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

yep, sure is. An increase of double the amount of probes by this one hospital, over the next 6 months.
Great news. Has the snowball started to gather pace. I believe so.

The 4 none exec directors and the 1 exec have taken shares once again in lieu of salary.

Ewan Phillips has taken share options in place of salary increase, that on a rough work out look to be about a 5th less than if he had taken cash . So he has faith that the sp will increase by at 'least' a 5th from todays price by 2020!.

Heck if they only go up by that much in 10 more years, I will be long out.
So that don't tell us much does it.

We really do need something to happen.

If you and I buy another million or 2 that should do the trick, greekman.
2517

I could go about another thousand quids worth, so if you can make the balance we are on.

That's a bit onesided so best left to someone else then.
2517

In answer to a post on iii re is the CardioQ technology not as good as it was thought, is it the management strategy that is holding sales back, or a bit of both I posted the following.

The Cardio system has been round for several years, not sure if its as long as 12, but if not it is heading that way.
Also as I posted not long back, other technologies are gaining on the deltex technology, and if they (deltex) don't get their finger out they will be left behind.
Technology is always being chased.
What next, another improvement say the CardioQ+, which would then have to go through several trials, which again would leave competitors another chance to overtake the Deltex system.
I am sure it is 'not' the product but the marketing strategy that is at fault as I just can't see any possibility of the 65 plus clinical trial reports being wrong.
These reports have consistently proven that the CardioQ saves, lives and money. What more can the customer ask for or want.
In the fable the tortoise always beats the hare. In the real world this just doesn't happen.
The management and investors have held onto the dream for far too long. We need to weigh up the cold hard facts and act now before our dream turns into a nightmare.

We are told we are nearing the finishing line, and yet the nearer we get the more nervous/frustrated I get.
My confidence should be growing, not wilting away.

Trading Statement.

Don't want to knock a company that has increased sales in all areas, but I am still somewhat doubtful that sufficient sales growth is available for them to make the deadline. The deadline to me being into profit before the money runs out.
I have allowed this share to make heart overrule head several times, so trying even more to look at the facts.
Still going to be a struggle, re the aforementioned deadline, but I must add, I am a tad more confident than I was before the trading update.
So for me it is still a hold.

It goes to show how interest in Deltex is waining. I would have expected far more posts following such a statement.

Still confident but due to this mornings sp feeling a bit negative.
Once again the sp is 1 step forward, 1 step back.
There have been as we know over 65 positive results re the CardioQ, resulting in an sp that has dropped over the last 8 years, 2002 = 26p/presently 10.25p. It must go to prove that substantial orders and nothing less will move the price.
It appears we could receive positive RNS's every day for a month and the only effect would be a temporary uplift followed by the usual, expected downside.
It goes to show that investors have become numb to such news.
It is a case of, 'Not another RNS' that does not state a large order.
Time and investors are running out. Management must do something.

I am a great fan of 'Dragons Den'.
Time after time we see people who have great ideas, projects or/and products. Their main problem by far is getting attention from prospective customers. Often the product is not known, as the initial task of getting the foot in the door has been impossible, but equally as often is when they do manage to get that door open, it is shut in their faces.
Enter the dragons!.
Same products, same doors, different marketing, for different read aggressive.
Probably an over simplification, as obviously Deltex are not an unknown individual, but a well established company but to my mind, the above analogy says it all.
Deltex need a dragon.

It looks like Deltex are a bit like this thread, just a couple of people (are you still there George) talking among themselves.

g
re your post 722. are they short of money? i have to confess i know a little but only a very little about fundamentals and such. EP taking share options in place of salary increase? or in place of salary? as you state the4 non exec and 1 exec have done so.
that to me is not a sign of confidence but more sign of cash shortage. but as i said i know little of such things. maybe someone might be able to shed some light on this.
that apart, a short term bounce might be in order according to the daily charts rsi divergance but i reiterate my post no.714 p36
i'm far from a dragon, but i'm out. until price proves itself.which is the same as the company proving itself.
good luck and regards
jkd
edit proving itself (capable that is)

Greekman--------yes still here, number 2 daughter got married last saturday so been otherwise occupied. Much that we have said about DEMG over the last few years is still relevant today, so I don't want to repeat myself. The choice is either stick with it (my option) or move on to other co's. Good luck
2517

Hi Jkd,

I think the share option question is a bit of both. Confidence on the part of those taking the options, as they can not be forces to take options over agreed numerations/bonuses, and it is better for the company as it will save them cash. Of course it slowly dilutes the value of our holding, but not by much.
From all the news releases over the last 12 to 18 months their cash position should at present burn rate last at least to the end of 2010 and possibly into the second quarter of 2011.
The indications are that sales are increasing to the extent where 'if' they continue at the current rate, the cash position will turn to positive inflow before it runs out.
Not wishing to go over old ground, suffice to say, I still feel it will be a struggle to reach cash positive.

Hi George,

Like you still sticking with it, but will review end of this year.
As to your second daughters wedding, I have only one daughter, married now for 5 years, so I appreciate you could do with Deltex to get moving to help cover the cost.

Regards Greek.

Greekman----2010 was make or break year for DEMG I think we agree'd, (I said the same of CRA), like you will decide later. Any sp rise would be welcome of course.
2517

I have been giving the, 'Deltex go it alone or partner' question a lot of thought of late, coming to the following conclusions.

In my opinion, Deltex have only 3 main options.

Option 1. They will continue to try to go it alone, and make it.
Option 2. They fail re option 1, reaching a stage were they are forced, to go to either to the market or a none market loan to survive, which could work out or not.
Option 3. Having failed in option 1 then either failing to raise further cash, or having raised extra cash that also runs out, then they would have no other option except to find a partner or sell the patents/business.

I would much prefer option 1, but at least if that option does not work out, they will have 2 alternatives, so at least can see a return of valuation equaling at least todays sp.

So on that, feeling a bit more positive, as the Deltex Management might be forced by circumstances to go down alternative roots.

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.