Surface Transforms Share Discussion Threads

[tole] 28/3/2022 21:11

Thanks.. hadn't spotted that.. I had only just read the masterinvestor article earlier this evening.

[fillspectre] 28/3/2022 20:47

Tole - SCE investor posted the exact same text at 10:30. They beat you to it by a full eight hours! Fils

[tole] 28/3/2022 18:25

https://masterinvestor.co.uk/equities/taking-a-bullish-small-cap-look-at-sce-iof-and-ted/Surface Transforms (LON:SCE) – ready to accelerate awayWhen I first profiled this company, with its shares then at just 17p, I stressed that readers must take on board that they would be an extreme speculation, even so I stated that I felt a real buzz about the company.Since then, we have seen the shares break way above my first price aim and also that of the second profile objective fourteen months later.Now I would suggest that the shares are beginning to look substantially less speculative, and that they may well have another run upwards due soon.The group – the 'home of carbon ceramic brakes' – has been significantly innovative in creating its now patented materials technology for the process of producing advanced brakes.On your car you will generally have carbon ceramic discs which are produced using chopped carbon fibre. However, Surface Transforms interweaves continuous carbon fibre to form a 3D multi-directional matrix.This process creates a much stronger and very durable product that enables it to conduct three times the heat of standard production components, which keeps down the temperature of the brake system while maintaining the consistency of the performance of the brakes.The company's unique patented carbon ceramic technology helps to create the ultimate braking performance for road and track. It saves up to 70% less weight than iron brakes, improves performance in both wet and dry conditions and it is corrosion free. Their technology improves handling and driveability, gives less noise, vibration and harshness, and furthermore even from cold it gives outstanding performance.That is what excites advanced car makers to contemplate such products for their own superior special vehicles, then for their mass production line models.This group, which is the UK's only manufacturer of carbon-ceramic brake discs, there being only one other maker world-wide, is still at an early stage in its development, but very much further ahead now than when I first 'profiled' the company.Makers of racing cars, high performance cars and even mega-powered trucks are early-stage users, but also this new product can be used in rail brakes, aircraft brakes, rocket motor systems and even aerospace components and ballistics. Its potential is massive.Last Thursday the company announced that it had signed a major new contract with one of its existing customers, replacing a previous £27.5m deal declared in September 2020. The new deal is for a value of some £100m and has been extended up to 2027.This group is just beginning to run a lot faster and its potential is starting to show through, cooling down the 'speculative' flavour and replacing it with investment appeal.Analysts Raymond Greaves and Michael Clifton, at brokers finnCap, estimate sales increasing from £2.4m to £14.5m for the current year to end December 2022, with a massive reduction in losses from -£4.4m to only £0.2m down.For the next two years they see £19.9m and then £30.0m sales, with £1.1m profit in 2023 and £5.7m in 2024, worth 0.9p then 2.6p per share in earnings.They have a price objective of 69p for the shares, which closed at 55.5p on Friday night.I consider that the shares, which have been up to 80.95p, really do have very good appeal at this level, especially ahead of the announcement early next month of the 2021 final results.My view is that the shares will rise strongly over the next year, leaving the broker's estimates well behind.For anyone who might be interested the group will be holding a Capital Markets Day at their Knowsley, Liverpool premises on Wednesday 27 April.

[cheese666] 28/3/2022 15:48

Fillspectre - I think my mood has reflected the relatively flat response that we've seen on the board since the announcement.
The contract is clearly fantastic and, as ever, it's the hinted at options on other, larger scale models, which really excites me.
The share price raise was good but it wasn't great considering the £40m announcement in December and the current low share price I remain very bullish about SCE but have concerns about why we haven't moved further up. Even a doubling of the share price from Thursday would have only gotten us back to levels seen before (albeit before the 50p raising).

This is all very short term but, the share price is again drifting down and it doesn't feel like an optimum place to have your money outside of contract announcements.

