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There is news that Israel will breach international law by ordering Palestinians to evacuate. This sp is being run down on risk of trade embargo with Israel which is probably unlikely given uk and us bias. It certainly will not be over next week though.
Almost certain it won't be over by end of this year
I wouldn’t worry, it will all be over by the end of the week
War risk means regional war with US, Iranian involvement plus plenty of others
Trying to stay in business in a war zone is tricky
Had my eye on this for a while waiting for an entry point but given what is going on in Israel I suspect this one has further to fall yet. BATM have come out with a very vague RNS stating that the war will have no material impact on business. How they can say that so early on is beyond me, MTI have been quieter which is probably more sensible until they have a better idea. There may be no real effect but I suspect the market may take this down to the 20's on uncertainty.
If the current conflict ends quickly this should bounce. With no debt and cash deposit being equivalent to 8p a share this seems a good recovery buy especially as one of its lines of business is in the defence sector. Hopefully value of the dollar won’t be too much of an issue from here
I expected the fall today but am not sure how much effect it will have on their projects around the world.Just going to hold.
Tp 28p
Allenby Capital update today:
Https://wp-allenby-2020.s3.eu-west-2.amazonaws.com/media/2023/10/Allenby-Capital-TMT-Update-02.10.23-SKL.L-MWE.L-CPX.L-SEEN.L-.pdf?c3865=on
"MTI Wireless Ltd* (MWE.L, 44.0p/£38.9m)
Update: 5G backhaul contract wins (27.09.23)
• Antenna division has received orders from the Indian divisions of two large OEMs worth c. $0.6m for its 5G backhaul antenna solutions. These are existing customers, and the antennas are to be delivered by the end of 2023.
• MTI has been chosen to replace the antennas of a competitor that failed to meet the end customers' requirements, reflecting MTI's functional advantages. As such, this represents a potentially significant opportunity to capture a larger share of the customers' spend and the wider Indian 5G backhaul market.
• MTI reports demand for 5G backhaul solutions from other territories and the company offers the widest range of products and works closely with the leading OEMs.
• No change to forecasts or 90p/share fair value.
Allenby Capital comment: India has been identified by MTI as the most significantly initial market for its 5G backhaul solutions as network operators look to roll out 5G cellular networks. Given the volume of antennas involved, OEMs will typically look to source products from multiple suppliers.
The fact that two existing OEM customers have opted to replace a competitor product with MTI represents a significant endorsement of MTI's product set. As such, MTI is gaining greater market share with these customers and there is potential to gain additional share with these and other OEMs and in other territories. MTI already supplies seven of the top ten OEMs with its technologies. No change to forecasts but this serves to underpin further our growth assumptions for FY23 and going forward."
Shore Capital retain their 90p target.
They se 4.2c EPS this year, rising to 4.7c and 5.1c EPS.
The cash pile rises to $9.2m this year and then $10.5m and $11.8m, with a 5.9% dividend yield rising to 7.2%.
The cash pile is now essentially around 8.5p per share, so the current year ex-cash P/E is only just above 10.
Shore conclude:
"Outlook and valuation:
In the note that accompanied the FY22A results in March 2023 we highlighted that each of the divisions has long-term growth drivers with, in our view, Mottech
particularly well placed to potentially see stronger demand than we forecast for its water management and control software. The Antenna division is likely to benefit from the rollout of 5G across the world, as and when it happens, as MTI already supplies seven of the top ten operators with its technologies, hence we are most encouraged by today’s news. We would also expect to see continued good demand for Summit/PSK with its defence-related products and services as demonstrated by the news last month that two key PSK projects had already made significant
progress in Q3 FY23F.
We also flagged last month that, along with many stocks on AIM, the share price has drifted lower during 2023. We maintain a 90p fair value on the basis of a DCF analysis, which is corroborated by MTI achieving an FY23F EV/EBITDA multiple of 11.2x (the average of our peer group). We note also that the prospective 5.9% dividend yield for FY23F should also provide strong support."
Not showing real trades.... I have added a few today as good news keeps on coming..
Excellent - looks like 5G is finally taking off....
There must be a huge potential market to gof or in India, and hopefully this is just the start. The commentary is pretty bullish:
"Commenting on the orders, Dov Feiner, GM of the Antenna division, said : " India is going to be our most significant initial market for 5G backhaul solutions, so we are particularly pleased to win these orders. This is also because our solution has been chosen to replace antennas of a competitor that failed to meet the end customers' requirements, reflecting our technological edge in the 5G backhaul solution market. This is therefore a new and potentially significant opportunity to demonstrate the strength of our solutions and capture a larger market share of the Indian 5G backhaul market.
"We are also seeing demand for 5G backhaul solutions from other territories where we see good potential based on our belief that we currently offer the most comprehensive solutions in this market, including flat antennas, single band, dual band and automatic beam steering antennas. Alongside this, we have close working relationships with the leading Original Equipment Manufacturers which are key to becoming established in each market."
https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-5G-Contract-Wins/92132167
Rns … will we see +50p today
They aren't much cop at share trading
sold at 44p and bought back higher lol
Lots of supply of shares
limited demand
===> downwards pressure on sp
no??
It's plain weird
I understand buyback, and perhaps block selling to an II, but this?
The SRP was instituted in 2019 and has been periodically renewed, currently extended until March 2024. It is managed independently of the company by Shore Capital, who make the trading and timing decisions.
Today's RNS announces the sale of all held shares, resulting in a £5250 loss.
