Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Great to see ST retain his 100p price target - this is one of his favoured 5G and climate change plays rolled into one......
Https://www.investorschronicle.co.uk/ideas/2021/08/16/tapping-into-climate-change-and-5g-growth/
Simon Thompson published a positive write up this evening. Expect an uptick tomorrow morning...
Nice to see. A well run company. In a growing market sector. With a war chest of cash. Paying a divi. Expanding to new (space) markets. What's not to like?
Good H1 results - also reported nice and quickly, which is a sign of a well-run company.
MWE has some seasonality, so H2 is generally better than H1 and MWE look well placed to meet (or beat) forecasts.
Cash inflows were extremely good at $3.1m from operations, so MWE now have a $9.7m cash pile - more than 10% of the market cap - despite paying the dividend in the period.
All three divisions have excellent prospects and the outlook is positive. Antennas' profit surged in the period despite a small drop in revenues, whilst water and distribution both increased revenues nicely with varying effects on profits, and overall 13% rise in net profit is an excellent result imo in the current environment.
To sum up:
" Moni Borovitz, Chief Executive Officer of MTI Wireless Edge, said:
"This has been another good trading period for the Company. We are winning new, and retaining existing contracts, and several of the new contracts we have won are with substantial corporations which may well lead to greater opportunities in the future. Alongside this, we made solid progress across all three divisions and as a result we are well placed to continue to grow our revenue streams and profitability."
https://twitter.com/surprised_trade/status/1427150605546659843
Solid revenue growth, up by 9% to $21.3m (H1 2020: $19.6m)
· 14% increase in operating profit to $2.2m (H1 2020: $1.9m)
· 13% rise in net profit to $1.73m (H1 2020: $1.54m)
· Earnings per share increased by 14% to 1.89 US cents (H1 2020: 1.65 US cents)
· Cash flow from operations increased by 53% to $3.1m (H1 2020: $2.0m)
· Strong balance sheet with net cash at $9.7m as of 30 June 2021 (30 June 2020: $7.6m)
· 2020 dividend of $0.025 per share (2019 dividend: $0.02 per share) paid on 31 March 2021
Also recently broker's upped target price to 100
Very nice RNS today - not only a new contract win, but also importantly confirmation that "the business is trading well".....
It's encouraging to see MWE moving into these new areas - Space antennas just last month, and now Naval antennas, from a new customer whose contract value could reach $1.7m:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-New-Naval-Antenna-Contra/85814494
So the H1 results will be on Monday, followed by an InvestorMeet presentation.
So (1) with no adverse commentary this hopefully confirms trading continues to be positive, particularly as (2) management are happy to face investors' questions!
MTI’s divisions have robust trading prospects driven by ongoing structural growth in their respective end markets: global warming and climate change; increased defence budget spending; and demand for next generation 5G networks.
MWE starting to pick up larger contracts for 5G backhaul antennas as mobile network operators roll-out higher bandwith 5G services
First-quarter pre-tax profits increase 25 per cent
Net cash increased by 10 per cent to US$9.5m
https://twitter.com/surprised_trade/status/1423184329136558080
New edition of Techinvest newsletter out on Sat 31st July. possible updates on MWE,KETL,CER,D4T4
and CNIC. 2021 tip of the year, share to watch, Berenberg brokers upgraded target price today from 180p to 200p shares are
only trading at under 100p so possible 100% increase in coming year.
Will be looking to do the same. I hope it might drift a bit lower with the general market.
taken the opportunity on general mkt drop to top up holding over past couple of days.....
https://twitter.com/surprised_trade/status/1417393221228011520
69p...fallen back from 80p.....added to holding
https://twitter.com/surprised_trade/status/1417756397861748740
.added a further 7293 shares
The RNS is only small in dollar term but potentially a whole new sector opening up. Nice start to the week for sure.
Rivaldo, you were pushing this as very cheap around 60p at the beginning of June. My accounting skills are zip so I'm very glad of such help - and glad I topped up. The usual thanks!
Good write-up on mti wireless on stockopedia yesterday. Good stock to hold
From the Guardian: ‘The next pandemic’: drought is a hidden global crisis, UN says
https://amp.theguardian.com/environment/2021/jun/17/the-next-pandemic-drought-is-a-hidden-global-crisis-un-says
Great post Rivaldo, thanks for sharing this. Have to say, even before this piece, there's much I like about this company. Good BoD, communicative, forward looking and solid growth. Can't remember exactly how I came across them last year, I think I was researching water management, anyway, very glad I did.
What you are seeing is probably market size - when market makers quote a price, they guarantee that price for a certain size of trade. Doesn't mean that's all you can trade, just that the price may be different if you do a bigger trade.
Online the maximum amount of shares I can currently buy is just 100 shares :o))
Supply must be short.....I note the buy just now of over 14,000 shares at 71.9p - well above the published 70p offer price.
