Sphere Medical Share Discussion Threads

[timbo003] 30/9/2015 21:51

Good find LF

Another fund raise at the end of 2016, or beginning of 2017 by the sounds of it if breakeven isn't until 2019. That's a long wait, unless they get gobbled up before then.

[ladyfarmer] 30/9/2015 17:39

From Proactive Investor:

Sphere Medical likely to find plenty of potential partners for Proxima


Share


15:18 30 Sep 2015

Twice as much: finnCap has a price target of 25.5p for Sphere, which is roughly double the current share price

Sphere Medical likely to find plenty of potential partners for Proxima

Proxima 3 is now being sold directly by the company's own sales team in four EU countries: UK, Germany, the Netherlands and Belgium.


House broker finnCap expects Sphere Medical (LON:SPHR) to nail a commercialisation deal for Proxima 4 by the middle of next year.

The broker had to revisit its forecasts after Ortho Clinical Diagnostics (OCD) decided last month not to get into bed with Sphere, leaving the AIM-listed company free to pursue commercial agreements with other potential partners.

The company has already entered a number of discussions, finnCap observed, and noted that while many global diagnostics companies have a presence in blood gas analysis, many do not have a point-of-care device (PoC), and so would be interested in Proxima 4.

With Woodford Patient Capital in its corner – the investment fund pumped £4mln into Sphere earlier this year – the company can afford to take its time in the negotiations and secure the best deal.

According to the house broker, the medtech firm has enough cash to deliver on its plans through to the end of the first half of 2017.

While reinstating its full year (FY) estimates for 2015 of adjusted underlying losses of £7.0mln on sales of £100,000, the broker has released 2016 forecasts, comprising an underlying loss of £7.4mln on sales of £300,000.

Sphere is still in the early stages of the roll-out of Proxima 3, with the first commercial sale achieved in June of this year, and while a number of hospitals are currently evaluating the product, finnCap is not expecting any significant additional revenue for the rest of this year.

“We estimate that sales growth will accelerate as we go into FY 2016E, particularly once Proxima 4 is launched,” said analysts Keith Redpath and Michal Cabadaj.

The broker saluted the good progress made on bringing Proxima 4 to market; the next generation system incorporates additional analytes - chemical substances that are the subject of chemical analysis – and plugs into hospitals’ information systems.

“This is expected to lead to more rapid market penetration, particularly as the extra analytes (glucose and sodium) could significantly expand the range of conditions for which monitoring with Proxima 4 is suitable,” finnCap asserts.

Applying a discount rate of 15% and assuming a 2.0% growth rate beyond its 10-year forecast period – the company is tipped to be knocking on the door of break-even in 2019 – the company has arrived at a discounted cash flow-driven price target of 25.5p.

The shares currently trade at half that level.


John Harrington


  

[del44] 29/9/2015 19:52

I am based outside of the UK, so I just phone my broker and he is pretty good at getting "at best" for me.
My holding is in 6 figures and it was nigh on impossible to get a full quote within the quoted spread......I am not currently a seller as I have been in since day one of the IPO @ 92.5p placing.....

[cc2014] 29/9/2015 19:44

Hi Del,

I'm not really in agreement with regard to shareholders wanting out as an explanation for the weak share price.

I'm more in favour every so often there are forced sellers as the FTSE drops and drops. It is commonplace for PI's to overcommit their assets on their hopes of jam tomorrow. I have noticed that for example that yesterday aligned with a really horrible drop on FTSE and in particular the mining and oil sector.

I think it's simply a case of capitulation when PI's simply can't take the losses any longer


With regard to your quote may I ask which broker you are using? I assume you are having to phone for a quote as it's way over NMS?

[del44] 29/9/2015 14:25

There is no day to day demand for the shares.....
Yesterday, I got quoted below 11p to sell a block of shares in SPHR...
It continues to be that way. I do believe there are some bigger holders who perhaps want out but the market is not there so they have to sit on there hands for now....but it is a potential over hang even though it is not actually there presently....

Without dramatic price sensitive news, it shall remain considerably under the down side pressure...unfortunately!!!

