TEK flash update

Still worth buying after a 20% rise?

TEK has risen from 9.5p to 11.5p in the past 2 months

As of 9th Sep 2023 the NAV looks like this:

LUCYD - TEK holds 5,189,086 shares @ $0.66 = £2.72m

BELL - TEK holds 15,138,767 shares @ £0.47 = £7.12m

Microsalt - TEK holds 97.2% = £13.37m

Guident - TEK holds 100% = £14.65m

ReVive - TEK holds $1m (book value of R&D) = £0.8m

Cash - ?

Total NAV = £38.66m

Market Price = £21.4m

So a 47% discount to NAV (NAV is based on today's stock prices for LUCY AND BELL)

Let's think what's happened in the past 2 months which has driven a 20% gain.... but only a 4% reduction of discount

1. BELL announces a (minimum) $55m contract with China. This substantially derisks cash flows for 2024 and beyond.

2. BELL announces a McKesson distribution agreement

3. BELL announces $15m orders with potential for many more

4. ReVive secures a ***paid*** proof of concept agreement with a tier-1 OEM (Revenue already)

5. Microsalt announces a patent for reduced sodium in breadmaking meaning less baking cost/time as well as improved health outcomes.

6. Microsalt announces overseas expansion and orders for the Phillipines of >100 outlets

7. Lucyd announces App improvements, new Blueshift Lens, new "Summer Collection" designs, carries off a success show at Miami Swim Week, and room for optimism in its Q2 report which I cover here.

Does the above progress justify a reduction of 4% discount or does the market still not appreciate the value here?

If you’re not sure let’s go 2 months further back to May - July 2023 and think on what progress happened then? (which led to a 36% drop in its share price)

1. Lucyd releases the Summer Collection at Miami Swim Week - Reigning for four decades as the swimwear industry’s leading tradeshow, SwimShow is the centerpiece of Miami Beach Swimsuit Fashion Show’s festivities. Held every at the Miami Beach Convention Center, SwimShow draws more than 7,500 swimwear buyers, manufacturers, designers, press, bloggers, influencers, fashion consultants, stylists, VIPs and other fashion industry leaders from over 60 countries.

2. Lucyd announces a partnership with Privato who operate 105 stores in Fixed Based Operators terminals FBO – It’s a terminal for Private Jets and their passengers. These FBO locations average 9,000 flights Annually with an average of 8.2 passengers per flight. FBO passengers are Ultra high net worth Individuals accounting for top .5% income earners globally

3. Microsalt expands to 8,331 new stores - 51 Fine Fare stores, 8 Trade Fair stores and 72 Big Y stores, through our partnership with US Salt. And on 17th May 400 additional U.S. retail stores including Brookshire Brothers, Pete's Fresh Market, Heinen's, Dick's Fresh Market, Zerbos, Better Health Market, Tdych's Marketplace, Associated Supermarkets and a number of other natural independent retailers across the country. And prior to that MicroSalt announced a partnership with a Fortune 500 national retailer for the development and execution of low-sodium solutions across the retailer's extensive line of private branded snack offerings. This will lead to placement of several of their snacks using MicroSalt® in lieu of traditional salt, beginning with 800 stores by Q4 2023 and likely expanding across more than 7,000 store locations thereafter.

4. Guident wins a grant from Space Florida - Scheduled to commence in early July 2023, the joint project brings together the collective expertise, resources, and vision of Space Florida, Guident Corp, and NOVELSAT to develop pioneering safety solutions for ground-based autonomous vehicles using satellite communications.

5. Jack Stein appointed Brand Ambassador and calls Microsalt a "Game Changer"

6. Guident is granted an extension by the US Patent and Trademark Office to its patent to include Drones and Robots (not just automated vehicles)

7. Lucyd announces a partnership with Reebok - another brand from Authentic Brands who generate more than $25 billion in global annual retail sales and have an expansive retail footprint in 150 countries, including 10,800-plus freestanding stores and shop-in-shops and 380,000 points of sale.

So today’s share price is less than it was in May 2023, yet there are 14 reasons why it shouldn’t be. So, despite the small recent price rise, 12p makes no sense to me. Too cheap.

My posts are written for my benefit, to set out my investment rationale. I state facts and source them where possible. I also use words like “infer” and “think” which means it’s a (reasoned) opinion based on a fact. Investment requires filling in the gaps with inferences and thinking about the facts to form forecasts. I hope you enjoy what I write and find it useful in forming your own rationale.