IC comment12 Apr 2017 08:49
From Hyperboreus on Advfn site,
Not wishing to comment on anything that has gone before but ST did in fact reply yesterday to patient_investor regarding Kromek in his comments section basically just reiterating his current stance on the Company:
1:17 PM on 11/4/2017
Hi Simon,
Please could you provide your thoughts on KMK share price returning to 26.40p, a fall of some 30% since their inevitable spike in the aftermath of your tip?
Do you still rate the shares a "strong buy"?
Regards
Patient
SIMONTHOMPSON
1:36 PM on 11/4/2017
Patient
I advised buying Kromek shares at 25p on Monday, 27 February after which almost 12 million shares traded in 689 bargains in the following two days. The weight of money continued to chase the shares and this meant that the share price moved up 36 per cent from 25.5p on the offer at 12pm on Monday 27 February to a high of 34.9p on Tuesday 7 March. In my analysis I stated that:
"From my lens, the bottom is now in place and a break-out above the 25p resistance is highly likely, suggesting a sharp move to the 30p resistance level that halted progress last summer. Beyond that analyst's 34p a share price targets come firmly into play."
I can't blame anyone for taking a 36 per cent profit in the space of a week. I would also mention that the Daily Telegraph subsequently tipped the shares which accentuated the rise and a fair amount of that buying was hot money, hence the subsequent fall.
Nothing has changed in terms of the investment case as I still believe that 34p a share is fair value. I would flag up that subsequent to my article, on 24 March 2017, Berry Beumer, Chief Operating Officer of Kromek, purchased 80,000 Ordinary Shares at a price of 29.35 pence per share. Also, Kromek has also been awarded a contract, valued at $990k, by an existing US-based customer, a global leader in aerospace and defence technologies, for the upgrade of the Company's advanced security screening detectors that the customer has deployed since 2009.
I believe the shares rate a buy at 26p.
I hope this clarifies matters.
Best wishes