Member Info for surprised

Kromek’s rebound potential
I am not sure they have grasped that a rebound in the 2020/21 financial year is on the cards either.
Firstly, Kromek has now started delivering on a delayed seven-year Original Equipment Manufacturer (OEM) contract worth US$58m (£45m) to provide its cutting edge CZT detectors and advanced electronics in state-of-the-art medical imaging detectors. The contract should deliver revenues worth “millions of dollars” in the current financial year, says Mr Basu. The same is true of another delayed contract from the 2019/20 financial year.

Secondly, the company continues to win new contracts in other parts of the business. Kromek was awarded $1.1m worth of contracts to add technical innovation capability to its D3S ‘dirty bomb detectors’ by US government agencies. They are proving popular in Europe, too, with the European Commission and Irish Civil Defence also using them. Given the heightened terrorism risk across the world, the 22 countries currently deploying the technology is likely to grow.

Hi skid again, and there was me thinking you were being negatiive...it appears a lot of your concerns re the accounting are actually priced in here, hence the IC article highilghting such, in addition IC also state that with contracts and delivery for two past orders now under way revenue has improved to pre covid levels, cash situation has been enhanced as per the article and they clealry state thry do not expect to tap shareholders due to the financial improvements and contarct delivery...there are no certs in stocks and shares, however, on current view (we have differing views) with the account issue priced in on the recent drop and in the past, a positive confirmation on this aspect will add considerable value to the sp as detailed in the IC article. regarding cash again it's detailed below and looks healthy......

''Thirdly, Mr Basu reassuringly notes that Kromek’s revenue is now back to pre-Covid-19 levels following the disruption of the first quarter to 31 July 2020. That’s important as it means that concerns over the company’s cash position should now ease, another reason for the share price fall since May. Finance director Derek Bulmer says that the company had gross cash of £9.4m at 30 April 2020 and gross debt of £5.6m. Since then it has strengthened its gross cash reserves by over £2m and varied bank covenants on its HSBC facility. Given that revenue has returned to pre-Covid-19 levels, and stocks are now being delivered on delayed contracts, the company should have the funding in place to operate without the need to tap shareholders. This may not have been made clear to investors.''

KMK has strengthened its gross cash reserves by over £2m and varied bank covenants on its HSBC facility. Given that revenue has returned to pre-Covid-19 levels, and stocks are now being delivered on delayed contracts, the company should have the funding in place to operate without the need to tap shareholders. This may not have been made clear to investors.

TPG today fits the government agenda on a hostof fronts and as one of the overlooked stocks, compared to ITM and CWR, the TPG potential should be recognised over coming months as investors seek to find stocks that can supply and satisfy the governments aims. In at the beggining of the new 'revolution' and with years of develpment and growth ahead today's sp provides a low cost entry to what will be a fast developing and major growth sector(s) going forward....exciting times particulalry for those who already hold shares here, many will discover TPG over the coming months at a much higher sp I'm sure :-)

https://twitter.com/surprised_trade/status/1328972622755995649

https://twitter.com/surprised_trade/status/1328970007909437443

https://www.tpgroupglobal.com/what-we-do/bespoke-engineering-solutions/renewable-energy-systems/hydrogen-energy-systems-for-rail

https://www.tpgroupglobal.com/what-we-do/innovation-and-technology

looks like our time is coming ....
https://www.tpgroupglobal.com/news-events-and-insights/press-releases/tp-group-evolves-its-hydrogen-generation-capability-to-deliver-green-energy-systems

https://www.tpgroupglobal.com/what-we-do/bespoke-engineering-solutions/renewable-energy-systems/hydrogen-energy

The major reason for the share price fall is that Kromek unexpectedly revealed a £13.1m write-down on a medical imaging contract due to Covid-19 which has disrupted both the shipment to hospitals and access onsite.

Work in progress had been stockpiled for delivery and recognised as revenue over the course of the past 30 months. With shipment originally scheduled for 2020 onwards now delayed, the carrying value of accounts receivable under contract (AROC) is dependent on Kromek being able to prove a shipping date. It is unable to provide this at present, hence the £13.1m write-down to AROC in the accounts. However, all the stock remains on Kromek's balance sheet (and in its UK facilities) ready for shipment and delivery in the future, hence why the directors still expect the position to reverse, at which point Kromek can book a hefty exceptional credit. I am not sure investors have fully grasped this accounting point.

Kromek’s rebound potential
I am not sure they have grasped that a rebound in the 2020/21 financial year is on the cards either.
Firstly, Kromek has now started delivering on a delayed seven-year Original Equipment Manufacturer (OEM) contract worth US$58m (£45m) to provide its cutting edge CZT detectors and advanced electronics in state-of-the-art medical imaging detectors. The contract should deliver revenues worth “millions of dollars” in the current financial year, says Mr Basu. The same is true of another delayed contract from the 2019/20 financial year.

Secondly, the company continues to win new contracts in other parts of the business. Kromek was awarded $1.1m worth of contracts to add technical innovation capability to its D3S ‘dirty bomb detectors’ by US government agencies. They are proving popular in Europe, too, with the European Commission and Irish Civil Defence also using them. Given the heightened terrorism risk across the world, the 22 countries currently deploying the technology is likely to grow.

Thirdly, Mr Basu reassuringly notes that Kromek’s revenue is now back to pre-Covid-19 levels following the disruption of the first quarter to 31 July 2020. That’s important as it means that concerns over the company’s cash position should now ease, another reason for the share price fall since May. Finance director Derek Bulmer says that the company had gross cash of £9.4m at 30 April 2020 and gross debt of £5.6m. Since then it has strengthened its gross cash reserves by over £2m and varied bank covenants on its HSBC facility. Given that revenue has returned to pre-Covid-19 levels, and stocks are now being delivered on delayed contracts, the company should have the funding in place to operate without the need to tap shareholders. This may not have been made clear to investors.

