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Agree with this sentiment Mikemine. In additon, I don't think the company will have much interest in increasing the WRAP at this low price. If their understanding is right about the collaboration with Tempus AI, then they'll see this as a stepping stone to being able to raise at much higher prices later, if needed. WIth good management of costs and strategy, this raise could propel them to break-even sooner than their current forecast.

Good point Mikemine! Sorry, I should have included the post, as follows:

"The AI game has completely shifted to distribution into clinical workflows.

The brutal truth about chronic kidney disease:

• 15 million Americans have diabetic kidney disease

• 90% patients don't even know they have it

• Medicare spends $130 billion annually cleaning up the aftermath

This isn't just market opportunity. It's a silent epidemic.

[Enter Renalytix] FDA-approved test. Medicare reimbursed. Predicts kidney disease progression in diabetic patients."

https://www.linkedin.com/posts/ryanfukushima_renalytix-announces-collaboration-with-tempus-activity-7373400615487508480-CRMf?utm_medium=ios_app&rcm=ACoAAABqUCcBv3xRaF2a2etMJec52xNmyXzSWFk&utm_source=social_share_send&utm_campaign=messages

Surely the question we should all be asking is who bought the shares PolarPanic Capital and UBS sold?

Also, did anyone read the post on LinkedIn from the CEO of Tempus?

Sorry, meant to add that I wouldn't be surprised to see the shares in the 20-30p range on first sign of material testing revs.

The company only needs around 10k tests to hit break-even and achieve profitability.

DYOR and GLA

Liquidity restrictions and poor risk management at Polar Capital and UBS caused them to exit at the first sign of decent buying interest. History will likely judge this as a poor decision, especially after holding the shares for as long as they did.

I suspected something like this might happen and wanted to see who would be first out. I take this as an encouraging sign that the low point in sentiment (and panic point from Polar Capital and UBS) is probably behind us.

6-7p looks a good level to pick up shares on the Tempus news. I would think the next updates from the company will point to take up and testing volumes, which we all want to see to drive the share price.

Risk-reward suggests gap-risk is very much to the upside, 5p to 14p in a few hours, was fun to watch.

...ticking along nicely here, I added a few more around the 26p level on the 'slow and steady wins the day' update.

I disagree that it's overvalued at current levels, quite the opposite.

With the increased share buyback in play we're seeing a cash return yield of just below 7% (3% buyback and 3.8% DY).

The company's also quite likely to surprise positively as AI permeates more of their contracts and momentum builds.

I also wouldn't rule out any consolidation in the sector.

Kainos is one of the UK's (few) leading companies, and one for the world's few Global Tech Services providers and a WorkDay Services global partner.

Think the risk is now more skewed to the upside, and think the few hedge funds that remain short will see this before long.

Following the solid update from EKF this morning, I think it's encouraging to see this RNS from James & team at Renalytix.

Per SB's post below, it's good to be reminded of the positive reasons we remain invested here.

This partnership development reiterates there's significant partnership opportunities out there and it's just a matter of time and persistence, before they bag something truly material for KidneyIntelX.

Share price unlikely to move until we see a material update involving volume testing and projections.

Solid update from EKF this morning, and great to see them generating over £1m monthly FCF once again. With Gavin stepping up into the CEO role, my view is they'll stick to their stated strategy and grow revenue steadily above forecasts from here. The more they deliver consistently the more the discount will narrow, we've been here before of course, but it does feel different this time.

Think we see the shares back in the 30-40p range fairly soon, especially if they bag any material contracts for the South Bend Fermentation facility.

Net net, plenty of upside risk potential in EKF.

My guess is that whoever was selling is done, high time this stock mean-reverted back towards 30p!

Is the company still buying shares back?

Excellent use of funds, valuation discount is unjustified, but good for them buying at the low 20s.

We'll likely hear more about AI in the upcoming results update on the 19th, and how AI is driving opportunity at both the top and bottom line for the business.

Kainos is a world-class company and one that has grown spectacularly in the run-up to the 2021 peak, matured, flat-lined and now appears poised for a new phase of growth. AI may well help drive gross margins up at a higher rate than top-line revenues, well, let's see. Either way, we could see a decent period of multiple recovery and expansion to reflect a higher quality business.

