Member Info for Scoobydoo321

The CEO is a geologist by training and comes across very understated. Whilst I was watching the crux video,
https://www.youtube.com/watch?v=haFgdFiKuSE&t=3s
(yeah i know it's old but coz of covid - everything is delayed so this video is still very applicable it seems)
it was obvious to me at least that Matthew, the interviewer, was sitting with bundles of energy urging the CEO to be selling their story more in their RNSs, the fact that MKA get a free ride now (Talaxis has paid a big sum that is to be used for the feasibility study + admin costs etc) and just could not get over the fact that MKA can be so undervalued.
This is actually what made me invest into this co.
Also, indeed, William, the CEO kind of geeky demeanour, down to earth, almost accountant like focus is what made me believe in MKA too.
For the sellers, GL to them. I think it's a bit daft coz the feasibility study could come in anytime. I'm convinced that it's going to be an epic one - the one that leads to the lottery ticket that the \CEO alludes to in the crux video - i.e. a juicy BFS - thereafter Talaxis exercises the option, buys an additional 25% of Songwe leaving MKA with the remaining 25% + Talaxis arranges for all project financing = free ride to a possible NPV| of £150mn for MKA holders - nice ...very nice!!!

O ...almost forgot about the other assets in the portfolio - those are indeed also excellent
and
The recyling JV which I think will get increasing importance with this focus on "green"

Off-topic - Everytime I say Kantaro - I want to also say Arigatogozaima****a - dunno why!

Anyways - EKF doing the 2nd rounds for Kantaro -
https://www.news-medical.net/news/20210122/Accurate-quantitative-COVID-19-antibody-test-kit-by-EKF.aspx
https://www.med-technews.com/news/Covid-19-Medtech-News/ekf-diagnostics-moves-to-cardiff-facility-to-increase-covid-/

Me no viralogist so make your own inference on antibody testing with new c19 strains

Good Qn Pontil - based on RENX previous' big RNS on FDA clearance for Kantaro kit that made SP shoot up 30% in Nasdaq - it was Nasdaq that released the RNS.
So presumably Nasdaq I'd guess - understandable really since they are a |US based co.

Bottom line is that Christopher Mills who I believe holds 29% of the co. , probably had a strong conviction for Jay as the perfect man for the job. SBI is a turnaround job with Mr Mills + Harwood Capital coming in. Jay was brought in to steer the ship obviously with much incentives. Also, according to Paul Hill, **********, Mr Mills has yet to sell any shares. Indeed, as far as I am aware, no other institutional Iors who bought in the IPO have sold any of their holding. Hence, I was a bit perplexed when someone asked me "what about the overhang after the IPO" - Ans - since the IIors all bought and no one sold, there is no overhang.

As mentioned, here are the salient juicy bits to look forward to:
- mobile units to community = increase in testing = higher rev
- Feb contract with DHC - very likely to be a formality = wider scope of services to NHS = higher rev
- Leberum (house broker) may adjust broker forecast to assign a follow thru for covid testing in future yrs pass 2022 = SP rerating.
- "We ARE MORE than 10,500 tests a day - but I DON'T want to specific just in case forecasts change. I'd like to beat forecasts" said Jay in proactiveinvestors video (or words to that extent) = tests > 10.5k a day and are going ape = much more rev that brokers forecast for a future TU.

Sensetalka - u got me intrigued.
Looked at the accounts 2020 - in short - it's something to do with
Transition and lease accounting under IFRS 17
Up to 30 June 2019, leases entered into by the company were classified as either finance leases or operating leases under IAS 17. As a result of adopting IFRS 16, from 1 July 2019 leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the company.

In terms of materiality, 39k is peanuts so has no significant impact on the P and L. Well that's my excuse for not knowing my IRFS17.

Trade Update imminent - is it not?
Hence the rush in expectation of good figures.

Pontil - there is no advantages in being jack of all trades. Their specialism lies specifically with CKD so as it should be. This is where their moat lies. No other competitors are in their space at present. CKD is massive with a capital M. Diabetics and High BP all lead to CKD. Hopefully, after FDA clearance of their platform, they will be going to other countries. China + Europe. I prefer companies that focus on what they are good at. E.g. MXCT and IXI. Niche but providing the de facto standard in their field.

As for Kantaro, this was an offshoot project to help fight vs covid. However, if this takes off , it's a money spinner with a 10% royalty on any kit sold without breaking any sweat since all the sweat has been already been "sweated".

Tuck it away. Take an occasional look ...oh it's gone up 50% ! Great - back to bed. Check it out another 2 years - perhaps 100p then?

