The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
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Canaccord have bought another 4.6% of IMO, and they now own 10.3%: https://www.investegate.co.uk/imimobile-plc--imo-/rns/notification-of-major-holdings/201711301800010613Y/
RNS just out - confirmation that Kestrel must have bought a fair few of Toscafund's shares. Kestrel are up to 9% now with 5.525m shares - they often buy large stakes in companies, so hopefully they'll continue buying more shares: Https://www.investegate.co.uk/imimobile-plc--imo-/rns/holding-s--in-company/201711301428420192Y/
Early buyers lifted the price so Tosca exited at 205 for a cool �13m today. Will do the SP a power of good, and a clear example of where a large sell can influence an upward trend. Questor explains the likely reason why, and has read the stones well yet again. Seems the only way to buy was to split up into smaller tranches which I failed to do. How did others fare?
at 3 levels trying to buy today - just 2800 at 212, 215 and 218. Must change my broker as I am constantly let down by HL.
The share price has moved up very nicely now. With a massive 13.6m shares traded already today it looks like Toscafund are now completely out. Overhang cleared and ready to fly!
Here's part two of the tip: "Earnings growth and the potential for the valuation to come into line with similar companies provide two routes for IMImobile�s shares to rise but there is a third potential reason, Dalwood said. �Share price growth has one of three causes: rising profits, higher valuations and balance sheet developments,� he said. If, for example, a business is funded equally by debt and equity and uses its cash flows to pay off half the debt, the value of the shareholders� portion will increase significantly, all else being equal. This is a standard private equity approach to an investment. IMImobile has already paid off all its debt and amassed some cash, so in its case the way to make the balance sheet work better for shareholders would be to start to pay a dividend. This could also help the shares to be given a higher valuation. �At a time when interest rates are rock bottom, dividends are highly prized,� Dalwood said. �Any company that pays a dividend stands to be looked at more favourably by investors.� He added: �This stock has all three of the drivers for share price growth. We think the price could go from the current 200p or so to nearer 300p.� Reassuringly, several board members have significant stakes. Jay Patel, the chief executive, owns 5pc of the shares, worth about �6.2m, and �he�s not selling as far as I know�, Dalwood said, Questor says: buy"
Managed to get the full Questor tip - 300p here we come :o)) Here's part one: "Questor: three things can make a share price rise � and this stock has them all 29 November 2017 � 6:18am When a fast-growing company with a loyal customer base and no debt is cheaply valued, there�s usually a good reason. In the case of IMImobile, the Aim-listed software firm, the reason is likely to be the presence of a large and persistent seller on the shareholder register in the shape of Toscafund Asset Management. Tosca has been gradually reducing its stake in IMImobile. Its motivation seems to be more a matter of the management of its portfolios than any negative view of the stock itself, but the effect has been to put downward pressure on the share price. This, of course, presents an opportunity for other investors, as long as they are prepared to wait until Tosca�s selling is no longer perceived as a major drag on the price. Certainly the fundamentals of IMImobile seem strong. In the words of Tony Dalwood of Gresham House, the asset manager, which owns about 14pc of the company, it �embeds� its products in its customers� operations. �IMImobile software carries out tasks such as sending the text messages that greet you when you land in a foreign country or the messages from banks that ask you to confirm that you have made a particular transaction,� Dalwood said. �Once you have signed a contract to use this kind of software you are unlikely to switch to another product and IMImobile has a good record of keeping its customers once it has won them.� He said it was growing strongly and generating plenty of cash. �Earnings growth is coming from a growing customer base � it is forming a good beachhead in America, for example. This growth is both organic and from acquisitions,� he said. Recent interim results showed revenue and gross profit both increasing by double-digit percentages. Normally such a good performance would result in the shares being highly valued but the perception that Tosca could continue to sell large numbers of IMImobile shares has prevented this from happening, some brokers have suggested. Many professional investors prefer the �Ebitda� measure of earnings when they value shares, as opposed to the after-tax profits used for the conventional price-to-earnings ratio. Ebitda stands for earnings before interest, tax, depreciation and amortisation, and because of those disregarded costs it will normally be higher than the after-tax figure. This means that the ratio of the share price to Ebitda will be lower than the normal p/e ratio for a given company � typically about 40pc lower, Dalwood said. But if we compare IMImobile�s price-to-Ebitda ratio with the valuations of other companies we get a sense of how cheap it is. It is currently trading at a ratio of between eight and nine
Excellent - IMO are the main tip in today's Questor column in the Telegraph, and there's already been a fair bit of buying. Anyone got the full article they can copy here:? Http://www.telegraph.co.uk/investing/shares/questorthree-things-can-make-share-price-rise-stock-has/ "Questor: three things can make a share price rise � and this stock has them all By Richard Evans 29 November 2017 � 6:18am When a fast-growing company with a loyal customer base and no debt is cheaply valued, there�s usually a good reason....."
