Zytronic Share Discussion Threads

[bones] 08/8/2021 18:26

“We’re “edging” closer to a new product announcement……”

“Stay tuned for more details……”

[bones] 26/7/2021 23:45

Well said illiswilgig. Today’s move means nothing, a few bored holders selling up maybe? MM’s reacting in a dead market.

Nothing has changed for me. This is a play on its recovery from last year’s Covid induced slump. The last update sounded positive and no further information has arisen. Check in again later in the year.

[illiswilgig] 26/7/2021 19:42

Tiny company, illiquid shares and no reason to buy them. I guess it's easy to see better oppportunities elsewhere? Doesnt need many sellers for the price to fall and no doubt that will flush out a few more sellers. Not sure how many sellers there will be after the tender offer - but I think we are about to find out.

In the meantime I bought a few more at 153p today. It's going to be a long old wait until the results in December. And they aren't likely to be pretty, so I'm looking at this on a 2year timeline.

cheers

[pugugly] 26/7/2021 16:12

Mr Market gowing unhappy = Bid falling back towards buyback level - Trend is to drop below - Looks as though hoders unhappy about product growth potential

[the squire at oakley hall] 26/7/2021 16:01

What do they know that we don’t??

[illiswilgig] 23/6/2021 14:30

Bones - thank you. Thats a really useful summary of the current situation in my opinion.

A lot of shares have already been re-rated in advance of their recovery and are expensive with recovery fully priced in. The pool of cheap shares is dwindling, though admittedly they are always cheap for a reason. It's just that the reason is not always right.

I have been buying the odd few more whilst I wait,

cheers

[bones] 23/6/2021 13:35

While ZYT bumbles around the 150-170 range, the market isn’t really factoring in the growth occurring now in its markets albeit from the depths of a major slump in 2020. This growth taken together with a much leaner cost base should yield a positive surprise in profits over the next year or two, IMO.

Why? What we know is this from the Nov20 finals, Jan21 trading update and May21 interim statement:

Turnover for the quarter to 30/9/20 was approx £2.0M (the trough of the dip)
Turnover for the quarter to 31/12/20 was approx £2.0M (the levelling out stage)
Turnover for the quarter to 31/3/21 was approx £2.8M (40% Q on Q increase)

Accompanying the interim announcement were the following statements:

"Whilst we are starting from a very low base compared with our historic sales levels, the recent improvement in orders and sales are an encouraging sign of the prospects for the second half and for a return to profitability as more normal global trading resumes post COVID-19."

”.....from January onwards we have seen an improving monthly average order intake, and it is particularly pleasing that the Gaming and Financial sectors have made a major contribution to the improvement.”

I would think it 100% certain that these areas of business will continue to recover as the developed world continues to “reopen”. Whether this translates into continued 40% per quarter increases is probably doubtful but solid growth could be there to be had. This will be at the same time as Zytronic start trialling some of their new IP developments with selected customers.

At a share price that has barely moved for months, I am preferring the signals sent out by the two new investors who snapped up 7% between them recently for 170p.

Patience is almost certainly needed here but, providing the overall markets hold up, ZYT seems a pretty safe play for me. The bonus is that a good upside surprise in profits and prospects should re-rate the share to some degree. There will probably also be a dividend reinstatement.

The backstop is that Zytronic is surely a sitting duck for an overseas predator while its IP is so dirt cheap! (Avesco from a few years back always comes to mind for me, as it languished before a 100% premium bid came in out of the blue).

All IMHO.

[my retirement fund] 17/6/2021 15:03

Jeez you cant sell online at all not even a few hundred. Illiquid smelly poo

[richie32] 09/6/2021 15:25

I bought a few of these today.

The company is making money and seems set to continue making money.

[bones] 27/5/2021 16:55

Some anecdotal evidence of the increase in capital expenditures by casino corporations operating in Macau and the US. A mixture of new constructions and upgrades of existing projects happening in anticipation of “pent up demand” from punters. A long way to go I think given that there are still travel restrictions across borders even between China, HK and Macau, as well as the limited amount of tourism back into the US. I get the impression that Americans think nothing of heading back into a casino though!

[bones] 27/5/2021 08:53

Indeed so, illiswilgig. A mystery that they would want to buy enough to have to declare an interest or maybe they didn’t realise they had surpassed the 3% and were forced to declare. My guess is it’s a speculative investment on their part.

[illiswilgig] 27/5/2021 08:27

bones, I know of woodland investment management through it's woodlands.co.uk trading name and you are right it does what it says on the tin. Buy's up relatively under-utilised woodlands, divides them into small 'amenity' plots and sells on at a substantial profit.

When I checked the latest accounts (2019) available at companies house I see that they have £9m in stocks. I can't imagine what this could be other than woodlands they have bought to sell on?

Under note 5 fixed investments they have £16.3m in total, adding 6.6m and disposing of 2.3m during the year with revaluation of 2.5m. This looks like it could be trading activity (some might be loans to related party companies)? 5% of Zytronic would sit relatively easily within that level of trading?

