Dear reader,
We remain on brand with today's picture.
Today’s news of a £2m raise at 10p. The market predictably harrumphed.
But what does it actually mean? What should you do next?
It means 11.1% dilution and what do you get in return? £1.2m working capital and £0.8m of assets. Now half that working capital pays a liability (back to LUCY). Half is “general”. £0.8m remainder goes into assets.
AI Co
First, a yet unnamed 6th company to join the ranks. With an investment of £0.5m. I will call it AI Co. We don’t yet know what the AI Co will be or do. We know it is generative AI and we know this branch of AI is transforming many facets of commerical life. I, for one, am extremely excited because it is TEK’s style to go after enormous addressable markets and there are a number of those.
Will AI Co complement the work of Belluscura? Will it be a health tech taking data from devices like Discov-R to optimise lifestyle?
Or a food tech, monitoring food and drink consumption including - you guessed it - salt to improve and optimise lifestyle?
Will it be a digital assistant upgrade from Lucyd glasses. A true co-pilot to organise your busy life and help manage your life?
Will it be a means for transport authorities to better optimise their route planning and to reduce costs but improve passenger satisfaction? Instead of no buses, then three at once what if you could optimise transport to dynamically plan bus services?
Or something completely different?
My sense is it will be a University idea, patentable of course, and centred around the productivity of knowledge workers. McKinsey speaks to the 0.6% - 1% PER ANNUM GDP growth they estimate can be generated through generative AI in their thought piece: “Next productivity Frontier”.
1% per annum is $1.05 trillion a year, reader. That, my dear reader, would be an addressable market worth going after!
RMCC
Second, an investment into Guident’s Boca Raton RMCC. This is to complete the build-out and commercial deployment of Guident Ltd's new Remote Monitor and Control Centre (RMCC). We know from recent updates that this is revenue generating so an investment in asset to drive a return on investment.
We know that progress is speeding up at Guident and further investment (at asset level) is being negotiated. This suggests further build of contracts (or else why would you seek funding?)
Show me the money!
Remaining conservative, I’ve increased the Guident valuation at cost so £0.3m in the Valuation 29/02/24 column. I’ve valued AI Co at cost too, £0.5m. I’m assuming the cash remainder is zero valuation (it’s actually 0.6p a TEK share if you do want to include it).
I’m using today’s BELL, LUCY and SALT bid prices:
What we immediately see is TEK is at a 59.4% discount to its assets based on today’s prices (TEK’s ask price when I topped up today was 9.8p). This is after factoring in the 11.1% dilution too! This is also assuming ReVive is worth ZERO too!
Or 41.6% discount to its LISTED assets! (BELL/SALT/LUCY)
Listed assets which at least in BELL and SALT’s cases are funded to the point of being cash generative, and working on delivering large contracts while growing new ones.
Speak to me Lucy!
Over at LUCY of course the jury is out and frustratingly we are still waiting for the December Trading update. Meanwhile we do know LUCY has its Nautica range out in the market in Q1. Moreover Lucyd Lyte 2.0 has 15 unique styles, Nautica 8 unique styles all with spring hinges, thinner temples and improved sound and microphone quality which closely rivals Bose.
It has the patent-pending Lucyd app enabling handsfree connection to ChatGPT and a number of free AI features such as texting GPT, making Lucyd the first-ever wearables voice interface for ChatGPT. This year we will see Eddie Bauer powered by Lucyd, and the Lucyd Lion Safety Glass.
LUCY owns or is exclusively licensed for 66 patents and has a non-exclusive license to a portfolio of 46 smart eyewear patents, bringing our total number of owned and licensed patents and applications to 112. Its Instagram following has grown to over 12,000 and newsletter subscribers 32,000. Partner optical stores has increased to over 300 and dozens of influencers promote the products, including Emmanuel Ogbah of the Miami Dolphins, featured in Forbes, Benzinga, Modern Wall Street and rated #1 on the popular ScreenRant website.
Conclusion
Today’s fall is a wonderful buying opportunity. The value remains just as strong as last week or yesterday, with exciting newsflow expected from all holdings.
Plus the potential has increased. An exciting 6th holding is coming on board.
For every harrumphing seller there’s a hurrahing buyer on the other side of the trade.
This is not advice.
Oak