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ps. to clarify - Onsite-ID off which COV-ID spurred. The insurance auditor is using the tech to inspect firedoors and record to the Blockchain.
I think the votes for your post this evening say it all. For those that read thr RNSs and have taken the time to watch the Proactive interviews, they won't relate to the post immediately below.
Guy Meyers has interviewed consistently well and I've much respect for his track record (including in sales at globally renowned companies) - he's not new to CTEA - along with the other directors. As you'd heard from Guy in the 2nd & 3rd most recent interviews, CTEAs excesses are gone, directors and suppliers are prepared to take payment in shares and the co is on "an incredibly strong financial footing". He also said he recognised the communication "gap" but said he doesn't put news out for "puff".
Newcastle Health has bought COV-ID and Guy describes the value in building credibility. An insurance industry company is also using it.
Guy talks about building the foundations first and executing on plan. Clearly a confident chap and with a fair wind, there's some deals to close soon.
I have worked in software sales and was also a holder in this share. Whilst you are correct that it is indeed tough, I have not seen a shred of evidence that the directors are putting in the work. we had an interview with Gus, where he boasted about the leads that were flooding in. This was in July I think. Not one converted into an RNS. They have precisely 2 partners - one was next door to them in Newcastle and one came through this AFRIK-ID exercise.
These apps have a short window of opportunity. The management team have to be dynamic and move quickly. Instead you had no RNS's for a very long period of time and no questions allowed at the AGM. The PI's fill in the gaps with rumour and supposition and you see the occasional spike. It's based on thin air and hope.
It's a company with very little IP of their own, all staff seem to be directors and they only started looking for a sales person recently. It's a lifestyle business where PI's and placings are used to generate income for directors.
If you think i am wrong fine, but ask yourself 1 question Why no trading update during the most opportune time for sales?
I really don't agree with the statement about "it's been ready since July, clearly no one is interested" This is a company who have created, tested and are trying to sell a completely new solution to companies whilst the whole world suffers financially from a global pandemic. And because we haven't had great success within 4 months, people are writing off this company? Do you have any idea how hard that must be? I actually think the JV and Afrik-ID partnerships are bloody great deals to do within 4 months. Don't want to sound harsh, but does anyone here work in a sales environment and actually know how long it takes for managing directors to make decisions or for IT teams to talk to directors or to organise meetings to discuss solutions. This can take months, let alone weeks! I'm still very confident about the company and I'm very happy with the progression they've made over the last 6 months. I think that this pandemic has proven that the need for a global medical style passport for travel or work will be essential to keeping the world safe and stopping this from happening again. Whether CTEA will be centre stage for that I don't know, but I think the future will see us getting rid of traditional hardback passports and be migrated to online style profiles. Good luck to everyone whether you hold or not but I'm looking forward to see what they have to offer.
We can debate all day. End of the day, market cap is where it is because the company needs to prove up its product line. Personally, this is well within my risk appetite and I don't want to wait for answers on a silver platter to start accumulating.
Look everyone has their opinions but I really don’t see it that way. We recently had the news that they have entered into a JV. And then we recently had a proactive interview where both CEOs were quite clearly very excited about the future prospects. It also says throughout all the RNSs that they are in talks with governments. The test is one of three certified tests by the UK government. Look, to be honest some will like it and some won’t but for me - the market cap Is tiny and so I don’t see much downside but I do see a huge amount of upside if this contract lands - and everything for me points towards this happening. Good luck all!
We would of known by now if there was any semblance of a return for shareholders..it was after all ready for commercial opportunities back in july.....this is simply a lifestyle company trying to draw out expectations until working capital days out...and we all know what happens when that occurs..I was originally optimistic as have funds invested ...
@Mitch, I agree with most of what you say. Happy to say I also made a few quid on the recent spike
The one thing that does give this share a chance for me though is the JV although that raises more questions than answers. The 350,000 sales by BHA were made prior to the announcement so it's probably fair to assume that CTEA will gain no benefit from those. There was no mention of it anyway.
That then leaves you wondering why BHA, who have the test, need CTEA and what's in it for them. The passport is the obvious answer but if they're sharing benefits equally then the app must generate roughly equal financial benefit, otherwise why bother.
If they're wholesaling a GP of £6 would be good (?), I can't see customers paying £12.50 plus £6 every time a member of staff gets tested. I can't see where the repeat business is apart from licenses. I suppose that's scaleable but only as far as the number of staff is concerned, it won't match the number of tests so more transparency on the commercial potential is needed.
