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good results as already flagged and a very confident outlook going forward. The 2.8c dividend represents a tasty 4.6% dividend yield at 46p.
Most importantly, 2022 "has begun well for the business with an increased pipeline of opportunities across all three divisions."
And "the macro drivers for our business being the roll-out of 5G networks globally, increased defence spending and ongoing worldwide water shortages, should ensure that there is increasing demand for the Group's products and services."
Also, the shekel has weakened against the dollar since the start of the year so MWE will benefit from positive exchange differences in this H1. Plus there's confirmation that the Russian effect is reasonably immaterial and is now removed.
With around 11p per share in the $12.6m cash pile MWE are on an ex-cash P/E of only 11 or so - extremely cheap imho given the global and sector prospects.
yes, the murk needs to be clarified
I wouldn't be surprised to see sp retest old lower ranges (even 20-30p range again)
re the Russia link Jolly, the russian contract of $3m was due to start second half of 2022,clearly this in doubt now and I'm looking into potential impact re sanctions but currently hard to determine level of revenue from Russia, unless anyone can throw some light on it.....it's a hard task to judge where the fall out from Russia will hit, ie. supply chains, sanctions and business in general pulling out of the country and the likely monetary cost...mwe is a global business with by far the majority of it's revenue away from Russia, so thats a blessing however, realistically any Russian link is a concern currently and pleased as I was with Shore on board as announced yesterday we have to be conscious of why the appointment now. Hopefully MWE can pick up additional business elswhere away from Russia to replace any contract losses that may occur as a result......our issues are nothing compared to the poor people of Ukraine
a great step forward if the trials work, clearly got the attentionof the Teir 1 guys and with the previous statement re 5g development below and the global reach it could be a lucrative aspect....
'Sales of 5G and RFID antenna solutions, being our key growth engines in the antenna division, have overtaken, for the first time, our Fixed Broadband Wireless Application (FBWA) antenna sales. By far the majority of industry's investment in 5G is still to come and so the opportunity remains significant for us and we continue to be well placed with the antenna division being a key supplier to the major mobile network radio manufacturers."
"Looking ahead, we believe that the Company's clear focus on providing radio frequency solutions coupled to being diversified across several markets positions us well to continue to grow and expand through a mix of acquisition-led and organic growth.
Today's news is an RNSNON as it's not financially material at this point - but it's certainly pretty important and exciting in all other ways imo!
This trial order "to support the roll-out of 5G infrastructure" is:
- to a new Tier 1 OEM customer
- is of a new antenna solution
- expands MWE's 5G offering
- means MWE "now works with five out of the seven leading OEM vendors"
- and moves MWE's "total 5G solution up the value chain"
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Trial-order-from-TIER-1/87445066
3 March 2022
MTI Wireless Edge Ltd
("MTI" or the "Group")
Trial order from TIER 1 supplier for 5G antenna innovation
MTI Wireless Edge Ltd (AIM: MWE), the technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, is pleased to announce that its Antenna division has received a trial order, from a TIER 1 OEM vendor, for its new automatic beam steering ("ABS") antenna solution as part of the Company's 5G solution.
The global wireless backhaul market is dominated by seven key OEM vendors. Some of the seven are considered Tier-1 and some are Tier-2, all of them supply radio equipment to the main cellular network operators to support the roll-out of 5G infrastructure. With this order, MTI now works with five out of the seven leading OEM vendors and this is the first order from a TIER 1 OEM vendor for the ABS antenna solution.
MTI's main product for the 5G market is a 80 GHz ABS antenna solution allowing the cellular operator to increase backhaul capacity and link distance to enable the delivery of the faster, higher bandwidth, services. However, antenna beams in higher frequencies, such as E Band, are narrower and are very sensitive to mast or antenna movements. In response, MTI has developed the ABS antenna solution, which ensures the antenna automatically adapts to any small movements or vibrations caused by different climate conditions, including wind or temperature, and maintains a stable signal even during difficult conditions.
The order from the TIER 1 OEM vendor is a trial order to enable it to carry out its own tests on the ABS antenna solution which currently works in MTI's test range. If successful, this will be an important technical development, potentially moving MTI's total 5G solution up the value chain.
MTI's CEO, Moni Borovitz, commented: "While it is early days for the ABS antenna solution, it is an exciting development which has the potential to materially expand our 5G offering. The fact we have already attracted the interest of a new TIER 1 customer, shows in my view, the potential importance of the product."
For further information please contact:
MTI Wireless Edge Ltd
Moni Borovitz, CEO
are threatened, surely...why no RNS?
I agree with you Surprised. Excellent news just now, with the appointment of the mighty Shore Capital alongside Allenby Capital. No disrespect to Allenby, but MWE have long outgrown Allenby and the appointment of Shore signals a much greater ambition:
Https://www.investegate.co.uk/mti-wireless-edge--mwe-/rns/appointment-of-shore-capital-as-joint-broker/202203020900022944D/
The share price has obviously fallen due to concerns over Russian exposure, which is understandable given for example the recent success of the new St Petersburg office in starting to win contracts such as the one on 21st December.
