Member Info for skid35

Uhlf.
Said I wouldn't buy more yet still keep coming back for top ups.
The risk / reward is just out of whack, currently priced as if it was going bust and tarana just as a single contract not priced in yet alone anything else.
We have all been saying real share price take off round the corner this year, I'm not so sure but eventually the market will catch up so not worried.
I know I have said this before, but would love to see Herald step up their holding as their investment appraisal has proved successful and it is a good validation point for us all, even a t a level requiring notification this wouldn't even register a decimal point in terms of their overall portfolio. Really amazed someone like xilinx, silicom or a list of 20 companies does not take a small stake - they are in a position where they understand the potential here better than we do?

Looking forward to rns whenever they occur, not going to guess the date as we all don't have a great track record here.

Uhlf.
Like you I do these with a range of options getting to a share price.
Agree with you, as we don't know the business model (I would prefer lower revenue, high margin) it will be the scalability of the p&l from revenue to profit which will be important. Anything over the breakeven point soon just flows to profit and cash, so when Tracy looks at 3-15m on du there is still much we are all guessing about . I am also very sure ENET are in conversations non of us have really considered or understood it s impact.
Low revenue might be problematic if it shows ENET clearly having missed market opportunity in some way, or the tech / business case for their products from the market has shifted.
When we get to the end of 22 it will be the forward pe which is important rather than historics, so hopefully much more information available to us to make this judgement at that point.
I have ENET aligned with retirement in 3 1/2 years, expect nearer the end of this period of will have been taken over. I have Tracy's long term price range, which I previously considered just completely absurd, in mind.

Even looking as disaster scenarios this covers the share price a t least a couple o times, which is why the shorter term price movements are of little interest except to buy when it get dividend s eleswhere.

Ark, you're welcome. Have a great weekend everyone.

Uhlf.

For micro companies broker write ups are pretty worthless. Also with ENET you really do need the market background before going into any specifics about ENET itself and the multiple lines of business it now has. It's pretty difficult for a small broker, covering loads of sectors, with a 20 something a few years out of university and wet behind the ears to do this justice unless the company effectively writes it for them - but it needs to be 30-40 pages long.

Although not great for short term holders, traders and even long term holders who would like a more consistent and timetabled news flow (myself included to some extent), I actually think ENET are "happy" with where they are, they don't need to raise cash.
Preferring to release on solid news with a conservative view, then surprising on the upside. No criticism, but I think this is lead by David who is not the best communicator with the ability to simplify his great knowledge to non techies like myself which is a real and rare skill, something which a couple of contributors on here (we all know who they are) do much, much better than ENET.

As with everyone I hope results and rnss will speak for themselves in the next 2-3 years, Tarana does offer the glimpse of what is possible for one contract, which, when multiplied and in itself grows, becomes.

Agricore.
Absolutely !
I had a friend who, after having an affair, became wife number three. She was quite shocked when he did the same again !
I am wife number three, so much potential for KMK to be the love of my life, I should have learnt from what they promised previously, they have let me down time and again but there is always the glimpse of what could be just around the corner so should I chuck it in or keep the faith for another year ?

Heard the same blah, blah from the CEO again, and repeated without question by ST with his bat phone link, so ignoring this as I read it 36 / 24 / 12 months ago. All investors should go back as see what was said 1/2 years ago and see what has changed, how are they performing against the strategic objectives they set etc.
So what has changed ?
- The new chairman and CFO had come into a complete mess. The CEO has never liked or been comfortable talking about the numbers as I don't believe he understands how the p&l is driven but the forecast is conservative. Hopefully the chairman and CFO are providing the advise and guidance, as well as action.
- Still worried about The integrity and openness of communication which I thought was behind us. It's what they don't say which it important, a couple of questions on the investor forum proving enlightening.

I know a lot of posters want only the see potential here, I think this may be psychological that if you have hopefully have been wise to buy in the low teens you are positive and I believe you may have bought one of the most undervalued companies on the market.

Most of my money is in investment trusts (both sipp and isa), both in really boring stuff but also in some niche areas (grow, aug, mntn). I have a proportion of risk money which I have in companies with the same characteristics and potential for scale as kromek with mixed success so I am not one to provide investment tips. What is actually quite interesting that I have kept the faith in a number of these through multiple years and have been deeply, deeply in the red (which I am not with kmk) on a few which have completely turned around.

