Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
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A very strong H1 performance reported today from major customer Spirent.
Good to see 5G implementations being described as "in their infancy".....
Https://www.investegate.co.uk/spirent-comm-plc--spt-/rns/results-for-the-six-months-ended-30-june-2022/202208040700068497U/
It's obvious to me. She sold these shares to fund her and her partners ISA's. Hopefully buying CLX shares!!!
If this were to be true then there cannot be any good or bad news in the immediate future however.
Only joking really...
Hi grippa. The CFO had 236k shares and 500k options, so this represents just less than a mere 10% of her direct holding. And the CFO is normally the poorest paid/least wealthy director, so it's entirely understandable (her prior sale was similarly small beer).
And the CEO's sale was only 5% of his holding, being his first post-IPO sale. CLX shares likely represent much of his entire wealth (apart from those he sold at IPO!) , so it's hardly surprising that every so often he'll get rid of a few. Perhaps the more interesting aspect is that buyers were found so readily and the share price has performed so well.....
Not overly reassuring the Director sells CEO and CFO both been selling, yes still holding a good few but never nice to see any of the board selling......
Nice to see a pre-market 500 share buy at the full 160p offer price at 7.34 this morning :o))
EDIT - followed by another buy at 155p at 7.52 am....
'Just bought some more. Will top up on any weakness in the share price.'
Well done.
Nice rise.... As the Actress said to the Bishop!!
Just bought some more. Will top up on any weakness in the share price.
Wouldn’t be surprised but I expect going back towards all time highs with another excellent update from the chief. I can’t see orders and interest dropping off due to the current economic climate. Unless chip shortages cause problems I can see this being as good a place to invest as any.
good company but losing a bit of momentum, wouldn't be surprised to see it at 120 again but like most shares the current markets brutal!!
I thought this section from the recent Cenkos research note was useful as regards setting out the various growth areas CLX are involved in:
"Operating highlights The relentless move into the Cloud by enterprises of all sizes continues, with increasing numbers moving their business-critical applications and services into web environments. The needs of these companies are met b datacentre operators, a market dominated by hyperscalers such as Amazon (AWS), Microsoft (Azure), Meta Platforms and Alphabet (Google Services). The combined capital spending of these organisations on datacentre infrastructure has provided significant growth opportunities for companies providing computing and storage infrastructure, networking, security, telecoms and related sub-sectors.
The Testing and Measurement sector is another one benefitting from long-term and substantial tail winds, both from the relentless drive of cloud adoption but also the 5G transition. Calnex continues to focus on its product innovation and recent new products and upgrades have been very well received by customers.
Calnex’s support for very high-speed interfaces (up to 400G) as well as the various interface formats used in very high-speed interfaces (e.g. PAM4 – pulse amplitude modulation with four levels) has driven order-intake FY22. The focus on O-RAN Alliance conforming hardware by increasing numbers of equipment vendors has also driven business activity.
Research and development – evolving product portfolio
Investment in R&D has continued across all product categories, with a total of £3.9m R&D investment in the period (FY21: £3.3m). Calnex has hired 19 people during FY22, with the total number of employees reaching 113. Post period end, the acquisition of iTrinegy was announced, further increasing the total number of employees. We forecast a substantial increase to £5.3m R&D in FY23E, an increase of 35.4% versus FY22 and representing 19.7% of FY23E forecast revenue.
During FY22 Calnex released a new 5G Over-the-air (OTA) capability for the Sentinel Field Synchronisation testing solution, addressing emerging 5G signal formats, as well as the previous 3G and 4G signal formats with enhanced solutions.
In addition, as confirmed in the 1 March 2022 trading update with a large datacentre operator (hyperscaler) order, the implementation of time distribution across data centres has presented Calnex with the opportunity to develop and grow a new market opportunity for the Sentinel product range. This has been the driver behind the development of the Sentry product, essentially a rack mountable version of the Sentinel OTA tester, launching in coming months (see Chart 1). Calnex indicates that sales to hyperscale customers who are investing in their data centre operations are progressing well."
Good to see the relatively new NED being so impressed at CLX that he's happy to move up to Chairman.
Nice quote from the outgoing Chairman after nine years in a job well done:
"I am confident there is a strong Board and management team in place and with its outstanding customer base, the ongoing transition of the telecoms industry to 5G and the growth in cloud computing, the future for Calnex is brighter than ever."
Good to see a 750 share buy today at 168p before the market opens!
Encouraging to see the large share price rise yesterday afternoon - this after the RNS noting that TC sold 1m shares.
This was only 5% of his holding, and it's his first post-IPO sale. CLX shares likely represent much of his entire wealth (apart from those he sold at IPO!) , so it's hardly surprising that every so often he'll get rid of a few. Perhaps the more interesting aspect is that buyers were found pretty readily - there certainly doesn't appear to be any overhang.
He’s only sold 1m shares from over 18m. Can’t get too excited about a bit of profit taking by Tommy.
Never a good sign!!
Hi wetherboy. CLX are making a habit now of exceeding forecats. And given everything we know it's likely imo that they may continue to do so for some years to come. So there should be continued good news flow to keep things bubbling.
Any investor simply has to weigh up being invested in a high quality company, soundly financed and with quality management, and with years of growth ahead of it, against the premium rating which such companies attract.
And actually CLX's rating is pretty cheap against the multiples American companies achieve, even after their recent falls.
Rivaldo. What do you think of the high PE? Does it worry you much?
