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Looks like a few bored short-term traders exiting this morning, with the price down 2p on extremely small volumes given we know MWE isn't the most liquid stock.
Shore Capiral have retained their 90p price target and current forecasts as follows (extracts):
"Conservative forecasts: We have consistently highlighted since we initiated coverage on MTI in May 2022 that MTI has a very strong financial platform, which it uses to grow sales both organically and through acquisitions. Any new business is expected to be incremental to margins and profits in the first year. In our view, the group has demonstrated this over the last 15 months with the organic growth in Summit in 2022 boosted by the PSK acquisition, while the H1 results for FY23F have shown good adj. EBIT progress for Mottech and Antennas. At the time of the FY22A results in March, we maintained our group forecasts for FY23F and FY24F and introduced numbers for FY25F. We continue to forecast sales and profit progress in each forecast year. Obviously, we have not assumed any further acquisitions in our forecasts, so given the company’s record of earnings enhancing deals, we would view any M&A as likely to boost forecasts and shareholder value."
""Outlook and valuation:
In the March 2022 note we also highlighted that each of the divisions has growth drivers with, in our view, Mottech particularly well placed to potentially see stronger demand than we forecast for its water management and control software. Today’s result statement highlighted the strong prospects for Mottech in Italy and France. Typically, the software improves the efficiency of irrigation systems, while reducing the cost of operating them. The Antenna division is likely to benefit from the rollout of 5G across the world, as and when it happens, as MTI already supplies seven of the top ten operators with its technologies. We would also expect to see continued good demand for Summit/PSK with its defence-related products and services as demonstrated by the news that two key PSK projects have already made significant progress in Q3 FY23F.
Along with many stocks on AIM, the share price has drifted lower during 2023. We maintain a 90p fair value on the basis of a DCF analysis, which is corroborated by MTI achieving an FY23F EV/EBITDA multiple of 11.2x (the average of our peer group). We note also that the prospective 5.9% dividend yield for FY23F should also provide strong support."
A steady and solid H1 in the current climate, with EPS increasing 9% to 1.99c and confidence in not only meeting expectations for the year but also going forward.
With the usual H2 weighting, plus delayed PSK contracts benefitting H2, there's a possibility that results will beat expectations of 4.2c EPS.
The cash pile has increased nicely to $6.25m, which is almost 6p per share in itself.
On an ex-cash P/E for this year of just 11 MWE are good value, but need to show in H2 that all the obvious opportunities in 5G, water and defence are coming to fruition given that each division seems incredibly well placed to thrive.
I think you have picked a good time to buy... Time will tell.
You can count me in spindok. Just bought some as a newbie to MWE. I notice Rivaldo is here too which Is good to see. He tends to provide quality content to the boards.
I am fairly confident the results will be ok. I continue to hold and just wish a few more people would see the potential.
Today's RNS notes H1 results will be next Tuesday 15th August, with an Investor Meet.
Above all, no mention of any problems, so we should be able to assume that everything's nicely in line following the Q1 outlook which was "confident" about the outlook for the year ahead.
Ye, 30-35p would give this a p/e of c10
the market's weak and getting weaker...nothing's immune
With approaching 8.3p per share in cash, and around 3.3p EPS forecast this year, MWE are on a miserly ex-cash P/E of only just over 10.
Shore Capital updated after the Indian subsidiary news - FYI here's their conclusion, retaining their 90p valuation:
"Outlook and valuation:
In the March note we also highlighted that each of the divisions has growth drivers with, in our view, Mottech particularly well placed to potentially see stronger demand than we forecast for its water management and control software. Typically, the software improves the efficiency of irrigation systems, while reducing the cost of operating them. The Antenna division is likely to benefit from the rollout of 5G across the world as it already supplies seven of the top ten operators with its technologies. Today’s news of the establishment of its Indian subsidiary positions it particularly well in the Indian market, in our view. Summit/PSK had a strong FY22A and we would also expect to see continued good demand for its defence-related products and services as demonstrated by the recent contract win.
