Xeros Technology Share Discussion Threads

[amture] 15/6/2018 09:01

I see this ship is sinking and I am asking for my tagbot from the shore. Would be tool late very soon.

[insideryou] 14/6/2018 14:49

Almost... Where is my old sparing partner who rubbished my claims here?

[paleje] 12/6/2018 14:38

IC ran an article called 'Sink or Swim' small caps on 8th June:-

Xeros

You will have likely heard of ‘fintech’ – financial technology. You may have heard of ‘martech’ – marketing technology. But what about ‘bead tech’? This is the phrase used by analysts at Jefferies to describe Xeros’s (XSG) flagship offering.

Xeros develops plastic beads and associated technologies for the commercial laundry and tannery industries. Its products reduce the amount of water used in cleaning processes, a field of growing concern given forecasts for global water scarcity. That said, at its full-year results in April we found Xeros stuck in a spin cycle. Amid ongoing discussions with various original equipment manufacturers about commercialising its products, can it really meet lofty forecast sales CAGR of 250 per cent?

Sink:

Xeros switched to a technology-licensing model in 2015. But after several years of commercial discussions with manufacturers, all we have is an assurance of “significant progress towards commercialising technology across all targeted applications”.
The company may need more cash. Back in April 2017, it said it “expects cash utilisation to continue to accelerate over the coming years”. This followed a £40m placing in November 2015 and preceded a £25m placing in December 2017. Some investors might be unwilling to cough up without proof of deals being signed.

Swim:

Broker Berenberg estimates that domestic laundry alone has an addressable market of over $1.7bn in annual royalty fees globally. Around 45 per cent of this is in China, where Xeros plans to expand.
Meanwhile, Jefferies anticipates “multiple contracts in tanning” along with deals in laundry. The broker accepts it might now be “squeaky bum time”, but there are various ways for Xeros to deliver as hoped.

This is a real blue-sky stock. The structural drivers around water scarcity reinforce Xeros’ investment case, and assuming it will finally strike some deals, we think management now fully recognises the imperatives facing the company. Swim.

[hazl] 05/6/2018 07:51

APPOINTMENT OF NON-EXEC

[5chipper] 04/6/2018 22:09

Results contain the statement from CEO that funds will be raised in 2018.

I'm planning on waiting for that before buying, though may pick up a few if price drops below 100p

[insideryou] 04/6/2018 16:08

These jam tomorrow companies are so fragile and exposed the moment the projected good news either dries up or they disappoint in any way... Far too easy for the shorts to create a huge southern directed wind... Remember. We will avoid pain or loss with twice the intensity of seeking pleasure. Its a hardwired program in humanity... This is why shares fall off a cliff going down but take the stairs on the way up.

[amture] 04/6/2018 13:46

I agreed with YOU Insideryou. It is heading to Sub100.
They are fighting for survivor as there cash is dried up. I am not sure they managed to raise 25mln cash yet as they were looking to raise end of 2017. I would be mad to keep hoping for some miracle to happen in short time.

[insideryou] 04/6/2018 10:01

Heading for sub 100. No support yet.

[talygarn tom] 04/6/2018 09:14

I am a long term holder of XSG. Just a few thoughts from my research and understanding which may help newer holders.

1) Jefferies International published a broker note on 2nd May. It read

"Jefferies International today upgrades its investment rating on Xeros Technology Group Plc (LON:XSG) to buy (from underperform) and raised its price target to 349p (from 136p."

I haven't seen the note but this is clearly a very significant upgrade so the analyst has confidence that the business is progressing as intended.

2) There are 87,789,947 (88.5%) of the shares on free float. However, notably, the breakdown is as follows:

Invesco Asset Management Ltd. 23,583,013 23.8%
Woodford Investment Management Ltd. 22,863,739 23.1%
IP Group Plc /Venture Capital/ 15,849,106 16.0%
Entrepreneurs Fund Management LLP 7,253,474 7.31%
Baillie Gifford & Co. 5,090,101 5.13%
Liontrust Investments Ltd. 3,624,303 3.65%
Enterprise Ventures Ltd. 2,798,999 2.82%
Thomas Bannatyne 1,674,000 1.69%
John Andrew Walter Samuel 1,454,966 1.47%
Sand Aire Ltd. 857,000 0.86%

I have seen very little selling from these holders and the most recent placing for £25 million by issue of 11,111,112 new ordinary shares was with existing & new institutional investors at a placing price of 225 pence.

3) My view is that the most recent falls have been as a result of the increased loss and more notable stall in revenue growth with many PI's having limited visibility of the tangible progress being made.In addition, there has been and will likely continue to be, dilution through the need for additional capital.

The only projected figures I have seen show break even in 2020 with sales at 76,6m and EBITDA at 6,50.

I think that this business had changed it's modus operandi since IPO and is instead working on a much more capital light model as new opportunities have presented themselves. My hope is that they are in discussions with some of the larger industry operators (please let it be Dyson on the domestic machine!) and given time the revenue stream will start to build.

[insideryou] 01/6/2018 12:10

Almost at my predicted level... Could well go lower without news... How do you value this?

[amture] 30/5/2018 08:03

What I know is that, they are not able to commercialize Tanning business. Landry business is not make any money. They burn cash and not much revenue.

[insideryou] 29/5/2018 22:44

oVER Valued based on news in the public domain

[flowerking] 29/5/2018 16:25

Why is this going down? Any news?

[insideryou] 29/5/2018 14:17

100 becomes a decent punt.

[hazl] 24/4/2018 14:29

XSG is having some resurgence in interest!

[hazl] 23/4/2018 18:46

increased share holding news brought a few interested parties I see.

[hazl] 20/4/2018 14:31

What is happening at present is that companies that have debt are being treated harshly which includes a lot of technology stocks.

[hazl] 20/4/2018 14:29

Ha well,it is true that things are in the future but then shares are about the future.
I read only today that 1:4 people will live in a water-starved country by 2025.

Again I saw this....
The matter of water shortage was discussed in an inaugural session of the “4th International Conference on the Use of Space Technology for Water Management” on February 26, 2018.

[hatfullofsky] 19/4/2018 21:43

Cashed up, Development done now focus on commercialisation. We've not heard that before. Yes Jam tomorrow but the tech hits all the right notes for me.I just want Dyson to buy the company.

[hatfullofsky] 19/4/2018 21:40

Or South Africa

[hazl] 19/4/2018 10:15

I think the 'saving the environment thing' has only just started, to be fair MRF.
And perhaps people don't realise the significance of water yet unless youre in California,of course.

[my retirement fund] 19/4/2018 09:18

Basically same old story...we dont have enough cash again so will be asking you to get your wallets out yet again lads. Add infinitum.

[hazl] 19/4/2018 09:10

Hmm a 'bitty' report.
Market doesn't like it though not that many trades.
I think that though it has the right product to some degree it needs to sharpen upit's act.