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Management bought an aggregate total of roughly £2.1m worth of the new shares. Pretty big vote of confidence from the Fat Cats, keeping the SP lively
As well as world leaders, Intuitive Surgical, CREO are working with their rivals, the British company CMR surgical, in Cambridge who claim to have a more flexible and efficient solution, and which is introducing robots to NHS hospitals imminently. A deal was signed just 5 months ago to integrate certain aspects of Creo's technology with their system. Royalties and licensing agreed but not disclosed
"If these instruments can be used in conventional surgery then they must also be ideal for robotic surgery and you don’t have to train the robot. And almost all the robotic surgery in the world is controlled by one company so only one door to kick down. "
The company signed a deal with Intuitive Surgical 10 months ago. Their system is really robot-assisted surgery, meaning a robot is operated by a surgeon from a console. It is already in the field with approval granted for a few procedures. Revenue from the deal will initially come in milestone payments, assuming they can be reached. Presumably these are based on successfully combining the CREO tools and the robot for a specific new procedure and ultimately gaining FDA approval
Just been announced that the total fundraising was £33.7 million, probably enough to reach profitability if growth assumptions are realistic. Presumably impending dilution was the main drag on the SP, so we potentially enter a new trend. Trading in the massive volume of new shares starts tomorrow. An initial downward movement might be expected, but who knows in this market
Institutions won’t be forward selling their placing shares, there isn’t a market for high volumes anyhow. There will be some smaller investors looking for an arbitrage and so we will see the shares zigzagging around in the 20’s. My guess it will settle around mid 20’s. If the company cranks the speedboat sales say from £ 9m to £18m over the next 12 months or so then that will put a rocket under the sp because the inference will be that 18 becomes 36 etc etc. I think that is exactly what will happen. Furthermore there are other routes to faster sales growth. If these instruments can be used in conventional surgery then they must also be ideal for robotic surgery and you don’t have to train the robot. And almost all the robotic surgery in the world is controlled by one company so only one door to kick down. The fact that the sp fell 90% and the company was able to raise £25m just like that should tell you everything you need to know.
Makes sense Theorist, unlike some of the recent glib comments. There must be a suspicion they over-egged the recent good-news blitz in order to get the funding round away, but hopefully underlying growth really is gearing up and the improved financial footing will allow the SP to gain some traction. Having said that, it's all over the place at the moment!
Up she goes
I think the fall in the share price was a bit of a shock to everyone but the circumstances were exceptional. A stock like this where the company has pretty much established its technology but then has the slow grind of getting traction with sales is always going to be thinly traded. Which is fine unless your register is dominated by a couple of institutions who have liquidity problems, eg baillie gifford. They have endured a really torrid time and have had to sell down their holdings across the board to fund redemptions. So a couple of big sellers of a thinly traded stock and guess what happens? I don't think the company have exactly helped the situation. I don't believe in their acquisitions. All that mattered was getting traction with sales and with 300 plus staff it seems amazing they have been able to achieve so little but there are signs that progress is at last being made. Paying max directors bonuses in the middle of Covid (and in cash not shares...funny that) was ridiculous. The justification was brilliant acquisitions. LOL. The company should imo gone down a different route, lean and mean, yes carry on refining the technology but focus on developing a sales team or if you cannot do it yourself outsource. Then they took their eye off the ball (where was the Chairman) and landed up having to do a massive raise at 20p. You pay a £100,000 per annum to Mr Spicer not sure you're getting great value. Still I think all of this has been a bit of a salutary lesson and hopefully there will be a bit more back to basics. You cannot feed 300 people with £9m of sales. If you are a technology company you probably cannot also be a manufacturer, sales outfit, electronics company, property company etc etc. Does Apple make anything? Isn't their brilliance technology and design? Maybe that should have been Creo's business model? I still think the company will get there but will have burned £100m unnecessarily.
An a year ago it was 140p and two years ago it was 220p.
It has lost 80-85% of its share value in two years. Let's not pretend an 80% rise from 20p is somehow amazing. Most investors will be extremely down still, including myself.
On 16th share price was 24.5p it is now 34p , best to put all the posters below on this thread on ignore IMHO
no it wont
Will Brake 40p this afternoon
WOW nice review there looks OK for the future piled in here with CLON profits can see this finish 50p+
Went in for a few first thing this am, so glad I joined you all here. Game on.
Anyone got a rocket
So minimum fundraise of £25m and open offer of £5m at 20p = at least 150m new shares, on top of about 180m currently in issue. Can see this falling below the offer price once the dust has settled, given the "jam" is still estimated at 3 years away, and quite possibly more?
Well, it was good news they did the financing, and that leaked out. For sure.
Just not THAT good news at 20pgl given colossal falls from the last one or two. And one more cap raising in the pipeline before possible (mere) breakeven.
Not sure anyone is getting richer from Creo just yet. Only poorer. Except the patients served better for less cost, which is why we stay interested.
Why did the price rocket yesterday for it only to be taken back by the RNS this morning, those in the know, know and the rest of us are like lambs to the slaughter. I didn't buy personally but there must be a few who did unless those in the know sold and there where no purchases.......GREED is GOOD i guess for the few rich in the know.
True Shear, the scale-up has been consistent, but worth noting that Edison estimate that, despite this, breakeven has slipped slightly further into the future. Takeover makes a lot of speculative sense - bigger pockets and more powerful management could probably accelerate profitability here.
https://twitter.com/CreoMedical/status/1622909325420204032
"January ?
Some highlights for #Creo in a month which saw record orders for our Speedboat Inject device:
?? High praise from Westminster and the Senedd https://lnkd.in/e9szUwgR
????? Dr. Amol Bapaye MD (MS), FASGE, FJGES, FISG, FSGEI presenting a fantastic Z-POEM case he performed at his Pune hospital with #SpeedboatInject, during a recent symposium in Thailand - https://lnkd.in/ee7AzWJp
?? 3 cases in quick succession from Dr Roy J Mukkada & his team in India https://lnkd.in/ee9_YnFA
????? Becky Smith, from East Kent NHS Hospitals, highlighting the impact Speedboat can have on nurses as well as patients, doctors and hospitals https://lnkd.in/eskEvH9c
??Training the next wave of French #SpeedboatInject users at the first fully French edition of the #PioneerClinicalEducationProgramme in Paris https://lnkd.in/eiBwJD2f
Plus many, many more successful cases, events, showcases and mentoring sessions completed around the world."
A jump like this indicates something positive. No news yet but I expect something. A nice surprise as I was scanning my portfolio generally today. I bought in at 29.618p on 16 Dec 2022 so a little way to go yet to break even but I was looking long term anyway.
Looks like one of several things is happening here;
- Re-rate back to sensible levels in line with AIM listed medtech stocks; POLX = £80m cap, RENX = £110m cap, AGL = £75m cap, to have CREO sub £40m vs £400m this time last year was insane, regardless of the funding situation. I'd say £100m minimum would make sense.
- Takeover by a US entity; with a large patent portfolio & scaling of international reach this was be a great add on for the likes of Procept, Intuitive or several other US listed medtech companies. Any premium paid could be very significant
- Capital raise at a significant premium to the current price - the last 2 raises in 2019 & 2021 were over £1.80...
Either way, at £47m cap it's crazy cheap.