Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Kind thanks sjsrace
Because they haven’t given any indication of what the contract wins actually mean for the results of the company. Not much point in announcing if on-one has a clue how much extra profit the contracts make…
On last two days rns any answers welcomed
Maybe if they announced how this would actually impact the results for 23/24/25 then the share price wouldn’t fall.
Two big contract wins, no idea how much profit they make. Share price falls both days… nupty Investor Relations…
What a company very pleased here
Hopefully starts moving the dial upwards with these contracts.
More contracts and flat very sad a great company
Tipped as a buy by The Naked Trader yesterday, who bought some shares.
Might give the stock a boost from those who follow him.
From a fundamental view, the SP should never have been this low. The strategy is clear to double Revenues over the next three years, in a sector that is in focus due to worldwide security pressure.
However, it looks like the Technical rule for the sp, to remain above down trendline for 2 days, for trend break confirmation is now nailed on.
With regard to the £1M sold at end of July, it might have been purely due to cash or tax circumstances. He continues to hold a fair holding.
Jack
I omitted to mention that QQ, 5 year chart, shows a sideways, ranging sp, which goes some way to explain why there is so much overhead supply from previous share price action, to mop up any attempt to rally to higher price levels .
Sp, today broke above down trendline at 330, but unfortunately, no reason to celebrate, because major overhead supply between 325-370. Technical rule is that sp, must remain above down trendline for 2 days, for trend break confirmation. Not surprised the market marked QQ, down after director sold one million pounds of his shares. Why not sell in staggered amounts ? At best, I suspect sp, will retrace to form a double bottom, before future progress.
Says it all really…..
Jack
“Securing this new contract is an important milestone in the delivery of the ambitious growth plan for our US business, including the excellent capabilities we acquired with Avantus last year. It demonstrates our strategy is working, providing confidence that we will deliver good returns, both organically and through acquisitions. We remain confident in our plan to deliver high single digit organic revenue growth at stable profit margins."
Why the SP dipped below £3 was beyond me.
Clearly someone sees value
Jack
I think a lot of the recent weakness will be due to the CEO selling 300,000 shares at c.345p in late July. Whilst it only represented just under a 5th of his holding, the downward move in the share price on the day of the announcement suggests that the market was not impressed with this news.
I've gone from a 10% profit, to a 10% loss, in a matter of weeks, in a sector (defence) where news flow should remain positive into 2024 and beyond. Keep the faith!
With the last two trading updates, it’s clear to see that QQ are currently operating in a great sector with amazing growth opportunities.
The last update highlighted the aspiration of doubling Revenue by 2027, with the ultimate aim of moving into the FTSE 100. Recent acquisitions and new projects just underlined where QQ could be in 3 to 5 years.
However, the current market must view QQ as a “steady Eddie”. The bottom is not going to fall out, reasonable growth is expected, cash generation continues, ROCE is c 12%, but the yield is 2.7%.
Given that anyone can open an instant saver account paying 5.00%+, the more astute institutional investors have probably placed their cash elsewhere.
I think that’s why the SP has deteriorated to present levels.
Not a bad thing as when the market turns Investors at this point could ride the crest of the wave.
I think QQ need to double down and continue with their current strategy which will play out over time.
Jack
Exactly.
It just doesn’t make sense, does it?
After two very positive updates I just don’t know why we are drifting down.
I’m 12% down here, and it’s getting very tempting to take the loss and move on, but I expect if I do there will be an immediate bounce …..
What is wrong here? All this stock seems to do is fall when it should be shooting ahead It’s in the right industry at the right time and the S/P should be far higher.
Is there a problem I am not aware of here?
Grateful for feedback.
UK defence firm Qinetiq says that surging demand for electric tanks will drive a boost in sales, as armed forces rush to build next-generation fighting vehicles.
The appetite for electric drivetrains for the tanks, cyber security products and a range of sophisticated practice targets, used to train military personnel to learn how to shoot down aircraft, will also grow, said Steve Wadey, the company’s chief executive.
He added that armed forces around the world were spending more to keep their skills sharp in the wake of Russia’s attack on Ukraine.
Qinetiq is working alongside US defence firm Oshkosh and BAE Systems in the UK to provide components for the next generation of electric armoured transports.
“We're leveraging our electrification technology from the UK into that US programme. We expect that to be a significant contributor going forward,” Mr Wadey said.
The contractor also expects militaries around the world to buy more of its targets, which mimic warplanes and ships so that troops, sailors, and air crews can hone their skills in taking them down.
"You actually present them with these targets as different ways of simulating a real threat. And therefore, government customers are our customers for that, because they need to train, they need to test and be ready operationally,” Mr Wadey added.
Qinetiq said it remained on the lookout for rivals it can buy to bolster its six main businesses of experimentation and technology, robotics and autonomous systems, engineering services and support, test and evaluation, cyber and information, and training and mission rehearsal.
Consumer Focus
In the UK it has most of these well covered, suggesting it is likely to make more purchases in its other main markets of the US and Australia.
A UK defence contractor acquiring foreign competitors would buck a recent trend after many British arms makers have been snapped up, largely by American buyers who have taken advantage of a weak pound.
Submarine systems developer Ultra and aircraft parts maker Meggitt have recently been sold to overseas companies.
Qinetiq said orders for the financial year increased 41pc to £1.7bn and sales rose 20pc to £1.58bn. Profit after tax rose to £153m from £118m.
Agree, I expected more than a 2.16% rise after those figures, but I have no doubt that we can expect a lot more in time
Roll on the Broker upgrades now - surely there is more to come here, despite the wider market sentiment !
What an update: orders up 41%, revenue up 20%, profit up 30%
And an ambition to pretty much double turnover to £3b in the next 4 years to 2027.
Results next Thursday, which are expected to be good.
Judging by the Q4 Trading update, we maybe into some SP fireworks.
Jack
Strong operational performance in fourth quarter - upgrading full year guidance
The Group has delivered strong operational performance during the fourth quarter, reflecting continued disciplined execution of our strategy. Today, we are pleased to announce that we expect our results for FY23 to be ahead of our previous guidance and the upper range of market consensus expectations.
Following an impressive fourth quarter, full year order intake is up by 40% at a record-high of more than £1.7bn, demonstrating the continued high demand for our distinctive offerings. Subject to audit, we expect to deliver high-teens percentage total revenue growth at stable margins, with underlying operating profit of at least £175m, including the benefit of the Avantus and Air Affairs acquisitions. In addition to the robust orders, revenue and profit performance, cash flow management continues to remain consistently strong and we have successfully reduced leverage to below 1x, ahead of our original guidance by 12 months.
We did say back in Feb 23, when the SP was 3.58, that QQ had an advantage of right sector across UK, US and AUS.
“QQ in the right sector to continue Q3 performance, now integrated with Avantus US and Air Affairs Australia. Growth in all 3 main markets will start to produce a good Shareholder return.”
I thought this statement was obvious but clearly caught a few napping
Much more to come, as we head towards 25th May and beyond.
Jack
It says it all that our army could fit into Old Trafford or many other top team's stadiums. Still, at least they are "Leaner and Fitter", as promised whenever cuts were needed :)) The parallel with how NHS Covid staff are only treated as heroes in times of crisis and discarded during "peace time" does not sit well with me or many others I suspect.