Zytronic Share Discussion Threads

[waldron] 26/5/2022 08:33

WITHOUT THE SHARE BUYBACK TO SUPPORT AND NO DIVI DESPITE PROMISING COULD THE share price FALL FURTHER


Strong support it seems at 157p and then down to 138p

[velocytongo] 25/5/2022 11:53

There are so many opps: retail, high end offices, hotels, museums, luxury etc (electrolaz), vending, gaming, military, petrol forecourts, restaurants. I just hope the co can capitalise on these.

[cliffpeat] 24/5/2022 16:48

Interesting and useful comments on this thread today - thank you.

I played the video at 1.5x speed and CEO sounded very articulate :)

Positioning the company as a "component supplier" is probably a way of being involved in a wide number of market sectors and represent a mitigation of risk.

However, it would be great if ZYT had some "own" product items. The LinkedIn posts recently and the website show some application ideas. My feeling is that it would be worth some investment in exploring potential innovative product ideas.

For instance:
"..shows an easy-to-clean fun interactive way for customers to view and order from the menu using a touch display paired with a physical button built directly into the screen."

10 thoughts in 10 minutes on where that idea might go:

Tablet size inset into each table or even each table setting:
1. Lone diners - include news/sports feed
2. Of course: instant ordering and payment
3. Induction phone charger built-in
4. Special offers promoted
5. Save bill to phone or other device
6. Feed back to restaurant - choice boxes
7. Running total of cost whilst ordering
8. Ingredients for intolerances and allergies
9. Membership invitation offer for discounts
10.Check-in for "members" - discounts applied
11.Adverts

And readers on here and in the ZYT development team will have another 50-100 (better)ideas to add.

Sell that in bulk to the large restaurant chains and voila!

Just thoughts

[illiswilgig] 24/5/2022 15:56

Cerrito,

all good questions.

Regarding the buy-back. According to the RNS on 3rd March they had 11,303,152 shares.

Buying back 1,141,915 shares would be 10,161,237 shares in issue?

According to the RNS today (24th May) there are 10,216,152 currently in issue. I make that just under 55k to go? But my maths is not to be relied upon,

cheers

[elsa7878] 24/5/2022 15:41

By my reckoning they have 54,415 shares left to buy. Inevitable fall when it's over. No decent catalyst for 6 months from what I heard. Happy to revisit towards the end of the year. Large holding but with asset backing not concerned.

[cerrito] 24/5/2022 14:32

Yes the IMC presentation well worth a listen.
The main takeaway I got was low visibility, a phrase I heard the CEO saying. This has always been an issue with ZYT and of course now there is the issue that their clients are themselves sourcing components which are subject to delays.
While a bit blue sky I liked the comments on the potential of the EV charging market.
I note from Research Tree that Singers have a 250p TP and I am comfortable it will get there but no idea of the time frame.
I liked the slide with the Forecast lifetime value and the increase over the semester but could not find a similar figure in previous slides and kicked myself that I did not ask how that figure compared with figures over the last couple of years
Other questions I am kicking myself for not asking are
1. The FD said that they had limited ability to do buy backs under the authorization till the next 2023 AGM. Yet the 2002 resolution duly passed gave them authority to purchase 1141915 shares from March 3 2002 and they have only purchased about 370k since then. Anyone understand?
2. Given the low share price, the low value of £ against the $, the lack of any major shareholders to win over, their position in the world wide markets, one would expect them to be a takeover candidate and what the observations of management were on that.
3. I would have liked a bit more colour on why they lost a design deal for ATM‘s with 2 banks.

[illiswilgig] 24/5/2022 12:39

Just listened to the presentation on the IMC website. The questions and the answers to them have also been uploaded to the site including a few that didn't get answered during the call.

After a rocky first few minutes - I found it well worth my while. It was their first presentation after all. What did you expect - Elon? - for a company with a market cap well under 20m? I am always pleased when presentations reveal normal people and not super smooth execs with all the right answers.Then I tend to wonder what I am being sold.

By the final summing up - I noticed that the CEO had lost his hesitancy and become quite the enthusiast, almost bouncing up out of his chair. That I liked. I don't expect an FD to do enthusiastic and I do expect them to outline the risks. I was not disappointed.

