Member Info for hunkymonkey

Saying* not dating!

You absolutely right, I mentioned the other day about piggy back to success on the back of cropx, zero and Polaris. But, the cash position is always pretty poor in all honesty. Never really having much more than 300k and I've seen accounts as low as 65k. They were supported by the BoD this year, but when 15% of the revenue is due, there's never enough. That equates to more than the cash held. They are fine on a month by month basis, but give it another 3-4 months it starts getting edgy. We've been dating for over 3 yrs, just need that contract, it hasn't come. Why?

I can honestly see a situation where stars tracking is secondary, they have struggled to make profit in the tracking sector. But with cropx and Polaris, it's very easy to make substantial profit. Piggy back on the coattails of these two companies expansion with huge profit margins in th SaaS payments, that makes more sense to me. It's been 3 yrs since the Bosch contract was signed, 3 yrs since this leading tech has been at the desposal. Without any meaningful breakthroughs in the balance sheet. the adaptability of the tech is going to be key moving forward imo. Lokies may be the exception however

That's a fair comment. I think I alluded yesterday to as much, so you're right in terms of "nothing new". To be fair to the BoD, they are never "rampy" and laid everything bare.

Good luck then, if there is a swing you will make an absolute fortune from these levels. But based on that last rns, the thing that will swing this is a decent, mln+ contract before next march/April, that will multibag your £20k, probably 4x 5x. If it doesn't come then there will be a major funding issue that I don't think will be plugged by the BoD. Risk vs reward, but good luck regardless

Lots of issues in the rns imo

Company's customers to have reduced their activities since March of this year and consequently revenues have been hit significantly. Revenues down this yr as expected

These have enabled the Company to continue to trade, albeit at levels lower than expected in earlier management budgets. "Could" be bigger losses overall, especially will addition r & d as discussed later

We also continue to explore new opportunities to strengthen the pipeline that may contribute to sales in 2021, when trading at our customers will "hopefully" return to some sort of normality. Not before tax is due 30/05/21

Starcom and Zero have already initiated negotiations about this exciting development, although it is impossible at this stage to indicate if this opportunity will come to fruition and the timing of such. Great prospect, but nothing imminent or indeed definite

REGEN delivers more than 200,000 client recommendations annually based on its soil data and decision support platform, and the acquisition adds 130,000 acres to the CropX platform that is supported by Starcom's product. This expansion at CropX is expected to have positive impact on CropX's demand from Starcom. This is decent tbf, but with the primary income being SaaS payments it's not going to stem the losses that are made roughly $10k pm.

"Even in times like these, as new orders are difficult to secure", Starcom's recurring and high margin SaaS revenues of approximately $170,000 per month continue to be collected and provide a solid foundation underpinning the overall revenues. The first line tells an awful lot

Ultimately reading this and it simply backs up what I put yesterday. With higher revenues last yr and an overall loss of £1mln, much of which was tax due to be paid on 30/05/2021 (which they are looking to delay). What do you see?? Factor banking facility can't be used for tax. I see a gaping hole looming and only a major deal like lokies will be enough.

Also, it can't be used for deals in unstable areas, such as the African deal Jan 2019

No, the banking facility isn't for cash flow. The banking facility is for "deals", that's my biggest concern here, it won't pay for wages, r&d, or tax either. It's for get an order for 2mln, 30% payment upfront, use banking facility to buy the rest of the raw materials, which you repay upon delivery and final payment....

It's on average 1 sensor per 40 acres = 3250 extra sensors

I think they need to "get back to basics", I don't dispute that crop x and zero are good deals (in the medium term with growing SaaS pymts). They are at risk of becoming a bespoke company, when nobody else can do it. But that service doesn't bring volumes. A few mln in containers tracking, or lokies on a cargo train is required. They need to produce a deal that is worth mlns upfront on hardware, we know that circa £1mln is lost per year and cash position no where near that. There is time thank God, but something needs to happen, the African deal was delayed quite some time which was for 1.1mln in Jan 2019

Why there hasn't been an rns about the new collaboration with zero?

Star are subject to 17% tax on revenues due to be paid by the end of may, obviously it more complicated than that, but that is the bare bones. The company have confirmed that they re going to try and defer this payment, whether they can or can't remains to be answered. I really like the look of the new cropx and zero deals, but as previously discussed, I don't think these deals are enough, I think that there's little very little profit on the hardware, these represent more accumulative profits over the medium term with higher SaaS payments. We need to get this lokies in russia over the line, to the tune of about $2mln on hardware. For me, with a net loss if approx $1mln per yr, that type of deal is a must. The financing agreement can only be used for reputable contracts, not tax purposes, I've just also cross referenced the time of historic raises and BoD loans, which all occur before the end of may. This is the countdown to get a substantial contact over the line. I hope they can do it, historically H2 busier, which may be amplified as business have more of a focus of tracking.

I agree, but nice confirmation

A concern in the absence of any contracts I was thinking about the tax liability and the monies due. As a tax bill for $100k's cannot be paid via loan facility. I can confirm that they are looking into delaying the any tax payments until later in the year, however this cannot be assured of being granted as a usual cavea it stemmed from me reading this

https://home.kpmg/xx/en/home/insights/2020/04/israel-government-and-institution-measures-in-response-to-covid.html

Are there any links to star? I remember a tenuous one summer time ago on Twitter

Think that it is likely tbh, I also think it could be quite a big one with cropx. But, but in terms of hardware, I don't think there's much profit immediately to the books. $2-3 per month per unit@ 80% profit racks up, but it is over a longer period. I think it needs to be supplemented by there others mentioned

https://www.aljazeera.com/amp/news/2020/09/moves-coronavirus-syrian-refugee-camps-live-200912231513457.html

Zero/cropx don't offer much in the immediate, I am pretty sure it's a medium term SaaS where these will bare fruit. It's lokies, tetis and helios that need to pushed, large orders that provides hardware profit. Probably need one for approx 2-3mln by my reckoning. Seem to remember about 30% profit on the hardware as a ball park figure.

That's what I find strange, I was looking for an in before close yesterday. But that was definitely NOT happening. Yet this morning all buys and a drop. Increased my holding, but with one sell and the rest buys in the first 10mins or so, odd. Anyway good luck, hoping the rns come soon regardless of in my trading is in or out

I have a pot to trade here and a lth. When I was looking to buy on the bell this morning, each trade that went through, took the price down, all the trades early doors were buys, expect one, yet it dropped 5%. Got my buy, but bizarre action