Hi all
pretty new to all this. I have pumped some into Deltex - looks like a strong product with good growth. Could be a steady gainer.
Does anyone else have this, and anyone have some research on it? Someone with more experience than me!
thanks in advance.
Grajul

It is obvious now that NHS funding in true terms is to be cut. According to the weekend media, plans are already being drawn up to see where vast swathes of cash can be saved over the next few years. Efficiency in all areas are to be targeted ( I hope that top of the list is management). I know we have all said this before but as we all know, the Cardio system can due to shorted hospital stays, lower re-admission levels save money as well as lives.
No just hope that this money saving exercise won't result in the setting up of even more high cost quangos being set up, which appears to be the usual way to go by the government.
I do feel though that the present situation in the NHS is unsustainable and that this time commonsense will prevail. With the public mood as it is, I can't see it any other way, no matter which party is running (is anyone) the country.

With a steady downturn in the sp over the last 3 weeks we need a good Trading Statement, with some definite sign of new contracts and/or increased sales to existing customers.

If we do not see some sign of such, more and more investors will ditch their investments and start looking for somewhere else to put their money.

It's no good having a good product if insufficient customers want it.

Still a fan of Deltex, but patience wearing a bit thin.

Yes I totally agree greekman, we seem to have been in DEMG forever and hopefully the month on month of increased sales (and therefore revenue) will have continued to date. Although it is money tied up, I am not looking to sell yet, the patience of Jobe is required here. The NHS does nothing in a hurry, even when it means saving money, time and lives, so we shall be in the waiting room for a bit longer yet.
2517

Surprised to see the Trading Statement his AM, it's a bit earlier than expected. It is the usual 'We are making progress report we have come to expect'.
As previously said, it is no good having an excellent product if you can't sell it, 'in sufficient quantities'.
The statement,'The Company expects sales for the six months ended 30 June 2009 to be approximately 2.6 million which is 5% higher than in the first half of 2008', is in my opinion, disappointing.
For a well established company, a 5% increase would be very acceptable, but for a company in Deltex's market position, they need to find a far bigger push than this.

The statement, 'Sales were held back in Spain following delays in setting up a major government-led assessment of CardioQ-ODM, with a projected sales value to the Company in excess of 250,000, and deferral of a large international order', still could bode well, but orders like these MUST start coming through soon or Deltex will loose many more investors including myself.
But for the time being, I will stick with it, at least to see if we end 2009 in a better position than we are now, and that mentioned 'international order', comes through.

5% sales growth is pretty awful, imo, for a company in DEMG's position.
It simply is nowhere near good enough, best thing would be if a larger group with the right resources to push CardioQ out took them over.

If this was a patients chart, it would look like they were loosing blood pressure and possibly bleeding to death.
If Deltex do not get some more orders soon, they might be joining the patient.
Not de-ramping this share as its the biggest holding in my share portfolio, just trying to face facts, as becoming more disillusioned by the day.
I am comparing them with another of my holdings that wandered along a lonely road at snail pace (PTI). They had a fairly good portfolio of drugs, but needed a company with more clout to push things along. BTG took over and since then momentum has increased at a far greater pace. Perhaps it really is time for Deltex to succumb to one of the bigger players, something I has said many times I did not want to happen.

Hi greekman

Lidco (LID) have got a decent announcement out today re US tie up, involving up-front cash payment. Not good for DEMG, I feel.
Looks like this lot have run out of steam.

Hi Notlob,

Just released..... Deltex Medical Group plc ('Deltex Medical' or 'Company'), the global leader in oesophageal Doppler monitoring ('ODM'), announces the publication of a new clinical study which establishes its CardioQ-ODM product as the reference technology against which to compare alternative approaches to measuring haemodynamic variables.

So yet another posative publication. As with many such annoucements, you would expct an immiediate rise in the sp. Whilst I apreciste it has only just been released, the sp has a habit of moving pior to such releases, (don't mention leaks of course).

But I doubt the sp will move on this news, as we know the CardioQ is a no brainer. But we also know those in the dessision making departments, have very little, (brains that is).

Sorry re spelling errors. Spell checker throwing a wobbly.

