NAN - Nanosonics Limited

[Trav.]

@dutchie looks like my chart agrees mate.

Chart below confirming your view but more for me practicing with the software.

 

[dutchie]

@dutchie looks like my chart agrees mate.

Chart below confirming your view but more for me practicing with the software.

View attachment 117914

Yes. I use Amibroker, what do you use?
Small gap above may be filled before heading down again (ABC correction).

 

[Trav.]

Yes. I use Amibroker, what do you use?

AmiBroker is my main software, but I have recently purchased Dynamic Trade and the image above is from that.

 

[Dona Ferentes]

Mirrabooka has added NAN to the portfolio in its small cap LIC. As in the Half Yearly, out today, commentary was along the lines:

.... and Nanosonics (infection control and decontamination products), we have followed progress in these companies that meet our quality thresholds for many years. These were added to the portfolio during meaningful price dips that have since recovered.

Acquisition Cost $3,606,000

 

[Dona Ferentes]

Mirrabooka has added NAN to the portfolio in its small cap LIC. As in the Half Yearly, out today, commentary was along the lines: Acquisition Cost $3,606,000

And big brother has taken a position

AFI added NAN to its portfolio, tipping in $21.5 million during FY21.

Activity in the portfolio was focused on consolidating the position around what we have assessed to be high-quality companies with strong industry positions. This comprised exiting some holdings to fund purchases in existing and selected new holdings

 

[peter2]

NAN presents a nice pull-back buying opportunity. The price of NAN has been contained in a huge range for the past two years. I've outlined the range in the weekly chart with an orange rectangle. When I see these large ranges I want to buy near the bottom or near the top, never in the middle. However there are always exceptions provided the probability for gains is high enough.

On the daily chart (right) you'll see the reversal break-out setup at 5.50 provided a great RR as the FY21 report was very good. Since that report price has drifted lower on slightly below average volume. Price tried to close the gap and has rallied. This is a good pull-back opp for me as the RR is acceptable if price can get back to the top of the range (7.50).

I'm anticipating that there are other instos that know of NAN's good report but missed out as the price spiked higher. They, like me can now buy at a lower price.

 

[So_Cynical]

NAN presents a nice pull-back buying opportunity. The price of NAN has been contained in a huge range for the past two years.

Was close to 5 bucks just 6 weeks ago, that was the opportunity, now the SP is closer to the middle of the range.

 

[finicky]

Who the hell is buying this flea-bag at ~10 x book value?

The CommSec analysts are encouraging - 'consensus' earnings out in FY24 is <0 .05, that's a forward pe fy24 of 85 if you believe them which I certainly don't. FY22 is tipped to be a loss by Commsec's anonymous sources. There are currently 3 strong sells for NAN against 3 strong buys. Someone said once that if a stock has a strong buy rec and a strong sell rec, believe the strong sell.

But really, the best ROE over the last 4 years is 12%. Throw out the strongest and weakest ROEs over 4 years, average the remaining two and I get ROE = 7. With the erratic performance of this stock and the negative guidance, I'd hesitate to pay 1 x book of 0.45.

And despite the strange rebound reversal recently, I suspect the chart could be heading for $2. Target is derived from the overhead height to support neckline at $5.

Not Held

Weekly

 

[rcw1]

Good afternoon
NAN copped a pizzlin by brokers thinking it was on Monday. SP dropped ... today see another broker in this case JPM raised to Neutral.
SP up 8.41% ha ha ha ha ha.
Not holding.

Have a very nice day, today.

Kind regards
rcw1

 

[rcw1]

Good morning
NAN 9.7% gain in SP. Very dynamic SP shifts...
Hafta be something to do with announcement today (19/01/23)

Nanosonics expects to report a profit before tax of $11.4m for the first half of the financial year compared to $3.3m in the prior-corresponding-period (pcp); moreover, total revenue for the half year is expected to be near $81.6m, an increase of 35 per cent compared with the pcp.

Not holding

Have a very nice day, today.

kind regards
rcw1

 

[Dona Ferentes]

​

first-half results​

• Revenue of $81.6 million, up 35%
• Global installed base of 31,120, up 11%
• Trophon 2 upgrades of 800 units, up 100%
• Total Trophon 2 units placed of 2,070, up 14%
• Gross profit margin of 78.9%, up from 76.6% on the pcp
• Operating profit before tax of $11.4 million, up 246%
• Free cash flow of $6.1 million
• Cash and cash equivalents of $99.3 million

 

[So_Cynical]

Market cap of 1.4 Billion with revenue of maybe 150 Million, PE ratio 141 - still has a lot of blue sky in the valuation.

 

[Dona Ferentes]

Nanosonics has swung to a free cash flow position after it completed its move to a new direct sales model in the United States.

• Revenue increased 38 per cent to $166 million for the full year,
• profit after tax rose to $19.9 million, up from $3.7 million a year earlier.
• Free cash flow for the year was $19.8 million compared with a net outflow of $200,000 in FY22.

The company attributed the bulk of its revenue growth to its new direct North American sales model and a boost in consumables and ultrasound and procedure volumes.

Operating expenses grew 26 per cent to $144.2 million, with $29.5 million spent on research and development.

 

[galumay]

Who the hell is buying this flea-bag at ~10 x book value?

No one tomorrow! After hours bad news announcement today, big drop in the already tiny profit. Wouldn't be surprised to see it open down 25% or more. Lot of room to drop when a business is so ridiculously over priced.

 

[galumay]

I was wrong, down over 30%

 

[growthgauge]

I have put together my thoughts here if you are interested to read : https://growthgauge.substack.com/p/asxnan-nanosonicsbetting-on-innovation

 

[finicky]

Reams of funnyanalysis - go gittim @galumay!
Hasn't reached $2 yet, lol

Not Held

 

[galumay]

Yup, i think the real fundamentals speak for themselves, its not an investible business IMO.

 

[finicky]

The S&P/ASX200 closed lower Friday, dropping 66.90 points or 0.85% to 7,814.40 after setting a new 20-day high. The bottom performing stocks in this index were NANOSONICS LIMITED and POLYNOVO LIMITED, down 6.31% and 5.45% respectively. Over the last five days, the index has gained 0.84% and is currently 1.21% off of its 52-week high.

Not Held

 

[Dona Ferentes]

today's update saw NAN move up but retraced losing half of the 10 per cent. But a long way back to earlier ra-ra.

.
Nanosonics Trading Update - H2FY24

During the second half of FY24, Nanosonics delivered strong growth in both capital and consumables/service revenue over the first half, particularly in North America. This was driven by additional customer offerings to bridge budget constraints, a number of organisational changes in particular sales territory realignments, and a growing pipeline together with improvements in sales conversion timelines.

Revenue
The Company expects to report total revenue for the full year of approximately $170 million.

Key H2 FY24 expected revenue highlights include:
• Revenue in H2 of approximately $90.4 million, up 14% when compared with H1.
• Capital revenue in H2 of approximately $26.4 million, up 20% over H1.
• Consumables/service revenue in H2 of approximately $64 million, up 11% over H1.

Units
A total of 3,850 trophon units were placed during the year, comprising 2,340 new installed base and 1,510 upgrade units.

Key H2 FY24 highlights include:
• Total units placed in H2 of 2,130, up 24% when compared with H1.
• New installed base units in H2 of 1,240, up 13% over H1.
• Upgrade unit sales were of 890 in H2, up 44% over H1.