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

From The Sunday Telegraph.

Several years ago a Mr Brain invented a 'Laryngeal Mask' to manage patient's airways during surgery. Looking for investment he approached many medical companies, they all turned him down!
A Mr Gaines-Cooper, a wealthy businessman decided to back the idea.
The product became LMA a listed company with annual sales of over $100,000,000, and has been used in 300,000,000 operations.
I appreciate that the LMA product was suffering far more from lack of backing and cash than Deltex's CardioQ, but it sort of gives an example of how a product that could not get accepted due to lack of interest by prospective customers became a success when someone with clout (Mr Gaines-Coper is a Seychelles billionaire, with a conversion rate of 1 to 21 Seychelles Rupee he is a very rich and powerful businessman).
As we know the CardioQ has undergone multiple trials/tests that have shown it to be, as we often have said, a 'no brainer'.
It is also more on it's own as a surgical tool, compared to the laryngeal mask that had competition and was not such an innovative product as the CardioQ, as there were similar masks already in use, but presumably not as good or/and as practical, re cost and efficiency.
So the above although in many ways not relevant to the CardioQ's difficulty, it does show an example of a medical product that presumably due to its now widespread use, ticked every box, but never got off the ground until doors were opened, and due to the power of a businessman with clout, people listened.
I would calculate that if the CardioQ was used in 300,000,000 operations, the profit side would look very good indeed, far exceeding that made by the 'mask', and as we know the CardioQ can also be used post op.
Just think of the number of CardioQ monitors plus probes for that many operations.

As near as I can calculate from the companies latest results 1 set, which consists of 1 mask and all accessories costs about 80. Each mask being disposable, one use only.

Gross profit for LMA in 2009 was $67 million, although they now produce a few other medical devices.

I have a dream,

Have a bad feeling that the NHS is just sitting and waiting to see exactly how much their funding is going to be cut (we all know, it will be as they say, 'in real terms').
I think they are just looking at where they can cut, instead of looking at how they can save money by spending it on cash saving innovations, such as the CardioQ.
I feel regarding the NHS we are in the doldrums, just treading water, waiting for any sign of movement.
I only mention cash savings, as I feel saving life is increasingly taking a back seat, to the bean counters.
I must though share this with you, then please ignore it.
Last 3 nights I have had a dream (no not quite of the Martin Luther King type) that Deltex are getting ready to release news of a couple of major contracts. I would have dismissed it, but 3 nights in a row!
Strange, I know but true.
But there again, I often dream of waking up next to Angelina Joelly.
Can't make my mind up, which dream I would like to come true.
Mind you, I know which one has far more chance than the other.
Apologies to those who feel the last part of my post is frivolous, but it just won't go away. The Deltex dream I mean.

Deltex Medical Group PLC

FORECASTS 2010 2011
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Arden Partners
15-09-10 BUY -0.40 -0.30 0.30 0.20


(hemscott premium)

41p SP target................................
http://www.edisoninvestmentresearch.co.uk/researchreports/deltex220910update.pdf

another broker note out this time SP target 29p.

http://www.equitydevelopment.com/downloader/772

I 'tend' to agree with the broker analysis.
But with only 1 rns (the trading statement) in the last 3 months, I am becoming more and more inpatient and frustrated.
I know the NHS works at a snails pace but it is about time we started to see some orders from the Nice report we saw on 8th June, nearly 4 months ago.
No doubt the Deltex team are doing their' best but as often been mentioned on here, is their best good enough. Are they too small a fish to survive alone in the big pond they are playing in.
Deltex by size is a lightweight company, perhaps it is getting very close to the time that we need a heavyweight to put some punch into the sp.
The report mentions, Our model assumes that, once the group moves into profit, roughly half of incremental gross profits will be reinvested in the business in additional sales and marketing resources and R&D [research & development] to drive further growth but this would still allow rapid improvements in profitability and cash generation,
It is alright pumping cash into R@D (I am a great believer in R@D investment) , but what good is this if any improvement in the CardioQ device takes as long to filter through to the medical profession's radar as the current one has.
Does this mean we plod along in the slow lane for yet another few years, perhaps in profit, but making thousands not millions.
So I still have hope, but every time I see another week go by without a sales RNS, I see more clouds than blue sky.
Perhaps thats it, perhaps its the depressing weather, darker mornings that are getting me down.
I will try to stay positive, but it ain't easy.

O ye of little faith. Only joking gm, we've been patient with these and ticking up nicely the last week or two.
2517

Hi George,

Just thought I should state my position as regards Deltex.

