Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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I think if you try John Lee podcast in Google where he discusses his portfolio you should find it near the end. If you look in Lord Lee disclosures you will find all his holdings listed. He has been in Cnc for yonks.
Hello oogleflugal,
Could you post a link to where John Lee discusses CNC in the way you describe?
Thanks!!
Some pretty hefty volumes today not surprisingly. Fairly muted response from stockopedia guy, describing the RNS as ‘gushing’ and ‘overly exited.’
Which is a bit rich from the guy who regularly gets over exited about far less interesting shares. The truth is though don’t run before you can walk. This turnaround has been rapid, from crippling supply chain shortage, useless auditors, suspended dividends and reduced revenues and profits to acquisition, more new products, meteoric rise historic record revenues. So how quickly will the profit return and grow. Not to much guidance on that yet. It’s all developing very fast and as Miles declared ‘don’t want to bite off more then they can chew.’ Lord Lee on the other hand (being an old hand and long term holder) is convinced this is being transformed into the big league. That will take a bit longer than the turn around we have seen in just a few months. Definitely something to get exited about.
Good little target for a buyout I think.
Well this is a bit of a Christmas cracker. More record orders and revenue. Supply chain continues to ease. It going to bloody need to with these contracts coming in. Brilliant
New auditors well overdue. Lets hope they keep a better ship than the last lot
With options like that it’s no wonder people are selling up. This kind of greed gives aim the name suer for good reason . The directors didn’t even take part in the placing. Just want free cake it seems
O dear gone back to sleep. Not surprising in this market. Forecast to have a cash balance back to 15 million by year end barring another acquisition. Intention to reestablish dividend asap. Deep value here imo. So picked up a few more in this lull. I prefer stocks that have clear value rather than simply being a bargain price. This appears to be both.
Looks like the market is waking up to this at last. Another one updating on september 26th.
All looks good to me. Miles and team are doing a first class job in turning this company around building it into a strong force. Miles felt the acquisition was under capitalised but with great potential to unlock further growth in the 2 billion US market. Leaves a little over to snap up other opportunities. In other words he already has an eye on something. This guy is a great planner. last top up was at 65p so quite happy to take part in the retail placing at the same price.
Perhaps this will make more sense after a coffee. Still not a holder.
Excellent news. Record first half forecast and launch of another product. Let’s hope we have seen the last of dopey fund managers exiting. Ridiculous cheap market cap now. Presumably will be upgraded at some stage in the next couple of years!
Well done guys.
As promised more regular updates to market. Records, records and more records!
Fair enough. The key ingredient in a broker note is the financial forecasts which are modelled and sanctioned from the CFO. That's what the price in the market is based upon, both historic and in the future. If the 2,000 chips arrive from Microchip Technologies this month then CNC should beat the current forecast in the market. Next market update will be the AGM in August. Good fortune!
That is a good entry price, I think you can afford to hold on. I too like(d) the idea of the recovery potential here. I think I was too early, buying in at about 90p and selling at 80p a few months later. At the current price is looking attractive, but you didn't comment on the cash situation? Partly why I posted the SW article is that it has a point that it is rather dangerous to invest in a company with dwindling cash. I do think progress has been at a snails pace, and Miles lack of shares purchases tells me that we have further to go before we should get excited.
NoCheedar, I may read the Cenkos note, but they are probably paid for by the company and likely to be very optimistic. I often use those notes to get the bigger picture (not necessary here), but experience has taught me not to invest based on the house brokers spin.
I expect I shall use a chart based entry here. Follow big money - if it ever comes here looking. Best of luck, I will pop back every now and then.
Hi Darton,
Cenkos issued a broker note last week. You can sign up for free to the Cenkos Research Portal and gain access to all the notes on CNC:
https://www.cenkos.com/research-portal/#/portal/cenkos-securities
On CNC's website there is a slide deck presentation to investors which shows the strategy and growth plans in detail:
https://www.gocct.com/investors/
This webinar with the CEO and CFO has plenty to chew on:
https://www.youtube.com/watch?v=N-js0OUYuFs&ab_channel=ConcurrentTechnologiesPlc
My original stake was at 19p!
