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Yes December.
It would have been strange for the company not to receive some positive momentum in the run up to its results next week - its been massacred of late linked to a number of issues highlighted recently - despite the run of positive news events from the company. IMO our current value no longer reflects the growth opportunity the company has laid out so I'm hoping for a very positive update next week. Just out of interest Scooby - what was the starting point of your bowl - Dec 2021 - quite a retracement all the way down to c.45p? SB
Its been a bit strange hoe EKf price has dropped as we know the results are v good.
Someone is still selling, even today, which is puzzling. Perhaps they are still considered to be reliant on Covid, which is far from the truth.
I have been accumulating in the past weeks, so will be listening closely to the results podcast next week.
Nice bowl - bottomed out.
Strange how it got here given most recent TU which already incorporated upgrades was "trading ahead".
Did something just go off? Ekf finally rousing from its deep slumber.
This is the largest element of a c.$10m investment in our contract manufacturing business to support existing client base and develop new relationships. This investment is due to come online in 2023; and in full operation by 2024 is scheduled to deliver $6m revenue pa alone - with the overall fermentation business exceeding $10m revenue pa from its current $1m position. SB
EKF Diagnostics Holdings plc (AIM: EKF), the?AIM-listed global diagnostics business, announces that EKF Life Sciences, a division of EKF which manufactures diagnostics enzymes and contracted custom products for use in medical diagnostics, pharmaceutical and industry, has signed a partnership agreement (the "Agreement") with ABEC, Inc ("ABEC"), a leading global provider of engineered solutions and services for biotech manufacturing.
The Agreement provides EKF Life Sciences' South Bend, Indiana facility with customised, large-scale bioprocess equipment and will include a 14,500 litre total volume stainless steel fermenter and an 8,000 litre media preparation system. This will significantly enhance EKF's production capacity of enzymes used in a variety of diagnostic and Life Science applications, and is a positive progression of the Group's strategy of investment to drive organic growth through the expansion of EKF Life Science's fermentation capabilities.
ABEC has over 45 years of experience in large-scale fermenter design and complete in-house engineering and manufacturing capabilities. ABEC will provide engineering services for EKF's new fermentation facility to ensure optimal process performance and seamless facility integration. The 14,500 litre fermenter will feature ABEC's patented internal cooling panels, which will enable efficient sanitation, optimal heat removal and the highest possible fermenter productivity.
Don't disagree chique - sometimes its better to wait for a clear signal that the down trend is over before committing more funds. I think the business has used the cash uplift from its contract manufacturing business wisely - strategic capital investment in capacity to drive organic growth and market acquisitions funded using company paper. I would be surprised if there are no further strategic moves this year - our new CFO has a track record of delivering growth and this was likely a key attribute in his appointment. SB
Strangely silverblade - this is my reason for holding off buying , not because it's correct but because I think others may bail for this reason
I would agree on the buying opportunity point chelsea - and increased my holding here a couple of weeks ago. Turns out that wasn't the greatest piece of timing......! We do seem to be overly punished for our link to covid testing and the expectation that that revenues from this sector are in decline - with no support despite ongoing growth in our core business and acceleration into new testing markets. Can't imagine the ADL shareholders will be overly impressed with current performance - their $10m consideration was 100% chares in ekf - which were trading at 80p at the time of purchase - so that's a large dent in the purchase price on paper. Will be interesting to see how they have performed so far - there are some hefty earnout clauses. SB
SB. Agree. Of course you never know but I’d be most surprised if there was something unexpectedly negative in the March results and lead up to them. Buying opportunity at these levels imo.
possibly the sub 50p trades yesterday finally created a bottom point - there seems to be some support albeit small volumes - and it would be reasonable to expect a move upwards towards the results which should come out end of March '22. What a year to date. SB
what happened to this share - keeps dropping - no end insight. A rollercoaster down the hill. When will it reach the bottom?
'*preceding 12 months'. Getting ahead of myself.....
