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There's a new interview with the CEO here, but it's subscriber-only unfortunately....any Scottish readers here?!
Https://www.heraldscotland.com/business_hq/19667894.listed-life-suiting-calnex-chief-cook-ground/
CLX have been nominated for IPO of the year at the Small Cap Awards:
Https://masterinvestor.co.uk/latest/discover-the-candidates-for-the-small-cap-awards-2021-ipo-of-the-year/?mc_cid=184d4cc91e&mc_eid=db9f9bbaf2
"Calnex Solutions designs, produces and markets test instrumentation and solutions for network synchronization and network emulation, enabling its customers to validate the performance of the critical infrastructure associated with telecoms networks. To date, Calnex has secured and delivered orders to over 600 customer sites in 68 countries across the world. Customers include BT, China Mobile, NTT, Ericsson, Nokia, Intel, Qualcomm, IBM and Facebook.
Founded in 2006, Calnex is headquartered in Linlithgow, Scotland, with additional locations in Belfast, Northern Ireland and California in the US, supported by sales teams in China and India. Calnex has a global network of partners, providing a worldwide distribution capability. The Company commenced trading on the AIM market of the London Stock Exchange on 5th October 2020, having raised £22.5 million following an oversubscribed fundraising process. The Company has made considerable progress since listing, successfully delivering robust trading performance, exceeding initial expectations. Share price has steadily increased from an initial listing price of 55p to a price of £1.10p today. Calnex continues to benefit from the evolutionary trends affecting the telecoms sector, notably in 5G and cloud computing, and The Board looks forward with confidence to making further progress moving forwards."
I'm no expert and have never been in business, but it always seems to me that people read too much into director buys and sells, especially sells.
It concerns me if they have no skin in the game, but on the other hand if they have a fair bit and the share rises it would be crazy to allow most of their personal and family financial wealth to be in just this one pot. Things do go wrong, often through no fault of your own. It would be irresponsible not to rebalance and to gamble their family's financial future entirely on this one pot, however optimistic you were. To do so would be to me a warning flag for your leadership and hence the company. Blind optimism is no recommendation.
And after/into a rise is much the best time to sell, as into a fall will certainly be read badly by investors and can do real damage.
Just my thoughts!
I note that the Private Punter (hastings) has written about his holding in and views on CLX in a market update column as follows:
Https://martinflitton1.wixsite.com/privatepunter/post/updates-on-clx-capd-g4m-spa-and-rdt-13-10-21
Incidentally, the "selling" was by just one director - who wasn't even a main Board member. He sold around £200k of shares - AFTER a terrific "ahead of expectations" trading update. This tells you everything, as it would have been one of the few opportunities available for such people to sell in quantityinto sustained demand given the relative illiquidity of CLX's shares. His personal circumstances are of course unknown, but post-IPO it's hardly surprising that a single investor would take advantage of the surge in interest to sell a few shares.
Hi Nate, with respect, it's a bit more nuanced than selling or buying shares...folk do not just buy shares if a staff member buys, equally someone selling shares can be because a a myriad of reasons and not a reason to follow.... there's a bigger picture imo
Some mega sells going through here since the 11th Oct.
Had this co. on my watch list, but with the PDMR’s selling at these levels, that should tell you everything you need to know about their conviction here.
Best, Nate
Good to see CLX getting tipped in the IC. Much of the article is about CLX's chart attributes, but here's the relevant part about the business itself:
"One stock that I have entered a position in is Calnex SolutionsCalnex Solutions (CLX). It’s relatively new to the market (IPO October 2020) and it provides test and measurement hardware along with software solutions that check the standards and test the performance of telecommunications infrastructure.
Basically, it tests networks. The 5G network is expected to be a key driver of growth for Calnex due to datacentre expansion along with bigger networks.
The company is renowned worldwide and has an advantage because it already dines at
the table of big network operators such as Vodafone, Verizon, Nokia, Google,
Facebook and more. These companies need the best in the business and so there is a
risk that standards slip at Calnex leading to it being replaced, but so far Calnex has kept its customers happy and business is booming. This is evidenced by the fact that the top 10 customers in terms of revenue have on average a nine-year relationship with Calnex.
The business is profitable and cash-generative, nd has a relatively fixed cost
base. This means it benefits from operational gearing because as more kits are
sold, the percentage of profit rises."
Calnex covered by Michael Taylor in Investors Chronicle on line today - he's taken a position and plans to add to it, if it breaks through resistance at 130p.
I'd expect this to be covered in this weeks hard copy of the IC under "The Trader" feature
Stop loss at 90p
Watch the rise up to Nov 23 then. Sell on 22nd..
Here's the highlights of Cenkos' Buy note this morning - it's worth noting that they forecast CLX to have over a £15m cash pile at the end of this year - almost 15% of the entire m/cap:
"Trading update and forecast upgrade
Calnex Solutions has announced that due to continued strong levels of trading throughout H1/22, expected to be maintained in H2/22, FY22E revenue and profitability are anticipated to be materially ahead of expectations.
We have consequently upgraded our PBT forecasts for FY22E and FY23E by 27.2% and 20.4% to £5.6m and £6.0m respectively. Calnex continues to accelerate its investment in R&D and broaden its product roadmap to benefit from the significant underlying growth drivers within the worldwide telecoms and networking industry."
"Outlook. Exponential growth of data creation, migration to the cloud and the gradual evolution to 5G are long-term growth drivers for the test instrumentation and solutions. With the telecom infrastructure, networking and services markets seeing an expanding number of market participants requiring testing solutions, we believe Calnex is well placed to benefit from these substantial underlying drivers and maintain a solid, long-term growth trend. Interim results are due to be announced on 23 November 2021."
