Member Info for skid35

I am pleased we do not have certain people talking the stock up, bringing in shareholders who have not done their homework.
In this I include ST in IC who has a very selective memory when it comes to assessing his recommendations a year later. I am a holder in kromek where every six month utterance from ST gets a feeding frenzy of holders who cannot have done due dilligence.
Looking for a nice steady rise supported by a hopefully steady stream of news.

No spare cash, but at this level I might sell some long cherished investment trusts (bailee gifford, fidelity), this is just too cheap

Suprised. Fully agree, I hope this stays in a 19-23p trading range until we get further news and the next six month results. As I long term investor looking looking at a 2-3 year window here.
The influence of ST in IC is a constant suprise, in small cap companies with a small float I suppose this is inevitable but I wish investors would take the time to really understand companies markets, finance and risks / opportunities.

What Angus failed to mention was th cash calls required from shareholders required for this, they do not have cash resources for this. Any decent interviewer would have asked this, any even if not asked Angus should have said this.
Growth should take cash calls into consideration, so not the multiples stated.
Also there are a large number of similar companies to drumz now chasing these sort of software acquisitions, so decent ones cannot be picked up on the cheap.

Me too, in at around £2 and underwater for a hell of a long time, really surprised how quickly it moved from £2 to £3 without a great deal of transformative news.
Now we are here will enjoy the ride for a while.

differential payment terms (e.g. 45 / 60 days) are usually irrelevant in recognising revenue.

Elrico.
As a qualified accountant of 30 years I think you may be confusing a lot of people here.
If OPTI has a three year contract with a company with royalty reporting on December each year, once confirmed this can be recognised as revenue whether the raised invoice has not been paid or even if it has not been raised provided delivery has occurred against the contract. Of course what hasn't been delivered next year is not recognised even if contracted.
It is primarily delivery against contractual terms which is the revenue recognition determination point.
Invoicing can be raised and paid for products or services in advance of delivery, even if paid this is not recognised as revenue.
A bit basic (in every company I have worked for there have been revenue recognition directors who are deeply into technical acounting) but hope this helps.

Asder, as a long term holder I read as much as I can on kromek. I do take ST with a bit of a pinch of salt As he does tend to forget what he said a year ago.

If I lost a year's salary down the back of the sofa when I was drunk and then find it a year later, my wonderful wife would not congratulate me for finding it she would remind me not to be such a p### in the first place. There were some real deep issues with company underlying the aroc provision, hopefully lessons will have been learned and it is both released and the future revenue streams are secured.

As a number of posters here have stated the science seems world beating, the operational / commercial / financial performance has not followed. Basu seems a nice bloke and clearly a brilliant mind -they need a hard nosed, pain in the a### COO and CFO to optimise to drive the "cannot fail" scenario to where the company should be.

I am very positive on the company, but believe it may take 18-24 months to really show the benefit and will not be a seller in this time, as the real value may only be seen at this time.

Asder, what, a bit of a positive?
1. No it's not a revenue credit, it's an exceptional item and just reverses the treatment of the exceptional item.
2. A company with £13m of revenue has £13m of working capital tied up for over a year doing nothing?
3. Cost of warehousing, insurance etc. It impacts credit rating and therefore cost of debt if any, unsure of the currency it is contracted in and there may be further costs in hedging.

Kit, think it depends on how you sit overall with other investments - their value, potential for growth and dividends. In a share account you do have a tax free amount on dividends of 2k but with the current economic position with this and the cgt allowance might be targeted in the future so an isa is the best place for them.
I have a sipp, isa and trading account with aj bell where charges are similar between the accounts. I have enet in all three but a minimal amount in the trading account and only because I have used the isa allowance.

Asder.
As well as top class science they need too class financial, commercial and operations people - you can focus all you want but it's competence that counts.
The issues around the AROC contract and provision showed a level of naivety which were deeply worrying.

I think the best thing they could do at the moment would be to put an ex minister on the board (Chris Grayling anyone) and bung a few quid to the tories, seems to have worked elsewhere.
Joking aside this does have great potential. All the commentary below on buying on potential is what long term holders have been doing, new holders just haven't been around long enough to hear the standard six month interviews.
Time for delivery.

It has an international presence but this could be of a completely different scale, they need to get into bed with a partner on manufacture, distribution, installation and service / support.

Giancotti.
Well said - yes all on potential which is why I originally invested 3 years ago. I think medium / long term this is a great share if the company is well managed financially / commercially, the board need to deliver now with such opportunity. I don't want to be here in 18 months with Basu being interviewed brushing results under the carpet and pointing at the market opportunity.
All those looking at Simon Thompsons recommendation would advice looking at this over a three year period, rather than the last one. Hopefully even a stopped clock...

We are now back to a share price last year, before the provision hit and before the new business streams were identified with the pandemic - so further more potential upside.
If this does take off kmk should get into licencing deals as they simply do not have the size and experience to cope with manufacture, distribution, service etc - it's the IP where the value and £ lies. A royalty route would also be high margin, low fixed and working capital which would turbo charge the share price.
Having followed the theranos story still need convincing on the technology, if they can make it work this would be brilliant.

Analyzer.
Fully agree, the only time it may become problematic is sale or return clauses but doubt this would apply here or is such a small proportion as to be immaterial.

Belgrano,
I would have thought the contract is structured in such a way to ensure revenue can be recognised in the p&l without being paid, or even without it being invoiced in line with accounting guidelines.

Elrico, I didn't understand your comment " need all the time to chase receipts" unless as part of a nasdaq listing they would provide a balance sheet at the end of q1?

Elrico, surely with this time scale they would provide an unaudited update in feb ?

Dallo,
Agreed - that why I put it out there in terms of what revenue would be required for £5m profit and a very conservative x 20 valuation of £100m, 7 x where we currently are.
I think the £15-20m revenue at this level would just be the crumbs from the table for the 2022 financial year based on the opportunity.
With the market cap at £15m I really wonder whether the market has just missed this, or the 10-15 of us on this board are a bunch of muppets.
Now nicely in the money on my 260k shares - not really that concerned on share price rises, just concerned if there is a lack of rns news in the next six to nine months and the news flow is quiet.