I need the sp to reach 22p to break even, so you can see I am well down.
So I will stick with it for at least 6 more months to see if they can 'get into profit'.
I should have sold when they reached the dizzy heights of 33p in Oct 2004, but hindsight as we know is a wonderful thing (if only there was a financial site with hindsight as an investment tool).
It was not until the sp dropped to sub 20p that I realized I had allowed heart to overrule head. Still we live and learn.
I said about 6 months ago that the next 12 months would be make or break, I still believe that, so will wait, watch and see.

Agree they are ticking up nicely. It ticked up within a couple of minutes of my last post. If only my posts always had that effect.

Regards Greek.

Nice to see volume up, especially as it appears to be chasing the price up, not following it, last 2 reasonable trades at full buy price. Not high volume, but recently we have had a few days with no trades on either quoted market.
Could there be an institutional buyer sniffing about?

Still going up. Most buys at full price. Over the last few weeks, sells have easily outnumbered buys in volume. Surely someone knows something or a big order waiting to be filled. Anyone read this differently?

NICE positive, looking better all the time now.
2517

Not a bad day here.
2517

Greekman, I'm with your stake-level; it can't be long now.
My worry presently is that they are concentrated on a narrow product line - sure they are probably No1 in this - but it's a risky strategy IMHO, and when I bought I thought they were going places - - - - not more of the same. . . . however good.

Of course they slipped with the Market-generally and now probably represent a forward-stepping investment . . . .

Hi Hangon,

I do take your point in the fact that Deltex are a one horse product company, which as you say can be a worry, but as the CardioQ does not in my opinion have any worthwhile competition, that is not one of my worries. Look at Dyson who concentrated for years on a single product and did not diversify until that product had made him many millions. Lets hope the Deltex story matches the Dyson one in more than similar name (well they both begin with D).
Most on here know I have been moaning about the company not being strong/powerful enough to go it alone. Well whilst I still think they could have got to todays position quicker with the right partner, I am taking nothing away from todays announcement.
There have as you say been many, 'more of the same' statements, but I don't think todays is one of them. Todays RNS has to be the start of something big (we are in trouble if it isn't).
So a very well done to Deltex and their management team.
Nice (no pun intended) to be right for a change re my post of Friday mentioning, 'Surely someone knows something or a big order waiting to be filled', no doubt after todays news, institutions will be as I said be sniffing about.

Goldfinger, I don't understnad your post. QUOTE:

goldfinger (737)

Deltex Medical Group PLC

FORECASTS 2010 2011
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Arden Partners
15-09-10 BUY -0.40 -0.30 0.30 0.20

UNQUOTE

I'm trying to split the lines up into the right number of bits

Date 15-09-10
Rec BUY
Pre-tax () -0.40
EPS (p) -0.30
DPS (p) 0.30
Pre-tax () 0.20
EPS (p)
DPS (p)


But the second line (with all the numbers in it) doesn't have the right number of parts to match the headings in the first line. So can you please tell us which bit goes with which other bit.
Thank you.

Very rarely if ever put my neck out by trying to forecast any companies future sp, but as I feel more confident in Deltex than I have for years, I will do so.
Due to the fact that Deltex shares held steady in the second half of 2006 at around the 17p mark at a time when it looked like they were going nowhere and again for several months around the 10p mark in 2009 when it looked like they were fully stuck in a rut I feel that with this latest news the sp will be around 20p by the end of this year.
I also feel there could be temporary retractions from todays sp, especially if news of contracts do not quickly follow, and as always there will be profit takers.
So yesterdays news must be well worth yesterdays closing price, with surely this now showing on more radar screens than ever, generating further interest.
So as said, I am now very positive of at least a 30% rise within 3 months.

Just noticed, Deltex is now showing on Proactive investor, USA and Canada edition, reporting the latest RNS and resultant sp rise.

Realised some profit, may struggle short term.
2517

So an institution was sniffing about. Gartmore have increased their not insubstantial holdings. OK not by much but it shows confidence. No doubt there is more to come.

Published on 5th Oct in Medical News Today and released on line to subscribers of this publication today.
It more or less is a repeat of what was released in the RNS, but as this is a major medical publication, it will go further in pushing the name Deltex and the CardioQ.
Its not very long and worth a read.
http://www.medicalnewstoday.com/articles/203417.php

Added my comments to the above site. Hope others do the same. Not so vain as to think my comments will sway anyone from the medical world who may read it, just like to put my sixpeneth in.