The share price has drifted lower since the release of the Q1 results in May. Ahead of Q2/H1 FY23F results in mid-August, we maintain a 90p fair value on the basis of a DCF analysis, which is corroborated by MTI achieving an FY23F EV/EBITDA multiple of 11.2x (the average of our peer group)."
It would be nice to know what the Indian branch will comprise. Is it just a salesman and a phone, a design studio, a manufacturing facility, a combination of these things or what? If we knew what it comprised and more detail of what is expected by Mti Wireless from it, investors might become much more interested.
Good to see MWE buying back another 50,000 shares at these levels - they now hold 275,000 in treasury:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Transaction-in-own-share/91570805
With approaching 8.3p per share in cash, and around 3.3p EPS forecast this year, MWE are now on a miserly P/E of only just over 10.
I suppose the pound's rise is causing the P/E to rise in pure translation terms only, though I'd have thought this will be a short-term movement with the pound coming back to earth at some point.
And MWE benefit from when the dollar is strong against the shekel - as it has been this year, with the shekel falling to the current 0.28 against 0.32 at the start of the year.
35-37p "base"?
While such broker vauations are clearly a positive factor, unfortunately I have found that the actual share price almost invariably lags well behind the vauations at best, or is totally impervious to them on most occasions. Hopefully the share price will finally start to climb toward the Allenby valuation but I won't hold my breath.
Allenby Capital have also now updated - they too have a 90p valuation:
"MTI Wireless Edge* (MWE.L, 44.5p/£39.4m)
Contract win: Repeat military antenna order (03.07.23)
• Repeat order from a European customer, worth $1.4m, for the manufacture of military antennas. The principal part of the contract relates to the manufacture of an existing product line, with the balance relating to upgrades to the antenna solution.
• The contract is expected to be delivered within 14 months.
• MTI also continues to purchase shares to be held in treasury with 225,000 currently held.
• No change to forecasts or 90p/share fair value.
Allenby Capital comment: Good contract win with an existing European customer for military antennas that covers both the existing product line but also upgrades. The win indicates that the customer is happy with both MTI's products and services. MTI reports increasing demand for military antennas with high levels of new enquiries and new contract negotiations. No change to forecasts or 90p/share fair value."
I bought in here ages ago. Have taken the dividends and remain relaxed about the companies prospects. Would like to experience though a steady erection of the sp...
Shore Capital retain their 90p valuation here after today's contract win.
They forecast 4.2c EPS this year and a 3.2c dividend, with $9.2m cash at the year end.
That's 8.3p per share of cash, giving rise to an ex-cash P/E of only 11.2 for this year.
They conclude:
"Outlook and valuation:
In the March note we also highlighted that each of the divisions has growth drivers with, in our view, Mottech particularly well placed to potentially see stronger demand than we forecast for its water management and control software. Typically, the software improves the efficiency of irrigation systems, while reducing the cost of operating them. Summit/PSK had a strong FY22A and we would also expect to see continued good demand for its defence-related products and services as demonstrated by today’s contract win. Finally, the Antenna division is likely to benefit from the rollout of 5G across the world as it already supplies seven of the top ten operators with its technologies. The share price has drifted lower since the release of the Q1 results in May.
Ahead of Q2/H1 FY23F results in mid-August, we maintain a 90p fair value on the basis of a DCF analysis, which is corroborated by MTI achieving an FY23F EV/EBITDA multiple of 11.2x (the average of our peer group)."
Excellent $1.4m contract win announced today for the manufacturing of military antennas.
Plus an encouraging comment that this "is also part of the increasing demand that we are currently experiencing in new enquiry levels and new contract negotiations for defence related solutions from throughout Europe as well as other regions":
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Contract-win/91482444
Looks like a fund is selling a few here. Market makers walking share price down slowly, despite MWE Company buying back shares every few days. Today I can buy 40,000 shares at 44.25p....
Seems really cheap, but in today's market where small cap shares are out of favour, who knows??