Company happy to buyback shares
Part two - note the 100p target price giving over 40% upside:
"The group’s antenna business only made a small operating profit last year, but it’s starting to pick up larger contracts for 5G backhaul antennas as mobile network operators roll-out higher bandwith 5G services. The business is likely to gather momentum, too. Chief executive Moni Borovitz notes that “the Covid-19 pandemic has emphasised to the world the importance of mobile connectivity and this has accelerated the global roll-out of 5G services. Take-up of our 5G backhaul solution is moving ahead positively.”
Another key take for me is the group’s bumper cash performance. Even though MTI paid out a US$2.2m dividend in March, net cash increased by 10 per cent to US$9.5m year on year, a sum worth 7.5p a share. This adds weight to analyst expectations of a further double-digit increase in the dividend to 2.8¢ (2p) in 2021, implying the shares offer an attractive prospective dividend yield of 3 per cent and one that is also well underpinned by excellent prospects of strong earnings growth in the coming years.
Analyst David Johnson at house broker Allenby Capital is maintaining his full-year pre-tax profit and EPS estimates of US$4.9m and 3.14p, up from US$4.05m and 2.7p in 2020, implying MTI’s shares are rated on a cash-adjusted price/earnings (PE) ratio of 18 after factoring in forecast year-end closing net cash of US$10.2m (8.3p a share).
Based on annual revenue increasing by 6 per cent in both 2021 and 2022 to US$43.4m and US$46m, respectively, Allenby expects MTI to increase pre-tax profit and EPS to US$5.45m and 3.5p in 2022, implying the shares are priced on a cash-adjusted forward PE ratio of 15.7 for the 2022 financial year after accounting for a year-end projected cash pile of US$12.1m (9.7p a share). That’s not a punchy rating for a company forecast to increase EPS by 30 per cent over the 2021 and 2022 financial years, and one that also offers a progressive dividend policy.
It’s my view that the profit taking since my last article represents a repeat buying opportunity and I maintain my 100p upgraded target price. BUY."
The tip is subscriber-only, so here it is FYI - part one:
"Tap into a cash generative technology growth stock.
A little known cash-rich technology group has just reported 25 per cent organic profit growth driven by strong ongoing structural growth in its three main end markets.
June 15, 2021.
By Simon Thompson.
• First-quarter pre-tax profits increase 25 per cent.
• Net cash up 10 per cent year on year underpins forecasts of double-digit dividend hike.
• All three divisions performing well.
Shares in Israeli-based technology group MTI Wireless Edge (MWE:65p) have succumbed to profit taking since I covered the annual results (‘Small-caps with upgrade potential’, 1 March 2021), having doubled in value in the previous six months after I initiated coverage, at 40p (Alpha Report: ‘Tapping into 5G and climate change technologies’, 4 Sep 2020).
First-quarter results and news of further contract wins indicate that the share price reversal is seriously overdone. Indeed, MTI increased pre-tax profit by 25 per cent to US$0.9m on 4 per cent higher revenue of US$10m in the three months to 31 March 2021. The growth was organic as one would expect given that all three of MTI’s divisions have robust trading prospects driven by ongoing structural growth in their respective end markets: global warming and climate change; increased defence budget spending; and demand for next generation 5G networks.
MTI’s wireless water control and management systems division addresses water scarcity by using Motorola's IRRInet state-of-the-art communication technologies. The business continues to win new contracts, the latest being a Can$300,000 award from a major Canadian City. That contract endorses MTI’s decision to open a new office in Alberta, with a view to increasing recurring revenue from service and maintenance contracts and to be closer to end customers. MTI also extended a contract worth US$2.5m with a leading Israeli municipality for another two to four years. Global warming is accentuating the need to source more efficient irrigation systems that reduce water and power usage, a factor that is underpinning the strong demand for MTI’s technology.
MTI’s Summit electronics division, which represents 40 international suppliers of radio frequency/microwave components and sells these products to customers in Israel and Russia (fifth of divisional revenue), has reported another strong quarter, buoyed by ongoing demand from its core customer base in the defence and technology sector in Israel and Russia. Importantly, demand for future design solutions remains high, a leading indicator of future trading prospects."
Thanks for sharing. I was wondering what caused the bump.
Excellent news, cheers Surprised. ##
Onwards and upwards to Simon's 100p target....
https://twitter.com/surprised_trade/status/1405047792532393989
nice write up today in IC and a target of 100p
https://www.investorschronicle.co.uk/ideas/2021/06/15/tap-into-a-cash-generative-technology-growth-stock/?xnpe_tifc=bIBLxIE_bIzlb.xXx.L.bjpsafeWaeiWhFWDEkUdhC8NbMPchMxjnkPlajBsa9EvVup_tu4vaMXlb.YX4.bZbDP.4.z7OIYd&utm_source=exponea&utm_campaign=Investment%20Daily%20Email%2016%20June%202021&utm_medium=email