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I've been wondering whether to take some profits, being up around 120%. But the graphs are all lovely, QM in Stockopedia is great, and it's in 2 really great areas. Antennas for 5G is of course obvious, but I still believe in the end it is WATER that will take the laurels.
I can't value things well enough to give an out-price, I might take profits into a real spike, but for now it's a Hold or even a Top Up, in spite of the gain. Think it's going to be a long, long term hold.
AND there's a good divi.
News - note that "MTI's multi band antennas are being deployed in new and existing 5G networks":
Https://www.prnewswire.com/il/news-releases/mti-wireless-edge-ltd-announces-multiple-new-multiband-antenna-products-301215997.html
"MTI Wireless Edge Ltd. announces multiple new MultiBand antenna products
27 Jan, 2021, 14:00 IST
TEL AVIV, Israel, Jan. 27, 2021 /PRNewswire/ -- Following a successful launch in 2019 and worldwide deployments of our patented Multi Band antennas in 2020, MTI has expanded the Multi Band family to additional frequencies as well as the registration of patents on these new developments.
The latest additions to this portfolio include 2 ft parabolic antennas in 11/32, 13/32 and 11/80 GHz, as well as extending the existing 2 ft antenna solutions to include 1 ft Variants in 15/80, 18/80, 23/80 and 28/80 GHz.
Complying with ETSI, FCC and Anatel requirements, MTI's multi band antennas are being deployed in new and existing 5G networks providing high capacity backhaul with high availability by combining two different frequencies in one antenna.
MTI's antenna division General Manager Dov Feiner said: "MTI offers the most comprehensive portfolio. We received excellent feedback from our existing customers in parallel to many requests to diversify and add new frequencies to our portfolio. We welcome this type of collaboration and in response we have developed additional frequencies to support the commercial needs of our customers."
The IC have just screened the entire market using the stringent criteria below.
Only seven AIM companies pass all nine tests (and none at all from the large caps). MWE pass 8 out of the 9 and are a terrific 9th out of all the companies:
Https://pdfs.investorschronicle.co.uk/IC_AlphaScreen_Quality_010221.pdf
"AlphaScreens: the quest for quality
1 February 2021
Aim stocks lead the way in this month’s screen
The holy grail for buy-and-hold investors is to find a business that is capable of generating a high return on capital and sustaining it while reinvesting profits. This screen looks for shares that display these quality characteristics and can potentially deliver significant compounded returns over time"
"?An operating margin higher than the median average (mid-ranking) stockin each of the past three years (i.e. quality that shows some signs ofpersistence).
?A return on equity (RoE) higher than the median average (mid-ranking)stock in each of the past three years (i.e. again, quality that shows somesigns of persistence).
?RoE higher than it was two years ago (i.e. quality is improving as well aspersistent).
?Operating margin higher than it was two years ago (i.e. quality isimproving as well as persistent).
?A dividend-and-debt adjusted price/earnings growth (PEG) ratio belowthe top fifth of stocks screened (ie stocks must not be too egregiouslyexpensive for the growth on offer).
?A price/earnings (PE) ratio above the bottom 10 per cent of stocksscreened and below the top 10 per cent (i.e. not a suspiciously cheap ordangerously expensive valuation).
?Interest cover of more than five (i.e. high RoE is not overly dependent onthe use of debt).
?Forecast earnings growth for each of the next two financial years.
? Positive forecast free cash flow"
What an advert.
I think we're going to see a lot more of this.
"Since 2004 we have tripled the area of the plant life and vegetation, which today covers over 2,000 acres of city landscapes. Also over the same period, we were able to grow the wireless monitored and irrigated area from 30% of the landscape to over 95%, resulting in a reduction of the water consumption per cubic meter by two thirds. This is critical to the City budget, saving millions of NIS per year, as the climate requires irrigation on 75% of the days of the year to maintain the City greens."
News - a contract renewal for Mottech bringing in around $2.5m over the next four years. That's solid recurring income going forward adding nicely to forward visibility:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Contract-Renewal/84176309
67p?
For nine months to last November profit was at $3 mil (so probably close to £3 mil for the year). This was 20% increase despite C19 disruption. They had £6 mil in cash (again a substantial increase on previous year). They 've been winning new contracts at a rate of around one a month. They're in at least one hot sector. So maybe not so pricey. That said, I think this might retrace (question is, how far?)
yes, it was...but you weren't here at 7p...or 17p lol
at 87p, the nose is close to bleeding
MWE are at new highs - it's natural there'll be profit-taking at some point. No share goes up in a straight line.
That doesn't mean that if MWE continues to announce good news, be it healthy trading or in particular more 5G and/or water/irrigation contracts that there isn't a lot of upside to come as the re-rating continues.
MWE was heavily undervalued for a long, long time! So the big share price rise is in a sense just a correction of that undervaluation, and doesn't necessarily mean there isn't more to come.
finally profit taking?
the sp has enjoyed an amazing run (way higher than i expected; totally out of character with the mwe i know/love)...but, after tripling (and more), it is extremely richly valued imv
Up 5% now, and buying coming in at the new full 91p offer price.
Allenby have this morning issued a brief update on MWE after the recent contract wins. Not much to add, but the conclusion reads well:
"Allenby Capital comment:
Good start to the year for MTI Summit, MTI's distribution and professional consulting division, and its growth over the past two years reflects increasing defence budgets and the demand for more bandwidth and network security amongst its customers. MTI Summit has developed its role as a trusted partner for both customers and component suppliers and its engagement can result in long-term business relationships.