There's a nice two page feature on CLX in the new issue of Shares Magazine today. Some of the more interesting extracts:
"Calnex is a global leader in the telecoms network testing space with a distinguished list of customers. Today, it serves businesses across the entire telecoms value chain, including network carriers such as BT (BT.A); hardware providers, including Ericsson (ERICB:ST) and Nokia (NOKIA:HEL); and chip companies such as Intel (INTC:NASDAQ).The group is led by founder Tommy Cook, who has over 35 years’ experience in telecoms testing and measurement."
"We think the real secret sauce to Calnex’s spicy progress is two-fold:
• Good management of the component shortages that have hurt so many businesses;
• The business lies at the heart of technological mega-trends that promise to generate substantial growth in the years ahead"
"But the main reason to be optimistic about Calnex’s prospects stem from the major changes impacting the global telecoms and data centres industries. Not only are superfast fibre and new 5G mobile network technology being rolled out at pace, but new technologies such as cloud computing, autonomous vehicles, smart connected cities have emerged, all needing high performance testing.
Cloud computing is one great example, where operators such as Amazon (AMZN:NASDAQ),
Microsoft (MSFT:NASDAQ), Meta Platforms (META:NASDAQ) and Alphabet(GOOG:NASDAQ) dominate. These companies run large and growing data centre capacity and networks which requires managing vast quantities of data. This presents a substantial opportunity for Calnex as the testing and performance monitoring of these networks
use similar technology to that used in the telecoms industry, usually conforming to the same international standards.
Calnex is opening up this market thanks to in-house research and development (it spent £3.9 million last year), where new and evolved products come with ever sophisticated software. Selling bundles of equipment to customers with ever richer features helps keep gross margins high. These were 75% last year.
Product development can also be bolstered by acquisitions, as with April’s 2.5 million iTrinegy deal, building out its software defined test networks technology. Calnex expects the business to be an important contributor to profit in future."
The Times reported on CLX's record profits, and also had some interesting comments from the CEO about the recent acquisition:
Https://www.thetimes.co.uk/article/calnexs-ability-to-sidestep-the-global-chip-shortage-brings-in-record-revenues-sv06sndh9
"Most of the company’s sales are made overseas, with customers for its testing instrumentation and software including BT, Ericsson, Nokia, Intel, IBM and Facebook. Calnex recorded a 23 per cent increase in revenue to £22 million for the 12 months to March this year.
Its pre-tax profit increased by 64 per cent to £6 million, with the company proposing to pay a dividend of 0.84p per share.
Last month it purchased ITrinegy, a provider of software and apps to test networks based in Stevenage, Hertfordshire, for £3.5 million.
Tommy Cook, the Calnex chief executive, said that integration of the Stevenage business was going well and that the deal would open up new market opportunities and customers over time.
Cook said: “Things have gone really well and the team are pleased to be part of Calnex now.
“This first year we have not set a particularly aggressive sales target as I did not just want to rush to get business in the door.
“I wanted to take a step back to look at it and we felt that where we can bring expertise is the route to the market.
“At the end of the day it is not just about product it is about how you take that to customers.
“It is a brand new set of customers which we were not really touching at all. That was really the reason to go ahead and do the acquisition.”
The Directors are proposing a final dividend with respect to the financial year ended 31 March 2022 of 0.56p per share which will represent £490,000 of a dividend payment. The final dividend will be proposed for approval at the AGM and, if approved, will be paid at an agreed date shortly thereafter.
AGM date last time was 19 August 2021
All good too. 'The average length of customer relationship across the top ten customers in FY22 is 10 years, demonstrating our high levels of repeat demand from these customers. In addition, the Group typically experiences a high level of repeat business from its total customer base. In FY22, 79% of orders were generated from existing customers (FY21: 80%).
During the last five years, 199 (FY21: 177) customers have placed repeat orders with Calnex.'
In FY22, Calnex received orders from 233 customers, an increase of 34 on 199 customers in FY21. Good.
In FY22, no underlying customer accounted for more than 13% of Calnex's total orders. Good.
'North Asia revenues grew by 14% after a flat first half ' This bodes well for the current year unless the 14% was mainly pent up demand.
After the H1 results which were pretty good the price dropped so I assumed it would do the same again this time and I was prepared. I was correct so I managed to buy quite a few today at £1.61. Hopefully the price will start on an upward trajectory tomorrow. Even if it doesn't, I'm sure it won't be too long. WB
In my wildest dreams I wouldn't see myself as a trader. I really don't have the equipment.
But recently I needed money for elsewhere and sold a chunk at 173, on the basis that after the recent rise even with great results the utterly weird could happen and it might fall. As Rivaldo these results are "really impressive and ahead of even the upgraded expectations." Still it has fallen today. Even the MM's seemed to expect a rise as it looks like it was priced up this morning. If I had spare money and was a trader I might come in now in the hopes that some sense would return tomorrow. But I put it into AFC - which ain't doing wot it oughta.
Fascinating, Captain.
Live long and prosper!
Good coverage here with some analyst comment - Cenkos say Buy:
Https://www.scotsman.com/business/linlithgow-based-tech-firm-calnex-optimistic-and-eyeing-ma-after-record-full-year-performance-3706565
"Analyst Ian McInally of Cenkos Securities flagged a “buy” recommendation regarding Calnex, stating that it has seen the number and breadth of its customer base increase, and has a record order book. “Calnex remains strongly positioned to continue growth and benefit from the long-term industry drivers within the telecoms and networking markets.”