Archive for the ‘SinterCast’ Category

Surprisingly, the author of (an anonymous retired policeman), easily convinced C.E.S.I. to buy SinterCast shares today. 

C.E.S.I. stumbled across this site in a high quality Redeye blogg post submitted by the alias “Bengtsson” (swedish language, links in english)…

And in a second Redeye article by “Bengtsson”, I read (translated by C.E.S.I):

“One of the world’s greatest entrepreneur, Bill Gates, is the largest investor in the legendary engine technology project which apparently will revolutionize the motor industry. Or how about a spirited five-seater family car with 0.23 L per mil in consumption, resulting in lower CO2 load than electric car. Industry insider John Mortimer’s report just recently leads to the conclusion that the engines are made in CGI. This is dynamite for Swedish SinterCast. The starting gun fires this autumn.”  (swedish, links in english) (swedish, links in english)

Consensus: Eco motors may be the end customer for the Sintercast press release January 16, 2014.

Zhongding Power is granted the Eco motors licence.

( )

“Bengtsson” also highlights that SinterCast also recently has been highlighted by Björn Davegårdh, an experienced swedish analyst (September 1, 2014).

“CGI is used mainly in the engine block and has superior properties, and weighs less than other materials. Contrary to what many believe goes Sintercast now a profit even if it is modest. Now scaled up production and is located on an annual rate of 1.8 million Engine Equivalents (equivalent passenger car engines) per year. It will gradually increase to 2.4 million Engine. It also includes Ford’s new gasoline engine. It happens a lot in Sintercast with new installations and collaborations in China. 2019 counts Sintercast with a volume of 4.7 million equivalent to about 125 million in revenue. This places the results at around 90 million SEK. Added to this is completely new engine that we currently do not know much about. In addition, more and more components, in addition to the engine block, that is produced in CGI. Moreover, if the so-called OPOC engine becomes a success, it can be really fun.” (swedish language)

Ok, let´s finally replace the hype, hypotheses and estimates with some plain facts:

SinterCast, General information ( SinterCast is the world leading supplier of on-line process control technology and know-how for the reliable high-volume production of Compacted Graphite Iron (CGI).  Together with strategic partnerships for component design, rapid prototyping and high volume machining, we bring foundry experience and CGI materials expertise to every aspect of every CGI program.  SinterCast provides CGI solutions to the world foundry and automotive industries. SinterCast is a publicly listed company on the NASDAQ OMX Stockholm stock exchange.

Video link below (Aug, 2014): SinterCast’s CEO Steve Dawson gives an update on the current state of the business, comments on the progress of the installations that were announced earlier this year and toward the end of 2013. He also describes the status of the installation that was delivered to Mexico, why the previous total market opportunity estimate isn’t included in the Q2 report and lastly what the background is for the increase in the deferred tax asset during the quarter.

Compacted Graphite Iron (CGI) provides at least 75% higher tensile, 40% higher stiffness and approximately double the fatigue strength of conventional grey cast iron or aluminium alloys.  The fatigue strength of CGI is up to five times higher than that of aluminium at elevated temperatures.  In comparison to ductile iron, CGI provides superior castability, thermal conductivity and machinability.  These combined properties of CGI offer cost-effective solutions for complex components that are subjected to mechanical and/or thermal loading.

Business Model. SinterCast sells or leases the System 3000 hardware, software, leases, sells supplies for sampling and charge a production fee for each tonne of castings produced using the SinterCast technology. Revenue is also derived from spare parts, service, field trials and sales of test pieces. The total running fees (sampling consumables plus Production Fee) depend on the ladle size and the casting yield for each foundry and each product. A typical cylinder block produces a revenue of around EUR 40-50 per tonne of castings, corresponding to 2.00 to 2.50 Euro for each 50 kg Engine. SinterCast business model is highly scalable, allowing profitability to rise as the installed base grows and as more products enter series production. (swedish language)

Compared to previous years, the net turnaround has increased:

Technical analysis “Best Fit Change Line”. The following chart estimates an ordinary least squares regression model for SINTERCAST applied against its price change over selected period. The best fit line has a slop of + 0.59 which means SINTERCAST will continue generating value for investors. It has 44 observation points and a regression sum of squares at 611.9, which is the sum of squared deviations for the predicted SINTERCAST price change compared to its average price change.–technical–SINTERCAST

Current Sintercast status

  • 23 fully automated process control systems and 16 mini-systems installed in 12 countries and supported in 10 languages
  • More than 55 components in series production
  • Approximately 2 million castings produced and 118,500 Sampling Cups shipped in 2013
  • Series production for passenger vehicle, commercial vehicle and industrial power applications.

C.E.S.I. is thrilled to be a new SinterCast share holder.

Best regards, C.E.S.I.

The author, Cutting Edge Science Invest, is a SinterCast share holder. The author does not intend to sell any shares within a near future (= weeks)

Cutting Edge Science Invest can not guarantee, or take into  accountability, the content of truth and accuracy of the information in this article/post.Thus, Cutting Edge Science Invest requires that a possible reader gather complimentary information if any type of investment in the company described above is considered.

Cutting Edge Science Invest provides personally biased information and at best also “general information and opinions”.

The article/post does not contain professional investment advices.