IMO have been tipped here today - and he doesn't even mention the large cash pile which further reduces the P/E: Http://www.fool.co.uk/investing/2017/11/21/one-small-cap-growth-stock-id-consider-before-iqe-plc/ "IMImobile One small-cap tech stock that does appear to be attractively valued, is IMImobile (LSE: IMO). The �124m market cap cloud communications software specialist helps its clients use mobile and digital technologies to communicate and engage with customers. Notable clients include Vodafone, Pizza Hut and the BBC. Through a combination of organic growth and acquisitions, IMO has grown at a formidable rate in recent years, with sales rising from �39m in FY2012 to �76m last year. Earlier this month, it announced that revenue and gross profit this year are expected �to be above current expectations.� Half-year results released this morning show further progress. Revenue surged 48% year-on-year to �53.1m, including 12% organic growth, while EBITDA rose 8%. The company saw particularly strong growth in India and South East Asia. Earnings growth was a little underwhelming, however, at just 1%. Chief Executive Jay Patel said: �We remain confident about the Group�s prospects for the remainder of the year. We expect revenue and gross profit to be in line with market expectations that were recently upgraded following the trading update given on 1 November and underlying EBITDA to be in line with expectations.� Analysts current expect earnings of 11.1p for this, placing the stock on a forward P/E of 18.3. At that valuation, I believe IMImobile warrants a closer look."
Whitman Howard retain their Buy and 260p target after today's results. And Techmarketview are very bullish: Http://www.techmarketview.com/ukhotviews/archive/2017/11/21/imimobile-building-out-for-consistent-growth "Tuesday 21 November 2017 IMIMobile building out for consistent growth After a good performance last financial year, IMImobile, the cloud communications provider, delivered 12% organic growth in the first half to end September. Acquisitions boosted top line figures, up 48% to �53.1m. Gross profit rose only 22% however after the integration of the Infocast acquisition and a decline in the company�s Middle East and Africa operation following the Nigerian currency devaluation and the re-negotiation of a large contract with pan-African MNO MTN. Group EBITDA advanced 8%, to �5.7m, a margin of 23.1%. 3 of the top 4 UK retail banks use IMImobile to manage end customer interactions via SMS and Facebook Messenger and the company�s broad portfolio of SMS, Chat, AI and campaign management solutions is used by a wide range of utility providers and MNOs. The business already has a global customer base, with the European and Americas operations accounting for two-thirds of revenue and the other India/SE Asia and Middle East/Africa units roughly the same size. The US operation has been boosted by the recent acquisition of US messaging provider Sumotext and success with distribution partners such as NICE and AT&T. Growth can be expected on several fronts; enterprises are consistently adding new channels to contact customers, IMIMobile's broad portfolio and recent acquisitions provide cross-selling opportunities, the expanded enterprise business in the US offers lots of potential as does the underlying expansion of markets in Asia and Africa. In the more developed European markets, the addition of higher value-added services, a larger sales effort and the developing partner network should drive additional revenue and margin. IMIMobile is now building the global sales and distribution network to leverage its central Connect platform and IP. This business has grown consistently at double-digit rates while generating cash. There is every reason to expect that this rate of progress will continue."
