They were only looking for £500k, they probably found most of that down the back of the fund manager's sofa. But as you point out it is interesting that there is no RNS showing a significant holding but if fund holders took up a proportion in relation to their shareholding there would be no levels crossed and no need for RNS. In the last annual accounts there is no table of major holders. The last RNS for major holder were mid 2017 Herald and Hambro.
Hi hangover, you are correct IMO - if the proposition is a good as some have long suggested then the technology would have been bought out. Researching over the recent statements I think the reality is - the product is good but it requires skill to use it and is only practical in asleep patients because of the gag reaction. This means the technology is difficult to introduce across a hospital, from nurse to surgeon and between asleep/awake patients. They are trying to ameliorate this hurdle by combining ODM with easier to use technologies like ppwa - particularly for monitoring - while at the same time pushing for greater adoption of ODM by surgeons as an intervention tool. Hopefully over time, the techniques are better understood and can spread down the chain. Ewan has just purchased a substantial number of shares, the first time he has done so as far back as I can remember - which suggests that those really in the know believe things may be on the up. Fingers crossed
I held this share years ago and got out at a loss.
As stated research such as this should be compelling and over the years it has come from many institutions in many countries.
The management may be awful at getting the product into hospitals - have the wrong strategy etc. but why if the product is good does Deltex not become a takeover target? Is that not capitalisms supposed route of removing poor management teams - I assume most shareholders offered a reasonable price may sell?
I am very close to buying again some 5 or so years after I sold out on the basis that I see lots of new starts with ridiculous valuations and this surely has value buried within it and my past experience IQE being one is sometimes you can give up too early....if I owned I'd definitely hold and I'm tempted to join those that do!
I appreciate he bought in the fund raising, but it would have looked very bad if he had not done so.
My post a few minutes earlier this morning probably goes some way to explaining why perhaps my frustration with this share often does get the better of me.
One of the reasons I get very frustrated and even angry at the Deltex management is that with results like these the product should be flying off the shelves and the sp should be soaring.
There is no getting away from the fact as myself and others have said many times, the product is a no brainer and with these results and similar prior results one has to continually look for reasons why it is not a medical product of the first order.
Most companies after a RNS such as this, would see their sp flying upward and more importantly staying there. But will be see this with Deltex, if so it will be a nice and unexpected change of direction.
Deltex Medical's Oesophageal Doppler Monitoring System, reduces postoperative complications by 75 per cent.
75 per cent. fewer complications, significant reductions of between 75 per cent. and 100 per cent. in several specific major complications including acute kidney injury, acute pulmonary oedema, respiratory distress syndrome, pneumonia, and both superficial and deep surgical site infection.
The number of patients suffering at least one post-operative complication was halved and median length of stay for patients in the GDHT group was two days shorter than the control group.
Pond - You should do some research before posting. Ewan purchased 1.6m shares in the cash raise at 1.25p and 800k shares at 1p using options. Furthermore, he wanted to purchase more in the raise but was scaled back. In total, he spent nearly £30k.
Yes he bought 800,000 at an exercised price of 1.00p so a massive buy (not) of £8,000 when the market price was 1.28p.
It is when I see him buying on the open market that I will start to take notice but there again why should he when he has been granted so many shares on option.
He is in a win win position.
It is interesting to note, I think, that for the first time I can remember Ewan Phillips has bought shares in Deltex. Looking at the price chart he has been right to abstain, so I wonder if this is a tipping point. For all the optimism and disappointment, and discussion about what is going on with the underlying business, I suspect he is one of very few who has a clear idea of what is going on. Heres to hoping
Meant to add, As the extended tender in 2014 does not say for how long, we do not know if it was till 2018, IE the date of the latest. Do you know if the tender was extended in 2014 for 4 years, because I don't. It probably was, but if so it is another example of a lacking detail news issue from Deltex.
Even when you are right your sarcasm does nothing to enhance your arguments. I have no problem with persons posting opposing views, but why get peoples backs up just because they disagree with you.
I have been in Deltex since they first floated on the markets, although only a token gesture now held and so have had my faith in the company knocked so many times that I no doubt find it harder to believe that those who are quite new to the company.
