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...... from the beginning of the Zeus report:-
" This month we screen for tech companies with the highest EBIT growth. Calnex, Xaar, CyanConnode and Corero Networks Security, offer the potential for 2025 EBIT to 24x, 7.3x, 2.5x and 1.6x, respectively. Among these, we highlight Corero Network Security, for its high revenue growth, operating leverage and cash conversion and CyanConnode for its high revenue growth and attractive valuation. We review sector performance as well as best and worst price performers further below."
The last paragraph from the report gives some more information and discloses the reasons for the Zeus Monthly Sector Update:-
" Worst price performance:- CyanConnode ( -27% ) and Calnex ( -26% ) did not have any news-flow in the month and their shares remained illiquid. CMI. Micrisystems ( -24% ) disclosed that core shipments were lower than previously expected due to extended de-stocking in the sector. Ensilica ( -19% ) raised £1.1m at a significant price discount at the end of February. Smarttech247 ( -18% ) shares fell from a recent high at the beginning of the month."
So the Zeus small-cap technology sector update seems to put the recent drop in the CyanConnode share-price down to CyanConnode " ...... did not have any news-flow in the month and their shares remained illiquid."
Not forgetting of course, it is the end of the Financial Year when some investors move their money around, which can make it an ideal buying opportunity for others. So let's hope that the CyanConnode " news-flow " situation is a bit more cheerful, over the coming days/weeks/month's.
Good Luck all.
LTI.
Hi ITT.
If you expect honesty and transparency from this lot you will have a long wait.
With all the promises of jam tomorrow its certainly not reflected by the share price. A 27% drop doesn't lie. I fear something bad is about to hit but it won't hurt this joke of a BOD you can be sure. The most worrying thing is they seem unable or unwilling to manage the substantial drop in the SP. The word incompetence springs to mind.
Why not be consistent and stick to the same reporting dates when it comes to their estimates? It's fudge after fudge.
What's wrong with a bit of honesty/transparency?
When I say 'they', I mean Zeus.
Am I correct in saying that they have shifted their reporting dates from say 31/03/2024 & 31/03/2025 to 31/12/2024 & 31/12/2025?
From the report:-
" CyanConnode provides end-to-end communications modules and platforms that connect smart meters to a utilities billing system. The company is a market leader in India, where the government's Revamped Distribution Sector Scheme ( RDSS ) mandates the procurement of 250m meters by March 2025. 198m RDSS-related meters (222m total ) have already been sanctioned and 88m RDSS-related meters ( 108m total ) have been awarded. We expect these large numbers of sanctioned and awarded meters to lead to significant sub-contracts for CyanConnode over the coming months, supported by its high win-ratio in India of approximately25% by volume. As a result, revenue is expected to grow 61% CAGR 2023-2025, resulting in EBIT multiplying from £2.8m in 2024 to £9.7m in 2025, based on calendar year FactSet consensus estimates. Despite the company's high growth profit potential, shares trade at only 9.5x EV/EBIT for calendar year 2024."
So an encouraging forecast for potential growth I feel, over the next couple of years, with additional potential order growth, also, to add into the mix.
Good Luck all.
LTI.
Hi LTI
Thank you for alerting us to that.
Per Zeus:-
"Worst price performance: CyanConnode (-27%) did not have any new(s?) flow in the month and their shares remained illiquid."
..... has been published on the CyanConnode website:-
http://cyanconnode.com/investors/analyst-research/
LTI.
Say n' more
In a significant move to modernize its power distribution system, the Government of India has initiated the Smart Meter National Program (SMNP), aiming to replace 25 crore conventional electricity meters with prepaid smart meters over the next five years. This ambitious ₹1.5 lakh crore project is set to transform the operational and financial landscape of distribution companies (discoms) across the country.
India will choose the cheapest cost, from a solvent provider. CC are neither.
...... seems to be an electricity distribution network Company:-
http://gridspertise.com
http://gridspertise.com/about
LTI.
........ seems like an energy infrastructure Company:-
http://indigrid.co.in
LTI.
..... provides smart meters and has Tata Power, GMR, IntelliSmart and Adani listed as some of their Clients:-
http://aewinfra.com
http://aewinfra.com/smart-meters/
LTI.
Sorry, Just press " English " at the top of the list, as the report seems to have travelled in Hindi.
LTI.
.......... has been published and updated to include 3 additional companies, which are Allied Engineering Works Pvt Ltd - AEW , Indigrid 2 Limited and Gridspertise India Pvt Ltd.
All are listed as providing a Cellular " Type of Communication Technology."
http://recindia.nic.in/ami-test-demonstration
Good Luck all,
LTI.
Good afternoon Vas,
An interesting report and thank you for the information. It will be a welcome incentive to have the SMNP " ...... early revenue generation .... " business model in place, for all companies that are involved in the various projects.
A good find Vas, I would say.
Thanks again.
LTI.
...... has tweeted concerning CyanConnode's Partnership with Nanhi Kali to educate girls in Gurugram.
http://twitter.com/CyanConnode_Ind/status/1773336473409823202
Well done.
Have a great Easter all.
LTI.
Adani in talks to borrow 600million .....happy Easter all 😊
I fully expect the next Placing very early Q2. It needs doing before the Indian GE, if only to gain support in belief that after the elections the flood gates will open. It's a win win for JC, he's not going to miss this open goal, unlike the one missed in the UK Rollout.
IMO, if the business does start growing, the BoD should explore the possibility of Cyan listing on a market outside of London.
London's extremely poor performance can't be explained away as being part of the normal cycle - it's effed.
The BoD have a duty of care. Failure to uphold the duty of care may result in legal action by shareholders or clients.
Along with the duty of care, the other main fiduciary duty is the duty of loyalty; the duty of loyalty seeks to prevent directors from acting against the best interests of the company.
Thanks for that ITT, 10p is possibly the right time to increase. When I first came in I had about 20m shares (old money) and PI's had about 70% of company, a lot has changed. I think 50p will come much earlier with good news or we will go t*** up with bad. If we get the 20% of 250m we will do alright. Off to look at my bank balance. DYOR
If you buy now, you're getting a 10% discount to the November 10p raise.
The fact that some of the November in crowd got their shares for 7p plus the 15p warrants thrown in for good measure is by the by. That's life.
Hi tonyj
For Cyan to be EIS qualifying (for November 2023's fundraise), it had to be SEEN as an investment with a serious element of risk, otherwise HMRC would not have signed it off and the 'money' wouldn't have received their 30% tax incentive.
There would have been questions asked by HMRC if suddenly news had started flowing in with orders from here, there and everywhere.
IMO, 'THEY' know/knew exactly when the brakes were going to be let off, which is why the 10p fundraise and 15p warrant giveaways were rushed through. A reasonable amount of time needed to pass before the 'growth' could start happening, otherwise it would look too obvious. It's all being choreographed.
The co can say what it likes - it doesn't really care if the SP goes up or down (probably prefers it to go down) because the volatility helps to emphasise what a risky investment it was, should HMRC take a peek.
It's a game - you've either got to play along or give up.
IMO, you may well get your 50p before May'25 is out.
GL
ITT