The outlook for the rest of the group remains positive with demand in MTI Antennas being driven by the need to increase network capacity and the accelerating 5G network roll out; and public and private sector organisations adapting to climate change and investing (in) wireless water management products (Mottech)."
Techinvesthas been recommending it as a buy since November 2019 when it was in the 30s. It closes any news input from the Tuesday before publication as as the next edition is due this weekend it will not cover the latest contract. Similarly, it will not include any comment on the latest GHT update.
Excellent news - $1.7m of contract wins which should mean this Q1 will be a rather good start to the year.
The even better news is that whilst we know the 5G/antennae and water management divisions are doing well, these contracts are in the third and unreasonably overlooked hi-tech consulting division, which is also thriving from its long-term and increasing customer base:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Contract-wins/84033210
Has Techinvest newsletter done a recent update yet ?
Just tipped this lunchtime. Good to see him increase his price target to 90p.
Simon Thompson's tips in the IC are normally behind a paywall, but this one isn't, so I'll post it here for the record before it disappears!
"MTI share price hits record high
Robust end market demand.
Double-digit profit growth expected in 2021 and 2022.
Shares in Israeli-based MTI Wireless Edge (MWE:76p) have increased 85 per cent in value on an offer-to-bid basis since I initiated coverage (Alpha Report: ‘Tapping into 5G and climate change technologies’, 4 September 2020), and have surpassed my 70p target. I would resist banking profit. That’s because investors are likely to continue to warm to MTI’s strong investment case given that its technology businesses operate in market segments that are displaying attractive structural growth: demand for next generation 5G networks; global warming and climate change; and increased defence budget spending.
Specifically, MTI sells 5G backhaul antennas to support mobile phone operators to roll out their 5G networks, helping to transfer the data from mobile users to the operator’s network; and wireless water control and management systems that address water scarcity by using Motorola's IRRInet state-of-the-art communication technologies. The military segment also provides a reliable income stream and enables MTI to reapply the technology developed in commercial markets. Robust customer demand is not only delivering contract wins, but robust earnings growth, too.
Indeed, house broker Allenby Capital expects 2020 pre-tax profit to increase by 25 per cent to US$4.3m on revenue of US$40.7m to produce EPS of 2.9p and support a 25 per cent dividend hike to 2.5¢ (1.9p). Analysts also forecast double-digit EPS growth to be maintained in 2021 and 2022, pencilling in EPS of 3.39p and 3.79p, respectively. The 2022 dividend is expected to be 20 per cent higher than in 2020. The directors can certainly afford to maintain their progressive dividend policy as MTI’s net cash has increased by 75 per cent in the past two years and is forecast to rise a further 25 per cent to US$9.5m (8p a share) by the end of 2022. On this basis, MTI shares are priced on a forward cash-adjusted PE ratio of 17.5, a rating that’s still not too punchy for a dividend paying technology company operating in market segments displaying material market growth.
In the circumstances, I am upgrading my target price to 90p based on an enterprise valuation to 2022 cash profit multiple of 15. Buy."
MWE were undervalued for a long time given the rosy prospects in 5G, water management/irrigation and tech in general, plus the solid record of rising profitability and dividends etc for many years. As well as the substantial asset backing via the cash pile and freehold property .
They had supportive shareholders like Herald and other institutional investors, but the stigma of being an overseas company and having a dominant shareholder put retail investors off for some time and held back the share price.
However, all the above positives have now come into play, results have been very good and the outlook is terrific.
When that happens, and everything comes together, the re-rating can be very quick indeed in a small cap company like MWE. Especially one operating in such high-tech and growth sectors.
I suspect there's much more to come over time.
Great start to the year - early trades saw keen buying at well above the published offer price
Video interview with the legendary Gervais on Boxing Day - great to see him highlighting MWE as one of Miton's "top holdings" (from just over 4 minutes in):
Https://www.youtube.com/watch?v=p-KerGV_SdQ&t=34s
https://www.valuethemarkets.com/2020/12/30/5g-a-key-investment-theme-for-2021/
“I already own shares in MTI Wireless Edge (LSE:MWE), an Israeli company which has been trading since 1972. I picked it as a top share in my other job as a writer for Motley Fool and I’m doing so again here.”
More success this morning for MWE's partner Nokia, with a 7-year deal to supply Luxembourg with 5G coverage using its Airscale portfolio - deployment commencing next year:
Https://www.investegate.co.uk/nokia-corporation/gnw/nokia-wins-proximus-luxembourg-5g-deal-to-digitize-country/20201215090000H5772/
wait for cheaper still?
high 60p looks like blow off top...and MWE has been one volatile ride
Don't you hate profit takers
Good to see MWE's partner Nokia leading the way not only in 5G , but also forward with research into 6G:
Https://www.investegate.co.uk/nokia-corporation/gnw/nokia-to-lead-the-eu--8217-s-6g-project-hexa-x/20201207071818H4310/
" Nokia to lead the EU’s 6G project Hexa-X
Nokia is the project leader for Hexa-X, the European Commission’s 6G flagship initiative for research into the next generation of wireless networks
The Hexa-X vision is to connect human, physical and digital worlds with a fabric of 6G technology enablers
Hexa-X is the first official research initiative across the industry ecosystem to accelerate and foster 6G research and drive European leadership in the 6G era
07 December 2020
etc"
Does make you wonder what all those sells were about a few weeks back. Up over 50% now