On Premier Miton. They had Cnc in an income fund and as the dividend had been suspended for an unspecified time and would have been contributing a substantial income to their fund obviously felt they had to be replaced. Most of their stock would have been acquired below even todays price so they have lost possibly 4 percent plus dividend payout now well below interest rates.
Date back to 2016 not 2026!
Thanks Dartron. Yes I post as ear. Simon Gordon seems pretty on the ball with it. Stockopedia have total employers list as 106. I do wonder how accurate some of their info is. I certainly would not pay for it. There was a presentation by Miles and the new CFO. The important point they try and get across is the transformation from 80 percent end of ‘life product’ ( old discontinued) to 80 percent new products sales. They have broken order book records for about 4 years running with current year beating last year by 25 percent. The chip shortage has been well documented across the industry and hit them hard last year which is why revenue dropped 10 percent and why they could not complete orders. The cash burn you refer to is partly investment in new staff and offices in Thame (?) mostly it was investing in forward order of components to try and mitigate shortages. The accounting errors date back to 2026 to 2021 when Miles took over. This coincided with a period when they closed a factory in India.one of the pressures on the sp as I pointed out on adfvn is the winding down of a 20 per cent holding of Premier Miton. Once they are out I expect it to stabilise. I think they are now under the 5 percent notifiable interest. With the founder dying a couple of treats ago I would say the team has drawn the line under a rather old fashioned tech business and have remodelled and replenished in quite a short space of time. Yes this Miles first Plc headship but he is a remarkable man coming from a 250 defence company and bringing some of his team ( the new CFO) with him. Lord Lee has been a long term holder and is or was a defender advisor to the government. Miles and the CFO explain very clearly the problems and issues they inherited, which are more about dotting the Is and Ts and appear not to have impacted much on previous recorded profits.they have a clear path for a return to growth including the possibility to be acquisitive. Some of this is yet to be proven but with order book of well over 30 million I tend to believe they are on the right track after difficult period of transition not helped by component shortage which they claim has vastly improved as recently as this month
I cant find any update for cash since YE 2022.
Other board has a good discussion if you have not seen it.
Oogle, can you point to me where you got this £10m from? I can see this from FY results:
Cash in the business at year end December £4.5m (2021: £11.8m). Could this be lower now?
I work in this type of business, do you realise the costs associated with keeping all of the employees, regardless of component shortages? Google says there are 600 employees (seems high to me) but you get the idea. In my own line of work, we have not had component shortage issues for a long time. I think the SW article is just highlighting that the business is rather poor, and not generating anywhere near enough cash.
Revenue 18M
Cost of sales 9M
Admin 9M
Left with ? Not much.
Tangible assets
PPE 2.6M
Cash 4.5M
Inventory (which is not selling) 10M (could this get written down?)
Basically £12m of assets, on a company that is likely burning cash. I can see where SW got their valuation from.
Regards earnings, it looks flat to me from investors chronical research portal, though they had a good year in 2019, however this is a mute point for me, I am only interested in what has happened since Miles took over, and it has declined:
· EBITDA at £2.1m (2021 restated: £4.9m)
I don't blame the CEO entirely for this, I do remember the tough times we had, but I just think there are other problems here that we don't know about. I am not sure about Miles, I think this is his first PLC appointment, and I don't think he understands markets or AIM. The company is especially poor at IR. I regularly check in on the company on linked in and the like, it looks a great company but it isn't making any money, in the defence business while there is a war on. FWIW, I hold Chemring, and this has pulled through all of the issues here, but price has not really re-rated yet, They are far more diversified as well. I might be tempted here, more that it gets bought out by PE. I think they have had long enough to turn this round and they seem unable to. Is it the core products? Look at this line form the post achievements, Successfully winning the first Systems win in excess of £1 million in value since the launch of the revised business strategy. Its taken nearly 2 years to win a 1M order. WTF.
My genuine worry now is they hit cashflow issues. Not sure what they would do in this case. £40M mcap, maybe at £30 it gets a bite from PE? Thoughts?
As for earnings decline by 9.5 per year for 5 years is complete and utter BS . You can even see that is not true in fundamentals on this site. Check your facts!
15p would be a valuation of 11 million with 10 million cash in the bank. Sheer genius . They are the look out for acquisitions. Perhaps that upset the market. Don’t want them adding value to the business as well as record orders