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Most of the recent TR1's were restating percentage holdings after the placing to allow the Aspen acquisition not share sales. Reading the Aspen & Placing RNS again it is clear that the main positive is being ignored by the market which still needs further proof that the corner has been turned. The main positive for me was the purchase of almost 1.5 million shares by the Chairman increasing his holding by 69.8%. If that does not show confidence I do not know what does! The CEO also increased his holding by 15% with a purchase of 300k shares. These guys run the show. They are fully aware of the monthly figures and year end expectation and with so little time left to the August year end they are obviously supremely confident of the outcome. Some may say they have an unfair advantage, others would jump on the bandwagon and I am sure that they will if the results are much better than expected. The house broker has raised expectations by 32% for next year and has a current target price for the SP of 12p, up from 10p prior to the acquisition.
Didn't Roger Robinson and related family trusts recently sell a large % of their holding? the market may be questioning the timing of this transaction(s)?
Another false dawn for the SP? Maybe that pair of 2m share sales taking longer to shift than expected. Seams strange to me that the house broker raises there SP expectation to 12p then drops the ball. Raised revenue forecast by 32% for 2019/2020 to 19.78m/22.09m yet Stockopedia saying 50 to 75m in 3 to 5 years. On current knowledge looks like they expect the revenue is going to double in 2021. Great company, two great acquisitions in six months, many great opportunities with new lines and projects yet still the SP dribbling down over 2 years. Maybe a hard look at the broker is required.
Liquidity looking good at present and all those sells to allow a sale of 1 million. Some new confidence creeping in maybe. A news piece in the financials would be nice to push us further forward. Pie in the sky maybe.
In his statement the CEO mentioned the possibility of using APC's Invoice Discounting Facility for Aspen's debt. That would raise some extra cash but it can be a very expensive way of doing it.
Remember the old adage: Turnover is Vanity, Cash/Profit is Reality.
The end of year results should, hopefully, clarify the situation regarding cash levels.
Me too. Big uptick in Military spending and electronics sector in general. Delivery times increasing and shortages of components leave APC in a good position so no wonder the FBM acquisition is paying dividends. II's returning especially Octopus who wrote un Mail On Sunday last year that APC was one of there poor investments (see article and post on ADVFN board).
So as Fred says do we wait till perhaps October to see if the recovery is real? If Octopus added significantly then that is a strong message and I feel that now is the right time to invest but I have been wrong many times. Not looking for a quick buck so may take the plunge on Monday.
I must admit I am very tempted to top up my not inconsiderable holding here especially after reading the excellent post by GHF on the ADVFN bb. The arrival/return of some posters on here is also very noteworthy.
The question for me though, as a long term holder with confidence in management still very much in a restoration mode, is do I wait for APC to demonstrate the benefits of the Aspen acquisition? or do I buy now?
Well given that its Friday I'll have a pint and think about it over the weekend.
GLA
The big question is how will they fund this large growth in the next few years? Even more placings and dilution?
They have already made several significant placings in the last few years for both acquisitions and cash and yet, so far, do not seem to have made any substantial improvement in either cash or profit.
I think investors should look closely at the cash position in the next results to see what improvements are being made.
So its been a pretty busy market for APC after the news of Placing and acquisition. Is this warranted though ? Personally I think yes as the business model that the group is sticking to seems to be showing gradual results. They are purchasing expert companies in the groups field which are showing a long term profitable book. Adding these companies is going to see APC's coverage in the electronics market slowly gain a bigger share of the market and customers who will use the groups different arms. Its a pretty simple idea but one with a fairly low risk. As for the increased share total I believe this is of little consequence , 179 million shares for an Aim company is low. What the news has gained us most of all is interest from the city and investment companies and a statement from our broker with an upgrade which was well overdue. I can see the share price steadying around this mark until the next financials which will hopefully illustrate and prove the groups continuing business model.
Octopus Investments Nominees Limited have increased their holdings from 4.34% to 6.81%.
Good to see you here Rivaldo, I too have a small holding here at my original buy of 6.7p,
quoting what I said yesterday on Stockopedia yesterday I like what they are doing, "APC intends to grow its business to revenue of £50 million to 75 million within 3 to 5 years, principally by growing its Components and Property Technology divisions", this from a current revenue base of £15m. I like the change of structure in 2017, sale of existing loss making business and the focus on proven profitable business and I bought into it.