The bottom line is that the 40 per cent share price discount to net asset value of 13p should reverse when investors cotton onto the huge commercial opportunities for Kromek's ground breaking technology . buy.

(Kromek wins new sector-leading global OEM customer, agreement worth up to $660k for development of customised detectors for industrial applications) and have clearly stated they have also now started delivering on the 45 million quid contract

'' The contract should deliver revenues worth millions of dollars in the current financial year, says Mr Basu. The same is true of another delayed contract from 2019/20''

Investors Chronicle have publshed a recent article stating the decline in sp from the mid twentys a few weeks ago appears to be at odds with their view of KMK's valuation and they state 'KMK is under valued by at least 40% to net asset value at 13p'

Hi skid ...again....at 13p I would think risks are somewhat less than when in the mid 20p's don't you ?... and an interesting take on the share price movement ...do you think it is more likely that Prem Miton are completing there move and that it is more likely the brake on the sp until they have completed ;-)

https://twitter.com/surprised_trade/status/1328612544110596102

interesting article for any new investors...

https://www.valuethemarkets.com/2020/04/14/new-contracts-mean-it-is-time-to-give-tp-group-its-due-tpg/

if TPG could pull off a space and AI contract on this it would be a nice earner as government seeks to progress agenda ..

https://www.thetimes.co.uk/edition/news/solar-power-space-station-to-fuel-carbon-ambitions-5gwps9wdf

:-)

https://twitter.com/surprised_trade/status/1327190029437906944

today ,court case Friday 13th November 2020, Maxwell/Tesla re IP infringement court schedule

they told us this :-)
following the previously announced success in the patent infringement case against Ioxus Inc, CAP-XX is now pursuing the recovery of the US$4.9m court award,

;-)

good man Skid, it's what bb's are for, a discussion and points of view, and genuine points are all valid and worth discussion...gla

https://twitter.com/surprised_trade/status/1326554271706329091

https://twitter.com/surprised_trade/status/1326426674670542848

year ended 30.6.2020 has been one marked by significant value accretion to our shareholders. Clearpay business is demonstrating outstanding trading momentum'we will return a further A$6.5m to shareholders '

a few spell errors corrected, I blame my phone lol..........

.I'm pretty confident some folk thought the price was right at 25p+ or 15p etc as it's a moving beast. There is always a price point when a company, despite it's past judgements etc becomes a true value play and potential recovery stock. On the basis of what I have seen in KMK this looks like a recovery stock, a potential gap up in value is likely from 12p/13p and as with any stock there is always inherent or unforseen risks, however, it would appear the risk v reward at this price is favourable.

Regarding talking a stock up, I have simply highlighted the potential of KMK, they need to deliver like any company, however they appear to be doing so with the recent new contract, (Kromek wins new sector-leading global OEM customer, agreement worth up to $660k for development of customised detectors for industrial applications) and have clearly stated they have also now started delivering on the 45 million quid contract

'' The contract should deliver revenues worth millions of dollars in the current financial year, says Mr Basu. The same is true of another delayed contract from 2019/20''

The above are facts, not me just talking KMK up and with a current mcap of just 41 million quid I think the potential is there for many to consider.

In addition, far from just me talking KMK up, I notice Investors Chronicle have publshed a recent article stating the decline in sp from the mid twentys a few weeks ago appears to be at odds with their view of KMK's valuation and they suggest 'KMK is under valued by at least 40% to net asset value at 13p'

It appears far greater researchers than me are 'talking the stock up' and suggesting KMK offers value from here going forward

Hi skid agian, with respect I think your bitterness is more aimed at yourself than the company, as you appear to be holding shares in a company you do not like. I think most folks are awre of the issues you mentioned and posting negatives is your perogative, exactly what a bb is for. Different views and both upside and downs should be discussed, no problem with that, it helps us all....however, if the price is right in your opinion it may not be someone else forward looking or who has a different perspective and valution outlook.
I'm pretty confident some folk thought the price was right at 25p+ or 15p etc a sit's a moving beast. there is always a price point when a company, despite it's past judgements etc becomes a true value play and potential recovery stock. On the basis of what I seen in KMK this looks like a recovery stock, a potential gap up in value is likely from 12p/13p and as with any stock their always inherent or unforseen risks, however, it would appear the risk v reward at this price is in favourable.

Regarding talking a stock up, I have simply highlighted the potential of KMK, they need to deliver like any company, however they appear to be doing so with the recent new contract, (Kromek wins new sector-leading global OEM customer, agreement worth up to $660k for development of customised detectors for industrial applications) and have clearly stated they have also now started delivering on the 45 million quid contract
'' The contract should deliver revenues worth millions of dollars in the current financial year, says Mr Basu. The same is true of another delayed contract from 2019/20''

The above are facts, not me just talking KMK up and with a current mcap of just 41 million quid I think the potential is there for many to consider.
In addition, far from me talking KMK up, I notice Investors Chronicle have publshed a recent article stating the decline in sp from the mid twentys a few weeks ago appears to be at odds with their view of KMK's valuation and they suggest 'KMK is under valued by at least 40% to net asset value at 13p'

It appears far greater researchers than me are 'talking the stock up' and suggesting KMK offers value from here going forward

https://twitter.com/surprised_trade/status/1325892520518279174

I've highlighted it, no coincidences on AIM and with today's sp at 12p I think it provides opportunity...