Looking at the related party loans I found that there seems to be a web of companies owned by the same or related people with activities ranging from silviculture to web design and software.

Why they would be interested in Zytronic I don't know. There may be a link to one of their companies. The only common features I can see are that both companies seem to own land and buildings and be flush with cash with an interest in technology.

cheers

[bones] 26/5/2021 20:03

What do we make of recent acquirers?

Woodland Investments buying 4% at 170p and this person called JAC Walter picking up 3% at a similar price.

Woodland Investments seem to do what it says on the tin, invest in woodlands. They have a big balance of millions under “investments” but the assumption is that would be land. Maybe they have a sideline in shares but it strikes me as out of left field.

Can’t find anything on the Walter person.

Time will tell if they are speculative potshots but it could just be that ZYT is recognised as an outstanding recovery prospect!

With a huge slug of shares also having been bought back by the company, there must be a shortage of tired ZYT investors left. Any very positive development could have a few scrambling back into play.

[gleach23] 26/5/2021 19:58

Trident5. I guess the difference is I'm a trader of this stock whilst it seems the majority of posters/lurkers here are longer term 'serious investors'. More a Ron Dennis to your Max Mosley, for an F1 analogy.

I believe keeping an eye on trades and limits tips the balance in my favour. Without wanting to blow any trumpets I've done pretty well trading ZYT over the years without having watched it drop since 2013 or going to AGMs.

That said, if there are no other traders here who find the info useful then I'll happily moderate my posts. I don't think there are shorters here so we're ultimately all pulling in the same direction albeit with different timeframes.

GLA!

[trident5] 26/5/2021 19:48

Didn't think anyone would get the NXT reference. I had a good run on it and bailed at about £12 on its way up - missing the last surge. But it all came to nothing in the end.

It all looked fabulous and commercial at the time - which does show howe hard it is to second guess how commercial these new "toys" are. We shall see.

[bones] 26/5/2021 19:04

I agree on the NXT comparison (that was NXT plc, ticker NTX, rather than Next!). I recall it well as made a packet on that share when it went from £5 to £22 in about a month in 1999 (I used a stop loss in that case around £18 as the valuation was hyped and stupid which was a good thing as it bombed when the dot.com bubble popped).

I get the impression ZYT have a far more level-headed idea of the possibilities of its concept as I am unsure if NXT even knew what to do with their talking bus shelters and pictures on the wall.

Essentially, ElectroglaZ uses its glass surfaces as a conductor of low volt electricity in place of wiring, which is pretty neat when it comes to all over transparency. It’s really all about aesthetics and appearance for presentations, be they displays, promotions or functions seemingly sitting in the middle of thin air.

When I corresponded with the CEO recently about it, he said they had only just started demo’ing the products in test situations with selected clients and targets and that it is “too early to tell” the impact. However, it does seem that they have designs on creating a product for sale themselves as well as their usual MO of supplying component parts to other manufacturers. He also said it is typical for Zytronic developments to take two years to reach commercial maturation.

For me, there is enough to be pleased with and, as others on here said recently, it is good to see that they have continued to develop their IP even as their world was falling around their ears.

In the meantime, I read the smoke signals from the recent update as encouraging concerning casinos and financial, traditionally strong markets for them. With Asia and the US reopening for big nights out by desperate punters, I am sure casinos will be upgrading their attractions. I expect to hear of a strong recovery in profitability over the next few months especially with Zytronic having cut costs severely last year.

They also still have £3.5M (at today’s share price) of surplus cash to weigh up.

[trident5] 26/5/2021 18:30

I think it's very difficult, as an outsider, to evaluate the potential of this stuff. It all looks great but will there be a demand?
Management statements on sales and orders will be the key source of information I suspect.
(Embedding tech in glass and screens reminds me of NXT over 20 years ago - they couldn't make it work for their shareholders).

[gdjs100] 26/5/2021 17:02

Plenty of examples on the website.hTTps://www.zytronic.co.uk/technology/electroglaz/what-are-the-potential-uses-for-electroglaz/

[trident5] 26/5/2021 16:51

Okay - everyone likes the look - but who will use them and what for?

[gdjs100] 26/5/2021 16:39

ElectroglaZ looks great. The litmus test is how well they can sell it, and whether they have the will and the resources to do so.

[trident5] 26/5/2021 16:23

What need do they fulfil?

[boystown] 26/5/2021 16:15

Looks superb to me - possibly a bit of a game changer even, or is that going too far?

[bones] 26/5/2021 15:26

Would any long term silent investors care to comment on the potential of these designs? I think I like them a lot 😎

[bones] 26/5/2021 15:08

Yes, I’ve pondered a lot of those in recent weeks on here. Plus the potential of ElectroglaZ, etc. One or two have joined that debate but noticeably not those now complaining about micro talk. It would be nice to hear their theories on these more important matters to round out the debate a little.

Share is up 2.5p by the way ;)