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Looks like the take-off is now in progress for real, not just words. Growth delivered, and realistically lots more to come.
Another huge one same time today but for half a mil £ ... massive !
Possibly buy & sell (transfer into another account)
Must had been a sell
That's odd.. must be going mad.. swear I saw them as buys !
It will be interesting to see tomorrows opening. Delayed ‘unknown trades’ can be a bit misleading.
BTW, are you sure they were 'buy's ? I can only see 'Unknown'.
Wow! It wasn't me - honest :)
That is quite a move methinks.
Did you guys see those two buys which went through end of day, total £250k !!!
I agree that LTIP should be paid out of profit not by issuing more shares. Whilst going down the share route is fine if the issue is a fraction of 1% this is a not insignificant dilution. It neatly sums up the profligate issuance of shares prevalent on AIM where significant numbers are issued like confetti. Not over happy with the scale of this myself. It tends to put the recipients in a cant really lose but can win big situation.
I guess if the share price trebles and the payout would equate to over 10m we would still be pretty happy., if it falls its a dilution used to supplement already impressive salaries. If we assume 300 employees for simplicity I believe its around 12 thousand (£) each although I suspect heavily biased towards management in reality. Any employee share scheme I have ever participated in in the real world involved me paying for the shares myself albeit at a discount. Which you would happily do if you believed in the company prospects.
Yes, specifically it's for funding a Long Term Incentive Plan (LTIP) where employees get bonuses for reaching specific targets which are supposed to enhance shareholder value. It's a good idea in principle, but shareholders usually have no say in what the targets are, and the main benefits tend to go to the people setting up such schemes.
Some might question why about £3.5m is being set aside now when the company is still estimated to be about 3 years (?) away from breaking even. Shouldn't such bonuses be paid for out of profits, not fundraising?
Am I correct in saying this is for productivity bonuses. If so I believe its positive that they think they need one. We needed a reset anyway for the next news. :)
Another dilution, almost 3%.
"To be held by the Company's Employee Benefit Trust ("EBT") and will be used to satisfy LTIP awards."
Anyone know what's going on today? Look at those mega buys
Yeah,another one
https://www.proactiveinvestors.co.uk/companies/news/1019468/creo-medical-group-looking-very-well-proactive-research-analyst-1019468.html
" I foresee it dramatically increasing the number of patients able to benefit from this advanced energy, not only here in Nottingham but at healthcare settings elsewhere across Europe"
That's the doctors prognosis. But why just Europe? It's surely significant that this successful application happened almost immediately after approval. It's effectively opening the gate on a new revenue stream. The market seems more than ready for these products. The training process is in place too. Seems like it is all coming together at last. This should logically translate into increasing revenue and a SP run up to the next trading update.
@GracieP. Thank you for the information in your post and good luck with your other investments should you not dip your toe in the Creo water :).
Another good news RNS and as I've mentioned I really hope from a humane perspectives that the products continue to give good outcomes to those that require this surgery. From a business perspective I'm slightly concerned that no matter how good the product are the training barriers involved may continue to slow the path to profit. Lets hope once those trained are passing the knowledge on others things start to cascade in a positive way. Very interesting potted history Theorist, lets hope some lessons have been learnt!.
interesting post gp. i have followed creo for more than a decade and i have no doubts at all about the product and the technology. chris han**** is genuinely a genius. the trouble has been that you cannot just put the product on a shop shelf, you have to get consultants on board literally one at a time and offer training as part of the sales package. this is very labour intensive and time consuming. which is also why so much interest is being shown in the relationship with intuitive, where bulk sales could be made and the training problem largely falls away. i think the company made mistakes, it’s headcount is way too high, the acquisitions have been a distraction not an asset. there have been some governance issues too. a non executive director was recruited, placed almost immediately on the directors’ remuneration committee and within six months approved massive cash bonuses for two directors, ostensibly on the grounds that the acquisitions had been such a success and despite the onset of the pandemic. pretty daft in my mind, plus any bonus should have been in shares not cash, with the cash reserved exclusively for its original purposes, product development and working capital. so there have been some bumps in the road, covid very unfortunate when you need access to consultants and hospitals, excessive recruitment (imo) and until recently no sign of a clear sales strategy. having said all that i remain very confident they will prevail and recover the lost ground.
Unexpected share issues are the bane of AIM stocks and it is surprising how often you don't see them coming. Its a fact of life that share issues on AIM are seen as a cash machine to get a company to profitability. As long as that profitability arrives its not quite so bad but its hard to judge the odds of this as most RNS are full of smoke and mirrors unfortunately. Whilst it would be rather wonderful if Intuitive or anyone else showed interest its unlikely in my personal opinions. Unless the technology is fantastic its cheaper for any interested party to wait and see if the company fails to secure enough funding to win the race and pick up the pieces out of administration where the debts are written off. Should the company win the race to profitability the picture is changed considerably.
BBD, yes good point, would be useful to get a measurement of the CREO applications, say as a percentage of robotic surgery. Appointment good too, I think what we need to see now is the promised reduction in headcount and a lot more detail re the sales strategy. With almost 300 staff how many are engaged in sales, how are they going to build and accelerate the training programme, it all seems agonisingly slow at the moment. The company has assured the market that the latest raise will be the last needed, it looks pretty marginal to me.
That estimated global revenues number is not definitive, Theorist, some estimates are lower, but Intuitive are certainly dominant. It's worth noting that the robot market includes all areas of the body, whereas CREOs tools are targeted at specific, but important, areas. Looks like a good appointment today, another sign of ambition and progress
BBD. The data I have showed that in Q1 2023 Intuitive revenues were up 14% and combined rivals down 6%, which was how I got to my 90% figure, however you may well be right. I 100% agree with your post, I do sometimes worry that if the Creo suite of products is as good as we are led to believe then why wouldn’t Intuitive snap it up, if for no reason other than to shut competitors out of this avenue?
Intuitive reported revenue of $6.431B last year. Estimated global market for surgical robots was $8.5B. That works out at 75.7% share of total revenue - extremely impressive, although substantially less than "over 90%" in terms of revenue.
If they are interested in taking over CREO, they have shown no sign of it so far - not participating in the fundraising, for example - but it should be noted that they are really just evaluating the usage of CREOs tools at the moment, if they like them for any specific application then the uptake could be swift and dramatic. Also, although huge, they are not the only big player in this area, and there is at least one smaller, nimbler rival who also have a contract with CREO, which could lead to big European sales. On top of that, the global market is predicted to more than double over the next four years.
Some good reasons to be positive on this stock, with the usual cautions and awareness of recent CREO history and disappointments.