George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
ok...I've lost out on mad sp below 37p
more than a decade playing with this strongly suggests a nice uptick here to decent value c70p
Good to see the further 5G contract win whilst I was away on three weeks' hols.
With 5G beginning to accelerate, defence spending on the rise globally, and water conservation and sustainability paramount everywhere, all of MWE's divisions are in the right place at the right time.
Yet MWE trade on an ex-cash P/E of only 10.7.
why not wait??
tp 37p for oversold bounce
Sorry May...add
Lots of very positive news and a share buy back but we seem rooted to the spot... My add but not until next week,...Weekends are proving dodgy events..
Shore Capital have issued an update note today after the contract win, with a 90p fair value target price.
They forecast 4.1c EPS this year, i.e 3.6p EPS.
The 3c dividend equates to 2.64p, which at 49p is a pretty meaty 5.4% yield.
Shore also forecast a $10.9m year end cash pile, i.e £9.6m or 10.9p per share.
Which means MWE are trading on an ex-cash P/E of only 10.7 for the year about to end.
Shore conclude:
"Conservative group forecasts: MTI has a very strong financial platform and seeks to grow sales both organically and through acquisitions, with any new business likely to be incremental to margins/profits, in due course. Ahead of Q3 results expected next month we would highlight that all three divisions have growth drivers in place to improve both revenues and profits. As flagged by the CEO, Moni Borovitz, the contract win for the Antenna division announced today has the
potential to develop into significant recurring revenue. Trading in defence-related activities is likely to be both robust and growing in the coming years, in our view.
Outlook and valuation: As highlighted above, MTI will continue to seek to deliver revenue growth, both organically and through acquisitions in each of its divisions.
In our view, Mottech is particularly well placed in the medium term to potentially see stronger demand than we forecast for its water management and control software. The Antenna division is expected to benefit from the rollout of 5G across the world and as demonstrated by today's news increased defence spending. Indeed,assuming Israel remains at the forefront of global technology development, we expect Summit/PSK to see continued good demand for its products and services as evidenced by the record contract win for the Israeli Ministry of Defence announced on 18 July 2022.
We initiated coverage with a 90p fair value on the basis of a DCF analysis, which is corroborated by MTI achieving an FY22F EV/EBITDA multiple of 13.7x (the average of our peer group)."
Nice £500k+ contract win for the antenna division in the defence sector - but the true importance lies in the comment that "there is the potential for this to evolve into a significant long-term order":
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Contract-Win/89232591
Still holding. Most contracts are in dollars. Tink this will surprise a lot of people.
Good to see MWE buying another 100,000 shares back at 48.72p:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Transaction-in-own-share/89183031
In 2021 MWE noted that "profit growth was limited" due to the strength of the Israeli Shekel versus the US Dollar. In 2022 that has reversed and more, with the shekel dropping from 0.32 to 0.28. Which should therefore be good news for MWE.
And of course as MWE report and pay dividends in dollars, both are looking good for UK shareholders at current pound/dollar rates.
Another 50k shares bought back at 54p just reported - good to see decent amounts being bought back rather than piddly amounts:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Transaction-in-Own-Share/89048867
Good to see share buybacks starting again now with a 50,000 share purchase - should help support the share price nicely. No doubt they'll be re-sold to institutional investors such as Miton and Herald as in the past:
Https://www.investegate.co.uk/mti-wireless-edge--mwe-/rns/transaction-in-own-shares/202209120913240879Z/
Techinvest's new issue is now out, so it should be OK to copy their Buy commentary from August's issue FYI:
"MTI Wireless Edge 55.5p (MWE; AIM)
MTI has announced that its Distribution & Professional Consulting Services division has won a three-year contract (with an option to extend for a further four years) with the Israeli Ministry of Defence, which is expected to be worth US$1.4m per annum or US$10.0m over seven years.
This is a significant contract win and on a seven-year basis it is the most valuable contract that MTI has ever won. The contract was secured through PSK, a business in which MTI acquired a 51% stake in January 2022. PSK is already proving to be a strong acquisition with a number of orders secured in previous months prior to this latest order. Continue to buy."
The IC has released its latest AlphaScreens update researching all listed companies for the quest for quality:
"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 sharesthat display these quality characteristics and can potentially deliver significant compounded returns over time."
The 9 screening criteria cover RoE, operating margins, P/E, PEG, free cash flow, interest cover etc.
Of all the AIM stocks above £35m m/cap, only 5 companies pass all 9 tests. MWE are one of them (along with ETP, which I also hold).
