Verditek Share Discussion Threads

[32campomar] 28/1/2021 12:16

At some point very soon there won't be any sellers left. So Technically if you still hold there will be a bounce. I wonder what Acorn asset management think of it all?

[dubois] 28/1/2021 11:54

astra, sorry, yes I meant the cost of producing it, not the full £800k. I do not know what the production cost would be.

[yump] 28/1/2021 11:53

Well I hope it turns out OK for you.

[dubois] 28/1/2021 11:52

yump, There is no doubt about it that covid has had a massive impact on their sales. However, the use of commission only sales people was a bad move that has come back to bite them in the bum. They know that now and are hopefully addre4ssing the issue. Communication has been poor, along with over promising sales that did not arrive.
I think they have learned a hard lesson and I am prepared to give them one last chance. I would however, like to see a clear direction going forward.

[astralvision] 28/1/2021 11:50

no dubois, that is not the case, unless the stock cost £800k to produce! Clearly the stock has a value, it should be in the accounts as at cost, whatever that figure is, so I take your point.But hard cash is what counts, esp when they tells us that they hope for better times when CV19 has blown over. Second half of this year, hopefully. That £1.7m cash has to fund them through that period. If they did get a decent order in, yes, they could supply from stock.But how will further large orders be funded? They are not getting money or a deposit in upfront, despite RR saying that this would be the case.

[dubois] 28/1/2021 11:45

Plus we have some sales. Not a lot I know but if we have been paid, then it at least adds a little to the kitty.

[yump] 28/1/2021 11:44

At this point, the business and the financials are irrelevant. imo the people involved are the issue and make it uninvestable. That has been borne out by their behaviour.

[dubois] 28/1/2021 11:44

astra, surely we should add on the £800k of stock they have built up ready to go out. That would put us back to £1.1m cash burn?

[astralvision] 28/1/2021 11:33

Il duce 15
Here’s the cash burn for last year
2020, started with £107K, finished the first 6 months with £580k, raised £1.45m in first 6 months
So cash burn first half c £1m

Second half, RR tells us he’s cut overheads
Started Second half £580k, finished with £1.7m. Raised £3.5m from placing gross, call it £3.3m net. Further £300k from warrants in August. Deduct £600k repayment of directors loan and interest.
That’s a cash burn of an eye watering £1.9m in the second half!
They will need to get substantial orders in soon, imo, as that £1.7m won’t last long at that sort of burn!

[il duce15] 28/1/2021 10:19

They have circa £1.7m cash and are debt free. The 1MW of stock is worth about £800k at a guess.

I don't see how anyone can suggest we will need to raise for working capital this year at all.

I agree with dubois that the pipeline is delayed not cancelled.

That time line gives me the confidence that orders will be won and the current share price will be a distant memory.

[dubois] 27/1/2021 18:39

Sorry wrong bb

[dubois] 27/1/2021 18:35

This order is still very very much alive.

[cyberbub] 27/1/2021 18:29

PS agree the 08:11 RNS is shoddy and will have disadvantaged many.Personally I don't understand why British companies don't issue RNSes at 16:31 like US companies do.

[cyberbub] 27/1/2021 18:28

Sorry for LTHs here. Glad I got out yesterday - a lucky escape at a 25% loss. I just didn't like the way it smelled, with the management talking bullsh*t and keeping investors like mushrooms.On the + side, I think there is clearly a real and viable business at Verditek, and Covid hasn't helped them at all. They seem to have kitchen-sinked the bad news. And they now have 1MW of stock.On the - side, it's been floated too early, and the management need to learn much better comms! It's a good point about the company being floated and run by investor types, not industrial managers. And the sales pipeline is unclear.The question is what valuation to put on the business now? Looks like they will need to raise more money for working capital within 3-4 months, probably a similar amount to the last placing. I can't imagine the market being very forgiving and unless there is more newsflow (Paragraf, or a couple more big orders) then it will be hard to raise at a decent price.I'll be keeping an eye on it anyway to see if they can turn it around.GLA NAI

[weyweyumfozo] 27/1/2021 16:35

I assume you've posted that on the wrong thread.