Good, solid H1 results, and a confident outlook for H2 of meeting recently upgraded expectations. Big increases in revenues and gross profit, with net profit masked somewhat by big increases in investment and resources going forward. The growth potential is huge in AI and automation capability, GDPR etc, and also geographically with the first steps forward now advancing in the USA. And there's a nice �15.4m cash pile. The outlook statement remains very confident: "Jay Patel, Chief Executive Officer of IMImobile PLC, commented: "The Group has continued to perform well, both financially and operationally, and delivered another period of profitable, cash generative growth. We have consolidated our leading position in the UK, achieved very strong organic gross profit growth in India and South East Asia, and despite known headwinds in Middle East and Africa, achieved 12% organic revenue growth across all regions. Post period, IMImobile also completed the acquisition of Sumotext, providing a platform to launch IMImobile's product offering to the enterprise market in the US. "This growth has been driven by the continued global demand for cloud-based solutions that can help deliver digital transformation, automation and cost-cutting. IMImobile has created a market leading product suite that focuses on real time, interactive customer communications and service automation and we are excited about the benefits that new emerging technologies can deliver. "We remain confident about the Group's prospects for the remainder of the year. We expect revenue and gross profit to be in line with market expectations that were recently upgraded following the trading update given on 1 November and underlying EBITDA to be in line with expectations."
Great to see Giles Hargreave more than doubling his holding in IMO: Http://citywire.co.uk/money/4-shares-the-pros-are-buying-and-selling/a1068376?ref=citywire-money-latest-news-list#i=4 "IMImobile Citywire AA-rated small cap supremo Giles Hargreave has more than doubled his holding in cloud communication and software provider IMImobile (IMOI) as it drifts lower from last month�s record high. Hargreave upped his stake in the business from 2.4% to 5.7% of the shares worth �7 million at a price of 200p, down from an all-time high of 221p in early October. The shares are primarily held by clients of his eponymous broker and fund manager Hargreave Hale which was this summer purchase by Canadian banking group Canaccord. Leading UK hedge fund manager Toscafund�s small cap mandates have recently banked some profits on the tightly-held stock, reducing their stake from above 18% to 13.4%. Investec reiterated its buy guidance last week, on a 250p price target. That followed a trading update saying full year profit was likely to beat earlier expectation, despite upping its investment in sales and distribution."
Positive stuff: Https://imimobile.com/archer-digital-sa-becomes-imimobile-south-africa/ "News / 31st October 2017 A message from Ross Venter, CEO of IMImobile South Africa, on the rename of Archer Digital SA. After the successful IMImobile acquisition of South African based Archer Digital in October of 2015, the team in South Africa have been laying the groundwork for supplementing the solutions they offer to blue-chip clients with the IMImobile product suite. Negotiations with two of South Africa�s premier banking institutions began in 2016 around installing elements of the IMIconnect digital customer engagement platform into those banks. A combined effort, utilising multiple IMImobile resources from around the world, has resulted in the first full installation of IMIconnect into the fastest growing and most innovative bank in Africa. As this first of many successes nears completion, and the interest shown in the IMImobile software and solution suite grows, it is an opportune time to present a more unified corporate image to the South African and African markets by changing the name of Archer Digital to IMImobile South Africa. With effect from 1 November 2017 our South African operation now bears the IMImobile name. The reaction from clients has been extremely positive and supportive and will enable our South African business to grow with customers knowing that the world-class digital communications technology solutions available to them are tried and tested on an international stage, and yet customized for the African market with a local IMImobile company on hand to provide ongoing support and relationship management."
