to cash generated/used from operations by the company.To do this, the company adjusts items on its P&L.Let's look at ODX's cash flow statement.Source: SharePad (risk-free trial and free month worth £74 here)This company made a £2.7m loss in its half-year report.But it doesn't mean that it used £2.7m from its cash reserves.This is where the OCF comes in handy.For example, we can see straight away that the company adjusts for depreciation.Depreciation is the writing down of a tangible asset across its useful life on the P&L.But depreciation doesn't affect the company's cash position - so it's added back.The same goes for amortisation.Amortisation is the testing of an intangible asset for impairment.It's also a non-cash expense.We also add back share-based payments.As an aside - some management teams will tell you that these aren't a real cost because they are non-cash.But share-based payments can make a huge difference to the P&L and ultimately your share of the profits as an owner of the business.Anyway, let's continue..Some companies will provide a number used in operations before the movements in working capital.But these movements can be significant. Now, if "Increase in trade and other receivables" grows, this means more people paid on credit burning the year.And if it's negative, this can mean one of two things:the company has been proactive at chasing up those who owe it moneythe business is slowing down hence why receivables haven't been growingA stretched receivables book can be poor for working capital purposes, so always check the cash position on the balance sheet.And if the number in "Increase and trade and other payables" is positive, then it means the company owes more money.A decrease means it has paid and capital has left the business.Companies that get paid quicker than they pay cash out see a higher cash balance within the business. This is generally what I like to see.In the case of ODX, we can see that it burned through £1.8m in six months. If we do a rough calculation and divide this up then we get an outflow of ~£300k per month.Investing cash flow statement (ICF)The second section of the cash flow statement is the cash flows from investing activities.This includes:capital expenditure (capex)acquisitions with own capitalcapital raised from selling investmentsThis section will often be negative. But that isn't necessarily a negative.Capex can be be either maintenance or expansionary.Maintenance capex is capital that the business needs to spend on to keep the company running.For example, companies with large fixed assets such as restaurants or machinery will need to spend to keep these assets in good working order.Expansionary capex is capital that the company is investing in to grow. This is more exciting for investors.You can also calculate Free Cash Flow (FCF) here.FCF is what is left after the business has made all of its commitments.FCF is calculated by taking the company's cash flows from operating activities and subtracting capex.FCF = OCF - CapexLet's look at ODX's investing cash flow statement.We can see that the company spent £673k on the purchase of property, plant, and equipment.We can also see that management spent £411k on the purchase of intangible assets.This doesn't tell us much, and we don't know what was bought and why.But we do know that nearly £1.1m of the company's cash balance was spent on investments during this period.Financing Cash Flow (FCF)The final part of the cash flow statement is the cash flow from financing activities.This part shows us how the company financed itself through the period.A big positive number here usually means that the company raised capital.Here's ODX's financing cash flow statement:We can see that the company only raised £57k from the proceeds of issuing share capital.But in the prior period we see a big number - Omega Diagnostics raised £11m from a share placing the year before - and spent £551k on broker fees to help it achieve this.We also see other costs and get a final number at the bottom. So what does this mean?We can see that cash declined to £4.7m from £5.8m. We also know this number got a £2m boost from a DHSC contribution (as listed in the FCF).And we also know that the co is burning through roughly £1.8m per month. It also spent £1m on investing.But here's the crucial part. This report is from 25 November 2021.The date it reports on was for the period ending 30 September 2021.So you have to start calculating the £300k per month cash burn from that period.In an RNS on 10 December 2021, the company announced that the Department of Health and Social Care had acknowledged that the contract had expired (meaning no further revenue).It also requested that the company should repay the previous contribution along with the VAT which is £2.5m.Omega also said that it had taken further legal advice (more capital burned).At this point, anyone who had read the cash flow statement would've known it was clear that the company was in trouble financially.Stage four stocksHowever, even if you didn't know what a cash flow statement was, ODX was clearly a stage four stock.Let's look at the chart.Source: SharePad (risk-free trial and 1 free month worth £74 here)The stock topped out around 130p.Since then, the stock fell through all of its moving averages (another warning sign), then all of the moving averages started pointing down (another warning sign).It doesn't matter how good a company looks - I'm not tough enough to fight the trend.The company even announced it was discussing an equity placing: "Market conditions remain challenging and accordingly any issue of equity would be at a discount to the current share price."Of course, this is easy for me to say in hindsight. But I've taken a big hit in the past myself because:1) I didn't understand cash flow statements2) I ignored a falling chart, and more importantly3) I was emotionally invested and buried my head in the sand.This last point is key.Once you feel any hint of emotion to a stock - you're at a disadvantage.Trading is a ruthless business.If you're not able to cut stocks without emotion - you will struggle.

[riskyinvestor] 17/3/2023 10:57

THIS IS READY FOR LIFT OFF

[riskyinvestor] 17/3/2023 10:57

TIME FOR A LIFT OFF

[jusjusjus] 10/3/2023 15:57

Omega had its day at 120p during Covid, nobody is interested anymore!

[riskyinvestor] 10/3/2023 11:37

re rating gonna happen soon

[riskyinvestor] 10/3/2023 10:55

ITS 3.42P TO SELL

QUOTE IS WRONG

[riskyinvestor] 10/3/2023 10:48

WHERE IS EVERYONE

THIS IS CHEAP AS CHIPS

IT HAS £5M CASH