Verditek Share Discussion Threads

[astralvision] 15/10/2020 10:13

Fair play to you dubois

[dubois] 15/10/2020 08:50

Snapped another 203k.
We must get news soon of one of the larger contracts they are working on.

[monts12] 15/10/2020 01:23

From

(More recent articles available to subscribers)

Little by Little - (VDTK)
24/9/2020 (119264)

Little by Little

Sad to see the Verditek (VDTK) share price steadily on the slide, undermined by incessant, malicious comment. Hopefully nervous subscribers exercised a stop loss and stepped away a while back, while others who remain are reconciled to playing a more patient game, waiting as the orders build up.

The basic business looks attractive, supplemented by other exciting medium to long term ventures. News today brings a modest cheer for the developing solar panel operation with the first order from the mining sector in Australia. This comes from a modest unlisted company called InterGroup Mining which has made a number of potentially highly promising gold discoveries and appears to be on the brink of substantial expansion.

The order is for 75kW of Verditek’s lightweight solar panels at the exploration camp, where they will be used as part of a diesel-solar hybrid system, saving costs on using and transporting fuel and conforming to the Australian Government’s wish to back greener business. The unit is expected to be shipped in December and the first stage payment has been received.

InterGroup managing director Steve White suggests that as the mining plan is developed and power needs ramp up, there is scope to raise the take-up from Verditek to between 1.5 to 2MW over the next 12 months. Earlier this month Verditek highlighted that one mining consultancy partner with a client base controlling some 4,000 individual mines had said there was scope for all mines to switch to solar, creating a significant revenue opportunity.

This helps illustrate that the potential market for solar panel in Australia alone is vast, encouraged by a government reluctant to see an invasion by Chinese products and ready to subsidise setting up manufacturing plants locally – a possible medium term objective for Verditek.

The 18 company salesmen are settling in and presenting to a variety of possible customers across the world, but it takes time for proper evaluation. A number of presentations are being pursued.

There have already been other smaller orders, and in the weeks ahead Verditek will be working to secure one or two larger deals which could help the push towards break-even this year.

The company is effectively under new management and starting a fresh sales push under Rob Richards as chief executive. The initial share surge has faded and with it the opportunity to raise additional cash to push more quickly into building more manufacturing plants. Progress might prove a touch slower than first hoped, but sales growth as industry switches from diesel to solar power is gathering momentum, and there are substantial opportunities.

The prospect of more news in the months ahead on the links between Verditek’s solar and the excitement of Paragraf’s advances in using graphene remains an exciting possibility. That could propel the company into another league.

Those who moved into Verditek earlier this year at prices from 2.5p and up have had a giddy ride as it touched 18p. One or two skeletons have been dragged out of the cupboard and disposed of and the basic business is making good progress behind the speculative storm which has tossed the shares around. If you are holding on, sit tight. There could be a great deal more to come.

At 8.125p, hit today by selling from gamblers who had been hoping for news of a bigger order, the company is capitalised at £24m – still early days for what remains a speculative but appealing growth story. In fairness, however, it is sensible to warn that recent obsessive online thuggery seeking to batter the share price is unlikely to let up.

I have a holding in Verditek.

Ends

[ivor hunch] 14/10/2020 12:15

I took advantage of this morning's dip in share price to top up again.
Strange that after a very bullish report, the share price should have slipped, but I suppose there has been some profit taking after the recent rise. Paul Harrison suggested a justifiable price of 25p in his interview - here's hoping!

[rogerramjett] 14/10/2020 09:39

Scrutable. My view was that the note was written independently and without input from the company. Whereas the WHI note included some input albeit from a visit to Lainite which may have been a few months back.

Both notes highlight the huge potential of the sector and the growth in which Verditek can exploit with their niche market applications for their flexible solar systems. What both fail to appreciate is that the market size is significant and will continue to grow at an exponential rate, however, the Total Addressable Market (TAM) for Verditek is not addressed by the capacity, current or predicted. This is an area in which I do not see Verditek just having a second facility but at least one on each continent to allow more strategic positioning, reduction in transportation costs and reduced time from order to delivery.

To think the TAM is in the GW's per year yet only have capacity to deliver 127Mw in several years time is a gross underestimation and only downplays the significant growth that we can expect to see from Verditek in the next few years.

What both notes do show is quite simply that the sector growth is astronomical and Verditek are now positioned to deliver commercially. Unfortunately they are currently only showing orders of circa 2.5Mw and we must be seeing an increase on this very soon. Another 2 to 6Mw would be great before the end of the year plus a very positive Paragraf update.

[scrutable] 14/10/2020 08:45

The new note underestimates VDTK. It is clearly desk-based on financial algorithms and extrapolation of numbers wihout evidence already clear to us that RR's strategy is superb at isolating subtle specifics about individual applications for solar. RR has already well proved that he is the is the right man for the job in the right place

I am sure that using application-focused distributors will magnify the word-of-mouth effect to strongly outperform this feeble note. Although I am not a Mike Walters subscriber I know from the notes he makes available to non-subscribers, and having met him personally, that he always gets closer to the heart and soul of a business than any financial analyst. There is as yet practically no information available from which to extrapolate financial peformance but plenty of evidence on the marketing effectiveness, which precedes financial guesswork by 6-12 months.

I would however like to see the note from WH Ireland, which my own broker is terrified by The City's conspiratorial Omerta to release. This latest one is only of use to potential investors completely new to this company.