The respected Techmarketview like today's news - "an excellent move": Http://www.techmarketview.com/ukhotviews/archive/2017/11/01/imimobile-adds-us-messaging-platform-to-extend-reach "Wednesday 01 November 2017 IMIMobile adds US messaging platform to extend reach The chances are that if you�ve had an SMS or Whatsapp message from your bank, utility or mobile service provider, AIM-listed IMIMobile will have been at the centre of it. IMIMobile�s platform, applications and AI capability joins up customer experiences across multiple channels and interacts with legacy enterprise systems to transform customer journeys and enables large organisations to react more quickly as customer preferences change and communications channels proliferate. IMIMobile has built an Enterprise cloud communication platform, IMIconnect, which supports a wide range of capabilities to enable enterprises to access chat systems, automate customer queries, use social media channels, drive marketing campaigns channels over multiple channels and communicate effectively with end customers over multiple channels. These systems are also key to many fraud management and online authentication systems. The business is very UK-centric, driving 60-65% of its revenue here, but today�s move, to acquire Sumotext, an established US-based communications platform provider for US$4.5-6m, should enable IMIMobile to address the US market and migrate its capabilities into the huge US market. Surprisingly perhaps, the US market appears to be behind the UK in terms of managing customer interactions (look at the progress of Eckoh there) and the omni-channel capabilities of IMIMobile should find a ready market. Sumotext�s portfolio is reportedly complementary to IMIMobile�s product set and IMIMobile expects to invest significantly in sales and marketing to drive cross-sell and up-sell opportunities. The acquisition is forecast to be earnings enhancing in the year to March 2019. The Sumotext CEO will join the IMIMobile senior management team. IMIMobile management also reports that trading for the half year was in line with expectations but cautions that additional �0.5m marketing spend in the US will push H2 EBITDA below current expectations. Looks like an excellent move."
Excellent news this morning: Http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/IMO/13415737.html - this acquisition provides a pathway for launch into the USA - it's "complementary to IMImobile's product set, providing mobile solutions that enable businesses to manage digital interactions with their customers" - earnings-enhancing in the year to March'19 - current year revenue and gross profit expected to be above market expectations The small caveat is that the acquisition requires �0.5m of additional marketing costs this year which will reduce EBITDA, but this is necessary for the additional return next year and should be welcomed. Very good news.
RNS out, with interims to be released on Tuesday 21st November and analyst meetings and presentations to follow. Given the bullish outlook in the 28th June prelims, and with no problems mentioned in today's RNS - plus a Tuesday release augurs well - I'd expect the numbers to be nicely in line at the least: "Outlook The 2018 financial year has started well with trading in line with expectations. We have good earnings visibility thanks to our long-standing client relationships, pipeline of new deployments and high mix of recurring, repeating and transactional revenues. We believe that, as managing mobile and digital touchpoints become critical for all organisations, we can continue to grow our client base across all regions and increase the size of each relationship. We intend to accelerate growth through our partnership strategy, including seeking out international partners, and are increasingly confident after the early wins we have had this year."
Looks large and certainly prestigious, if evidently not quite RNSS-able: Https://imimobile.com/press-release-imimobile-wins-carillionamey-contract/ "IMImobile wins contract with CarillionAmey to deliver digital contact centre optimisation 10th October 2017 IMImobile is selected to help improve the contact centre experience through digital channels, for CarillionAmey customers London, 10 October 2017 � IMImobile, a cloud communications software and solutions provider, has been chosen by CarillionAmey to improve their contact centre experience through digital channels, for customers using their services across the defence estate in the UK. CarillionAmey, which works on behalf of the Defence Infrastructure Organisation, has chosen to use IMIchat, a cloud application built specifically for contact centres, to enable customer service agents to have live two-way conversations with Armed Forces personnel across SMS, Facebook Messenger, Twitter, and Webchat, alongside their existing voice channels. CarillionAmey repairs and maintains more than 49,000 homes for Service families, and looks after the infrastructure of 280 RAF stations, army garrisons, naval bases and defence sites across the UK. IMIchat will support the Ministry of Defence�s digital transformation strategy, through their supply chain, and help improve time critical communication for all military families and estate end users when they experience problems in and around their property or estate buildings. IMImobile was chosen by CarillionAmey because of its robust enterprise-grade technology as well as being an established leader in digital customer interaction. Stuart Jones, Customer Services and Communications Director for CarillionAmey, said: �We are absolutely committed to delivering smarter and more efficient solutions to our Armed Forces and their families. Continuing to improve our customer service is imperative to our ongoing development as a business. �IMImobile was a natural fit because of its vast experience and expertise in providing cloud communications software to public sector companies, enabling us to embrace new digital technologies to communicate and engage with our customers across the defence estate.� Jay Patel, Chief Executive Officer of IMImobile, commented: �We are pleased to be part of CarillionAmey�s digital transformation strategy and to support the Ministry of Defence. IMIchat will allow customer service agents to enhance interactions with the service families and personnel across all digital and mobile channels, therefore allowing better communication whilst driving contact centre efficiency. �We are also excited about the opportunities to help optimise the customer service experience through the integration of intelligent and innovative solutions such as chatbots in the near future."
