Zenith Energy Share Discussion Threads

[p o n a] 06/8/2012 16:01

to i'm not. Everything is relative. My portfolio is quite large (especially for a PI)

[acta_topup] 06/8/2012 15:51

A handful? £50K, a speculative punt? are you kidding?

[p o n a] 06/8/2012 15:50

It's effectively a cash shell. Has cash double the current market cap.

[euclid5] 06/8/2012 15:43

ok nice amt of shares - haven't done any research on this yet

[p o n a] 06/8/2012 15:42

euclid.. got a handful in these - speculative punt (1.4m shares at an average of around 3.4p).

[p o n a] 06/8/2012 15:41

by email joe.

[joeblogg2] 06/8/2012 15:40

Thks Pona, was that by mail or telephone?

[euclid5] 06/8/2012 15:39

didn't know you are invested here PONA - interesting

[p o n a] 06/8/2012 15:38

Just had it confirmed from SC that an update on the investment/acquisition is still on for : "before the end of this month".

[duncandisorderly] 02/8/2012 14:24

Well all I can say mate is when you have twice as much cash in the bank to share value and potential revenue stream with no outgoings that that is a reflection of what everyone thinks of the bod.

[john of groats] 02/8/2012 13:37

Duncan, what is there to report until he has closed the deal to buy some other company? That could take months if the target wants a better price than Cleaver is prepared to pay without doing considerably more due diligence. And even then negotiations could fail.

John

[pjj71] 01/8/2012 15:34

I agree Dunc.. That's the problem with the lemmings and lemons we have in charge of big corporates today! They spend at the top of a cycle and conserve cash at the bottom - whoever came up with MBAs has alot to answer for!

[duncandisorderly] 01/8/2012 12:49

John,I just find it incredibly frustrating when you see all these end users and grid operators who could of saved millions in time,expense and inconvenience if only they bought a company worth a few million.

[john of groats] 01/8/2012 12:29

Duncan,

I think the management tried very hard to find buyers but companies (and people) have been conserving cash for at least the last four years, waiting for the economic situation to improve. I can't see that happening for a few more years. ZEN just ran out of time and the management decided not to fritter away the remaining cash hoping to see the end of the tunnel.

Time will tell whether that was a good decision. If Applied Superconductor make a success of the mFCL business in less than two years from now and the new ZEN venture proves a lemon, we might wish ZEN had soldiered on with the mFCL. However, I think Applied Superconductor will find it just as hard as ZEN did.

Looking at my last post, I had inadvertantly proved that ZEN had already disposed of the non-FCL IP as all the remaining IP "is owned by Zenergy Power Pty Ltd" (the Australian subsidiary which had concentrated on FCL development). Most of the non-FCL IP disappeared into administration with Zenergy Power GmbH (the German subsidiary that ate up most of the cash pursuing blue-sky research). The only exception was the retention of possible future royalties should the mystery buyer of the 2G HTS IP manage to make a profit out of it.

John

[duncandisorderly] 01/8/2012 09:28

It's a pity we couldn't sell these things to India.I don't think the management even tried to find a decent buyer.Too late now!

[john of groats] 31/7/2012 19:35

Duncan,

I am rather busy this evening so I will deal only with the mFCL IP at this stage, being the most recent disposal.

The Strategic Update and Sale of Assets of 21st June stated that the Group's intellectual property "is owned by Zenergy Power Pty Ltd" and that "The Asset Agreement contains an option for ASL to acquire from Zenergy Power Inc., the entire issued share capital of its Australian subsidiary, Zenergy Power Pty Ltd, which may be exercised at any time prior to 20 July 2012".

On 24th July, ZEN reported, "Further to the announcements made by the Company on 21 June and 16 July 2012, the Zenergy Board is pleased to announce the completion of both the sale of certain assets and the disposal of Zenergy's Australian subsidiary, Zenergy Power Pty. Ltd, to Applied Superconductor Limited ("ASL")."

John

[pjj71] 31/7/2012 18:59

Duncan, lets hope for some better news ahead, only ZEN can trade at 50% discount to cash at a time when cash is so scarce!

[duncandisorderly] 31/7/2012 16:55

I think you are a little bit wrong there.All the Ip range has not been sold,just certain products.

[john of groats] 31/7/2012 16:00

duncan,

My understanding is that the IP has been sold in return for royalties on possible future sales of 2G HTS and mFCLs. There is no guarantee that the companies that now own the IP will ever make a product based on it. We know that Applied Superconductor, based in Blyth, acquired the mFCL IP but we do not know who bought the 2G HTS IP. Putting a value on those royalties is pure guesswork.

The cash is to be used to acquire a new business but we do not know what kind of business that will be or what its revenues and costs will be. How do we put a value on it?

John

[duncandisorderly] 31/7/2012 09:23

Pj,do you think we'll get news tomorrow.New month,new company,new beginning and all that.

[duncandisorderly] 31/7/2012 08:45

This is crazy.It has CASH over 4 million,no staff wages to pay,still has considerable value in retained IP and revenue stream from royalty payments and it's value is just over 2 million.
Regardless of all this it has ten's of millions in tax write-offs.