As I've said before good luck to all long holders !

With so much investment required it won't attract the usual asset strippers, but for a company that can see a longer term where they manage the company well this could be a great buy. I don't know what a take out price would be.

Mike, no crime so be very careful what you imply.

Lets have a look at the facts from Kromek published accounts.
- 18/19 revenue £14.5m, receivables £20m - in summary no cash received on that years revenue plus 4/5 months of the prior year, so a bit of a red flag.
- 19/20 revenue £13.1m, provision £13.1m - so a whole years revenue provided.
Both of these probably records for a public company unless you know different ?
Notes to the accounts 18/19 page 35 from the external auditors "revenue recognised of £5.6m has a high degree of estimation uncertainty". So auditors uncertain on about 40% of revenue.
So yeah, not fantastic financial and commercial management.

As an FD and legal counsel you dont rely on peoples word, you rely on as watertight a contract you can sign.

Bid.

The interesting point from KMK which can be applied to ENET is the impact and complete blind following Simon Thompson has, even where he has been constantly wrong on a share for 3 years and is completely uncritical of incompetent management where he has a relationship I find very unprofessional.
When ENET gets its first write up it will go up by 15-25%. ST will probably do this in 12 months time and claimed to have found a hidden gem, the price rise justifies what he has said as it becomes a self fulfilling spiral.

Gian.
Not sold yet, was waiting for ST to come in again which seems to have worked !
Please read what I have said and why I invested in kromek in the first place - as well as other similar companies with zero profit and great prospects.
The usual PI blindness of only wanting to understand the opportunity and not the risk, with the price based on how you perceive these rolling out over time. If risk is ignored and not understood by management they are taking no mitigating actions over time.
Yes, there are massive legs on kromek - as I have said before it is up to the bod and smt to take advantage of the wide range of opportunities they have in front of them to the benefit of shareholders who have supported them through multi share issues.

Some funny movement on my aj bell account today but still haven't a clue how many shares I have ????

Now a couple of days past the date of the h1 review from last year, and not one order notification this year ?
Really need an update.

The notification was very light on detail. It is important to understand the use case, geography, basis of recurring revenues, options for future business with this customer etc.
If it is not signed a lot of very hard questions for the chairman and ceo, with their credibility and reputations very , very damaged.

Sergi.
As I read the AIM rules this would absolutely need an rns when the deal is concluded. I am surprised it is taking so long as I thought it wasn't even dotting the is and crossing the ts, it seems like the contract was complete for signature.
Even if it didn't as a shareholder I believe it would be courteous to loyal shareholders to confirm this with as much detail as the contract and commercial sensitivity allowed.

Gian.
As usual from ST this sets out brilliantly the opportunity the company has, as he has for the past three / four years. As usual he does forget what he said previously, that the company has failed to deliver what he has said and forgets that he said aroc was temporary and would be reversed.
Not sure where he gets the 28p back in April though ?
Kromek is priced assuming the BOD will continue to muck up as they have done so many years, if they get it right the share price is a bargain as a decent management team would have this at 50p with further upside.

As a lth I haven't really got a target for 12 months, just that news is positive in this time period to justify our conviction in the company.
Hopefully twelve months just a step to where it has the potential to be in 2-3 years.

Cheers Mike.
The reason I bang on about China are three fold.
1. Historical, and yes I believe the company will have learnt very harsh lessons in terms of risk control.
2. Management commitment and communication. The board needs to be open and honest here about where we are in the rns, not leave it to a private investor to get this out of the CFO on a call after the CEO gave the opinion that it was all systems go. the important communication of whether this is receivables or a revenue accrual, a deeply important issue, is still sketchy.
3. With management statements and their communication with ST, the market have always assumed this to be 100% recoverable in The short term building this into the company valuation and potential cash calls.
These aren't questions a conservative, short term, grumpy accountant who knows absolutely nothing about business outside double entry bookkeeping should be asking, these are questions every shareholder should be asking, in addition to understanding the fantastic potential this company has.