The Penny Share Letter does quite well in finding undervalued companies although the title is somewhat misleading. I was looking to buy here after reading the report but will now wait for a retrace. Instead I went for one of their previous selections which also got a good update.
Thx chasbrown, good to see IMO getting some press attention. I gather from elsewhere that the headline is: "The company�s name is IMImobile (AIM: IMO). It�s a great little business � steady growth, big margins, generating lots of cash. And best of all, it�s nice and cheap."
Tipped in Penny Share Letter this weekend.
Tipped somewhere (Techinvest perhaps)? Or just latent demand for a cheaply priced share?
Good to see IMO attracting a new major shareholder, and international attention at that. Pie Funds Management from New Zealand have bought over 3.5%, with 2.16m shares. I note that Pie are also investors in KWS - which bodes well! Looks like Gresham House and Toscafund have both been top-slicing large holdings, so it's good to see healthy institutional trading: Https://www.investegate.co.uk/imimobile-plc--imo-/rns/tr-1--notification-of-major-interest-in-shares/201708170931262711O/ Https://uk.linkedin.com/company/pie-funds-management-ltd "Mike Taylor founded Pie Funds with the simple philosophy of outperforming the markets by investing in growth companies. He believed most fund managers were serial underperformers, and saw an opportunity to launch a specialist boutique investment firm."
Good to see last night's RNS setting the date of the GM to cancel the share premium account for 16th August - the train for dividends and/or share buybacks is now leaving the station. And here's the company's results presentation : background info on Telenor is good, and it looks as though the partnership includes micropayments: Https://imimobile.com/wp-content/uploads/2017/06/IMImobile_FY2017_Results_Presentation_Year_Ended_31_March_2017_Web-2.pdf
Whitman Howard have increased their price target to 260p (from 220p) and say Buy. Here's their summary FYI: "IMImobile* Price target upgrade on medium term margin potential IMImobile has today released its year to March 2017 Full year results. The results are very much in line with the trading statement released on the 27th April. IMImobile has experienced strong trading across all regions and business units. We upgraded our numbers at the EBITDA level by 4.2% at the time of the trading statement. We are not changing any of our forecasts today. We are however upgrading PT on the back of medium term margin potential. Profits grew organically in all regions and business units. There were new major blue chip client wins in all regions including multi-territory mobile operator Telenor, and through the relationship with O2, Lloyds and RBS. The renewal rate was 100% including the Group’s largest contract, MTN. The Textlocal and Archer acquisitions are making good progress. In the period there was early successes from investment in partnership programme including a multi-year contract with the Royal Mail Group through BT. The acquisition of Infracast, also gave IMI a market leading position in the UK retail banking sector. IMI’s recent acquisition approach has focused on the ability to upsell to clients. A number of Archer’s banking clients have been identified as lucrative cross selling opportunities. We expect similar success for the recently acquired Infracast. IMI has also begun to extend its partnership strategy. The Company has started the process to effect a capital reorganisation to enable share buybacks and/or dividends in the future. The Current year has started well with trading in line with expectations. IMImobile offers a compelling combination of growth, recurring revenues, strong margins and cash conversion. We believe that post a period of investment in the business EBIT margins should start to scale towards the mid-teens from the reported clean 10.8%. This drives an upgrade to our fair value and we upgrade our price target from 220p to 260p and retain a BUY rating."
Http://www.investorschronicle.co.uk/2017/06/29/tips-and-ideas/share-tips/imimobile-rakes-in-the-cash-3W8iyAA0oX4xfdwyALKWFO/article.html "IMImobile rakes in the cash IMImobile (IMO) was left £7m in cash, after paying off debt, at its IPO in 2014 - and that pile remains largely untouched. The majority of the communication software company's growth, including its recent acquisitions of Textlocal, Archer Digital and Infracast, has been funded out of the cash generated from operations. In the year to March 2017, that reached £11.9m, equating to 104 per cent of adjusted cash profit."