Zytronic Share Discussion Threads

[football] 21/10/2020 15:55

Now 3M are leaving the market could be in a great position to take up all the slack and expand the business once his pandemic is over.Will only take one or two new orders or orders that have been put on hold to turn this company around and bring it back to a multibagger from here

[energeticbacker] 21/10/2020 14:55

Investor's Champion sympathises with their plight, but this business has long needed to bulk up and make better use of its listing.

[1pencil] 21/10/2020 12:09

Existing markets around gaming/financial may struggle for a while yet, what is of interest is the new growth trends which haven't really caught hold.. EV's still represent a small percentage of overall vehicle sales, this is set to change dramatically over the next few years as governments around the globe try to meet individual climate targets. Lots of scope here for rugged clear screens operating in all weather conditions, kiosks is another emerging trend especially in the USA. Well bid on RSP at the moment which makes a change.

[football] 21/10/2020 11:56

Https://www.sharesmagazine.co.uk/news/market/7129937/Zytronic-annual-sales-drop-39pct-as-pandemic-hurts-demand-for-touch-screens Https://www.sharecast.com/news/aim-bulletin/zytronic-fy-revenues-slide-amid-covid-19--7683961.html

[bookbroker] 21/10/2020 10:15

Have a look at their website, that may give you an insight.

[jane deer] 21/10/2020 10:13

DS2 - While most listed companies over-hype themselves, ZYT’s management suffer from the opposite problem, being too taciturn. At least this year, there was a trading update after year-end (unlike in 2019). Owning this stock means for months having little idea how the business is performing. It seems a big step (but one that would be useful for the market) for management to proactively go out and explain the strategy for a Covid (and post-Covid) world.

[dangersimpson2] 21/10/2020 09:38

I agree. It is the change of perception that matters, rather than objective value. For example, look at the recent returns of some companies that traded at a discount to cash plus working capital like ZYT: EVE: 360% return 1.3p to 6p XAR: 600% return 20p to 140p ARDN: 480% return 2.5p to 14.5p PPIX: 620% return 0.9p to 6.5p In each of these cases, there was no return of excess cash or similar action, all reported recent losses, and all are guiding future losses. The only thing that has really changed is the perception that things are getting better, that losses are reducing and that they started off on a rating that was very very cheap. So, while it would be nice to see a plan for the excess cash, some broker forecasts or management presentations, all it would really take for ZYT to become a multi-bagger is a small change of perception: that things are getting slightly better rather than worse. And that is the beauty of buying something this cheap. The mistake in these cases is usually scaring yourself out of taking a position due to losses, a weak outlook, not liking management or not seeing a catalyst for a re-rating. I missed out on both EVE & PPIX because I didn't like the level of their ongoing cash burn and the quality of the products or business strategy.

[football] 21/10/2020 09:18

,Couple of quick points cash is king and we seem to be still getting it in even in these strange times.Everyday we get closer to a vaccine and then the world will be they completely different Place once they start to roll out the vaccine casinos interactive places which off-limits now will be opening.Lots of posters here have mentioned that we are now have target due to our cash reserve I like to think we are now predator and can go after our competitors seeing that M3 have dropped out of the market.

[bookbroker] 21/10/2020 09:13

This has seen downturns before, and it is not because their technology is obsolete, far from it, it is because their markets have suffered more so than others due to coronavirus, hospitality and leisure being one of their largest sources of income. That is not to going to remain so for eternity, this is likely to persist for at least the next six months, but they have the cash to see this out. Unfortunately many of their staff will likely depart before the end of this, but that is necessary even if temporary. As long as they can continue with R&D and claim tax credits that will mitigate some of the costs, and they will emerge in a good position.

[bookbroker] 21/10/2020 08:53

Even without an improvement in the near future this is a sitting duck for a takeover with its IP.

[bookbroker] 21/10/2020 08:52

Ridiculously cheap on previous downturns, never had so much cash, and valued under net assets. Developing new technology that does not require actual touch, in time this will be recognised. Try using a keypad without touch, contactless the way forward but with regard to life that is simply not possible.

[dangersimpson2] 21/10/2020 08:47

These exceeded my expectations. At the end of September I said: Yes, I don't expect casinos capex budget to look pretty anytime soon so this will be a headwind for some time yet. I expect the H2 results to 30th September to show an accounting loss of somewhere around £1m, with a small cash outflow. I am about right for the accounting loss given that they are EBITDA positive and D&A is c£1.1m. But D&A is non-cash & capex is limited so increasing cash to £14m, even if it is mainly working capital unwind, is a pleasant surprise.

[gdjs100] 21/10/2020 08:46

Don't forget the almost-£6m in freeholds and long leaseholds.

[1pencil] 21/10/2020 08:24

Agreed, not a bad result given the current situation worldwide. Its a well managed business as can be seen from cash levels rising to £14M whilst remaining profitable f/y 20. Competition as already mentioned will be struggling also, 3M exiting over the next 4 months may help sales with again less competition. At this level it must feature in someones shopping basket.

[buywell3] 21/10/2020 08:09

Now buywell sees why you guys are losing money There is a valid reason why this chart is the shape it is newbies check buywells previous posts re why

[bookbroker] 21/10/2020 07:59

Pretty good considering they have suffered from the closure of casinos, etc. The fact that it is profitable is a considerable achievement.

[cerrito] 21/10/2020 07:54

H2 sales seem to have dropped to £5.3m from the £11.2m of the previous year.

[bones] 21/10/2020 07:52

£14M cash out of £18M market cap. £4M enterprise value? Must be a bet on the company not spiralling into long term losses. If you ignore what sounds like a kitchen sinking of exceptional costs due to C-19, and you believe the company can stay profitable at an operating level, there could be value here. I don’t now hold but I will be interested in the results in December to see the details of the damage and hear the management’s outlook.

[aleman] 21/10/2020 07:51

Share price 75%+ backed by cash. Seems to be running not far off breakeven at the moment. Should be no working cap issues when work picks up. I wonder how the competition are doing. Some of them might have financial problems which will work to ZYT's advantage.

[buywell3] 21/10/2020 07:43

2021 looks like it is going to be much worse than 2020 hTtps://www.nature.com/articles/d41586-020-02278-5 Special envoy to WHO speaks hTtps://www.facebook.com/unitednations/videos/david-nabarro-on-covid-19-misinformation/471781467025393/

[football] 21/10/2020 07:33

yep but more cash in the bank so what will be the profit margins when this dets back to full normal trading

[buywell3] 21/10/2020 07:25

RNS Sales for the year to 30 September 2020 have reduced to GBP12.7m (2019: GBP20.7m) buywell thinks that works out to a revenue drop of 38.65%

[atkijo] 20/10/2020 23:10

Atkijo notes that the institutional seller, Cannacord, has sold down from 5.00% to 4.95%, per RNS of the 19th. Doesn't appear that significant.But maybe more selling yet to happen, who knows.