[nico115] 27/1/2021 16:26

Why would anyone ask you ?Biggest bull vrs at 120pThat company has never made a profit and never will

[weyweyumfozo] 27/1/2021 15:50

The share price is back to where it was immediately before the SAF Group order was announced on 22 June 2020.

Resumption of that order of any similar sized new order should have a similar effect chart wise as late June 2020.

[dubois] 27/1/2021 15:43

SCRUTABLE, I understand your frustration. I do not understand the idea of releasing the RNS at 0811 rather than 0700. They can obviously release RNS's at any time they like.
As far as being promised a launch of the graphene solar panels in January. That is simply untrue and I can only presume you have miss read something somewhere. The process is ongoing and improving, but to what state they are at, we will have to wait and see. I don't expect it will be too long before we find out where we are.

Publishing news that could alter the share price? Yes that is true. However, if you have an order for £1m and it gets delayed and the customer says "it will be soon", what do you do? Wait a month or issue and RNS. I think in reality and especially in the current covid situation, you would be issuing RNS's every other day saying "yes it's on", "not its off", Yes its back on" etc... etc...

In regard to Rob Richards, yes he has made mistakes. Slightly (and only slightly) in his defence, the whole TW issue made life very difficult for him and he can't move now without everyone pouring all over him.

[scrutable] 27/1/2021 15:36

weyweyumfozo

thanks - but your post only increases my anger that your information comes from you
personally and that the company did not think it wirth telling shareholders officially.

[weyweyumfozo] 27/1/2021 15:30

Now that they have two design offerings of the PowerMat available, perhaps other Australian miners might be more interested in purchasing. With very little Covid in WA, and the Government tax savings (was it?) something could turn up.

[scrutable] 27/1/2021 15:24

I am usually on post at 7.00 am each morning for the first RNS every day. That is a way of gaining a slight edge over the market, which often takes a few minutes to react to first news.

After 8.00pm it is rare to get Trading updates and Financial Reports, so it is a reasonable risk to take that that there will be no more price-influencing RNS on the same day, except in the case of a real accident - like the break out of a fire or a sudden critical death.

So I do question the integrity of Nomads who, at 08.11hrs. - (out of traditional hours),issue as bad a report as I have read for years, and who had promised launching early in January of a breakthrough new product (graphene coated solar panels) of which disappointment no breath of a mention is made, That looks like cunning.

Also substandard are Nomads who allow shareholders to believe that a major company- underpinning order has long ago been delivered and from which the long silence implies satisfactory performance affectibg shareholder confidence and therefore share price.

That too raises the question of integrity.

I always thought that it was mandatory to publish any news which could substantially alter share valuations, particularly good news tempting to insider traders, but it is equally clear that the same imperative surely applies to bad news. The news today could just as easily, and have been, published in early December AND WAS NOT.

ROB RICHARDS WAS APPOINTED TO THE COMPANY WITH SUPPOSEDLY A RECORD OF HIGH ACHIEVEMENT FOR SIEMENS IN ASIA. i DO NOT DOUBT HIS RECORD BUT HE WAS I BELIEVE SCARED OF THE OVERRIDING AUTHORITY OF HIS NOMADS, WHO NOW HAVE A LOT TO ANSWER FOR. THE INFORMATION FLOW FROM VERDITEK HAS FOR SEVERAL MONTHS BEEN SUBSTANDARD AND I HAVE TWICE CQUESTIONED IT WITHOUT ANY IMPROVEMENT.

[dubois] 27/1/2021 15:21

There are lots of these "about to drop" projects on the go. They have simply been delayed. Black Tulip is another one which could literally be any day now.

Yes the last six months have been dire and I feel the management could have done a lot better. However, every day that goes by brings those orders (which have only been delayed) closer and closer.

[weyweyumfozo] 27/1/2021 15:10

This was posted on LSE:

Saracen Pro S.A.



..."Our stratigic partner #PresageSolutions is now in consultation with #verditec Plc regarding the purchase of a initial 150 klw of solar power which over time should increase to at least 1 MW.

We thought that now would be the ideal time to share our future vision of the new plant in Chala, Peru."....

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The videoclip of the proposed processing plant shows numerous curved roofs covered with flexible solar panels.