Zytronic Share Discussion Threads

[gleach23] 18/5/2021 12:36

Just the 1 share available to buy online after the 24,598 trade @ 147.3

Hopefully an indication that the recent supply has now been exhausted.

[bones] 18/5/2021 11:02

More a case of MM’s looking for a level where buyers emerge after the two recent big buyers completed their rounds? The interims gave hints of strong recoveries in Casino and Financial so it’s a matter of waiting for more evidence. Not on too many radars at the moment so I’m happy to have accumulated a good holding at these levels. That won’t be possible if there is a catalyst to drive the price upwards. Game of patience, for me.

[pugugly] 18/5/2021 10:54

Remember as the buyback overall was undersubscribed some PI's were able to exit their entire holdings at 145p (excess facility) so those who left now have big smiles as exit is now above bid and they had no dealing costs - However surprised at current fall - Worries leaking?

[gleach23] 18/5/2021 10:34

I was nibbling @ 150 on the basis of the recent stakebuilding @ 170 by Woodland. Surprised to see the sells continue to dribble through, today @ 141.

Quantity available to buy appears to have shrunk to 11k currently, having been back up to 27.5k earlier this morning. The last sell seems to have been at a slightly firmer price too so hopefully a turn is in the offing.

Nibbled a few more on a spreadbet as a result.

[bones] 18/5/2021 09:52

All true DS2. It is also true that it is possible to acquire a decent wedge just by sitting at a fixed level which, for the company, is 145p as that was their indicated price and they still have 2.2M to buy back should they want to see it through to the full amount. I also think they might be wanting to keep the market orderly. If sellers are willing at this level, the company might as well take them off their hands. I’m fairly confident they will buy at 145 if the market allows, but just my opinion and could be wrong!

[dangersimpson2] 18/5/2021 09:44

What I think they should do and what I think they will do are two separate things!

Management could instruct their brokers with a standing authority but they face the MAR rules on volumes, having to RNS each buy etc. Their mindset is: what generates the highest long-term returns to shareholders; which means being able to buy back reasonable volume, not supporting a short-term price.

This doesn't mean I don't think ZYT is cheap at the current prices, just that investors should be wary about thinking that there is no downside below a certain level. There certainly is share price volatility risk even if the chances that the long-term value of the business is worth less than 145p seems small.

[bones] 18/5/2021 08:08

Dangersimpson2, I disagree on that point. The company could ask Singer, its broker, to absorb everything coming into the market in exactly the same way it did for the Woodland and Walter accumulations that took place in the last two months. Those two operations (certainly all of the Woodland one) enabled 7% of the company to be acquired at 170p.

While volumes are low, it is still clear that small sellers remain unconvinced and are happy to let their holdings go at low prices even in the face of evidence that larger investors are willing to get on board at 170p. More fool them IMO because all of the scant information being made available from the company and the anecdotal reports of reopenings around the developed world suggest that Zytronic’s main markets (casinos, entertainment, retail, financial and exhibitions) are all coming back into play. On top of that, they have new products ready to be tested and marketed which will hopefully begin to impact next year’s performance.

[gleach23] 17/5/2021 23:50

Thanks both for your comments. Hope you're right about the one way bet bones! Will be interesting to see what happens tomorrow.

[dangersimpson2] 17/5/2021 23:04

I’m not sure the company will automatically start buying back at 145p, it is not worth them bothering with small volumes so unless volume picks up significantly as the price drops they may not bother.

I reckon a new tender at a higher price is more likely, but not in the short term.

[bones] 17/5/2021 22:28

I’m guessing the sellers are the same bored investors who tendered 43% of their shares in the recent buy back programme and are taking the drop as a hint to sell some more at low values? That would be my guess but why sell when the company has pretty much set 145p as the floor?

[bones] 17/5/2021 22:26

Worth nibbling gleach23 since the company has its broker lined up at their discretion to buy up to 2.2M shares in the market. I assume they’ll do that whenever 145p is available to them so I would regard your purchases as pretty much a one way bet in the near term.

[gleach23] 17/5/2021 18:11

I had a few nibbles at a shade under 150 today in the hope of some chart support at this level. There still seemed to be decent supply available although it had reduced from 27.5k to a smidge over 21k. Will continue to nibble if it goes lower.

[mattleplonk] 14/5/2021 19:41

Thanks for the update Bones. Pleased to hear they are still being innovative and active and thanks for providing a link to their presentation.

[dozey3] 14/5/2021 18:30

Thank you bones. Good to know they are not sitting on their hands but looking at developing their ip further. Short term share price is of much less concern.

[bones] 14/5/2021 17:35

I have received a courteous reply from Mark Cambridge, the CEO. I won't reproduce details as it was a private correspondence but the gist of what I was trying to firm up on is that the new technologies, such as ElectroglaZ and Zybrid Hover, have been in development for over a year and marketing of demo models etc is only just underway, which coincides with the gradual opening of exhibitions and so on. It is too early to judge the market's responsiveness yet but they do see good potential including the possibility of developing their own completed product for direct sale as opposed to their usual model of supplying components to other companies to include in products.

I was also referred to this slideshow presentation that is available now on the Zytronic investor pages at its website:

[bones] 13/5/2021 20:36

Plenty have made a good wedge in the last year. Possible that someone wants to throw their weight about in a smallcap? Or they just see value?

[gleach23] 13/5/2021 20:14

There seemed to be a decent supply of stock today. Have my eye on a top up if it approaches 155 on the Offer

[pugugly] 13/5/2021 20:14

Just under a £million at current market cap - A lot of bread for a PI - Google search unable to find more - Only reference to a JAC Walter is the ADVFN holding publication. Hummmmmmmmmmmmm

[bones] 13/5/2021 19:58

Yes, it’s one guy called JAC Walter according to the RNS, using the nominees of II.

I prefer to see two new bigger shareholders than just the one and we have that now with Woodland Investments’ recent 4% declaration. It helps to verify the bull case if independent investors throw their money into the ring.

[pugugly] 13/5/2021 19:45

Looks like a number of PI's building positions here Intgersactive Investor platform now declaring over 3%.

[bones] 13/5/2021 17:01

Mattleplonk, it was about 4 hours ago that I sent the enquiry so it might be a while yet :)

[mattleplonk] 13/5/2021 16:28

Bones, any update on what Zytronic had to say?

[bones] 13/5/2021 13:55

Mr5k, yes it looks potentially to be a wide and varied market particularly as the reopening trade expands. I hope they have solid marketers out there spreading the gospel!



Edit: I’ve contacted the company about this as I’d like to know more. It must be possible for them to give an indication of how these products are being received if they are busy tweeting their existence about, without giving away any price sensitive info.

[mr5k] 13/5/2021 13:33

Anyone has any thoughts on ElectroglaZ. I'm relatively new on here but that looks like a potential game changer with lots and lots of applications, if they can reach the market place.
5k

[bones] 13/5/2021 11:07

So, it wasn’t Woodland Investment adding after their 4% but a private investor called JAC Walter who now has 3%.