Truscreen

[LoungeLizard]

Some good news regarding the new Zapco contract for SUS supply and the estimate that sales will rise to over 200,000 units this year. I wonder if there will be a spate of positive announcements as a prelude to another cap raise?

[Hectorplains]

I guess if you're not generating sales then you have to resort to rather meaningless releases about supplier arrangements to create some noise. 

https://www.stuff.co.nz/business/opinion-analysis/63325538/tech-company-leftovers-lose-share-appeal
The history of this thing should be known to all here.  Chalkie's 8 year old piece still holds true. 

[LoungeLizard]

I guess if you're not generating sales then you have to resort to rather meaningless releases about supplier arrangements to create some noise. 

https://www.stuff.co.nz/business/opinion-analysis/63325538/tech-company-leftovers-lose-share-appeal
The history of this thing should be known to all here.  Chalkie's 8 year old piece still holds true. 

Not sure if it is meaningless if it means production costs are reduced. And the media release does mention an increase in SUS sales to 200,000.
But I get your point - Truscreen are going have to have a seriously good year if they think they can go to the market again. A cap raise would have to be seriously discounted to draw in investors and at 5c how low would they have to go? And how many tens of millions of shares issued? Can't help but think they need to explore partnering with a bigger Chinese outfit.

[Hectorplains]

And the media release does mention an increase in SUS sales to 200,000.

 You've misread the announcement: It's 200 000 units not $US. 

[LoungeLizard]

You've misread the announcement: It's 200 000 units not $US. 

TruScreen CEO Juliet Hull said: "the SUS usage is a key consumable component impacting on the financial performance of TruScreen. With SUS demand growing, year on year from greater placement of our screening devices in the market and expected to be well over 200,000 units this year, any improvements in manufacturing yield and process can make a material contribution to our bottom line.

You were saying that the announcement wasn't about generating sales. The above quote refers to 200,000 sales - up about 80,000 on the previous year. That represents a significant uplift, but as I say, they need stop burning cash and quick.

[Hectorplains]

TruScreen CEO Juliet Hull said: "the SUS usage is a key consumable component impacting on the financial performance of TruScreen. With SUS demand growing, year on year from greater placement of our screening devices in the market and expected to be well over 200,000 units this year, any improvements in manufacturing yield and process can make a material contribution to our bottom line.

You were saying that the announcement wasn't about generating sales. The above quote refers to 200,000 sales - up about 80,000 on the previous year. That represents a significant uplift, but as I say, they need stop burning cash and quick.

The SUS seem to generate about $30 a piece?  That's my back of the envelope calculation based on sales revenue in the annual report. 

[Left Field]

Sorry folks, but I find it hard to get enthused with this company supposedly doing well in countries such as China, Vietnam, Mexico, Saudi Arabia and Russia.

https://www.nzx.com/announcements/412287

Highlights
• Despite COVID interruptions in China and Vietnam, product revenues were in line with prior year, with 7% growth in H2 YOY
• Device sales up 88% YOY with 49 units spread across China, Vietnam, Mexico, Russia. Device installations increase by 15% YOY to 217
• Major breakthroughs in China with recommendations in joint peak organisations Blue Paper and CSCCP Guideline
• Outstanding clinical results from Saudi Arabia clinical trial

IMO HUGE credibility issues plus over $33 mill in accumulated losses. GLHs.

[Ferg]

Truscreen have announced a 1 for 3 rights issue at 2c per share.

https://www.nzx.com/announcements/426038

At $2.8m this is a very small capital raise...

[Hectorplains]

Truscreen have announced a 1 for 3 rights issue at 2c per share.

https://www.nzx.com/announcements/426038

At $2.8m this is a very small capital raise...

This article from Chalkie is nearly a decade old.   It was a most prescient warning at the time... and much of it still holds true.     

[LoungeLizard]

Truscreen have announced a 1 for 3 rights issue at 2c per share.

https://www.nzx.com/announcements/426038

At $2.8m this is a very small capital raise...

It was expected that they would need a cash injection this year. A recent announcement implied that they are close to being cash-flow positive so maybe that's why they've determined that only $2.8m is required?

[lorraina]

https://stockhead.cmail20.com/t/d-l-skildht-yupddjlly-b/

[LoungeLizard]

https://www.nzx.com/announcements/467223

I wonder if Truscreen is about to follow PEB and get included in the Chinese medical guidelines and then be integrated into public health screening programmes? Huge potential if that is the case, but investors have been waiting a long time for potential to become reality

[Left Field]

https://www.nzx.com/announcements/467223

I wonder if Truscreen is about to follow PEB and get included in the Chinese medical guidelines and then be integrated into public health screening programmes? Huge potential if that is the case, but investors have been waiting a long time for potential to become reality

On the face of it, the research could be good, however I suspect the market places a question mark over the credibility of the other markets that Truscreen have chosen to operate in.

[LoungeLizard]

On the face of it, the research could be good, however I suspect the market places a question mark over the credibility of the other markets that Truscreen have chosen to operate in.

Yes, I can't understand why a small company like Truscreen decided to spread itself so thinly across the globe. It would have been much better to focus exclusively on China ( maybe Vietnam as well). Any reasonable share of the Chinese market would have generated the revenues and profit necessary to go into other countries later.

That said, this announcement could prove to be significant if the Chinese Health authorities come to endorse Truscreen as a valid screening tool. At the moment it's all a bit ad hoc - a few hospitals in a few provinces

Not getting my hopes up, but would like to see Truscreen succeed as I think they have a very good product that will save a lot of lives if it gets any kind of traction .