The companies in the portfolio have matured over the past year. Rise in turnover is more a topic today than a year ago, and sales becomes increasingly a share price driver. Having just ended third quarter, the report season is up and interim reports will soon start ticking in. In general, smaller companies report later than large cap companies. The majority of the companies in my portfolio will report in the last half of November. Only Heliospectra and Recyctec will report in October.
The companies listed marked with a star (*) are companies where rise in sales and profit influences the share price. The most mature company in this group is Fortnox, who even pays a dividend. Lately the share has gone up and hopefully the growth in turnover and profit will justify this steep rise.
The rest of the star marked companies are striving for breakeven. Judged by their own predictions Recyctec are the company closest. This week the company announced start of sales of EarthCare glycol and a turnover the first week of 300,000 SEK. In comparison the turnover of the first six months of 2016 was 882,928 SEK. There were problems at the production site during summer, consequently sales might still be limited in the Q3-report. Numbers will probably lift substantially during this fourth quarter.
On track to break even?
Personally I am quite curious on the report from Dignitana. The company reported unimpressive turnover in H1 (half of turnover in 2015), but with still more clinics acquiring the DigniCap system, turnover must start rising soon. October 4th the company announced five new, Californian clinics adding up to 47 clinics in total using the DigniCap system. By the end of July, the number of clinics was 32. From Dignitana and a clinic have signed an agreement until the systems are delivered, and the staff is trained some time will pass. By now deliveries made in the first half of 2016 must generate turnover on a steady basis. Since August the share fallen from above 20 SEK to below 18 SEK.
The next group is Heliospectra, Nexam Chemical and Phase Holographic. They all have rising sales, but are some distance from break even. Heliospectra has the highest turnover, but also the highest loss. Substantial lift is sales and turnover could influence the share price, but still main triggers are single orders or other business related events, more that sales.
The latest newcomer in this group of turnover generation companies is BrainCool who started sales in 2016 and had a turnover of only 240,000 SEK in Q2. In September the company received an initial order for the Japanese market of 10 systems. There was no indication of the price but depending on distributors margins my guess is that the order is approximately 1.5 MSEK worth.
Report season as non-event
At their current phase, reports from A1M Pharma, AroCell, and Cantargia will show no turnover and the reports will be a non-event. I only keep an eye on the burn rate and compare it to cash level. Apart from that all interesting information occurs between the reports. CybAero only reports half and full year.