The world is in a very difficult place and our sector has clearly been profoundly affected by this however, there is also unprecedented demand for high end vehicles in new and existing markets.

I'm quite realistic about the markets and don't expect all of my investments to be winners and for every bit of news to make a difference but on this occasion I feel more is deserved and I'm left wondering why this didn't happen.

[regandharry5] 28/3/2022 11:13

Surely we can't drop back into the 40's after Thursdays RNS. For me it was one of the best for a long time.

[sce investor] 28/3/2022 10:31

hxxps://masterinvestor.co.uk/equities/taking-a-bullish-small-cap-look-at-sce-iof-and-ted/

....................

Surface Transforms (LON:SCE) – ready to accelerate away

When I first profiled this company, with its shares then at just 17p, I stressed that readers must take on board that they would be an extreme speculation, even so I stated that I felt a real buzz about the company.

Since then, we have seen the shares break way above my first price aim and also that of the second profile objective fourteen months later.

Now I would suggest that the shares are beginning to look substantially less speculative, and that they may well have another run upwards due soon.

The group – the ‘home of carbon ceramic brakes’ – has been significantly innovative in creating its now patented materials technology for the process of producing advanced brakes.

On your car you will generally have carbon ceramic discs which are produced using chopped carbon fibre. However, Surface Transforms interweaves continuous carbon fibre to form a 3D multi-directional matrix.

This process creates a much stronger and very durable product that enables it to conduct three times the heat of standard production components, which keeps down the temperature of the brake system while maintaining the consistency of the performance of the brakes.

The company’s unique patented carbon ceramic technology helps to create the ultimate braking performance for road and track. It saves up to 70% less weight than iron brakes, improves performance in both wet and dry conditions and it is corrosion free. Their technology improves handling and driveability, gives less noise, vibration and harshness, and furthermore even from cold it gives outstanding performance.

That is what excites advanced car makers to contemplate such products for their own superior special vehicles, then for their mass production line models.

This group, which is the UK’s only manufacturer of carbon-ceramic brake discs, there being only one other maker world-wide, is still at an early stage in its development, but very much further ahead now than when I first ‘profiled̵7; the company.

Makers of racing cars, high performance cars and even mega-powered trucks are early-stage users, but also this new product can be used in rail brakes, aircraft brakes, rocket motor systems and even aerospace components and ballistics. Its potential is massive.

Last Thursday the company announced that it had signed a major new contract with one of its existing customers, replacing a previous £27.5m deal declared in September 2020. The new deal is for a value of some £100m and has been extended up to 2027.

This group is just beginning to run a lot faster and its potential is starting to show through, cooling down the ‘speculative’ flavour and replacing it with investment appeal.

Analysts Raymond Greaves and Michael Clifton, at brokers finnCap, estimate sales increasing from £2.4m to £14.5m for the current year to end December 2022, with a massive reduction in losses from -£4.4m to only £0.2m down.

For the next two years they see £19.9m and then £30.0m sales, with £1.1m profit in 2023 and £5.7m in 2024, worth 0.9p then 2.6p per share in earnings.

They have a price objective of 69p for the shares, which closed at 55.5p on Friday night.

I consider that the shares, which have been up to 80.95p, really do have very good appeal at this level, especially ahead of the announcement early next month of the 2021 final results.

My view is that the shares will rise strongly over the next year, leaving the broker’s estimates well behind.

For anyone who might be interested the group will be holding a Capital Markets Day at their Knowsley, Liverpool premises on Wednesday 27 April.

(Profile 19.09.19 @ 17p set a Target Price of 30p*)

[jerarnie1] 28/3/2022 07:59

Still in shock at the size of the new contract Fils :-)

[fillspectre] 28/3/2022 07:31

I have been surprised how quiet the board has been this weekend given Thursday's news. Fils

[swiss paul] 25/3/2022 10:48

Riv, thanks for the head up on Gas, it was a concern of mine.