[cc2014] 28/9/2015 22:24

This share frustrates me. Directors continuing to buy, Woodford continuing to buy. Share register shows large holders are not selling out and stock is becoming more and more tightly held yet the price continues to struggle.

I wonder if today's fall is as simply as someone just wanting out at any price. The overall market does look terrible (as does my portfolio which whilst significantly down less in percentage terms than the FTSE this year is now starting to look a little sick)

[del44] 28/9/2015 14:12

Director Dealing



Sphere Medical Holding plc (AIM: SPHR.L), a leading provider of innovative monitoring and diagnostic devices for the critical care setting, announces that it was informed on 28 September 2015 that on 28 September 2015 Richard Wright, Chief Financial Officer of the Company, purchased 75,382 ordinary shares of 1p each in the Company ("Ordinary Shares") at a price of 13.25 pence per share. Following this transaction, Mr Wright's holding in the Company is 75,382 Ordinary Shares, representing 0.05 per cent. of the Company's issued share capital

[del44] 28/9/2015 10:13

Good man Tim.
We are back down to lows for all time.....12p on the bid.

[timbo003] 22/9/2015 20:11

It would be nice to see a bit of director buying now they are out of a closed period.

I see Wolfgang is down to talk at the ShareSoc seminar on Oct 21st, I think I will go along to that one:

[cc2014] 22/9/2015 12:30

That was a damp squib. No real news and no movement on the share price.

Guess we will just wait for some more positive new

[timbo003] 22/9/2015 08:20

I didn't look yesterday, but for what its worth I see there are now two MMs of the bid (14p), Shore cap and Peel Hunt.

[timbo003] 22/9/2015 07:55

Very much as expected.

No real hard sales data available due to long lead times. Optimistic noises about future sales in Europe. Talking to potential partners (plural) about a global deal. Progress on moving production to Wales.

I predict no change in the share price at the open, although we may get a mark up (or mark down) after the analysts conference later this morning.

[del44] 19/9/2015 14:59

Decent article in that magazine (Share) this week. Not great reading though...
Seem to think the share price could react badly when FinnCap update there next review now that Ortho have pulled out of the distribution deal...
It seemed to lean towards a negativity slant...also adding that 14.2p COULD be a good entry point but.......false value hurdles possibly lie a head!!

[del44] 17/9/2015 19:43

We shall see...I have been saying the same thing for about 3 years now...:-)...LOL.

[cc2014] 17/9/2015 19:26

Yeah bid ticked up on only 35k buys. Amazing.

To me it looks like the MM's have cleared there positions before the interims and the stock is now is free float responding to demand and supply.

[del44] 17/9/2015 15:34

Bid has ticked up today on some buying...LOL...

[cc2014] 16/9/2015 20:10

It's very clever because getting clinicians to write business cases is something the NHS needs to learn to do better.

Also a good handout for all these trade fairs they are attending.

Only 3 days to go to interims... Fingers crossed

[timbo003] 16/9/2015 09:43

The White paper makes a good read



It's six pages (page 1 copied below). Presumably it will form part of the info pack supplied to hospitals to help enable them to make the business case for choosing Proxima

[cc2014] 16/9/2015 09:15

News equals lift the offer but not the bid. Expect offer will fall back sometime unless we have a delayed trade on its way

[del44] 16/9/2015 08:05

Silly games with the spread again!!!

[cc2014] 14/9/2015 21:48

lol of course. Interim results with some SALES figures

[del44] 14/9/2015 21:04

There is no AGM on the 22sd CC2014!!!!
You mean the interim statement (results)?

[cc2014] 14/9/2015 20:18

A few days have gone by and whilst we know that Woodford bought those two large tranches of shares, who sold them remains a mystery. We can only assume as no other RNS that it wasn't from one of the larger holders.

The stock becomes even more tightly held.

Roll on the 22nd for the AGM when we can get some clarity over the future

[cc2014] 10/9/2015 13:19

Let's hope we can get back to 16p anyway. Just need SHOC to move up from 15p which is a lot different from yesterday.

[timbo003] 10/9/2015 11:25

False dawn, or is that the overhang gone once and for all?

I see that Peel Hunt are on the bid (13.5p) for a change