Mike.
Yes I am a qualified CIMA accountant but, as with most qualified accountants have nothing to do with "bookkeeping" but work along side senior EMEA management teams to manage the totality of business for short / long term operational / strategic management objectives. I spend 10 x my time with sales / marketing people than finance.
You clearly didn't read my posts that most of my money is in similar loss making, high growth companies with a similar profile to Kromek (world class IP led, high margin, strong market position, relatively fixed / low opex with the ability to scale revenue through to profit and cash in the long term).
However as an accountant, I do understand the complete failure of controls, approvals, risk analysis etc to be in the position they are with AROC, but I suppose the world has had enough of experts.

Prom.
Lets go through the facts on extreme language and personal attacks.
1. The previous FD was completely and totally useless who shouldn't have been handed £200k outside of his contractual terms for total failure. Tell me exactly what is factually incorrect with that statement?
2. CEO. As i have said before clearly a very, very bright guy but not a CEO - evidenced by the financials in the past years. Always promising and not delivering to date. Recognise his qualities as a technical genius but get someone in who can manage a company as the company grows in complexity and scale, there is a time to recognise where your strengths lie. Not quite as black and white as the CFO as this is a personal opinion, but based on evidence.
3. The board. Apart from getting rid of the CFO, not exactly a hard decision, with £200k in his back pocket, they approved getting into the ventilator business and I would assume would have approved the previous CFOs contracts due to their value.

As a long term shareholder the light / shade moves from 50%/50% to nearer 90%/10% as the IR communication simply doesn't result in business performance - and by business performance I don't mean profit.

After seeing four years ago what most posters see now I have decided to sell my holding. This has become a regular quarterly question to myself, not one issue here, just realise the whole board are pretty incompetent, lacking commercial and financial judgement and more importantly and unfortunately little integrity.

A couple of pointers to back this up.

1. Who on the board approved the scandalous pay off to the ex FD, which is clearly completely out of line with his contract of employment. Would mind a little less if he did a good job but he was just completely 100% useless.

2. How was the board decision made to get into ventilators with the associated ridiculous PR. As I said at the time in May '20 "Issue for me here, if they have a great backlog etc why the capacity to go after non core, non strategic, non IP work.
Ventilators are a short term distraction". Why the hell has the CEO only just recognised and admitted this ?
Thank you to the investor who asked this question.

3. AROC.
Please remember 1. the complete incompetence to get into this position in the first place 2. the statement that it will be reversed quickly now well over 15 months ago.
The statement in the rns "Resumption of orders and shipments across all segments" is deliberately vague rather than "all orders and shipments".
On the call I believe the CEO said all orders (please correct me if i am wrong) were back on track. A subsequent question asking if this was the case why hadnt the provision been released (many thanks to the asker) it was stated these havent been resumed.

The chairman needs to have the balls to tell (not ask) the CEO to move to a CTO role, simply not cut out to run a company with this potential. Get someone from a company such as Meggitt in to provide leadership, action and delivery.

I know I'll get a lot of replies saying look at the potential, yes but with this lot in charge it will not be fulfilled. The market reaction taking the price down today is fully deserved as they have completely discounted future opportunity due to past track record and failure to deliver. To those on the board stating I don't understand loss making growth companies, I have £350k in two loss making companies where I have confidence in the CEO (and the boards ability to hold them to account) to deliver rather than repeat "everything is in place" etc quarter after quarter after quarter after quarter.

Good luck to all holders here as I really hope my views are completely and totally incorrect and Kromek rockets, providing skilled high paid jobs in the north east and great export potential.

Prom.
Outside my investment trusts virtually all of my investments are in growth, loss making companies whose share price is based on future expectations which is what attached me to kromek.
What I see with these companies is progress against the objectives they set 12 / 24 months ago in terms of revenue and orders, as well as more strategic objectives.
I will not stop posting but put through a view of the positives and negatives here, posters should not look for positives and completely ignore negatives of which there are many on both sides.
The board here simply does not have a history of delivery and the market has built this into the share price, if they did the share price would be 50p with further upside.

Prom.
Shareholders need to question the deeper backup to the AROC provision.
1. The contract must have been written with very back dated invoicing, so the growth in AROC was inevitable.
2. Kromek have confirmed the customers are not that financially secure, seemingly needing to get paid to pay kromek. Under these circumstances accounting is aggressive.