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Mark Allery's avatar

Hello Boon, Mark (Illiswilgig) here. I've just headed over from Stockopedia. Great idea to open a substack - I may have to investigate doing the same. I intended to read your 2023 summary then I noticed this article. Very interested to see that you have bought back into ZYT. I still hold.

Generally I agree with you. Out of favour - Neglected - Big potential opportunity - Low cost base - Operational Leverage and Piles of Cash to execute. But will it succeed? Is always the question. I have a hard time making up my mind. I don't think its fair to lay the blame for global overstocking and the chapter 11 proceedings of a customer (I see Quixant, now Nexteq also took a $0.9m write off for probably the same customer) on management. But I'm equally unsure what they are planning to do differently to turn things around?

I rate the management, CEO, FD and TD, and feel the company is well managed, finances conservative and production facilities and processes first rate. I feel that there may have been a gap in the business development, sales, order process chain. Which has led to mediocre orders from a big potential opportunity pipeline. Not an easy thing to fix as its not under ZYT control which products that they succeed in getting designed into then go on to blockbusters? I expect that the business development & sales process is probably where the new CEO and NED (who is the largest shareholder) are putting their effort. I'm looking for signs that its going to pay off?

I had been hoping the price would fall a little further for me to top up at a bargain basement level. Like you I've been interested that its refused to sink any further after the update. I don't see much if any downside from here. Perhaps its already at the bargain basement?

Thanks for posting this - and cheers,

Mark

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