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Not sure when this was updated -
https://www.kromek.com/bio-detector-information/
For what it's worth : I don't like to take sides on companies. I think it's inherently dangerous to become emotionally attached to stocks in some way that loses your objective analysis. That said I have learned from this forum - in some ways the hard way - by having attention focused on the weaknesses of management. I don't think many CEOs set out to lie to their shareholders. But some are naive or their skill set lies elsewhere.
In the case of KMKs current CEO and KMKs overall approach, the fear I have built up is that they are potentially too much a collection of geeks interested in inventing things, and not commercial enough to sell the things they've invented at scale. That's one simplistic view. There are others.
Above said, winning contracts from a US government agency isn't easy. So I remain open-minded. There is a chance that the solutions they've designed are slightly ahead of their time, and that as we head more into a world of geopolitical instability, which seems clear for the next decade at least, that sales of these solutions will gain traction. Then my fears become: will foreign agencies seek to replicate what they've built? Maybe too hard. Or worse, do some of these solutions just not have a big enough addressable market to make the ROI of inventing them worthwhile? I'm not deep enough into it to know the answers.
But I am far enough into being a shareholder of KMK over many years that it's not worth giving up the intimate sense of the share price that I have built up over time. This is worth something, especially if it's a company that has some potential even in the hands of weaker management. In my view you don't buy stocks like this and sit on the holding, otherwise your average cost price will always be too high. I started out at 12p or so but when I realised the price was in a constant drift, I implemented a much more involved trading strategy. I wait for deep levels of weakness and buy in, then sell on days of strength like today. It's the only way to bring your average cost down to an acceptable level. Some don't have time for that which is understandable. Some understandably prefer to move on to a company with better management. There is also a flight to quality going on which has more to go in my humble opinion. Financing is more expensive and the availability of credit is getting tighter, so you've got to manage your risk much tighter now. Good luck everyone :-)
"The contract has been awarded under a four-year programme, which commences immediately, and the Group expects to receive $874k during the first year base period." £874k only first year and how much of that is actually profit?
Ironknut. You are definitely not wrong.
As long term holders have experienced Basu’s bullsh17 and his lies plus the BOD’S lack of respect for shareholders. we have seen many Simon Thompson’s analysis giving small spikes only to be followed by long trending declines.
There are many new bloggers here in the last couple of days who have just bought in and not experienced the above which long term holders have. I genuinely wish them all the best especially as I’m still in here drowning. I need to see 17p to breakeven so I’m hoping this can be the best turnaround ever. However I’m not holding my breath as I’ve got none left to hold!
Stu.
These r&d type deals are based on direct cost plus a fixed % of overhead cost to cover corporate costs such as buildings - the % need a to be approved and probably on an open book basis, so low margins and no immediate exploitation of IP. But ensures high utilisation.
Big difference between before and now....It is called profit....No need for Investors to cough up.....no need for people to sell....The future looks nailed on....Realistically over a 3-4 year period 20p could be achieved....but at this s.p. and given the orders will start to flow in ,this has lost its risk rating,in my opinion....
This contract is clearly good news, but it is for R&D for new items and not for sales of what they have already developed. We need some substantial sales of the things that are in production to get this share moving in a positive direction. All in my humble opinion, of course.
Ironknut - they are building a varied portfolio of contracts and just need to 1. Keep central costs static so gross margin from contracts is leveraged 2. Control working capital 3. Execute against the contracts.
As you say history says not, but I can see the early signs that the cfo and chair are starting to get a grip. Let's hope so.
A long way to go before 20p is achieved. If it ever does i shall be delighted to say i was wrong and eat my hat. This i suspect is the latest in a huge number of false dawns however. Just look at the history of the sp. A nasty chart to look at.
Only the start...This will rerate,now.....20p?
Looking at this company it's winning quite a few contracts, with homeland in its pocket, should open many many more 🚪
With this new contract, that should open many doors...