Broker note out, upgrading forecasts -
Calnex Solutions has announced that due to continued strong levels of trading throughout H1/22, expected to be maintained in H2/22, FY22E revenue and profitability are anticipated to be materially ahead of expectations. We have consequently upgraded our PBT forecasts for FY22E and FY23E by 27.2% and 20.4% to £5.6m and £6.0m respectively. Calnex continues to accelerate its investment in R&D and broaden its product roadmap to benefit from the significant underlying growth drivers within the worldwide telecoms and networking industry.
Forecast upgrades. Following the strong trading update today, we have upgraded our forecasts, with FY22E and FY23E revenue forecasts increased by 17.5% and 16.2% to £20.2m and £22.1m respectively. FY22E and FY23E PBT forecasts have been increased by 27.2% and 20.4% to £5.6m and £6.0m respectively.
https://twitter.com/surprised_trade/status/1447807603833245698
the BOD anticipates that revenue and profits for the full year will be materially ahead of expectations & expects this trend to continue through the second half of the year.
Ah, my favourite phrase - "revenue and profits for the full year will be materially ahead of previous expectations"....
Today's update is bullish for both performance to date and for the rest of the year. New products are in great demand, with "strong uptake" - and from new as well as existing customers.
CLX are in a sweet spot as they "capitalise on the industry's transitions to 5G and the growth of cloud computing":
Https://uk.advfn.com/stock-market/london/calnex-solutions-CLX/share-news/Calnex-Solutions-PLC-Trading-Update/86260127
indeed, general mkt pull backs provide opportunity to take a position ahead of any upside at a much cheaper price, ensuring all is in place ahead of any bullish news is the key :-)
" There's been no effect at all from semiconductor supply issues.."
---------------
I'm of the opinion, whether telecommunications stocks have fared well or otherwise, that the market is tainting all in the industry with the same brush during the length of time before a recovery in the micro chips crisis is seen.
Therefore as this pullback is more market sentiment related than CLX fundamentals related, I'm not expecting anything bullish from the SP for some time yet.
https://twitter.com/surprised_trade/status/1435887580952858637
all networks need testing to ensure compatability, performance etc. 5g only grows from here...
https://player.vimeo.com/video/441950698?autoplay=1&loop=1
Good spot Rivaldo, thanks for that....Just tweeted out the opportunity here...
https://twitter.com/surprised_trade/status/1429751628576477185
https://www.thetimes.co.uk/article/calnex-reports-strong-trading-w0f0w836w
5g testing, profit £9m, net cash of £12.7m, high-margin tech sales
Good coverage of the confident AGM statement in the Scottish Herald:
Https://www.heraldscotland.com/business_hq/19525374.calnex-continues-cashing-demand-mobile-data/
And in The Times:
Https://www.thetimes.co.uk/article/calnex-reports-strong-trading-w0f0w836w
"Calnex reports strong trading
Calnex Solutions has said telecoms customers are continuing to spend as it highlighted a strong order book.
The company, which provides testing and measuring equipment, said at its annual meeting that it was seeing good adoption of new products in the three months to the end of June, the first quarter of its new financial year.
It pointed to the upgrading of networks which is taking place to handle greater data needs because of the shift to cloud computing and the impending roll-out of 5G mobile.
Calnex believes its Field Sync product has a “unique ability” to test 5G networks. It had continued its “strong” trading and “good order” levels in the first quarter of the 2022 financial year, in line with its expectations."
yes absolutely but numpties on AIM are selling - this part of the market is really driven by degenerate
A very encouraging, confident AGM statement.
The year to date has seen "strong trading and good order levels". New products are seeing "encouraging" pre-orders, and are ideally placed for 5G rollout. There's been no effect at all from semiconductor supply issues, and CLX are already able with only one quarter gone to confidently state that expectations will be achieved:
Https://uk.advfn.com/stock-market/london/calnex-solutions-CLX/share-news/Calnex-Solutions-PLC-AGM-Statement/85872170
https://twitter.com/surprised_trade/status/1426114210098991104
5g testing, profit £9m, net cash of £12.7m, high-margin tech sales...
direct read through from SPT a £1085m mcap compared to #CLX £108m mcap....5g only grows from here..
Interesting closing trade yesterday - 10,000 shares bought at 116p, way above the 113p published offer price. Very keen.
And this morning buying is coming in at almost 119p.
News dated yesterday of a product launch of a Network Emulator:
Https://www.calnexsol.com/en/article-display-events/1605-latest-calnex-sne-enhancements
I also note that Spirent have directly referenced CLX in an upcoming series of presentations, which is a nice prestigious reference:
Https://www.spirent.com/events/validating-the-s-plane-in-o-ran
"Validating the S-Plane in O-RAN
August 12, 2021
Join us to understand why synchronization is important in mobile networks, how the requirements of O-RAN align with existing time and sync specifications, and how Calnex can help you achieve validation success.
Speaker: Neil Jackson, Senior Product Applications Engineer
Your key takeaways from this webinar:
Understand how ITU-T, O-RAN and 3GPP requirements apply to sync in an O-RAN network
Gain an overview of different O-RAN sync topologies
See how Calnex can leverage our extensive experience in measuring time and sync to accelerate your validation processes
Understand how O-RAN nodes (O-DU, O-RU) can be tested independently and in a network"
Moving up nicely now after that impressive news from CLX's major customer.
agreed Rivaldo, sp seems cheap now and so took some CLX on this pull back :-)
https://twitter.com/surprised_trade/status/1423219735026601986