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I appreciate B to B remains the main priority for Microsalt and not crisp sales.
However, given that the crisps are now sold in roughly 3000 stores (Kroger appears to be 2800 stores according to Google), it would only take modest sales to generate substantial revenue for a firm the size of TEK.
If I am understanding correctly, a 142g pack (which contains 5 individual sized crisp packets - based on UK portion size) sells for roughly 4 USD. They sell 5 X 142g packs for 20 USD online (some flavors seem to cost slightly more than plain).
It could add up quickly if there was decent progress.
Possible that the current pricing at 4 USD is based on a loss leader style strategy. But, would seem probable that marginal costs could be reduced if production was upscaled.
Even if the absolute sales figures are not yet impressive, it would be good to understand the trajectory of the sales figures.
Ultimately, the crisps are about building brand awareness and demonstrating consumer acceptance, in addition to revenue generation. But, believe we are due an update on the progress on this front.
The saltshakers are now additionally on sale.
TEK advancing on multiple fronts, expecting news of solid progress in the not distant future.
GLA
LOL - fair enough.
In the last 18 months the progression of all of the portfolio companies has undoubtedly accelerated (won’t list the milestones they are considerable). There are no guarantees, IMHO the foundations are there that give TEK a very strong chance of pushing on (from a SP perspective as well).
I believe in the case for microsalt (I think it is a no brainer, with only seemingly inferior alternatives to compete against currently) and I am genuinely excited about Guident (I think the current IP could sell for a fortune -I don’t want it to be sold prematurely or on the cheap - shocks could be a lovely bonus).
I am not immune to concerns about SP, though my average is considerably lower than the current SP. I appreciate the traders on here will pat themselves on the back for selling in the 30s (or part selling). While that may yet prove a wise move, I am very happy to maintain my significant stake (never considered selling as think the portfolio companies are still in their infancy).
I invested as I believe this microcap can build a serious future. The case is far stronger than when I initially invested in early 2020 and imho has continually strengthened
Have a good weekend one and all
LOL the reality is that you are frustrated because you have entered at a higher level. Hence, your frequent criticism of TEK with seemingly no recognition of the portfolio progress.
The portfolio progression is not currently reflected in the SP. The SP is in part based on future projected income (the higher interest rates are not favourable to the discounted value), which is impossible to accurately project given the number of unknowns.
When you say the markets are siding with you, this is a false narrative, given the markers certainly don’t agree with your entry point.
It is worth remembering the markets are neither wholly rationale or fully informed….if they were
, no share would ever multi bag (but yet they certainly do).
The inflationary environment , as you say , is challenging. But, after Covid lock downs and the government printing money for fun, that didn’t stop you entering at that higher level. Perhaps reflect on your own investment rationale in addition to your critique of TEK.
You have referred to comments on this BB comments being ‘speculative’. Indeed they are. Could you please explain the rationale for your investment if it wasn’t speculation? Given you have invested in portfolios that don’t have strongly established revenue streams (yet)? This is aim after all.
Tek would be mad to box themselves in with a timetable for dividends. You said you would like to know roughly (to the nearest 18 mths). The dividend payments will be determined by the financials, not a rigid timetable (that may not affect the economic reality or profitability at an arbitrary point in the future).
All for a balance to the board, so please continue to make your points. Nobody owes blind allegiance to TEK. But, maybe wise to steer away from totally dismissing other views to your own .
TEK is progressing on multiple fronts. Let’s see what the SP is in 6mths, 1,2 years+……….this is a company on a journey, which is not necessarily compatible with the short term investment strategy of many .
The portfolio companies are capable of a transformative contract / break through. In the mean time I continue to be impressed by the solid , incremental progress all portfolios companies are making.
GLA
On the face of it looks a fairly modest deal.
That said it is very good news.
I do think you have to look at the trajectory and not the pure numbers when investing in a start up, with potentially disruptive products.
It is a different mind set for a lot of investors and obviously not without risks (when naturally the cash flows are low being start ups)
Look at the trajectory / progress in the last 18 months for salarius:
- First b2b bulk order in July
- Crisps from zero to 3000 stores (huge for brand awareness and acceptance) carried by Kroger (largest supermarket chain in the US)
- salt shakers (again building the brand )
- partnership with Presty …..
The goal is a big player committing to bulk orders, which will blow the SP skywards …the successful developments outlined above all increase the chance of this happening imho as it builds a picture of consumer acceptance and market awareness.
The potential (international) market for this product is huge. To the best of our knowledge this is the best low sodium product out there by virtue of patented technology (there will always be alternatives, some of which contain potassium chloride , some of which are just fine salt - Salarius is superior to these!! ).
Interesting times ahead …..
GLA
Spot on Puma.
The markets are horrendous but agree the share price reduction is not solely down to market conditions.
Confidence is eroded and without an expansion of the revenue streams, the markets may continue to be somewhat sceptical and reluctant to reflect the booked asset values in the SP. Especially as borrowing costs increase.
That said, movements in the SP are not wholly rational or we would not get these wild swings.
Guident has bagged the Jacksonville contract and maybe a bonus in the shock absorbers (not written them off!!) . But, overall is far too early to make any judgements about Guident’s true value. The autonomous vehicle market is still developing. Guident is well positioned to get a share of this pie. On paper probably has the most impressive leadership team. Bags of potential.
