Zytronic Share Discussion Threads

[garth] 07/4/2020 11:39

Varies,Comforting to hear a common perspective. Age? Yeah, you are neck and neck with my dad.Take care of yourself, I trust you are well shielded?Best wishes,G.

[aleman] 07/4/2020 11:26

Pics of China with no social spacing in train stations look very optimistic for ZYT (though the majority still seem to prefer to wear masks). Normal life will return quickly so long as the transmission rate is cut from 2+ to less than 1. Masks in public spaces seem to nearly do that on their own. China went for overkill and have virtually elimated the virus quite quickly but it is probably not necessary to be so severe. It's possible people will live fairly normally from here and just adopt masks temporarily in regions where there is an occasional breakout.

[varies] 07/4/2020 11:14

garth
I wonder if you are as old as I am : 78y.o. but growing little wiser !
I looked carefully at ZYT yesterday with a view to selling my shares in advance of the inevitable cut in the dividend, now 22.8p p.a.
I was also worried about the high proportion of sales related to gaming consoles for casinos about which, having been a compulsive gambler in my youth, I have mixed feelings. If the punters at these consoles had to sit 2 metres apart, then there would plainly be many fewer of them. Furthermore most of these casinos will be shut for a couple of months.
Like you, however, I was struck by the strength of the balance sheet with Net Current Assets of £18 million of which £13m is in cash. This leaves only a modest value put on the intellectual property and production facilities as the present market cap is about £20m.
So I shall hold on.
If the annual dividend is reduced to 5p, then we shall still get a respectable yield.

[mctmct] 07/4/2020 10:39

bigger than their buys, at present :-)

[garth] 07/4/2020 09:32

Zytronic continuing to see interest. I bought a little early on the down, so just breaking even again. I am concerned about impact on trading. But we'll supported by plenty of cash. I can't see the Divi being paid this time, but it will be a decent yield when it returns.I must be getting old. Find myself adding income plays...G.

[oldvic] 17/3/2020 19:59

are they big then , those buts ?

[mr_spock] 17/3/2020 18:03

Pugugly - you hit the nail on the head. ZYT customers are all suffering. The big cash pile will presumably keep ZYT in business, but with EPS trending down the last few years, and now this...I'm thinking there are less risky choices out there if investors have got money to spend.

[mctmct] 17/3/2020 17:05

Wait for significant director buts.

[pugugly] 17/3/2020 11:41

Still watching but with major customer groups such as casinos, clubs, pubs, tourist locations, all under lockdown - banks moving online and cash points in significant decline looks looks to me to be a very significant dislocation of the order and replacement pipeline. Trading update of 4th Feb did not give much comfort - So still watching not jumping either way,

Other views?

[rcturner2] 02/3/2020 14:46

The main problem is that lots of their customers are casinos in the far east.

Profit warning in H2 very likely.

25% of the company's business is in South Korea alone, for example.

[pugugly] 02/3/2020 14:23

So, what is going wrong? Could it be a technology/application slowly becoming obsolete and being superseded by apps on smartphones?

[rcturner2] 02/3/2020 13:37

£13m of cash.

Market cap is currently £21m.

[bookbroker] 02/3/2020 12:23

Those orders will evaporate until clarity about Coronapops!

[eastbourne1982] 02/3/2020 12:17

Absolute carnage, soon the market cap will be made up of the net cash position !

[garth] 27/2/2020 11:45

Reading the trading statement again, revenues "CONSIDERABLY" down for the first half but orders "SIGNIFICANTLY" up.

In my judgement, considerable is of a larger scale than significant. But who is to have any idea by how much?

Any takers?

G.

[crystball] 22/2/2020 17:06

There would still be a very good dividend yield if they halved it.

[bookbroker] 22/2/2020 16:33

This company should halve its dividend at the very least for the time being, prudence better than frivolity!

[bookbroker] 11/2/2020 10:40

Off course they will cut the dividend, way to generous in the increases over the last few years, no need to be handing 20p a share annually, but to conserve, re-invest, not much buying back stock, too few as there are. Need to be more responsible, been a bit cyclical this stock over the years, but a good business essentially!

[value viper] 11/2/2020 10:37

Indeed - not great BUT

[rcturner2] 11/2/2020 10:24

Feb TU said "revenues during December and January have continued to be considerably behind last year"

[value viper] 11/2/2020 09:14

Near / at the 10 year lowArguably big levelDirector buys would be a show of confidence

[value viper] 11/2/2020 08:43

Steady mate

[value viper] 11/2/2020 08:43

I was referring to the manufacturing side as opposed to where they sell to

[rcturner2] 11/2/2020 08:17

VV - no China issues? wtf

A significant part of their business is in the Far East selling to casinos.

[value viper] 10/2/2020 21:35

Potential sitting duck now surelyLoads of cash, no debt, patented technology, UK manufacturing (no China issues with Coronavirus disruption) and they intimate improvement of short term challenges Risk of course is trading continues to struggle but enterprise value is peanuts no ?