And sorting out its money issues...
Could this company be ready to hit 12p
This contract will open many door, transformational.
Game changer
First US Department of Homeland Security Contract for Biosecurity
Award of $5.9m contract from US Government
Kromek Group plc (AIM: KMK), a leading developer of radiation and bio-detection technology solutions for the advanced imaging and CBRN detection segments, is pleased to announce that it has been awarded a $5.9m contract from the US Department of Homeland Security ("DHS") Countering Weapons of Mass Destruction ("CWMD") Office for the research and development of technologies focusing on an agent agnostic bio-detection system. The contract has been awarded under a four-year programme, which commences immediately, and the Group expects to receive $874k during the first year base period.
Arnab Basu, CEO of Kromek Group, said: "We are pleased to have been awarded this new contract for the research and development of agent agnostic biosecurity technologies, which will build on our existing expertise and technology in the field of automated bio-detection solutions. It is our first biosecurity contract from the Department of Homeland Security and underscores our belief that there are significant market opportunities in this area, as our technologies align well with government biosecurity strategies.
"This programme directly addresses a CWMD Office priority focused on the detection, classification and identification of bioterrorism attacks. Biological threats are an increasing priority for governments, particularly in light of the pandemic. The output of the programme is aimed at providing increased capability to detect and identify biological threats in response to the operational needs of the Department of Homeland Security and will be an important step in making the world safer from the threat of bioterrorism and other biological threats."
Very, very clear someone trading on inside information yesterday.
Canon now aggressively expanding into the medical sector?
CEO/Chairman -Fujio Mitarai: Yes. Examinations are the starting point for treating most illnesses, particularly cancer, and medical exams that are precise and fast are key. We want to strengthen our business in diagnostic equipment. We want to rank first in CT scanners globally in the future.
‘’In the global medical imaging sector, Canon ranks among the biggest names. But the company—a top maker of diagnostic medical imaging equipment—sees more room for growth. In a bold move, Canon acquired Canada’s Redlen Technologies in September. Redlen has devoted decades to perfecting the manufacturing processes for cadmium zinc telluride (CZT) detectors—a key technology in photon-counting CT scanners that’s also regarded by many experts to be the best performing’’
https://partners.wsj.com/canon/next-gen-medical-imaging/
Pedro.
Sincerely hope so and this is not, yet another, false dawn - but as you say some of the blocks coming into place....but remember this is KMK.
Brokers notes are worthless for a company the size of KMK, just repackaged top level CFO handouts from a wet behind the ears public school graduate.
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Cross over, children. All are welcome. All welcome. Go into the light
Brokers projecting a cash profit this forthcoming year,on big increases in revenue......hugely different to recent history......A huge step change....yet to be appreciated by the market...
Not needing cash for operations? Come again?
Simon Thompson has a record second to none over the years.He obviously can see the massive potential of this company,but,has got his timing wrong in the past.The company is doing well know,and not needing cash for operations,it is now standing on its own feet and expanding its revenue.A totally different scenario,one which the market has not given credit....YET......
Pedro talks of bitter shareholders and the bargain sp of kromek. Well there is no evidence this outfit will ever tutn a profit or ever pay a dividend. Meanwhile due to world events there are many Aim companies whose sp has taken a beating. There is a real bargain picking them up now. Cannot claim i know which to go for, but Pedro has no idea if he thinks Kromek is one.Some time ago on this site i asked for names of worse Aim companies than Kromek. Only one person responded naming a company more inept than Kromek. Pedro nothing has changed. Be a smart investor, starting by avoiding the clowns from Durham
Pedro look at the pattern. Repeated over and over again. Simon Thompson writes an article in the investors chronicle pumping kromek almost identical to the last one he wrote. Stock rises for a couple of weeks then falls and falls and falls the. He writes another article. No amount of articles will change the direction of this share. More and more debt and very little in the way of an explanation of when or how the profit will begin.