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yes, little appetite to take this sp down much further, it seems
even some modest buying here
Once the market stabilizes this should flip back quickly as the fundamentals have not changed. I don't see any change in demand for antennas or slow down in the roll of of 5G. If anything, with all this home working, 5G implementation may accelerate. There may be more buying in soon as the are paying approx 5% dividend to all shareholders on the register in first week of April.
that I flipped out at 29.xxp
this has been endlessly rewarding
RNS this morning - Miton UK Microcap Trust have been buying more (around 600,000 shares more by my quick reckoning) and now have over 7%, or 6.2m shares:
Https://www.investegate.co.uk/mti-wireless-edge--mwe-/rns/holding-s--in-company/202003110740067424F/
Allenby's forecasts this year are 3.04p EPS (rising to 3.47p EPS next year), with a 2.5c dividend bringing in a 5.6% divi yield on a 34.5p share price.
And against the £29.9m m/cap MWE have $7.7m net cash, plus $2.7m of property as an excellent and secure buffer/asset backing.
If you strip out the cash, which is 20% of the m/cap, MWE are on a P/E of around just 9.
Which looks even better after today's news of a likely $2.3m contract extension for the water/irrigation control subsidiary over the next 5 years:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Contract-Renewal/81917158
So the 370,000 shares bought back yesterday have been sold on to institutions at 34.5p...thus not only making MWE a tidy £7k or so profit, but also showing that there's continued demand for shares here:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Transaction-in-own-share/81906071
Good to see the company buying in 370,000 shares at 32p - should provide MWE with a nice bonus when they sell them on to the institutions:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Transaction-in-Own-Share/81892693
Allenby Capital have retained their 46p price target.
Their forecasts this year are 3.04p EPS (rising to 3.47p EPS next year), with a 2.5c dividend bringing in a 5.6% divi yield on a 34.5p share price.
They conclude:
"Outlook – FY20 has started well with contract wins announced in Distribution and Antennas. Macro trends that will support further growth include climate change and water shortages driving demand for Mottech’s water management system; increase in defence spending and MTI’s Indian offset manufacturing for military antennas; and the move by mobile operators towards 5G that is generating interest in MTI’s 5G backhaul antennas from large OEM suppliers. MTI will also continue to look at acquisition opportunities."
Excellent 2019 results today, with 3.27c EPS. i.e around 2.6p EPS:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Final-results-for-2019/81879624
The outlook is very confident and looks positive in all three divisions, particularly water and antennas re 5G implementation.
No mention of the virus, so likely no material impact (as yet anyway). The confidence is reflected in the 33% dividend rise to 2c per share.
And against the £27m m/cap MWE have $7.7m net cash - way ahead of expectations - plus $2.7m of property as a nice secure buffer/asset backing.
The forecast for this year was 3.08p EPS, and I imagine this will be retained, making MWE pretty cheap to say the least at these levels.
Allenby Capital today retain their 46p target price for the time being:
"MTI Wireless Edge Ltd* (MWE.L, 38.5p/£33.8m)
$1.5m contract win (10.02.20)
St Petersburg office of MTI Summit, MTI's Distribution & Professional Consulting Services Division, has secured a contract worth c. US$1.5 million and is for the supply of radio frequency components to a Russian customer for delivery in 2020. It is the office's largest order to date and management also reports a good order book.
MTI Summit, acquired in 2013 represents 40 international suppliers of radio frequency and microwave components and sells these products to customers. MTI also acts as a consultant to all parties and assists with devising radio frequency and microwave solutions, as was the case with this contract win.
No change to forecasts and fair value of 46p/share.
Allenby Capital comment: MTI's Distribution & Professional Consulting Services Division has performed particularly well since the 2018 merger with MTI Computers Software and Services (1982). In the first nine months of FY19, revenue increased 36% to $8.1m and segmental profit increased 95% to $0.9m, as projects where MTI has designed solutions have started to mature and other design wins have converted into revenue. The division also benefits MTI's antenna business. Forecasts and fair value of 46p/share unchanged."