Here's a link to Allenby's latest note FYI:
Https://wp-allenby-2020.s3.eu-west-2.amazonaws.com/media/2023/05/20230517-MTI-Wireless-Edge-Ltd-MWE.L-Allenby-Capital-Q1-update-1.pdf?c3638=on
Extracts:
"Q1: Solid start to FY23, growth drivers in all divisions
Solid Q1 performance from MTI Wireless Edge Ltd (MWE.L), the technology group
focused on comprehensive communication and radio frequency solutions across
multiple sectors. Revenue increased 1% to $11.3m and PBT by 15% to $1.1m, reflecting an improvement in gross margin, FX tailwinds and higher interest received. Net cash strong at $8.5m (Q1 FY22: $6.5m) but this did benefit from the FY dividend ($2.5m) being paid in April and March in FY22. On a divisional basis, all were profitable and there was revenue growth in Antennas and Water Solutions (Mottech) while Distribution (MTI Summit) was relatively quiet. The outlook for FY23 remains positive here as design wins move through to production. Medium term demand drivers for each division remain intact and we anticipate further growth at the top and bottom line. P&L forecasts and 90p/share fair value, equivalent to an FY24 EV/EBITDA of 13.0x and a yield of 4.1%, remain unchanged."
"Outlook: Demand for MTI’s comprehensive communication and radio frequency solutions across each division remains good with the ongoing challenge of water scarcity, the embrace of 5G and increased military spending given the global political situation. We expect continued profitable growth and our 90p/share fair value is unchanged."
I was just re-reading April's issue of Techinvest and noted that MWE's 2022 results were well reviewed and Techinvest's review hadn't been noted here, so here's the conclusion (the share price was then 51.5p):
"MTI is a well-balanced business, with its three divisions all performing well and delivering on their respective growth strategies in fiscal 2022. The company grew in terms of both sales and profits and it is noteworthy that this was delivered despite the ongoing impact of the global chip shortage, which affected key components required in nearly all of the products and solutions sold by MTI.
Management reported that the business is seeing compelling opportunities in all operating segments, with the opening of the Indian market for E-Band 5G backhaul in particular representing a substantial opportunity for MTI over the medium term. The conflict in Ukraine has led directly to a significant increase in defence budgets and that too is likely to have a positive impact on the company's financial performance in the current year and beyond. Around 37% of MTI's sales are defence-related. Continue to buy."
So excellent, that the sp is sliding lol
testing 40p seems the obv play
1% revenue growth is pretty poor given inflation at 10%, and most of the profit growth came from interest on the huge cash balance they hold.
Shore Capital also have a 90p price target based on "conservative" forecasts.
They conclude:
"Outlook and valuation
We have consistently flagged since we initiated research coverage in May 2022 that MTI’s strong financial platform provides a base to grow sales both organically and through acquisitions, with any new business incremental to margins/profits. In our view, the group has demonstrated this with the organic growth in Summit in 2022 boosted by the PSK acquisition, while the Q1 FY23A results show good progress for Mottech and Antennas.
In the note that accompanied the FY22A results in March, we highlighted that each of the divisions has growth drivers with, in our view, Mottech particularly well placed to potentially see stronger sales than we forecast. as its software improves the efficiency of irrigation systems, while reducing the cost of operating them. We also expect to see good demand for the defence-related products and services of Summit/PSK. Finally, the Antenna division is likely to benefit from the rollout of 5G across the world as it already supplies seven of the top ten operators with its technologies.
We maintain a 90p fair value on the basis of a DCF analysis, which is corroborated by MTI achieving an FY23F EV/EBITDA multiple of 11.2x (the average of our peer group)".
Oh to be a dreamer.... Every thing apart from this is covered in blood... Intend to hold this and hopefully take another dividend later in the year...
Allenby Capital have retained their 90p fair value price target this morning.
With 1.01c EPS in the usually much quieter Q1, MWE have made a very good start to 2023 and look likely to beat the forecast of 4.28c EPS for the year imo.
EPS is up 14% and PBT up 9% in the normally quieter Q1, with the cash pile up to $8.5m (the divi being paid in April) and bringing in additional interest receivable, plus improved margins also helping the cause.
Each of the 3 divisions is performing well and there's confidence for the outlook in all of them. Water, 5G and defence are all great areas to be in and should continue to be so in the short and long-term.
There's also a notable mention of growth being acquisition-led as well as organic:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Q1-2023-Financial-Result/91085260