PPK - PPK Group

[piggybank]

Announcement yesterday - http://stocknessmonster.com/news-item?S=PPK&E=ASX&N=776617

 

[piggybank]

 

[greggles]

PPK Group has taken off in the last couple of weeks and I missed it all.

On 13 November the company announced that it will acquire AIC Investment Corporation Pty Ltd (AICIC). The announcement reads as follows:

Strategic Acquisition of AIC Investment Corporation Pty Ltd (AICIC)

PPK Group Ltd (PPK) is pleased to announce it has signed a binding Heads of Agreement with one of Australia’s leading technology incubator and commercialisation companies, Australian Innovation Centre Pty Ltd (AIC), for the acquisition of 100% of AICIC.

AICIC owns 50% of BNNT Technology Limited, a joint venture between the AICIC and Deakin University of Victoria to commercialise Deakin University’s patented Boron Nitride Nanotubes (BNNT) Manufacturing Technology. Over the past 10 years Deakin University has developed the world’s only known technology for manufacturing BNNT in bulk therein enabling it to open world markets for this unique and highly sought product. BNNT Technology Limited holds a 20 year exclusive licence over the BNNT manufacturing technology

The acquisition is taking place in two stages. Firstly through an initial funding of AICIC through a $3,600,000, 3 year secured loan and then by a placement of 10,100,000 shares at 35c a share to raise $3,530,000.

For those interested in the Boron Nitride Nanotube technology take a look at the following YouTube video:



Looks like there could be a lot of potential here. The last couple of days have seen PKK really take off since the AGM on 27 November and it has increased in price from 50c to 85c. Small market cap and tight register means there could be more short term share price gains to come.

 

[barney]

Going like a house on fire!

 

[Statim]

I have been looking through this and other forums to see where the buzz on PPK is at and I see a few early Investors here jumped in, in November 2018, Share price high on the 1st of November 2018 was 32 cents As I write this blog it sits at $2.81 with an intraday high of $2.90 That's a whopping circa 800% return in 7 months!!!!! My blog title says it all it's not that "the sky is the limit" it is the fact that "space is the limit", BNNT (Boron Nitrate Nano Tubes) which PPK bought 50% patented rights for a new revolutionary technology created by Deakin University will for the first time continuously produce high-quality BNNT's. All previous BNNT production technology has only produced BNNT's in small batches. This new super material will not only help take men to Mars but will also shield them from radiation. Sounds out there, doesn't it? "Mars missions" but that is what NASA is saying (watch TED talk here). Forget Mars, when understanding the true potential for BNNT as an additive to other composites to improve their qualities suddenly you see all the other markets it opens up from Medical, Automotive, Aeronautics, Battery Technology etc etc you can see why suddenly the market is getting a hold of this stock and it has soared without any major announcements. Its tightly held, so hard to get any decent volume but I suspect when some positive announcements on first production and sales enter the market PPK will only triple in value when you consider the cost of high-quality BNNT is $900K per Kilo. My back of an envelope calculation suggest that at a one Kilo per day production over a 261 working day year yields PPK $235M of yearly income, albeit I expect the price to reduce on larger production quantities but even still 50% of this number is very impressive. DYOR and see for yourself where this can go, good reference points are;


1) Boron Nitride Nanotubes: Properties, Synthesis and Applications

2) Synthesis of boron nitride nanotubes and their applications

3) BNNT Applications

4) Rare Earths & Boron

5) PPK reckons it can commercialise a world-changing ‘super fibre’

6) The first successful 3D printing of BNNT titanium composites at Deakin University in Australia


Yes, I hold this stock and I am bullish, I see the potential and the upside but always willing to listen to opinion. With hardly any sellers currently and plenty of buyers and no significant announcements, I think this has still plenty of upside.


Thoughts are always welcomed

 

[martaart077]

Ppk announcement today regarding production of Bnnt. Appears to be going along nicely. If all goes to plan could be producing commercial quantity by years end.

