Member Info for LTbeliever

NU,
I think people can see it's mostly BUYS; the essence of today' s trading is that most people have bought and mopped more shares from the MM; once the fear and uncertainty subsides, the SP will move up again;
we have 2-3 weeks to results, if another RNS comes (eg re China) before then, people will regret not buying at 0.037. IMO

what's strange is the SP staying put, despite most of the trades today being BUYS; maybe big SELL order pending?

the SP is back where it was before Helium got out; we now know that 2022 Revenues were at least 2mln (200+% from 2021), Co is burning 100k per month on opex (before Wcap movements), which ti can cover from Gross profits and existing cash, it has 2mln pending revenues just in Q1 23, and it's owed 1.4mln by DVRG.
Potential positive catalysts by May:
Confirmation of higher gross margins and cash flow neutral;
2m+ sales in 2022; new revenue streams, new clients, new market segments (eg Kingfield);
proper repayment schedule (with collateral) for DVRG debt, so guarantee of payment;
possible news from China;
Negative news? only DVRG going bust, possibly? But, on the other hand, if DVRG raises funding, that will also boost MSYS.
DYOR

My point is, the Mkt has overeacted (reasonably) and this is an opportunity for a quick - minimum - 20-25% profit (SP returning to 0.05 soon, maybe more - much more) when 2022 Results are released.
IMO

Shady,
I'd say that, based on the services' model of the CO (vs equipment sales), the 2mln pipeline is repeat business to existing clients i.e. services to be provided month by month. IMO
So, it's a matter of when these will show as Revenue, rather than if; and these are high margin revenues (maybe over 70%).

It also shows that, had DVRG paid its debts, MSYS would have Cash of 2.7mln (1.3+1.4) i.e. higher that at H1 22 end; so in effect, MSYS would not have been burning any cash on a month to month basis, had it not been financing DVRG!!
GJB sc--xx--rewed DVRG and was getting close to do same to MSYS.

Some reverse engineering of cash balances, starting from Interims H1 22:
"· Cash at 30 June 2022 was £2.56m ;
cash used in operating activities £997,506. Cash absorbed by operating activities before working capital movements improved by £309,342 to £579,451. However, this was offset by working capital movements...mainly due to an increase in trade receivables by £485,413"
Cash today 0.8mln, i.e. a drop of 1.8mln, out of which 830k is DVRG net debt (net increase over H2 22, from 1.4mln total - it was 570k at 30 June 22) and 400k (?) other working capital needs (sales to 3rd parties); this means that oper. expenses are running appx at 100k per month (600k say for H1 23).
MSYS has 0.8mln today plus 0.5mln due by taxman and needs 300k opex to end of H1 23; so it has 1mln left to finance its 2mln sales (so far) which, @65% GPM, implies 700k spending in order to receive another 1.3mln in Gross revenues.
So, I think we are ok?

Or it could just be that the Mkt does not believe RNSs issued by GJB!!
Thus, only the Audited FS in May will calm the market - hopefully.

Mkt has devalued MSYS, as if it has lost that 1.4mln; however, the RNS says:
"A settlement plan has been proposed by DeepVerge to Microsaic, the terms of which are substantially agreed subject to suitable potential security ... initial payment in line with that plan, the value of which exceeds £0.1 million..."
That means DVRG plans to repay MSYS one way or another, maybe 100k per month?
"A mixture of prospective repeat sales and new revenue streams are therefore expected to support Microsaic's continuing sales progress in 2023 and beyond."
Thus, reliance on DVRG will keep reducing.

Correction-Q123 revenues (my 1st line below).
In any case, in 2-3 weeks we will get a lot of numbers and positive spin so the Market might start to wake up.