"The group offers exposure to climate change, too. MTI’s cutting-edge Mottech's real-time irrigation monitoring, control and reporting software offers the agricultural industry, municipal authorities and commercial organisations a smart way to manage water consumption efficiently. At the end of the first half, the group landed €1mn (£0.85mn) of new contracts in Italy for delivery in the current quarter. Water scarcity is becoming a major issue across the globe as more countries face up to food shortages due to soaring temperatures impacting crop yields. Interestingly, Mottech has been able to push through some above inflation price rises, says group chief executive Moni Borovitz, so there is scope for improved margins, too. Although divisional operating profit was flat at $0.86mn on a margin of 10 per cent, Borovitz notes the unit has some big opportunities in the pipeline in Western Europe.
In the six-month period, group pre-tax profit was flat at $2.04mn on six per cent higher revenue of $22.7mn, but this was a strong result given that the exit from Russia (contributed $0.9mn of revenue and a meaningful profit in the first half of 2021), PSK’s acquisition costs ($0.1mn) and a $0.28mn increase in depreciation and amortisation charges held back the reported result. First half cash profit, which increased 11 per cent to $2.9mn, is perhaps a better measure of the underlying performance.
Joint house broker Shore Capital expects full-year pre-tax profit to rise 10 per cent to $4.4mn on six per cent higher revenue of $45.2mn based on cash profit increasing from $5.4mn to $5.7mn, sensible assumptions in my view. Admittedly, a higher tax charge means earnings per share (EPS) are forecast to be flat at 4.1c (3.4p), but the cash generative company should still end the year with net cash just shy of $11mn (10p a share), enabling it to maintain a progressive dividend policy.
On this basis, the shares are priced on a cash-adjusted price/earnings (PE) ratio of 13.8 and offer a 4.3 per cent prospective dividend yield, modest ratings for a technology group operating 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. The board adopts a progressive dividend policy, too, having paid out 5.3c (4.3p) a share since I initiated coverage on the shares, at 40p (‘Alpha Research: Tapping into 5G climate change technologies’, 5 September 2020).
So, with analysts expecting MTI to deliver double-digit annual pre-tax profit growth over their three-year forecast period, and the latest order book significantly higher year-on-year, I see scope for the share price to make progress back to the 65p level of my last buy call (‘Farming winners from climate change and geopolitical tensions’, 23 May 2022), and well beyond. BUY."
Https://www.investorschronicle.co.uk/ideas/2022/08/15/a-smart-play-on-defence-spend-climate-change-and-5g/
"A smart play on defence spend, climate change and 5G.
A technology group is winning new contracts and operates in market segments displaying attractive structural growth: demand for 5G networks; global warming and climate change; and defence budget spending.
August 15, 2022
By Simon Thompson
*Flat interim pre-tax profit of $2.04mn on six per cent higher revenue of $22.7mn after accounting for acquisition costs, exit from Russia and higher non-cash charges.
*$10mn contract award in Israel since half-year end.
*Strong order book.
*Analysts maintain full-year double-digit profit growth forecasts.
Israeli-based technology group MTI Wireless Edge (MWE:57p) is reaping an immediate payback from January’s $1.2mn (£1mn) acquisition of a 51 per cent stake in PSK, an Israeli company which develops, manufactures and integrates communication systems and advanced monitoring systems for the Israeli government defence market.
In the first half of 2022, PSK contributed $2mn of revenue on a 5 per cent operating margin and MTI also earns management fees. Moreover, since the half-year end, PSK has landed the largest contract in its history, a $10mn award over seven years from the Israeli Ministry of Defence. Strategically, PSK is enabling MTI’s Summit electronics division, which represents 40 international suppliers of radio frequency/microwave components, to step up the value chain by offering not only components, but turn-key solutions such as fixed and mobile communication, telemetry and signal intelligence systems, too.
The division posted 25 per cent higher operating profit of $1.1mn on revenue up a fifth to $8.4mn. It looks well set to continue delivering strong growth especially as the conflict in Ukraine has had a knock-on effect on military and defence spending by Western Governments, which in turn will pass through to MTI’s distribution and special consulting services divisions.
The group’s antenna business has strong growth prospects, too, albeit the global microchip shortage has impacted clients and led to delays in fulfilling orders. The unit returned to profit in the second quarter, but first half operating profit of $0.1mn was still down from $0.25mn in the same period last year on flat revenue of $5.7mn. However, there is evidence of an easing of chip supply issues and MTI’s backhaul solutions should deliver significant growth as the roll-out of 5G infrastructure gathers pace. India recently completed its 5G auction and MTI has seen a flurry of customer enquiries for the group’s manufacturing capabilities. MTI is working with five of the seven leading OEMs in the sector, so is well placed to benefit."
Shore Capital have reiterated their 90p target price and 4.1c EPS forecast.
They also reiterate their forecast of a 3c dividend and $10.9m cash pile (almost 20% of the m/cap) at the end of this year.
