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Big trades and must be buys
Really odd trades, but in a good way for LTH!
Up a bit since your recommendation
looking more like a strong bye bye !
STRONG BUY
Only 16mill free float if that
Bargain
Bought in
Tempting to get back in after selling in the last update (fortunately profitably) at 23, DCB obviously remains a concern if the administrators ask them to complete the job, also this from the previous trading update whereby £2.5m is repayable by September, any thoughts ?
The Company has debt facilities of £5.0 million in place with HSBC UK Bank plc. This debt facility is structured as a £2.5 million term loan, repayable by September 2022, and a £2.5 million overdraft facility. The Company expects to meet financial covenants at the next test, being the year ended 31 March 2022..
The Administrator will surely recover the cost of any guarantees in respect of all relevant contracts, ie on which Kino gave guarantees & until that amount is quantified uncertainty will remain -although if this could be done quickly & the downside identified ,the current SP could seem to have been very low as the core business appears to be performing strongly.
Unfortunately the Boards integrity comes into question too & full explanations ,resulting in the hiving off of DCB & its subsequent very rapid descent into the abyss, may help -although it is doubtful whether full explanations will ever be provided
Bad news in the short term, but now they do not have to keep pumping money into DCB and their liability is now zero. This is a good business so should do well. Worth a punt at these prices.
Snootysnipes, just seen that RNS. Fully expected an Administration to follow. There’s absolutely no chance of the Administrators pulling in any more money other than a small amount which always seems to equal the amount of the Administrators fees! Hence creditors will get nothing and shareholders rank behind creditors. Fortunately I sold out in Jan 22 when I read the RNS and smelt a huge rat, given the terms and settlement figures were so inflated (I.e too large to be realistic) . Still scratching my head though as to where all those millions went that Kinovo recently pumped into DCB since January. Out the back door maybe and then recycled to those in the know. Hope you didn’t get burned too badly.
Hi Snootysnipes - something really stinks here. The sale of the building division looks like Kinovo were trying to offload an unwanted worthless asset and spin it as a good deal to the market. Watch this space as I’m pretty sure it’ll now transpire that the buyers of the building company were never in a position to run this asset profitably and for Kinovo to realise any value at all from its sale. Complete lack of due diligence by Kinovo looks likely IMO. GLA
Zero chance I’d say of seeing the final £1 million (2 x £500k) given it’s dependant on the disposed Company achieving £3 million net profit for each year in 2023 and 2024. Also the other £4 million is dependent on the performance of existing contracts and the cash collection performance from these. Pretty vague on details but the £4 million will be an absolute best case scenario and this could be discounted by a large chunk. There seems to be a danger that the new owners have no incentive to keep costs down and maximise cash collection on the inherited existing contracts, given that any underperformance of these two metrics will merely reduce the amount paid to Kinovo. i.e it is Kinovo who will pay for any inefficient performance and poor cash collection that occurs under the new owners. Having worked in the construction industry for over 30 years I know that it is very common for deals to be done on current contracts whereby the sub contractor will accept a reduced final settlement payment on an existing contract in order to secure the next contract(s). It therefore offers a perverse incentive as it is Kinovo who will be paying for the reduction on the current contracts but the new owners gaining all the future benefit. This offers the new owners an incentive to do such deals.
Sell on news. As predictable as night and day, especially after a decent run like KINO has had.
But the trading update was excellent so don't be surprised if once the traders have taken some profit, more investors come on board for this company has some exciting years of growth ahead.
CEO making all the right moves in my opinion. Rebrand, cut the dead wood from the business, target the growth markets.
can someone tell me why sp is going down did I miss something in the trading update , was thinking the sp would hit 55p today
My bet is Patrick Viera accumulating more...
Yes I’ve been waiting on the sidelines to see that break out. I think it’s coming.
every time the sp looks like breaking out it pulls back can't stay above 40 hope to see 50 by jan 22
https://twitter.com/LEMMINGINVESTOR/status/1454825501655175168
On a day the government announces a major drive to switch gas boilers to air source heat pumps - one of Kinovo's core offerings, there's been a total of four trades so far.
KINO look cheap on present day fundamentals, nevermind the potential growth which will surely come from the massive undertaking of installing EV charging and air source heat pumps in most homes.
Great share to buy now while it's quiet and tuck away for a few years. Would not be surprised if this is 3 to 4X current valuation in a few years time. CEO achieved this when in charge of Anpario.
Thanks to the 4% drop yesterday and the fact it goes ex divi tomorrow so I can reinvest my divis. The substantial director buys are starting to fade and now we are well off our highs of June 21. Huge buying opportunity and in fact tomorrow it could fall more than the divi as the mm's take advantage. Strong buy!
Bump. Bullseye. Nice to see the directors shelling out. Gives us something to build on. More to come here. Really undervalued.
Good sized director buys ...good to see
I agree with you ,but it seem now days what ever results you post and outlook the market will not like them and force the sp down.
Given the dividend,reduced debt and confident outlook. Worth accumulation as there will certainly be a nouncebavk to 39p.
Let's hope this new name can keep the sp above 40p lol