Surface Transforms Share Discussion Threads

[graham1ty] 13/10/2021 22:12

I am always staggered by the inaccuracy of some tipsheets. First SCE is not a penny stock.

But the main, unbelievable fault is the suggestion that revenue is currently £35m......

[tole] 13/10/2021 20:23

https://www.fool.co.uk/investing/2021/10/13/2-of-the-best-value-penny-stocks-to-buy-right-now/2 penny stocks on my radarI think these UK shares are some of the best penny stocks to buy following recent selloffs:#1: Cash richI can fully understand why Surface Transforms (LSE: SCT) share price has fallen 10% over the past month. The automotive industry has been particularly affected by supply chain disruptions and, more specifically, by a shortage of semiconductors. As a long-term investor though, I think this weakness represents an attractive dip-buying opportunity.The number of high-wealth individuals is expected to rocket over the next decade. This means that sports car sales are also tipped to rise strongly, something which bodes well for Surface Transforms. The ceramic brakes it manufactures are widely used in the production of high-performance vehicles.Surface Transforms had a reassuring £17.2m worth of cash on the balance sheet as of June. This should assuage any fears over the company's flexibility should the car industry remain under the cosh. The penny stock's healthy balance sheet should also help it to make good on its revamped manufacturing strategy.It also plans to accelerate the development of its Knowsley factory to delivery £50m worth of annual sales by 2023. That compares with £35m today.

[pinkfoot2] 13/10/2021 18:03

I agree-EV is also the earthquake needed to shake out the recurring OEM model by forcing tangible change

[toffeeman] 13/10/2021 15:41

If there was a glass half empty investor on this board, it would be me and I have no concerns about the growth of EVs - in fact I see it as a positive for SCE.

[bagpuss67] 13/10/2021 15:34

Does anyone have any concerns about how the power train transformation to EV impacts the long term value here?

[sce investor] 13/10/2021 15:30

Picked a few more up earlier. This definetly in the buy zone at current levels...Thank you to longshanks for the coinfirmation on gas prices having no real impact on margins...I suspect this was part of the reason for the recent pullback.
Looking forward to the next update which wont be too long.

[graham1ty] 12/10/2021 13:27

Would be good to get an update soon on OEM8, or just some news flow to slow this slide......

[volsung] 12/10/2021 10:36

Bought a few more at 59.85p

[toffeeman] 11/10/2021 10:32

They are quoting between £2500 and £5000 per wheel!

That seems an order of magnitude different from OEM pricing?

[graham1ty] 11/10/2021 09:23

It really is a good description and promotion of the SCE discs.

[quemaster] 10/10/2021 23:57

Sorry, Just gone further back through the posts and noticed they have been mentioned before, but worth a look at the youtube video on the link above.

[quemaster] 10/10/2021 23:37

Do we know about "Suspensionsecrets" ?




"Our assistance in Surface Transforms’ extremely rigorous research and development programme makes us the UK’s leading distributor of these class-leading discs."

[markm1980] 07/10/2021 16:44

Likewise, thank you very much Sir!

[balcony] 07/10/2021 16:39

longshanks-Thanks for being so proactive.

[longshanks] 07/10/2021 16:06

I have had an email exchange with David Bundred and he assures me that the gas price is very low on the worry list.A tripling of the price would only reduce the GM by 1-2%.However, it is reassuring to know they are hedged for the next 18 months which should be enough to see some stability return. DB also highlighted that the company is making great strides to reducing their overall carbon footprint.

[swiss paul] 06/10/2021 20:36

Long - I think it will - unless hedged. Part of the process utilses gas - and its not just for the CHP and cooking

[longshanks] 06/10/2021 19:31

I think the recent hike in gas prices will have some impact, markm1980, but perhaps not as much as one would expect. It could be that they have a supply contract where increases are capped as with domestic users. Equally I don't think the current spike will last through to when production really ramps up.It is a question that you may want to ask David Bundred if it is a concern for you.

[supernumerary] 06/10/2021 17:18

Unlikely that chip shortage will be a great issue for SCE - the car makers will use whatever chips they have on the highest value, ie highest profit, cars they make. The vehicles that use ST brakes will be right at the top of this list.

[cheese666] 06/10/2021 17:12

PS56 - I agree about the chips issue but do see a silver lining for us as players in the EV market.
In addition the the Chip issue affecting ICE cars (and EV) we have our domestic fuel crisis, an energy crisis in Germany and world wide steep petrol pump increases. People can't buy physically ICE cars now and are beginning to more seriously consider an EV as an actual purchase (the Tesla 3 is the highest selling car in the current UK market). We stand to benefit from this switch to EV's

I can see that the longer this uncertain period continues the greater the knowledge, acceptance and desirability for EV's in the general car market will be and, hopefully, the time period to switch from a mainly ICE market to primarily EV could be reduced by a number of years.

[ps56] 06/10/2021 16:43

The scarcity of chips impacting car production will continue to be a concern here. IMHO

[markm1980] 06/10/2021 16:28

Putting aside the bigger concern in equities at the moment, what is the impact of the explosion in gas prices on a corporate such as SCE? Presumably it's a large proportion of operating costs. Do corporates of this scale fix gas prices into the future, or are they exposed to volatility in the spot price?

[pinkfoot2] 06/10/2021 16:08

I bought some more this pm-oversold

[pinkfoot2] 06/10/2021 15:29

Brutal selling here-unhelpful

[toffeeman] 26/9/2021 20:39

I believe the dual source argument is codswallop.

OEM8 have a contract with SCE for the rear axle on one of their models. Brembo are not a supplier on this model.

OEMs may give some models to Brembo and other to us - but individual models are single source.