We have now crashed through 80p, 70p, 60p. 50p......wiping £160m+ from our market value. Our single largest investor alone - Harwood Capital - have taken a near £50m hit - all in the last six months. Our executive directors were all paid significant bonus payments last year (£500K) directly related to the appreciation in share price over the proceeding 12 months. All that and more has now been lost. Ironically the base line price for further bonus payments triggers at 33p so further awards could be made in March 2022 despite the huge loss in shareholder value - accepting this is not all down to the company but at what point does it offer some support - we have £20m in cash - imo now is the time to consider sharebuybacks given the share price hammering of late. SB
Think this is spot on and I would add that small cap liquidity is light at the best of times and holders should expect or anticpate swings like this as part of investing in this market segment. It's not stock specific, there's a market-wide liquidty drawdown in play with risk premiums increasing as part of rising bond yields. In the meantime, the company continues to recover, grow and invest in future growth, plenty of cash in the bank, no debt and paying a dividend, what's not to like?
Since Sept '21 the company has lost 1/3 of its market value. We have been hit with a likely background seller, director sales (c.80p - good call...), anticipated slowdown in covid testing business, general re-rate of bio tech sector and the looming crisis in the former USSR states. Against that - I have seen nothing from either of our brokers (Investec or Singer) to offer some price support - we should be reporting 4p eps in the next month or so for 2021 and our current PE for a growing company with a clear strategy and investment plan is way too low imo. Our brokers should be doing more to promote the business and provide some forward guidance. SB
Its not just ekf - the whole bio tech market has taken a battering over the last quarter - started late 2021 and has accelerated into 2022. Completely indiscriminate - start ups through to heavyweight pharma - no one is safe. EKF is investing in its business through both internal investment and acquisitions, is cash generate despite its investment programme, has plenty cash in bank, has double digit growth and growing EBITDA and PBT - and still gets hammered. As I said - its a sector wide downgrade - not that it makes it any easier to bear.....at some point it will be oversold - lets hope that happens PDQ. SB
Some notable selling today. I am at a loss to understand why, but your last post may offer an explanation.
Most of the buys are automatic trades, so someone also accumulating.
I have added some more today and I now on the limit of what I will hold for one share. I cannot see anything concerning and I expect to see a rise into the results, which we now are good.
Some forward guidance for 2022 would help, just allay fears that this EKF is not dependant on Covid for revenues.
Its altogether a strange market at the moment,
vig - does seem to be constant downward pressure at the moment - but on relatively light volume. Its possible people are just taking profits - its had a great rise in the last 2 years from 30p, and whilst we are at an 18 month low sellers who had held for a while will still be able to make a decent return in a choppy market. EFK normally reports end march so no worries there. Would be a good time to see some director support - although we are just heading into a closed period prior to the EOY results - which are both 'strong' and 'ahead of already upgraded market expectations'. Ones things for sure - diagnostic testing is a huge growth sector - and we are in the right place to develop in this space alongside the scaling of our contract manufacturing business. SB
More automatic sells showing up, but one large 100k buy this afternoon.
No real idea on who is selling, but the share price seems to be pegged back at circa 63p.
Release of 2021 results I understand may not be until March.
Yes, I was in SXX and thought that was pretty solid. That was a painful experience. . I think Anglo American got a bargain! and I guess the government were not focused on the shareholders as the jobs and project were assured by AA.
Re EKF it looks clear someone is offloading shares, so the price is drifting down.
I will post on here if I can get any information to throw light on this. Vig.
Thanks - didn't see the Singer note - broker notes don't seem to get updated here. Price is at an 18 month low - should move up towards actual results expected late March 22. Unless the market knows something we don't - like an acquisition and fundraise. Good timing on your move into cash last week! I note you were also in SXX - not a particularly pleasant investment experience for me - just didn't see that outcome coming and still gets me that the government did not provide more support to help unlock the debt package. SB
I think you could be right about people making assumptions that EKF are reliant on Covid ( like ODX, GDR etc) and thinking they will take a hit from related revenues in 2022. I personally don't think so as they quite well diversified.
I was selling up a lot of holdings last week, but decided to hang on to EKF. You can never be completely sure in this game as sentiment plays as big a part as fundamentals at times.
FYI Research note from Singer Capital Markets yesterday was pretty bullish with conservative target of 86p
Agreed - does appear a disappointing reaction to a good update. Another issue may be the perception that the covid trading side of the business may not be as strong moving forward and as such growth will focus on core business which has performed well with a 13% increase but that's perhaps less than the market expected - albeit ahead of previous projections. That said - the business does refer to diversification into non-covid testing and the ADL purchase will build on that capacity. As you say - don't see any specific risk here other than people moving into cash and the global market issues. Don't think we will be at this price for too long. SB