When I see yet another RNS followed by a uptick quickly followed by the usual drop down I find it more and more difficult to stay positive.
To return to DEMG. France was an early "export" market and very much monitor, cash up front, and cheap(er) probes. I think the US model is the way forward (cheap/loan of) monitor and more costly probes. That would be counter-intuitive to an accountant but the NHS has two budgets, capital and consumables. As a retired clinician the name of the game was to refuse all capital spending by the department until March and unless I got my bid in within 24 hrs the department budget capital was spent on new iPhones for the managers. I did a couple of years as a GP in France (Val d'Isere) but I think the same might apply.
They have an agent in France, looks like agent will supply about a third of monitors.... "from stock" but essentially head office loan the monitors, local agent still gets the cut on the probes, but they now cost about 1/4 of manufacturing cost in 2011.
Just my take.
Seadoc (headed off to 35Deg S on Tuesday, enjoy the Siberian blast next week)
Guilty as charged about my poorly informed posts that were the first to describe DEMG as a serial issuer of news shares that fell below issue price on each occasion and that decried DEMG's plaintive RNSs reporting new customers that seemingly fail each time to afford a better financial performance.
Your analysis of what happens after news omits the phase when RAConnell and pond1 make negative or poorly informed posts about the news and then Fokisi, who has probably never owned any shares, comes trip trap trapp trapping along and asks crafty questions to which the answers could only be negative. Eventually seadoc turns up and says something more sensible but normally from somewhere foreign and exotic which only makes the rest of us all sad and jealous
The RNS said: "replaces a previous tender originally awarded in 2011 and extended in 2014"
You said: "A new tender that replaces the one between 2011 and 2014, anyone have any idea why there is a gap of 4 years"
Might it be that the tender originally awarded in 2011 was extended in 2014? Just a thought, could be wrong, DYOR etc etc
As you say not a bad profit from 1.04p and good luck to any profit makers of this company.
One of the repeating problem of this companies sp, is that news is released, sp goes up, current investors outnumber any looking to invest, they take what profit they can knowing that within a couple of days the sp will return to it's former pre news price. It's almost the forgone conclusion of the roundabout, it always returns to the same spot.
The only thing that will sustain a risen sp is several decent, profit showing contracts one after the other.
This is not a new customer but only extends an existing supply agreement. One wonders how profitable this supply agreement was previously - maybe not so positive given DEMG's continuous decline. One should also not low margin on new monitors - not quite freebies but loss leaders?
It's not bad news but its impact n future profitability is unclear. Only time will tell. As to SP there could be a minor, temporary uplift.
As there are often 2 ways to look at news, I am going to pick out the main bits of this news release and see how others read it, IE good or not so good.
A new tender that replaces the one between 2011 and 2014, anyone have any idea why there is a gap of 4 years, this might of applied to the monitors with the probes still being bought during those 4 years.
The tender is for a total of not less than 34,000 disposable probes and has a minimum value of over 4m over the eight year tender, is this a decent value over 8 years at 500,000 euro per year.
Presumably the value is net profit to Deltex or is it the value of the gross to be paid.
Deltex is supporting this requirement by supplying the monitors at very low margin, as the previous tender was for 3 years does anyone wonder why they monitors are being supplied at a 'very low margin'. Whilst appreciating it is the probes that will be making the money, why can't Deltex attract customers at higher margins.
Deltex market cap is £6,530,000 so is the figure of 4 million euro over 8 years comparable to make even this low mc company worth that valuation.
No doubt the sp today will tell us what the market thinks.
EP put his hand down the back of the sofa and came up with another £8000 which he swapped for 800,000 shares so the total is now 490,663,367. My account still only shows the number of shares I applied for but the cheque is now in the post.
That is how I read it. The directors also only get their allocation cut by 40% rather than 56%. When I get my refund I will let you know but I think all the shareholders (who applied) got the same as the directors.
By about 78%. But they have increased shares on offer so the scale back is only 40% so I will get a few more though only 60% of what I applied for. Seems about right to me, 2 for every 3 held at 0.875p.
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