Both chairman and ceo bought into todays acquisitional placing which was at premium to the existing share price
Some big sells today and the price goes up!!! Must be in demand and why not with those forward looking numbers. According to the ADVFN board broker raised SP expectation to 12p. Also a very good write up from GHF, well worth a read.
I had a small introductory holding here, but have now bought more.
Today's news is excellent, and summarised beautifully as always in your above post.
I see Stockdale have increased their target price to 12p (from 10p).
And their forecasts going forward have increased to:
2019 - 0.75p EPS
2020 - 0.86p EPS
On which basis today's share price looks rather cheap.
So the mid-term revenue target has been set at Stg50-75 million in three to five years time. Since this thing is only doing stg15m in revenue at the moment, expect scrip to be littered around like confetti if we are to get there, especially since APC has a busted balance sheet, so can’t borrow much money, which the latest placement may begin to redress. Getting critical mass may be great for Management, and their bonuses, but the fear is so much additional scrip on issue may leave the share price all at sea.
APC2, I don't recall being told things are getting better but this is evidenced in the Interims. The recent RNS Reach appears to be a vindication of the January acquisition but the company themselves have over the past 2 years been very reluctant to give clues regarding current trading. Regardless, until we see a major uptick in revenue and profit we will stay off of the radar of most II's so the price will languish. Part of the company's plan for growth is more acquisitions so maybe all is not as bad as you think.
Can this current share price get any worse when we are being told that things are getting better.
Management need to sort themselves out or go
http://apcplc.com/hideout-app/app-uploads/2018/07/APC_PLC_RNS_Reach_NewLocService_030718.pdf
Well spotted Malcolm.This RNS (Reach) does not appear to have been picked up by any of the online brokers but IMO reports a very significant achievement. FBM were acquired with an expectation of £1m/yr anticipated at the time of the acquisition. I think it is clear that this growth stems from FBM and is in addition to the non franchised sales that existed originally at APC. Maybe the house broker will issue a note increasing the anticipated profit for F18 and 19. If that happens then we should at least get back to 8p if not the dim and distant past 10.
Nice try with the latest RNS but given that FBM was added to the existing APC Locator arm, so while FBM might be achieving a higher run rate, just how the original APC Locator biz is performing has been left unsaid.
Still, taking the statement at face value, it is hard to see the news pushing the share price clear of 10p to get that big swag of warrants (5.5m) exercised before they expire next month.
APC Technology Group PLC (AIM: APC), the design, specification and distributor of specialist technologies and electronic components, has launched a new value-added component sourcing and processing service through its recent acquisition, First Byte Micro Ltd ("FBM"). Acquired in January 2018, FBM has integrated successfully into the enlarged Group, expanded its offering and has delivered £1M bookings in its first six months of ownership which is well in excess of its acquired run rate of £1.5m per annum
perhaps the market needs to understand how all this activity converts to the bottom line?
Seams to be so much going on at APC, unfortunately no one wants to buy their stock? https://twitter.com/apctechgroup?lang=en
More patience required?
First time I post here since buy shares June last year. I pay 6.5p so should be happy but disappointed also for recent price fall. Why fall when improve profit? Fred asking shareholders if they take 10p. I say yes please. Reason is what Sahid saying. No broker follow stock and not no what to expect. How do people make to invest not know good prospects. Yes result read well but no body is commentary. Sorry, english not my first language.
Fred, would a takeover be so bad? ---------------------------------------------- IMO potentially yes, mainly for the very reason you have stated that "the SP flounders inversely proportionate to the activity reported on the companies twitter account". I would also add that with reference to the last update the outlook for the company looks quite bullish. Would I be pleased for example to accept 10p per share now? The answer is quite simply NO - I would like to hear other shareholders views on this? I agree with you that APC is not engaging enough with PI's but IMO this has always been the case as long as I can remember with this company. What reason(s) can the Directors have for this now that the company has been, on the face of it, re-energised? Happy and holding, Fred
and still the SP flounders inversely proportional to the activity reported on the companies twitter account. I can only assume that the smaller companies on Aim are of no interest to the II's unless they can see exciting growth opportunities on the horizon. If I have one negative critisism of APC it is that they are not engaging with PI's through the various chanels available to them although according to twitter they were presenting at Mello last week. With both Dialight and Solid State suffering significant SP falls over the past month through various market reasons it may be that we are suffering the backlash although nowhere near as severely. Whatever the reason the fact remains that APC are showing no support for PI's and until they do IMHO the SP will languish. I hope I am proved wrong but feel it will take some monumental news to get the SP moving again. Fred, would a takeover be so bad?