They conclude:
"Outlook and valuation:
As highlighted above, MTI will continue to seek to deliver revenue growth, both organically and through acquisitions. Each of the divisions has growth drivers with, in our view, Mottech particularly well placed in the medium term to potentially see stronger demand than we forecast for its water management and control software. The Antenna division is expected to benefit from the rollout of 5G across the world. Finally, assuming Israel remains at the forefront of global technology development, we expect Summit/PSK to see continued good demand for its products and services evidenced by the recent record contract win for the Israeli
Ministry of Defence.
We initiated coverage with a 90p fair value on the basis of a DCF analysis, which is corroborated by MTI achieving an FY22F EV/EBITDA multiple of 13.7x (the average of our peer group). Please see initiation note for a more detailed analysis. HOUSE STOCK."
Cheers ARL. There was quite a lot of buying last week after the Notice of Results RNS. I suspect we just have to wait for the short-termers who bought in last week prior to the results to take their small profits (or more likely losses) and move on.
Whilst the rest of us look forward to the prospects going forward.
Good summary of my take on it too. Market reaction a touch *****rdly perhaps.
Just keep holding. It is heading in the right direction. I think some were expecting another dividend...
Solid H1 results out today, with revenues up 6% and EBITDA up 11%.
Most importantly, MWE are confident about the outlook for the year, and EPS is trading in line with forecasts of 4.1c EPS given the usual H2 weighting and the contracts already won kicking in.
The cash pile has reduced to $5.2m due to the acquisition, dividends etc and is expected to rise again in H2.
Every division is performing OK and has great prospects. Progress in 5G sounds particularly exciting, but also military spending should increase globally post-Ukraine and we can all see the need for water management and efficiency given what happening at the moment.
The H1 results will be next Monday, with an Investor Meet presentation at 10.00 am:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Notice-of-Interim-Result/88787463
Techinvest have published their new issue, so it should be OK to copy their Buy update on MWE from the July issue:
"MTI Wireless Edge 63.5p (MWE; AIM)
MTI’s Mottech Water Solutions division has secured several orders through its Italian resellers, totalling approximately €1.0m, all for delivery during the third quarter of 2022. Italy has been a successful market for Mottech, operating through long-term resellers of the Mottech product range. These recent orders are from both existing and new agricultural and water distribution customers. Although this is a comparatively small order in financial terms, it demonstrates the customers’ satisfaction with Mottech’s solutions and ongoing support. Water management has been described as the most pressing environmental consideration worldwide and that represents a huge market opportunity for operators like Mottech. Continue to buy."
From Allenby Capital's TMT update this morning:
"MTI Wireless Edge Ltd (MWE.L, 55.5p/£49.1m)
Contract win: Largest contract in Group’s history (18.07.22)
 P.S.K WIND Technologies, part of MTI’s Distribution & Professional Services division, has won a three year contract (with the option to extend for a further four years) with the Israeli Ministry of Defence (MoD).
 Expected to be worth $1.4m p.a. or $10m over the full seven years – representing the largest contract in MTI’s history.
ï‚· PSK has worked with the MoD for more than seven years, providing service and maintenance support, and this contract represents a continuation.
 MTI acquired 51% of PSK, with an option to acquire the balance, in January 2022 and PSK’s status as a qualified MoD provider for strategic projects and its relationships with Government and defence industry customers were key to the acquisition decision.
ï‚· No changes to forecasts but contract provides good additional revenue visibility."
Gervais Williams's Miton UK Microcap trust has issued its prelims to 30th April.
It only mentions 2 or 3 companies specifically. MWE are their largest holding, valued at £2.6m, and it has this very interesting snippet:
Https://www.londonstockexchange.com/news-article/MINI/2022-annual-report-final-dividend-and-agm-notice/15545728
"Some may think that microcaps are companies of little consequence but many of them are world leaders in their fields and astute leadership can enhance their already dominant positions with sensible infill acquisitions and canny investment.
MTI Wireless, an investment made soon after the Trust's launch, subsequently rising to become one of the largest holdings, is a good example. It is currently being actively engaged by many of the largest 5G equipment manufactures because its 5G aerials have patented commercial advantages over others. It is a fact that well-chosen microcaps can, and often do, rise by multiples of their original price, and this then brings them into the sights of investment managers who, until this point have eschewed the smallest companies, leading to yet further share price appreciation."
Been on hols and surprised to see the current stagnation. I'm assuming there's a seller out there, but all sellers run out of stock at some point if news flow continues to be good!
Great $10m contract win news securing a decent slug of recurring income over the next 7 years, vindicating the recent PSK deal at a stroke:
https://www.investegate.co.uk/mti-wireless-edge--mwe-/rns/significant-contract-win/202207180700077247S/
Shore Capital have issued a new note, with a 90p target price.
They forecast 4.1c EPS this year, i.e around 3.4p EPS. MWE had $12.5m cash at the last year end, so around 11.8p per share.
MWE are therefore on an ex-cash P/E of only 12.8 for the current year, which seems ridiculously good value for a company involved in water management, 5G and tech/defence.
This company always impresses...