Zenith Energy Share Discussion Threads

[dcroston] 24/4/2012 16:24

JB2,

The greatest concerns for any buyer is that Zenergy are a small outfit currently without a tier 1 vendor currently backing them. If we had that then, it would give the buyer greater confidence and I'm certain we would already be making sales.

Its not the product, the product is excellent and its not the people working at the company or running the company, its a well run company.

It would be a travesty if this product didnt get the backing it deserves if it does then we are certainly on to a winner.

regards,
DC

[joeblogg2] 24/4/2012 16:08

PJJ71 you would think the utilities would be running to sign quickly with peanuts costs to them and massive savings but 6 months later still nothing.

[pjj71] 24/4/2012 16:03

A contract would be most welcome!! A few FCLs woulnt go a miss here in Johannesburg, only 2 days ago the power went down after lightening struck...

[joeblogg2] 24/4/2012 15:41

Pona I think theyare just messing as I can't sell many but can buy 100k at 5.5p hopefully I am wrong and SC delivers first contract!!

[p o n a] 24/4/2012 15:36

odd behaviour today by the market makers. They have constantly moved up on level 2 even on very thin trade.

[pjj71] 24/4/2012 15:33

Although what price would SC accept?? My guess is 20p. That would tie in with the price that the rescue mission was launched. It would also mean that the stock options that were issued last summer would also have some value, albeit minimal...
Hopefully we get orders instead.

[christianf12] 24/4/2012 14:49

If I was one of the co's thinking of awarding ZEN a cntract I would try and buy out the company first. It would be cheaper that wasy considering the market cap, cash and previous losses.

[joeblogg2] 24/4/2012 14:33

Is there reason for a little optimism or it's just its fallen so much since agm and sellers finished?? Down to one of the hot prospects to deal/ no deal??

[a.fewbob] 21/4/2012 21:53

What are you on about? They have loads of cash!

[ebomber] 21/4/2012 21:29

My prediction was wrong unless it continues to fall further from the current 4.25 pence level before the month end.

My concern with a cash burn of £333k per month a cash call / rights issue will need to be called in the next 4 weeks for ZEN to survive. Unless a trade buyer steps in the next 3 months.

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eBomber - 29 Nov 2011 - 10:38:17 - 5358 of 5392
Its unfortunately all about cash burn. If I recall my prediction in September was 2-2.5 pence in 6 months. That is end of March / April 2012.

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[supernumerary] 20/4/2012 20:15

pwilk - they could only get a loan against solid collateral, which effectively means firm orders. Even if SC put the money up, it would smack of desperation to the potential customers, who would be put off even further. Anyway, it's not going to happen so don't even dream about it.

140661 - thanks for the summary - seems like a pretty clear picture. If they get a pilot or two they can hang on, otherwise it's a matter of finding the highest bidder. Logically a deal with Gridon would seem sensible - I wonder if they have any money? Zen could just put the ip in storage for a while, then if Gridon makes a few orders, exert their claims. Naughty, but lots of patent trolls do it.

[a.fewbob] 20/4/2012 19:44

I'm still relaxed about this company.

Cleaver took on a difficult situation and has improved things. I think they will get a few orders before it's too late which will buy them enough time and credibility to tranform those small initial orders into a company making deal. In the mean time we have limited downside due to the cash in bank, relatively small cash burn and big tax losses.

I think the upside far outweighs the risks and am therefore staying put. Anyone that bought in expecting a massive order within a few weeks needs some head pills.

[peterblok] 20/4/2012 19:02

Cash burn - said to be £400k pcm. Cash in hand - ? £4 - £5million. Do the maths PJJ71 !

[pjj71] 20/4/2012 11:35

why does it need a loan?? Its got 2 years of cash, just needs the orders!!!

[pwilk47490] 20/4/2012 10:30

Sorry if stupid question, but why can't the company get a loan to give more time to secure deals? Maybe even from SC himself?

[dcroston] 19/4/2012 23:13

Ok, thanks 140661

[risk1] 19/4/2012 23:01

only going one way private punters

[140661] 19/4/2012 22:56

I seem to recall Gridon being mentioned as the only real competitor and Cleaver saying that they felt Gridon could have infringed Zenergy's patents and that they had contacted them.

[dcroston] 19/4/2012 19:23

140661,
Thanks for your response. Did they speak generally about the FCL market? Did Gridon Get a mention?

Thanks,
dc

[risk1] 19/4/2012 19:00

the ole pi been rogered yet again

the ole private punter

[140661] 19/4/2012 18:58

dcroston, there was a Q&A session and Cleaver spent a lot of time explaining the difficult position he and the new board found on assuming responsibility. It appears they continued with the sale process as initiated by the previous board but by September 2011 had failed to secure a buyer. Having examined the various activities of the company the decision was taken that without a significant fund raising the comopany did not have sufficient cash to pursue its various activities and the board then focused on developing the Magnetic Fault Current Limiter(FMCL. Cleaver said they had found significant interest and were currently in discussions with 12 potential customers of which two were at an advanced stage.

I asked what the margin was on the machines and Cleaver explained that it depended on the specification but somewhere between 35-65%.

He was asked what size of initial order he was expecting and he explained that initial orders were likely to be in one/two's to test but that the ultimate demand was for substantial numbers of units.

Hope this helps.

[pjj71] 19/4/2012 13:30

sadly not, in africa at the mo..