One to watch for sure.

From recent updates and cash burn targets, I calculate they need to do 10k tests, fully paid at $950 to breakeven.

Momentum is growing here and they’re signing more partner health systems so think they’ve properly turned the corner here.

As ever, they need to keep a tight handle on costs and lean into their sales efforts and growing network of PCPs and partners.

With any luck, they may have a surprise announcement soon about their relationships with the big Pharmas too.

Well, let’s see, not holding my breath, but sitting on my long position here.

Good news!

It was only a matter of time, obtaining MolDX reimbursement clears the way for Verici to ramp Tutivia and get paid for doing so. Their recent quarter shows revs of $775,000 and growth of 68%. Assuming they can releat this level of growth in the coming quarters they could be running with an annual rev figure of $3-5m. $5m+ puts them close to breakeven.

They clearly need to raise capital and MolDX will make this a formality from here.

Think the shares should be easily 5p+ in short order. I very much agree B_Positive!

I'm taking the lack of comments about the results and the new CEO appt today as a positive.

Maybe, just maybe, this company has done a full reset and is now looking to the future with a clear head and a best-in-class balance sheet.

Well, let's see!

Completely agree oogel, just a matter of time now before the Health insurer payers and wider network of PCPs incorporate and adopt KidneyIntelX into targeted patient care. With KDIGO guidelines supporting, and now the ASN Journal, the drum beats are getting louder and louder within the Nephrology community.

(Update from house broker Singer)

"The strong improvement in margins and cash generation evident in H1 continued into H2 as self-help measures and strong execution from management took effect. Whilst revenues were slightly behind expectations, this is down to an acceleration in the decline of non-core low/no margin product lines and as such, the impact on profitability was muted. The key highlight was stronger than expected cash generation and the significant improvement in the strength of the balance sheet over the year. As a result, the board is looking at options to deploy excess cash to increase shareholder value via accelerating growth and/or returning cash to shareholders. We look forward to hearing more details on this at the prelims in late March. We stay at BUY, with an unchanged TP of 39p."

With a FCF yield of close to 10% this is looking very cheap indeed. Execution concerns aside, the PE funds will be sniffing around for sure.

In the meantime, my preference for the excess cash would be an ongoing buyback program or a special divi...

...or, as an alternative idea, given management's seat on the Renalytix board, they might consider buying back into that business. Renalytix seems to be at risk of making a significant success of its sales and marketing strategy, albeit after several false dawns.

Perhaps controversially, I'm a buyer of both EKF and RENX at these depressed levels. I'm waiting for MolDX approval for VericiDX, and then I'll look to add to my holding there, too.

Agreed SB. Company looks well set to achieve their target of $3.2m in revs for the year by the end of Jun25. So $1.9m for H2 vs the $1.3m announced for H1. There should also start to be a compound growth effect kicking in, as they head into 2026 and beyond, as testing volumes grow across existing and new adopters.

I wouldn’t rule out some upside surprise from the likes of ACPNY and other health systems, or indeed any channel sellers that get excited about the potential for KidneyIntelX.

Kainos are arguably the most well placed UK 🇬🇧 business to benefit from the new focus from the Govt to integrate and deploy AI capability across Govt departments and services. They’re the company that has delivered the online passport and DVLA frontline services. I suspect they’ll be on point for the new digital licenses and passports that are being spoken about in the press this past week.

I personally hope the UK Govt really start to favour UK businesses over the obvious US household names, especially as they pay much more tax to HMRC than their US counterparts, after all, QED.

If so, Kainos are likely to have a decent few years of growth ahead! Jump in while the multiples are still reasonable.

Think this is the next one to pop to the upside, results update should confirm first signs of material growth in sales and testing numbers. This should hopefully set the scene for the next several sets of results in the coming years, as KidneyIntelX gets adopted across the US Healthcare system.

#thetideisturning

Bargain dip opportunity: my guess is some have moved funds into Trellus as that's recovering from the jaws of death this morning with a material tie-up with Johnson & Johnson.

Both are clear buys for 2025!