Bell and salarius are at the stage where they need to walk the walk. I think BELL is making the kind of progress you would expect. I am sure investors would like BELL to upscale production and revenue but it is progressing well.
For Salarius the first bulk order was announced but with no details given to provide any kind of context to ascertain what it meant in terms of revenue . Unsurprisingly this announcement had an unimpressive impact on SP.
Cliff in his latest interview, was bold in his language regarding microsalt (I think he is reserved in nature) so hoping some of these big contracts are landed soon. No commentator can provide any certainty regarding this ……certainly nobody on this BB!
From zero to 3000 stores for the saltme crisps does represent exponential growth, hope it is generating some decent revenue.
For those “alleged” investors that can’t envisage how the SP could return to 30p on the back of some big news on this front?? They are either disingenuous trolls or really shouldn’t be invested here as these things don’t happen over night.
I point to the irrational messages on this BB that wrote off BELL completely, just because there were delays to FDA approval . So ignore the boards , me included!
BELL got there these things don’t happen over night. Salarius absolutely can achieve heights. Come on cliff and microsalt, get some scores on the doors and shout about this great product from the rooftops !!
Lucyd is not something I would invest in as a stand alone entity but hope it is a surprise success .
It has IPO’d , needs time to see if it sinks or swims.
Hopefully news and contracts announced soon . The SP has been higher but the underlying TEK portfolios are stronger now than historically. Invest now , only what you can afford to lose.
Lolly, the product is salt not iodised salt…
Sea salt for instance is not iodised and sells very well.
If salarius deemed there to be a bigger market for iodised salt, sure they could offer this additionally (just a matter of adding iodine ). Then of course could not be marketed as pure salt. The relative font size is not causing me any concern (as you say probably a FDA requirement).
Represents another step forward for TEK.
Salt to food manufacturers is clearly the goal but wonder how the crisps sales are performing, given the large number of outlets they are available in state side ..
GLA
Tulsatel, that is not accurate .
It is incorrect to say “salt is bad for you , so if half the salt”
The excess salt is bad for you (so is too little salt!!)
The processed food market is massive and not going anywhere. Salarius absolutely can assist manufacturers in offering better balanced meals in terms of sodium content .
GLA
Tulsatel, agree that TEK need to “walk the walk” and hit their developmental milestones. However, is misleading to reduce the value of salarius to salt shakers (even if they prove a profitable side line).
The core business aim has always been to reduce salt content in processed food (supplying the food manufacturers) . It’s a massive market and a bares no relation to your “5 years, 8 years “ comment .
Salarius had their first bulk order this year and we know they are in advanced talks with other parties. We will see
GLA
Lolly, with respect , it is a comment your have made several times but it is not a view I understand.
Out of what money would you like cliff to pay a dividend?
The dividend can only come from profits (either directly or from the portfolio companies) or TEK selling their stake in the portfolio companies .
Any other div payment, would mean depriving the portfolio companies of money intended to develop them (as fledging companies).
Selling TEK’s stake in BELL would be very short sighted IMHO.
Selling stake in Lucyd would not be controversial/ unwise given the SP decrease.
Salarius and Guident have great potential and are working hard to penetrate their respective markets ….but are clearly not there yet, being start ups (this is an investment company!!!) and this risk is reflected in current SP.
Given this situation and the larger macroeconomic uncertainty, would seem near impossible (to me) for cliff to provide the time scale you require on the special divi.
All the best
Sincerely hope the exit works out for you hookumhall…..We all have different risk tolerance and investment period time scales.
I agree with the below that the BOD communication should be better, after a confidence eroding placing.
Particularly, as the tech stocks are struggling generally.
Tek normally have something up their sleeve ….interested to know how crisps are selling in the 1,800(?) stores …….
Good news on the shock absorbers would be very welcome :-) or Guident being awarded additional contracts.
Belluscura look to be performing well , with expansion into Asia exciting .
Hopefully some positive news and relief for LTH arriving shortly.
Morning Sea,
In all honesty and not a reflection on TEK, I would not be putting a high proportion of your retirement money into AIM firms. That money is hard earned .
As you are aware, the conventional wisdom is you can justify a higher risk portfolio (with potentially higher returns) the further you are away from retirement . Then gradually try and de-risk as you approach retirement.
De-risking in the current environment is easier said than done!! but more attractive interesting rates are emerging. Indices can also be an option if you had a strong view regarding macro (or sector) trends.
Heavily invested in TEK and riding this tough moment out. TEK need to hit some Mile stones across the portfolios as was set out in their vision for 2022 (can forgive the delayed IPO on Lucyd given the current investment climate). They have the team and portfolios to progress. If they hit their mile stones the SP will eventually take care of itself. It was a smallish raise the other day, so hopefully this indicative of underlying strength.
GLA
If this company is to be successful in billion dollar markets , then big picture a £2m raise is peanuts.
Glad TEK has retained its stake in BELL, does not make sense to my mind to sell at this point.
That said , disappointed yet again we PIs are excluded from the opportunity . The over subscribed comment , is the normal slap in the face we receive from TEK when there is a placing (of course it is over subscribed at 25p!). Would be interested to understand the rationale for the placing price.
TEK are performing strongly. No safe place for your money at the moment .
TEK need to push on now and deliver, they are more than capable of doing so , despite the tricky market conditions.
GLA