NU,
If 90% of 2ml Q122 Revenues is non-DVRG, then it's reasonable to estimate that in H2 22 we had:
Additional debt by DVRG - 1ml - on DVRG sales of 1.5mln minimum (66% margin? I'd say 50% as it's equipment+services)
Add 500k sales to 3rd parties = 2 mln Sales in H2 22
Plus 735k in H1 22 = 2.7 mln for all 2022
That's a 300% rise between 2021 and 2022 Sales;
If 2mln is booked for Q1 23 (however, I may be double counting some 2022 booked sales carried forward?), then we are looking - best scenario - at 8mln? that's another 300% rise between 2022 and 2023;
Of course, I am extrapolating and I hope that this 1.8mln (non-DVRG related) is new 2023 sales (and not c/f); maybe from Kingfield for example.
The point is, MSYS is doing well and once the DVRG mess left over from GJB is cleared (sometime in 2023, I hope) then, the Market will see the real potential.

As expected, 2022 Results in May.
DVRG owed us 500k at end H1 22, with Revenues of 700k.
DVRG owed us 1500k at end H2 22, with Revenues of? Seems between 1.5-2mln just for H2 22, so over 2mln for whole 2022 (way better than I expected).
Cash 1.3mln + 1.4 mln owed by DVRG (biggest risk is how soon we can receive this - lucky if repaid by Y/E 23);
Revenues for 2023, as at April (Q1 23) in excess of 2 mln, implying cash to be collected around 1.2-1.3 mln (60-65% GPM);
even the 200k+ owed by DVRG for 2023 is on 30-d terms so less risk there.
Revenues for 2023, if trend continues, minimum 6mln? 8mln max?
So, all in all, things are looking good (Revenues up) despite the debt due by DVRG; good thing is that DVRG cannot mess with MSYS as they need its services to complete most of their contracts.
Whatever happens over at DVRG (further placing, factoring, lending etc) MSYS will eventually get its money. IMO
Looking fwd to the May numbers and outlook!
GLA

Sol,
I really hope that GJB has learned from messing up DVRG; also, that he won't burn MSYS' cash, like he did at DVRG;
I have to credit him with the new business model of MSYS (higher margin, more cross selling opportunities etc) and I am waiting for the 2022 Audited numbers to prove that MSYS has turned the corner;
N Burton holding 5%, GJB 3% (plus options for another 3-4%) at least make it less likely that they will just burn us, if they mess up.

I'm sure GJB is worried now about possible legal action by DVRG and even disqualification; this should make you very happy, right?
And if he's found guilty (for something other than incompetence/negligence), he'd be punished of course.

Congratulations, you got me :))))
If you will not buy here, what are you doing here other than ****ging GJB off?
We all know his past, we don't like that he's acting CEO here, but we are holders so we have to take the risk (especially at 0.04p).

Muggins,
I said nothing about GJB other than you have serious personal issues with him from before he sacked you.
Of course we understand that he misstated the figures, that's why he was kicked out of DVRG; any fool knows that.
I said that MSYS' Audited Results will show the true picture here soon; until then, people will be jittery; what is it that you don't understand?

Muggins,
you are NOT an MSYS holder, what are you doing here?
Over at DVRG BB, you are known as someone who hates GJB (for your own reasons), and you only appear there when bad news are released.
Yes, I was right, the RNS WAS impactful and there was a breakout (didn't say the direction, did I?); I don't have insider info, it took the new board some months to discover the mess over at DVRG, so I can't pretend to foretell the future.
In any case, please feel free to buy some MSYS shares, it will soon buy out DVRG :)))

People selling out because they don't want to wait and see if there are more skeletons in GJB's closet;
They can buy back later; IMO, even DVRG's news is old news (2022 numbers) but it has a real impact on Turnover, therefore cash to be collected etc, and of course confidence in the Co and its Mgt, who are actually doing a proper job by digging in the numbers and now kitchensinking everything.
Re MSYS, I note that in H1 22 results, DVRG was our biggest debtor (about 500k due), so some linkage there.
I think people will be jittery until MSYS releases audited 2022 financials that will show CASH, DEBTORS and Sales.
IMO this is a buying opportunity but of course I could be wrong. DYOR

it seems my last Friday's post about a "breakout soon?" was rather prescient..."the Co is very careful about new contract releases; hence why I think that the next RNS will be impactful."
Problem is, I expected a breakout to the north, not south!
How much panic selling will there be today?

https://www.kingfield-electronics.co.uk/markets/
Food and Beverage is one of their market segments, so if any collaborations come soon, they might come via Kingfield. IMO