Great news - a rather large $1.5m contract win, with the hint at the end that there's much more to come:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Contract-Win-worth-appro/81706953
"Contract Win worth approximately US$1.5 million
MTI Wireless Edge Ltd (AIM: MWE), the technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, is pleased to announce that the St Petersburg office of MTI Summit has secured a significant order for delivery in 2020 from a Russian customer. The contract is worth approximately US$1.5 million and is for the supply of radio frequency components.
Operating under the Group's Distribution & Professional Consulting Services Division, MTI Summit represents 40 international suppliers of radio frequency and microwave components and sells these products to customers. Expert knowledge of both the international suppliers and customers further enables MTI to act as a consultant to all parties and assist with devising radio frequency and microwave solutions, as was the case with this contract win.
MTI's CEO, Moni Borovitz, commented: "Since the acquisition of Summit by MTI in 2013, this division has traded under the MTI Summit brand and has been growing very satisfactorily. Customers are increasingly recognizing our ability to source radio frequency and microwave components and to be an active partner in helping to solve design challenges by offering suitable components for a particular solution.
This win is particularly good news for our St Petersburg office, as it is their largest order to date. In addition, there is an order book of further Russian orders which bodes well for this office and for the division as a whole in 2020."
Great small company under the radar of most investors. Like the way the price gradually rises.
Allenby Capital comment this morning with a 46p target price:
"MTI Wireless Edge Ltd* (MWE.L, 39p/£33.8m)
•Additional contract win in the Antenna division for the supply of military antennas worth c. $0.6m and for delivery within the next 12 months. The original order, received in March 2019, was worth $1m with delivery over 40 months.
•No change to forecasts and 46p/share fair value.
Allenby Capital comment: Positive newsflow and although the additional contract is not material against our FY20 revenue forecast ($43.4m), the faster delivery schedule suggests that the customer is happy with MTI's product and service offering.
As previously noted, MTI's management is reporting growth and expansion opportunities in all sectors of the antenna industry, particularly in the 80 GHz spectrum as mobile operators start to implement the roll-out of their 5G networks and where MTI has developed a series of innovative dual band flat and parabolic backhaul antennas."
It's a $0.6m contract win, not $6m :o))
But as I said, this quote is even more important:
"We continue to see expansion and growth opportunities in all sectors of the antenna industry, particularly in the 80 GHz spectrum as mobile operators start to implement the roll-out of their 5G networks"
And the new $6m contract win payable within 12 months! Great start to 2020 here. Just the beginning of what looks like a great year to come here
A new contract win, with a large extension to an existing contract, is good to see and shows confidence in MWE's products as the CEO says.
But his concluding sentence is much more important and signal where the company is heading:
"We continue to see expansion and growth opportunities in all sectors of the antenna industry, particularly in the 80 GHz spectrum as mobile operators start to implement the roll-out of their 5G networks":
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Contract-Win/81502012
Me too Rivaldo, found this share through you. Nice quiet chat with virtually no one posting so share moves on its own. Happy New Year to you too
Now at the highest since 2007.....
Happy New Year to all here. I'm optimistic that 2019's excellent performance will continue in 2020.
Institutional demand is still there - today's RNS shows another 250,000 share block being placed at 38p out of the company's shares previously bought back.
A nice little earner for the company as well as a good way of utilising the large cash pile and increasing institutional ownership.
Wow. That was a big trade at 14:35.
I was concerned this was going up to fast and missed this but I see chartmill gives MWE a 4.5* rating and a 4* set-up. So I have not missed the boat ?
https://www.chartmill.com/stock/quote/mwe.L/profile
Rivaldo. In your opinion, what is a good PE for an technology/engineering business such as this ?
Nice move today - yet still on a low P/E and valuation, especially taking into account he large cash pile and the freehold property.
Interview with an NED about today's results - interesting comment about the cost base being fixed, so any additional revenues largely drop straight through to the bottom line:
Https://www.youtube.com/watch?v=cU9-FhJmc0U
Great set of results Rivaldo, onwards and upwards. My last post should have read 'solid company '...auto correct for no reason is some what frustrating.