Have a double rec

[amt] 25/3/2022 07:52

Great updates
The Zeus numbers look very Conservative indeed. Turnover could be double those stated by 2025. If so eps could be heading towards 20p.
I can see this becoming a billion pound valuation company in 5 years time, I really can without dreaming too much. That would be most optimistic view but possible if turnover hits 200m and pe ratio hits say 25 due to disruptive nature of its technology. Anyway 5 years is a long time so the Zeus Conservative 1.10 is surely attainable within one year.

[tole] 25/3/2022 07:26

https://www.directorstalkinterviews.com/surface-transforms-dcf-based-valuation-lifted-from-85p-to-110p-by-zeus-capital/4121058288

[rivaldo] 25/3/2022 07:22

A couple of interesting (imo!) and encouraging points from yesterday's research notes.

From Finncap:

"OEM 8 is an ambitious and rapidly growing global vehicle manufacturer with whom SCE has had a good relationship for a number of years. OEM 8 has stated that it could develop similar very high performance derivatives of other models in its range and, while not part of the contract announced today, would need little further engineering or testing to approve the SCE brake product for these models."

And from Zeus:

"Natural gas costs are hedged until early 2023e."

[quemaster] 24/3/2022 23:03

I have noticed on previous occasions after a stonking RNS from Surface Transforms the share price can take some days before it settles down, in the past it has often ended up a lot higher after a few more trading sessions.

[fillspectre] 24/3/2022 22:16

Been busy all day at work - been great to come out and catch up on such news.
In less anxious times the news today would have had an increased effect.
Yes Longshanks - Value will out and so will quality. I will be at the factory come 27th April - it has been two and a half years since I was there last! Fils

[albert_einstein] 24/3/2022 21:21

Massive deal but probably won't be fully appreciated until market sentiment improves, which could be quite a while given whats going on in the world.

[longshanks] 24/3/2022 12:15

Crossing the 200d moving average at 57p would be a good start.With fears brought on by war and inflation there is some understandable resistance on top of some profit taking. However, given that this company is clearly becoming a solid long term investment, this should ordinarily be trading above 100p now.Value will out.

[pinkfoot2] 24/3/2022 11:52

60p tonight

[amt] 24/3/2022 11:41

Seller might simply need the cash or be predicting a deep Worldwide recession and getting out of shares in general.
Crazy to bail out now though

[amt] 24/3/2022 11:41

Seller might simply need the cash or be predicting a deep Worldwide recession and getting out of shares in general.
Crazy to bail out now though

[rivaldo] 24/3/2022 11:14

Approaching £700k of shares traded so far today - there must have been a decent-sized seller or two earlier today who look like they're finally out now.

I can't fathom why anyone would sell at this point. SCE raised monies at 50p fourteen months ago, so even now the share price is barely above that despite all the good news and progress since then, including contract awards from OEM8, OEM6, OEM5 and OEM10.

Most here probably have an extremely good idea as to the identity of OEM8 and why demand for their cars is so large. Hopefully at some point SCE will be able to shout their name loudly in the contract RNS headlines as this would really attract huge global attention.

[quazie12] 24/3/2022 10:51

I wish I had more free cash right now

[amt] 24/3/2022 10:08

I suspect the seller is exhausted. They want shares now. I expect a strong finish. 60p?

[ny boy] 24/3/2022 10:06

A significant contract win, game changer, strong hold for recovery, also got (PURP) sub
20 p for a big recovery this year and (STAF). Dyor as usual, some nice finds about though.Stock picking is key this year.

[graham1ty] 24/3/2022 09:42

Only just spotted that Zeus actually have a 2025 “earnings scenario” with 2025 revenue of £38m and PBT of £8.6m

[graham1ty] 24/3/2022 09:38

FinnCap introduce forecasts for 2024, £30m revenue and £5.7m PBT 😁😁😁