Management expectations for H2 are cautious. That came across from the FD with pay rises and raw material price increases and electronic component availability all issues. Adding together previous year H2 of 5.2p and H1 of 3p gives a ttm of 8.2p (not accounting for H1 buybacks) which is higher than the brokers current figure of 7.3p for this FY.

On that basis I'd expect the share price to fall once the buyback ceases in the next couple of days. I plan to buy more once it bottoms and funds allow.

Presuming that nothing goes disastrously wrong - I can see room for some upgrades as progress in H2 becomes clear - but then I am an optimist. Whatever, I can't foresee what's going to happen in the next few months, but the presentation left me clear that they have developed IP and products that address some potentially huge new markets and are intent upon continuing to move up the value chain rather than compete on price with squeezed margins. In the long term I am confident, but nothing is ever guaranteed even in my glass half full view.

[norbert colon] 24/5/2022 07:38

https://m.youtube.com/watch?v=DrSrixj6TdERecording of IMC Call.

[norbert colon] 23/5/2022 19:20

I found it very useful despite insufficient time for a lengthy Q&A. Mark and Claire came across well and there are some nice prospects for the group despite noted headwinds.

[velocytongo] 23/5/2022 18:49

Anyone any views on the presentation this morning?

[cliffpeat] 20/5/2022 08:37

Nice concept shown on ZYT LinkedIn this morning.

Just a starting point of course but if every McDonald's table was interactive it doesn't take much imagination to think of a dozen ways this might be adapted and add commercial value and efficiencies.

[kiwihope] 20/5/2022 07:10

I only sell when I think the price is over-valued. Prior to the recent slight fall I thought the price was fair, now if anything it may be a bit under-value. So if anything I would be a buyer, but they are not under-valued enough yet. This of course always assumes I have confidence in the longer term prospects, which I do. Otherwise I wouldn't own any shares...

[velocytongo] 19/5/2022 20:57

i'm pretty sure that you'll get your wish, ALS

[arthur_lame_stocks] 19/5/2022 20:50

I sold out for a small profit after the results due to the muted outlook. Longer term they should be worth a lot more but I hope i'll get another chance to buy in for around 150p.

[velocytongo] 19/5/2022 19:25

Agreed. In the short term may come under pressure but longer term any earnings will be suprcharged by the buyback.

[elsa7878] 19/5/2022 16:55

I've sold some of mine.

3 reasons:
Can't see an immediate catalyst with the company generally not saying much between results announcements.
The buy back is nearly finished. I think after today approx 120,000 left. So that support will go.
Wider economic uncertainty. If the markets really tank, everything will be affected /sold off.

Hence sold some but not all.

[richie32] 19/5/2022 16:35

Not sure why this is not rising. The company is on a recovery cycle and they are gradually eating up the shares.

[boadicea] 17/5/2022 11:09

I would not expect the report to be any more enthusiastic than factually necessary whilst they are actively buying in their own shares! However it does confirm the recovery is on track and I am maintaining most of my holding while top slicing some in order to add to an even more promising and undervalued share (imv of course - SUR) that has coincidentally also reported today.

[elsa7878] 17/5/2022 09:12

Before today approx 250,000 left to buy under the buyback programme.

[cerrito] 17/5/2022 08:42

Thanks and will listen to IMC.
I see from Research Tree that Singer has put out a note with an unchanged TP of 250p and reminding us that normally H2 sales are higher than H1.

[norbert colon] 17/5/2022 08:19

They are now on the IMC platform - date 23rd May

[cerrito] 17/5/2022 08:17

A rather taciturn statement-but I see it was equally taciturn this time last year. A pity given that they do no Investor Meets Company style presentations.
Would have been good to get some insights into the CRM figures which they highlighted in the full year results and segment analysis.
Most noteworthy to me financial figure was the increase in inventory which had a negative effect on their cash generation.
Interesting no interim dividend while they are actively buying back shares.
Agree with the sentiment of others that it seems fairly valued and I do not see myself as buying or selling in the immediate future.