Member Info for FlyingHigher

PS I hadn't properly read the recent trading statements when I posted my comment about Nanoco's valuation on 7th September. "try sensibly valuing Nanoco at more than £60m with what's left on the books." I can actually!

Hello everyone,

just popping in.

Nanoco are set to return capital at 10-12p per share.

I hope this offers some compensation for long-suffering shareholders.

They will retain £20m + £8m currently in cash.

+£10m for the value of runcorn

£38m + the rest of the business generate £5.6m revenue.

Apply a P/E ratio of 10 to that maybe, some say slightly higher or lower.

That would give Nanoco a value of £94m without consideration for IP.

The value of IP really comes down to what it enables a third-party to do.

Obviously, we have lots more IP than QD vision, which sold for $70m in 2016, but it's not as binary as applying a multiplier to that. You can have 1000 patents on a wooden spoon. (A terrible analogy :D)

The P/E ratio part of this valuation is a guesstimate, but with the more robust revenues and IP, it seems unfair to value Nanoco at less than £100m in my opinion.

For the record, I was pleasantly surprised by the revenue and cash figures.

Buy, target 30p

£5M+ Net debt

£8m operating loss

Really squeezed margins.

The prospects are that this company will continue to make loss after loss because there isn't the scope in the market to do much on pricing.

This was a lucrative market from 2010 - 2020, but that era is over with centralized cloud tech and limited appetite for buying PSTN telephony. You can sell it, but it has to be cheap and then you end up where Loop and most companies in the market are with really squeezed margins.

The answer is a low margin high volume business with tight cost control.

You can squeeze a 10-15% margin if you're really careful.

There are some commercial contracts that can be realised through cloud add-on development, but that market is getting increasingly saturated.

Game over for loop at this point.

Yh but everyone is waiting to see how bad the dilution is.

It will be interesting to see how long that goes on for and how much of the $16bn they retain.

On the face of it, it suggests the Nano board were hasty as many of us suspect, but this could get very long-winded and they might bail later down the line, settling for a massive reduction after massively inflated costs.

You don't know how large the Asian chemical company is, that's pure speculation

The capital return to investors is a sign that the board have run out of road. Its a lack of ambition. They have no vision so just went for a small compensation package to shareholders.

My gut feeling is Nanoco are finished.

As for valuation with what's left on the books, try sensibly valuing the business at more than £60m. I can't.

No, this is really bizarre, you normally see an indication somewhere. In this case, absolutely nothing! It's suspicious.

I think Shoei could have bid for Nanoco Ddubya, that was my first thought.

All pointless speculation I guess.

As for Nanoco, there's nothing to look forward to so I think we're all clutching at straws

The company has no tangible prospects.

Its low valuation reflects this.

Jam tomorrow. The audacity of the board to state the company is in the best position it has ever been in is incredible.

Sure they've never had so much cash, but they used to have a really exciting emerging market that they let samsung have for next to nothing. Absolutely dire.

This company will do nothing until the clowns in charge are gone.

A missed opportunity.

Its the misleading claims of the Nanoco board that have cost investors the most money. Get them out.

BC nothing is more boring & tiresome than your post, which tries to silence discussion. If you don't like discussion, take a break from the forum.

Discussions are generally repetitive to a varying degree. It's just you don't like this one because of your opinions.

Wicky - you and I have a very different interpretation of foolishness. Or perhaps those supporting the board fit the definition of mad: trying the same thing again, expecting different results.

Get them out!

Kooba its a shame you opt for so-called professionals yet again when many have been complicit in the long-term misleading coverage surrounding Nanoco.

This board mislead the shareholders.

Get them out!

Well deserved by our Nige.

If the objective is to ensure the company never achieves anything and stays around to shaft shareholders for as long as possible, I'd say he's doing a fine job.

Don't buy, wait for the fundraise.

You might miss out on something unexpected but you'll probably avoid getting shafted.

Buy on the raise and go in big I'd say. Not advice of course, just what I'd do if I had cash.

For now, it will go lower.

Would you consider the large Shareholder taking action against the board to be a conspiracy theorist too?

I understand that but there is no display commercialization. It's done with Nanoco retaining £72m for all the money Samsung made. That is absolutely shocking!

The same could happen with sensing.

There's no basis for confidence, hence the ridiculous valuation on the company.

It's an audacity for the board to still be here. They raised money on false optimism, touting returns of multiples, then said the settlement way below the market cap was above their expectations. A large shareholder has kicked off about it and they turn round and say it's in shareholder interest to keep them.

Get them out! No word they say can ever be trusted.

Commercialization I hear people talk about? That happened in 2016 didn't it with a sample TV set that went nowhere.

Absolutely shocking!

Well done to those who sat this out! I'm not in shares anymore. I needed to move on with my life, but this is good to see.