The idea is to improve liquidity in MWE, but could Shore Capital be doing a better job? As Shore don't work for free, is this an arrangement that ought to be renewed next year?
This is off a lot of peoples radar. I have been adding slowly.
Rising already today. And unsurprising imo given the value and potential.
Allenby's 90p target is a stretch in the current market, but in 6-12 months if all goes well MWE could have made very good progress towards it.
With a forecast cash pile equating to 8.4p per share, plus (1) ongoing strength in global defence markets for obvious reasons, (2) a ramping up of 5G spending as most are predicting, (3) the necessity for increased water efficiency/management and an improvement in general market multiples then MWE should continue to thrive.
Good to see the share price rising nicely from the lows in recent days. Much more to come hopefully!
Allenby Capital's new note reiterates their 90p share price target.
They forecast 4.28c EPS this year, with a $9.39m closing cash pile, i.e around 8.4p per share. The ex-cash P/E is therefore only 10.6 for this year.
They summarise:
"– Operational highlights:
Antennas saw new orders in military for existing product lines and requests for new solutions, across new and existing customers. MTI’s innovative ABS antenna for 5G backhaul is being evaluated by three tier one radio manufacturers and two
tier two customers. The opening of the Indian market for E-Band 5G backhaul has created a substantial multi-year opportunity, although orders remain sporadic, and MTI recently established a new local subsidiary. The Mottech division secured two longer contracts in April with an existing customer, a large Israeli municipality, worth $2.2m over five years, and fountain control also offers growth opportunities in an adjacent market.
– Outlook: MTI’s three divisions all enjoy strong medium term growth drivers – increased defence spending (Antennas and MTI Summit), water scarcity (Mottech) and the ongoing 5G roll out (Antennas). The outlook for defence is particularly strong (representing c. 44% of group H1 revenue (FY22: c. 37%)) and MTI’s design wins typically result in multi-year revenue opportunities. Forecasts remain unchanged with H2 growth expected at the top and bottom lines and the current share price fails to reflect MTI’s growth potential."
Https://wp-allenby-2020.s3.eu-west-2.amazonaws.com/media/2023/08/20230815-MTI-Wireless-Edge-Ltd-MWE.L-Allenby-Capital-Interims.pdf?c3797=on
Part 2:
"Earnings guidance maintained
Importantly, the directors are maintaining full-year guidance of 11 per cent growth in pre-tax profit to $4.8mn, which points to second-half pre-tax profit rising 18 per cent to $2.7mn on 13 per cent higher revenue of $26.7mn. On this basis, expect annual earnings per share (EPS) of 4.28p and a hike in the payout from 3¢ to 3.2¢ (2.5p). The dividend is rock solid, too. Net cash increased by 20 per cent to $6.25mn in the first half, and analysts at Allenby Capital expect a further rise to $9.4mn (8.35p) by the year-end, buoyed by strong cash generation.
So, with earnings guidance maintained, and the shares rated on a cash-adjusted forward price/earnings (PE) ratio of 7.5 and offering a 6.2 per cent prospective dividend yield, the share price drift since the 2022 annual results (‘A lowly rated technology group offering a prospective 5.5% yield’, 13 March 2023) is worth exploiting. Buy."
Here's Simon's Thompson's tip (note the currency error for the EPS...fine apart from that) - part 1:
"MTI boosted by defence spending and offers 6% yield
The technology group is set for another year of growth, but is only priced on a cash-adjusted PE ratio of 7.5 and pays a chunky dividend, too
August 15, 2023
By Simon Thompson
First-half pre-tax profit up 3 per cent to $2.1mn on slightly lower revenue of $22.4mn
Strong performance from defence sector-related activities
Second-half pipeline supports 11 per cent annual pre-tax profit growth
First-half results from Israel-based technology group MTI Wireless Edge (MWE:41p) highlight the benefits of diversification. For example, the group is benefiting from the increase in government defence budgets across the world following Russia’s invasion of Ukraine. Its antenna division trebled its operating profit to $0.28mn (£0.22mn) on revenue of $5.8mn in the six-month period, buoyed by new orders from the military sector. Chief executive Moni Borovitz expects the momentum to be maintained in the second half.
The antenna business also provides 5G network backhaul antenna systems. Although this market was relatively soft in the first half, MTI has materially increased its sales prospects by developing an automatic beam steering antenna solution that adapts to any small movements caused by different climate conditions. It is now working with three tier-one radio manufacturers and two tier-two customers to prove out the system.
The group offers investors exposure to the themes of climate change and water scarcity, too. MTI’s wireless water management systems division reported 11 per cent higher first-half operating profit of $0.96mn on slightly lower revenue of $8.7mn, the improved level of profitability reflecting price increases and the benefit of costs being in shekels in a strong dollar environment. This year’s heatwave across continental Europe, and the need for countries to use water resources more efficiently, can only be positive for sales prospects. The business has started the third quarter well.
The strength in both divisions offset weakness in MTI’s Summit electronics division, which represents 40 international suppliers of radio frequency/microwave components. Divisional operating profit declined a third to $0.78mn on 5 per cent lower revenue of $8mn, mainly due to delays with two projects. However, one has since been completed and the other is well under way, so expect a much improved second-half performance. Also, defence-related activities represent the majority of the unit’s revenue base, so increased government military spending is underpinning a strong pipeline of orders and design wins."
Excellent - though unfortunately subscriber-only except for the intro:
Https://www.investorschronicle.co.uk/ideas/2023/08/15/mti-boosted-by-defence-spending-and-offers-6-yield/
On a bad day...