Xaar Share Discussion Threads

[zocca] 12/5/2020 14:22

It will be very good, watch out for H1 results!

[marmar80] 12/5/2020 13:22

Do you think this will retrace a bit?

[cyberbub] 12/5/2020 12:54

As I expected, some resistance at the 200% profit level from 19p...

[davebowler] 12/5/2020 10:21

...and mine.

[volsung] 11/5/2020 16:11

XAR now my SIPP shining star

[cyberbub] 11/5/2020 16:02

Yes I'm quite annoyed to have missed it in the 20s... Never mind!

[jimtech] 11/5/2020 15:52

Xaar PLC was one of Investor's Chronicle's Bargain Shares for 2020 as published in February. Tipped then at 39.5p.

[cyberbub] 11/5/2020 15:34

Yes a good summary of the excellent value on offer here... And the 88p book value ignores the value of the actual operating company and brand itself!!The only significant thing they've done wrong IMO is agree to a $10M cap on the future profits of the 3D business if sold.

[value hound] 11/5/2020 13:55

Further up the article, he also says the following (which is, of course, crucial to the value case)...

There is hidden value in the group’s balance sheet, too. That’s because Xaar holds a 55 per cent stake in Xaar 3D, the cutting-edge 3D printing business it developed. Stratasys, a leading 3D printing company, owns the balance, having paid Xaar $10m (£8m) last autumn to purchase a further 20 per cent equity stake. Stratasys has a call option (expiring in December 2022) to buy out the rest of Xaar’s shareholding for $33m (£26.6m). Xaar 3D has net assets of £15m, of which £9.3m is included in Xaar’s equity shareholder funds of £63.9m (88.5p a share).

In other words, there is potential for Xaar to create £17.3m (24p a share) of additional value for shareholders assuming Stratasys exercises its call option. I wouldn’t bet against it. And if it does Xaar will also be entitled to 2 per cent of Xaar 3D’s revenue for a period of 15 years, capped at $10m.

[spob] 11/5/2020 13:37

here's the last para

The bottom line is that, at 55p, Xaar’s market capitalisation of £43m is more than 80 per cent backed by £25.3m net cash and the £9.7m carrying value of the Xaar 3D stake, so you are getting a free ride on a chunk of inventories and property assets (worth over £30m), and a valuable option on Xaar 3D being bought out at £26.6m. As operating losses narrow, and more investors become aware of Xaar’s recovery potential, the 38 per cent share price discount to book value of 88.5p should narrow markedly. Buy.

[my retirement fund] 11/5/2020 13:26

Can you post what he said I don't subscribe

[rimau1] 11/5/2020 12:23

Yep, a long overdue ST update, no new news really just emphasises the value on offer given the Significant discount to a book value of 88p

[brucie5] 11/5/2020 12:08

Oh bother. The ideal time to top up with break outs like this is not on the spike, but the retrace. That's just muddied the waters!
It's a great story, though. And a chart that was bottoming before COVID caused it to crash to what was left of the mountain, now in reversal.

[x54v] 11/5/2020 12:03

Just been tipped

[garth] 11/5/2020 08:23

Well, that was fairly decisive. On towards 60p then. Going to get interesting if the FTSE pushes up through 6100/6200 this week.

:0)

G.

Edit - or maybe less decisive, LOL.

[zocca] 09/5/2020 14:59

Correct! This will fly soon!

[garth] 07/5/2020 13:31

Keeps knocking on 55p...And I am still of the view that they are a gift at that price. There is so much value for management to unlock here. G.

[cyberbub] 07/5/2020 10:36

No probs. Plus they said abandoning the Thin Film will save them £8M p.a. going forward.DYOR of course

[smithie6] 07/5/2020 10:06

thanks for that info

[cyberbub] 07/5/2020 09:28

Smithie, Xar's remaining share of 3D is worth $33M as per an option agreement - which is subject to Xar's approval if the option holder says they want to buy (so they could potentially ask for more).Plus they have £Ms of inventory on their books to unwind.Plus they have their advanced Thin Film IP which they have spent millions on, they decided they couldn't afford to develop it further but say they're looking for a partner to licence the technology...could be a substantial income stream, or an outright sale (probably £50M+) in future.

[garth] 07/5/2020 07:49

But then it also has other assets... Including the 3D joint venture ;0)

DYOR.

G.

[garth] 07/5/2020 07:47

Smithie,

ADVFN say 78m shares, Finals said £25m net cash.

So just about 32p per share in cash.

Back of a postage stamp.

G.