Then the past performance. Despite having this on trial there is no notification whatsoever of a commercial contract. Again that points to me that they've been unable to sell it so need access to the tests to piggy back on to something that actually is in demand. It might work, it might not.
I'll buy again at 2.5 if it hits that again.
That's wrong! They are only supplying the test not manufacturing it. Most of the funds will go to Healgen and a commission to the joint venture.
That's why I am asking.
GL.
Profit depends on order size and I suspect we will see profit in the financials, not itemised in an RNS given commercial sensitivities. I think we'll see FTSE100/250 orders for Onsite-ID and COV-ID soon to get employees back to work.
The cost of a test is £12.50. So if/when they get a contract say of 20 million tests which BHA could easily deliver on you’re looking at revenue of £250,000,000 so £125,000,000 as split between the two. NCYTs profit margin is 80%. No idea what CTEAs are but say they’re a fraction of that at 25% you’re looking at profit of £30m. Market cap £6m. Hence why I’m getting excited and why a contract is everything- it’s what will bag this many many times. Imagine if their margins were say 50%. Crazy stuff
NPH group only have 28 employees (companies house) and no record of payment?
That's why I am asking how much they will charge.
JV 50/50 profit share . But share of what exactly.
Get one revenue contract and others should follow but what is the charging structure vs costs?
RNS outlining their pitch would help.
GL.
That’s not true! I have email confirmation from NPH Group who have bee using and still use cov-ID. I will post on Twitter when I am home in about 15 minutes – check the Hashtag #CTEA. Plus the FTSE 100 companies that have been using it AND the exciting part is when the big contract lands. Sorry you have someone who lost money that’s never nice. I wish you all the best of luck and for me personally I’m pretty confident we will secure something rather very large. In the words of our CEO, “we are at the cliff edge in terms of growth”
That's fine. Each to their own understanding. Some see opportunity where others don't and vice versa. Some like watching Football others don't. Let's see what the future holds. Volume appears to have spoiled traders play thing.
This can be taken with a pinch of salt as I have neen negative about CTEA for several years - since a relative lost a large amount of money on their shares in their Milestone (pre blockchain hype) days. No doubt I will be called a deramper too.
The only difference between the CTEA app and the many others on the market is blackchain. However I fail to understand why blockchain is a must for an app like this. Regular encrypted technology for the results is perfectly sufficient - the app is only going to hold basic information after all, not your entire medical history.
Halo have had a similar (non blockchain) app that has been working for months - you take a test using their kit and the results appear in the Halo App the next day:-
https://www.haloverify.com/index.html
CTEA are so far behind with their app, I don't understand why posters think it will be the next big thing? Halo is not the only company out there with working apps either. CTEA have nobody using their app in a live environment as yet.
I said in this forum two months ago that CTEA was a trading share - profit from the pumps and dumps, but forget holding for long term gain. There is zero evidence that CTEA will ever produce meaningful income from anything - they never have. Just check their annual accounts going back years.
50:50 profit share in JV
Revenue will always be large for test orders, so it comes down to profit. Both CTEA and BHA are "volume" businesses and "highly scalable" using words from Proactive interview. Bigger the better as the cost base is fixed.
Then there's the annuity business that'll grow outside of COVID etc. Example clients, Newcastle Health using Onsite-ID plus COV-ID to get its employees safely back to work etc and work for the insurance industry.
What commission does the JV get with each test supplied?
Are there any ideas how much per employee the company will charge ?
Revenue is key to this rerating.
Thanks.
GL.
I think the market is missing a trick. CTEA was a developing business before COVID but if we get into the field of 'health', it applies to so much more than just COVID. HIV, TV, Yellow Fever (that yellow piece of paper you wave at the immigration guy in Africa) - you name it. I'm looking for Blockchain exposure and I found a company that potentially gets a huge springboard to launch.
now we should all be clear - the MCAP is tiny beacsue there is areal possibility that this comes to nothing. however with the current mcap any sort of order would cause the SP to rocket. If we somehow bagged a big order e.g 50millions test plus via the JV then the share price could go up 20 or more times so its a punt but a punt with a potentially life changing reward
maybe fomo starting to kick in
been same story last couple of days...morning drop on small to medium sized sells and then afternoon goes to blue with a number of large buys
MMs have spread wide to cap interest - I got NT'd a little while back at 3p but someone has just picked up 168k just under. Sells are just above 2.8p.
is a code for the target price in 3 weeks!
maybe he/she is paying £8 commission per trade
all those 992 buys, is 992 even a code ?