David - it happens all the time with all other stocks - it's not LSE London - it's just how the system work

Another piece of news from the Chairman through his interviews is that the government are fully aware of the huge unfortunate backlog in cancer screening and biopsies. Having delayed these due to C19, according to Jay, the good news is that NHS, in 2021, will be seeking to tackle this backlog AT THE SAME TIME as tackling C19. Given that this is a core biz for SBI, this will materially impact on revenue 2021.

I don't think that this cuts the mustard, particularly if the lateral flow tests are done via DIY.
https://www.dailymail.co.uk/news/article-9164447/Controversial-rapid-lateral-flow-coronavirus-tests-detect-infectious-cases-Government-study.html

So here is where SBI's chairman was alluding to regarding mobile testing units since PCR is the gold standard - i.e. a van, with lab technicians going to site - I don't know what the turnaround of results - but I would imagine that they are pretty fast if sample is taken on site, lab tests done on site and results given back on same site. If this takes off, £££

Buys this morning likely due to cross read to TU from KEYS -
KEYS CEO says, "Further to our Trading Update issued on 30 November 2020, the Board is pleased to report that trading throughout December and early January has been exceptionally strong. Unlike previous years, where the Christmas season normally experiences a slowdown in activity, performance levels continued to be high throughout and as a result, the Board now expects to report adjusted profit before tax for the period which will be materially ahead of current market expectations(1)."

Therefore Rosenblatt likely to have performed in a similar vein.

Just wanted to give a special Big Thanks to djryan777, Cornishknocker and Trojoan for your most excellent insights, research and analysis on this BB. Keep up the brilliant posts guys. Very much appreciated!

Thanks Teelabrown!

Next generation platform used by major crisp editing companies = 100% validation
Imminent listing to Nasdaq where given the IP, the yanks will clamber over themselves for this stock.
Scraping the barrel and just added some more.

Totally concur Rivaldo, what a revealing video.

Jay (chairman of SBI) says :
We are building (more )capacity
Need for testing is going to continue
Reality is – you are going to need testing for sometime despite the vaccinations
For stadiums, flying etc

Paul Hill asked, "What capacity do you have, I know that you were targeting 10.5k test a day. Are you hitting these no.s?"
Jay replies, "We are there . I hesitate to say the amount because someone is going to want to increase our forecast, but yes, we are GOING TO GET HIGHER THAN THAT."
-----------
My point -
This is a serious money machine!!!
PER DAY = 10,500 x £40 per test x 45% profit margins £189,000 gross profit a day !!!
But note that for the next few months – it's going to MORE than 10,500 a day
-----------------
Also take note at 16 min and 40 sec in when Paul says "I got a favour..."
SBI's house broker has assumed ZERO testing from the mid of 2022.
Paul believes that this is overly pessimistic and that testing will definitely be required for next year. Obviously, the level of testing would not be the same as now but there should be some drop through and even if you assign a PE ratio of 10 for the COVID testing biz, Paul claims that the target share price should be circa 450p. Paul says something along the lines of "if you could make an inference of this to your house broker..."
Jay replies, "Interesting point, I will certainly do that...."
Indication is – current SP appears to be seriously underpriced!
---------------------
What other Catalysts for the company?
1/ Expected Feb framework to be awarded (likely to be a formality). I did not realize that this means WIDER SCOPE of services to be outsourced to SBI, i.e. additional business ON TOP OF simply covid testing mentioned above.
2/ Mobile Labs for PCR testing (golden standard) into the local community - this could replace the government's current focus on lateral testing that has poor sensitivity and specificity levels.
3/ Other deals with private companies on testing.
4/ Encouraging developments on the antibody testing side (they did not mention it by name but they were referring to RENX's Kantaro Antibody test).

The future is looking very very bright for SBI.

v o x markets
Lol - LSE will allow u to post their V O X
ere LSE take a wad of this V O X M A R K E T S
V O X M A R K E T S
V O X M A R K E T S
V O X M A R K E T S

It's ********** right Rivaldo?
Yes just saw it - cheers
Nice one!

Strange why people are selling - the good news is to come in Feb with the "a potential formal award under Public Health England's National Microbiology Framework in relation to further COVID-19 testing".
That's the bigun.

Great results given Covid.
Also, huge upside still if they win vs HMRC. High probably I reckon given that HMRC already lost 1st payout of 1.6mn.
North Sea biz should return given expected economic growth in 2021.

Guys
Just wanted to express my gratitude of having U2 on this bulletin board. Your insights, expertise and research are absolutely top notch. U2 are my go-to for info on PGM. I continue to look forward to your nuggets!