However, there comes a point when such concerns become overblown as regards the share price, particularly as MWE are such a global business and are doing well enough without Russian sales.
Besides, MWE have a $12.5m and fast-growing cash pile (and other tangible property assets) to set against the now £39m m/cap.
indeed, somewhat of a pull back here !
Business is growing, cash position very decent as detailed below and new products coming onto market...Shore now on board as joint broker, personally I think about time a new broker was in place. Shore should be able to attract a new breed of investor and be more pro active than Allenby (who in my experience of them often appear to do the minimum required )..
Don't know who sold that 25,000 number, but I do know I bought them
extract from article printed on MWE today '' ....CEO Moni Borovitz, whose family owns 32% of the company, after the recent trading update, He was on good form, buoyed by the positive underlying performance of the business units which has been masked somewhat by non-operating factors. Demand for antennas from 5G infrastructure capex is going well with sales up 40% last year. There is also a potentially significant new product in development for this market. Defence antenna demand was slow last year but the pipeline is now picking up.
Mottech had a good year and a new sensor to monitor irrigation at root level has scope to drive sales and recurring
data revenue. Distribution has won some good orders recently and a prepayment for a large contract has flattered the year-end cash position which was better than expected at $12.5m ...dividend yield now at 4.49%
Back from hols - last week's was a satisfactory trading statement marred only by currency issues resulting in a small miss against forecasts.
Note that the US dollar has strengthened since the year end and is now above MWE's internal budgets.
Cash flows were far ahead of expectations - MWE now have a $12.5m cash pile, i.e 10.5p per share.
Allenby have retained their 3.37p EPS forecast for this year. At 52p MWE are therefore on an ex-cash P/E of just 12.3.
Plus the historic dividend yield is up to almost 4%.
Much too cheap.
As the new scientist points out, both these industries are too valuable for a solution not to be found re 5g:
https://www.newscientist.com/article/2304975-will-5g-mobile-networks-in-the-us-really-interfere-with-aircraft/
There seems to be an issue in the markets with tech stocks. That issue is valuations compared to growth and profitability. Even if growth is in line and cash flow ahead whatever the reason for a slowing in profitability is going to knock the valuation. On a PE of around 20 currently is about right for this sort of stock. I guess it will improve when sentiment in the sector returns. The only other slight concern is the wrangling by airlines mostly in the States about possible interference from 5g. These concerns always seem to surface with the next generation of telecom mobile. Will see if its more than just political but I'm sure certain airline manufacturers would love to have something to pin the blame on
surprised I guess it's an overreaction on a particularly crazy day? Price is back at support level now at least
blimey, thought I 'd read the wrong results when I saw the sp dropped to ridicules levels....business growing, cash growing, divi paying contracts keep coming..as stated below a lot to like :-)
I've added at 60.7p, hopefully a bargain? Only issue is the FX rate v US$ affecting the results. MWE keep adding contract wins, profitable, pay a dividend, also share buybacks in the last year at todays current share price level. What's not to like?
Massive market over reaction IMO, mainly due to general market concerns over Ukraine.
Rich
You could've just lost big time if you had a stop loss set!
Overreaction from the market but thats the aim after all
https://twitter.com/surprised_trade/status/1493128966093299712
.revenue US$43.2 million, an increase of 6%, dividend in line with market expectations, cash flow significantly ahead US$6.5 million increase of 64% net cash balance of approximately US$12.5 m, well placed to continue to grow in 2022.
More contract wins, this time for $1.6m and all to be delivered this year:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Contract-Wins/87200953
In particular, "We are very pleased with these orders from returning customers, demonstrating once again our customers' satisfaction from our solutions and services".
That's the fourth contract win RNS in the last three months or so. Hopefully an indication that business is accelerating nicely.
In overbought market, mwe stands out as a decent value growth share imv
with mid 60p established yet again as a launch pad, tp 80p++
FYI the December issue of Techinvest updated on MWE with a long update, and concluded Buy as follows:
"MTI's business has been a reliable performer over a number of years and the growth trajectory looks set to continue given the excellent deal flow across all three divisions. News that sales of 5G and RFID antenna solutions have overtaken fixed broadband wireless application antenna sales for the first time is particularly welcome. By far the majority of investment in 5G is still to come, and so the opportunity remains significant for MTI with the antenna division being a key supplier to the major mobile network radio manufacturers. Continue to buy."
At the current price, this has to be a buy. The graph shows close to lows last 12 months. All the news appears positive, the only negative might be that is an Israeli company.- but I think that is already factored into the price. IMHO
excellent partnership detaied by Rivaldo and another growth aspect for MWE, this really is a well run company with growth, profits and cash and as stated in the broker note MWE is moving up the value chain....Modays indiscriminate market 'crash' provides opportunity at these prices, so I had a couple of top ups at 62.89/62.90 :-)
https://twitter.com/surprised_trade/status/1485933810646765576
added to holding today at 62.89p.....profitable, growing and cash rich.....broker target 95p+