 

[martaart077]

Ppk going for a bit of a run today as the realization of Bnnt production nears.

Recently had good annual report.
Turning a profit and paying a div.
Little to no debt with highly liquid assets to fund future growth.

Partnering with Deakin Uni and on the cusp of realizing the manufacturing of Bnnt in commercial quantities.

Bnnt has many exciting and important applications. Australia the clever country.

 

[martaart077]

For those interested. Following is a link on ppk and commercialisation of Bnnt.

https://www.google.com/amp/s/stockh...if-its-super-fibre-can-be-commercialised/?amp

 

[Klogg]

Note26 in the annual report is very interesting.

Basically they've recognised a contingent liability in full, because they believe there's a 100% chance AICIC will earn 20mil EBIT in the next two years. Which means the BNNT operation will make at least 40mil.

 

[martaart077]

Not many sellers
Share price been on the up
Hanging on for expected confirmation of the manufacturing process

 

[martaart077]

Today's announcement on asx
Manufacturing plant up and running
Just got to tweak the process to produce the desired outcomes.

 

[sptrawler]

Today's announcement on asx
Manufacturing plant up and running
Just got to tweak the process to produce the desired outcomes.

Hopefully they can get the product purity and volume, then keep the manufacturing in Australia.

 

[Klogg]

Hopefully they can get the product purity and volume, then keep the manufacturing in Australia.

With a low AUDUSD and BNNT priced in USD, I'm sure they'd be happy to do that.

But they may also license out the technology to others.

Either way, they're providing value.

 

[galumay]

There is a lot of blue sky baked in, its one of those businesses where you really have to have conviction in the narrative because there is nothing in the existing business to support the sort of price it gets from the market.

I haven't researched it enough to develop any conviction, but I suspect its worth some more looking on my part.

 

[Country Lad]

Nice to know the process is working. I would be interested to see the purity results because if they were satisfactory I would have expected the announcement to say that.

 

[Klogg]

There is a lot of blue sky baked in, its one of those businesses where you really have to have conviction in the narrative because there is nothing in the existing business to support the sort of price it gets from the market.

I haven't researched it enough to develop any conviction, but I suspect its worth some more looking on my part.

Took me far too long to get comfortable with this, given I was told about it sub $2.

For me, the key points here are:
- Global market for BNNT is approx. 40kg annually (growing at ridiculous rates)
- Market price for BNNT is about $1.1m USD ($1.64m AUD) per KG
- AIC technology (50% PPK owned) can produce this at approx. $200k AUD per KG
- Theoretical maximum capacity of current technology of 1KG per hour
- Technology to do this costs approx. $4m from my understanding (not firm on this point)
- So on gross margin, this thing pays itself off in less than 4 hours at current market prices, give or take.

PPK must make $334m worth + cost of capital to justify the market cap (minus the coal business, which is probably about $40m tops, lets say $34m). PPK's share gross profit per KG is about $670k, that suggests they need at least 447kg sold to provide for this.

Given the patent is good for 20 years and producers currently can only make grams at a time, this seems very possible. In fact, I think the market would grow significantly once supply is more readily available. That said, price should drop a little (although not too much, because they've just established a serious advantage)

 

[martaart077]

Announcements out today
Capital raising plus market presentation plus deepening cooperation with DEAKIN to develop bnnt applications.
Market seems to like it

 

[Klogg]

Announcements out today
Capital raising plus market presentation plus deepening cooperation with DEAKIN to develop bnnt applications.
Market seems to like it

Interestingly they raised at a discount ($4.25), but it's priced now at $4.90.

Thinly traded, so anyone trying to build a decent position pushes the price up.

I built a 2% position back in September at about 3.08, and the thesis is playing out. Really need to confirm production volumes and see how that effects the market price of BNNT.

 

[galumay]

I need someone to publish a strong short thesis on this one!!

 

[Klogg]

I need someone to publish a strong short thesis on this one!!

Ask Tony to do it. I think he wants to add to his position