[the white house] 14/10/2020 08:23

Why do the revenue increase numbers show a rise by 18m from 21/22 but only 9m from 25/26....'

[32campomar] 14/10/2020 08:12

Link to research note and revenue projectionshttps://www.voxmarkets.co.uk/media/5f8583b4243d7b001b3e03c2/?context=/listings/LON/VDTK/

[beagrie] 14/10/2020 08:07

meijiman, sign up to research tree as a basic free subscriber and its on there.Not the WH Ireland one though, thats for paid subscribers.

[mcfly79] 14/10/2020 08:05

There's a link to the new note in the RNS (from Seal Advisors).

[meijiman] 14/10/2020 08:00

and how does one get to read a copy? WH Ireland?

[mcfly79] 14/10/2020 07:35

I recommend everyone reads the notes. Very positive and does a good job of setting out the potential for the company.

[mcfly79] 14/10/2020 07:32

I think the £16m is conservative but it should still translate to about £5m in profit for next year (against a £32m market cap). That alone should justify a 30p share price imo.


Revenues scenario is as follows:


2020: £3m
2021: £16m
2022: £38m
2023: £56m
2024: £69m
2025: £83m
2026: £92m


Very much finger in the air stuff at the moment. If larger orders start to be signed I think this could be significantly accelerated.

[mcfly79] 14/10/2020 07:21

New research note out.

Their revenue scenario is showing £3m for H2 this year and £16m for next year.

[trad3m3] 13/10/2020 15:22

Interesting buys and sells, was this in auction today...

[trad3m3] 13/10/2020 12:43

Absolutely spot on! even total and google is on it! Total and Google Cloud Develop Solar Mapper, a Tool for Estimating the Solar Energy Potential of Houses' RoofsVerditec has got very powerful future!

[dubois] 13/10/2020 10:04

For anyone who is unsure as to what RR can achieve, here is what was said on his appointment as commercial Director in May this year.

Rob is a chartered electrical engineer with over 20 years' experience in the Oil and Gas and Energy Industry. Rob joins Verditek from Ecolog where he was CEO of the Technical Services Division and responsible for the development of new products and services, including the provision of small power plants, hazardous waste material handling and remediation, and manpower services. Rob developed and initiated the market strategy and project pipeline of $ 170 M in four months, targeting Oil & Gas and independent power producers with a focus on renewable and hybrid power solutions. Prior to this Rob held senior management positions in Penspen Ltd, Thailand, KNM Process Systems Sdn Bhd in Malaysia and Siemens Oil and Gas, Singapore and Alstom Power. As Sales Director for the Asia Pacific region for Siemens Oil and Gas, he took the business from revenues of Euro 8m to over Euro 340m, while at KNM as Chief Operating Officer he helped turn the Company around to be generating over USD150m of revenues per annum .

[astralvision] 13/10/2020 09:54

Thanks for the reply Scrutable, see where you are coming from.I think RR is something of an innocent wrt the ways of AIM and markets, but I'm sure he's a quick learner. More important is his vision and ability to take this company forwards, which is exactly what he is doing.

[dubois] 13/10/2020 08:37

There is no doubt about it, we are on the verge of an energy revolution. The international community have been setting deadlines to reduce carbon that at one time appeared unrealistic. Every day that goes by brings solar, wind and tide nearer at an exponential rate that will ultimately change things far quicker than the originally set dates. As the price reduces, the pick up increases and the efficiency improves.
We will look back in 30 years and say to the grandchildren, "once upon a time, we burnt coal and gas to make energy", they will respond with wow, how silly. Not that it was at the time of course, but the will think it. Remember, steam was revolutionary once!

My point to all this is that renewables will become the mainstream far quicker than people think. Its not about looking after the environment (I know, yes we should be), its about £'s and it is now becoming cheaper than coal, gas etc.

[busters] 13/10/2020 08:21

Today's Telegraph
"Solar power set to inherit crown from oil and Old King Coal"
Solar power will become "the new king of the worlds electricity markets" because it is cheaper than coal or gas fired power stations in most countries, the International Energy Agency has said.

[scrutable] 12/10/2020 23:23

aberloon
I suppose then that you think it is alright that in the absence of actual sales news the Sp falls because confidence has been allowed to lapse and the share price falls unnecessarily?

Company news both good and bad should flow continuously - not just on half year accounts-
so that the share price should not deviate wildly from true value from all factors known to management.

[aberloon2] 12/10/2020 20:30

All i want is news of sales, for me it's quite simple, we get orders and the line on the graph goes up.

[scrutable] 12/10/2020 16:17

astral.

I have spoken to RR on the phone twice and each time had a constructive conversation. He is clearly not familiar with the City and understandably cautious about clashing with his Nomads. This is overdone which is why I tried the other channel. What's a brilliant Chairman for if not for the company to benefit from his appointment. Not a figurehead.

Rob should not be distracted from his drive for new business by dealing with my frustration at their poor IR performance in London

[scrutable] 12/10/2020 16:01

weywey

Had we had the Portugese licence up and running we would not have taken busines from Lianate but hopefully had additional customers from Brazil and Iberia. That's how business volumes respond to the launch of new availability of first class products. A viral increase through word-of-mouth adds to any generated by a new distributor.

[trad3m3] 12/10/2020 15:36

Like I've said in post nr #2952, we have successfully tested our breakout @10.50 as someone sold it there. It is good point of entry for new comers and if someone would like to top up, our next stop now @13.30