The following sentence is heartening, but as we have said many times, increased sales are what's needed. 'Both studies showed that the PPWA data did not correlate closely enough with the ODM data to allow PPWA to be used as a substitute for ODM.'
2517

All trades today are sells, all well below offer price. This following a week of going nowhere but down.
If either a substantial contract or hint of a take over/collaboration does not happen soon, I might well abandon ship. The problem being that as soon as I do, sods law states we will see a contract to end all contracts in the history of Deltex.
I just wish I had, had the bottle to sell back in last September at 20p.

I am trying not to panic but it ain't easy (I am beginning to feel like Corporal Jones out of Dad's Army, 'Don't panic, Don't Panic' mind you perhaps a bit of cold steel might just be whats needed, 'They don't like it up em, you know).

Probably too bloody late to sell now to make much difference, as they can't go much lower, can they, can they!

Yes!

Halifax,

Thanks very much. I was hoping someone would post something positive, but after your 1 word of none confidence will have to take even more valium and have another lie down.

But seriously, I feel your 1 word post is probably right.

Strangely enough I have over the last few days been looking deeply into one of my other shares (a review), which although in a totally different sector, appear to be in parallel with Deltex's progress. Both with 100% proven products that save money (the other company is not into life saving products) but just can't sell. Both are small and don't appear to have the push of the bigger boys.

Another of my micro size companies was taken over by a bigger player about 6 months ago (something at the time I was against) and apart from the expected blip has not looked back.

A lesson there perhaps.

Greekman you should consider whether these smaller companies are being run for the benefit of the shareholders,their directors,the creditors, their customers,etc look at the profit and loss account and see where the revenue has gone.

Call me a cynical b*****d (which I am, cynical that is), but all Ltd companies, big, small or indifferent are only run for the benefit of their directors. If the shareholders make any money it is as way of a by product.

But of course all companies start small and a few make investors very rich, Microsoft as just 1 example.

Halifax, I am willing to give this particular management team the benefit of the doubt, not that I know much about them other than response to email has been swift and courteous. Personally I think it's all a question of 'take-up' of the Cardio Q from various countries' health services, and whilst the growth mentioned in the recent rns was disappointing to say the least, what do we know of these countries healthcare budgets and their workings? I shall pick up more DEMG if they go sub 9p (despite saying I was fully loaded with them) Good luck all.
2517

Look at the P&L a/c,in particular the admin expenses and sales and distribution costs there is no chance shareholders are going to make a return on their investment, this company is being run for the benefit of those other than the shareholders.Don't invest.

2517George,

Like you I have always found their response to e-mail enquiries to be swift and courteous.
It is not that I don't think the Deltex Management or Sales team are not doing their best, more like it is small fish playing in a too big a field (a mixed metaphor if ever there was one) full of sharks.

Sometimes it is easier for a large name powerful company to sell a poor product, than it is for a small name less powerful company to sell a good product.

Just imagine if Johnson & Johnson, GE Healthcare, Zimmer, Smith and Nephew or any of the other multi billion pound medical device supply companies had produced and marketed the CardioQ, who would doubt that it would probably now be in most the worlds hospitals.

Powerful companies, great product.

Interims in about 3 weeks, topped up as planned @ 8.9ish.
2517

OK sales up yet again, so on the whole good news.
If you also look at the operational highlights, again it looks very good.

But and it's a big but. Cash flow although being reduced is still flowing out at a faster rate that it is coming in.

With total cash available of 750,000 the following comment from the results to my mind is the most vital one, which must be achieved, as if Deltex go back to the money markets and/or us they could have difficulty raising more funds without having more than promises, of jam tomorrow.

'The Company's key operational objective is to go into 2010 having passed the cash break-even point'.

So I hope the end of 2009 is the start of Deltex going into profit. If not it could signal the end of the company in it's present form.

The results on the whole look like a 'Steady as she goes' message. I just hope there are no icebergs in the way.


All IMHO obviously.

Price dropping yet again, so what did I do. Topped up a bit. Must be mad, but just got a feeling.
If my recent dealings are anything to go by, now just watch it really dive.