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This stock is a dog. Despite a succession of government defence contract announcements and small blips up, the share price trend continues to fall and has done since 2016.
No dividend.
I was unable to find anything out about key company fundamentals. No dates for results.
Is this stock overvalued? Is it a cash cow for those in the know who can buy and sell at the right time? Are they making any money on the contracts or just getting business at a loss? In my opinion something strange is going on. A company which has a succession of firm government orders since 2016 whose shares have trended down in this way is in my opinion fishy.
I am not prepared to throw any more money away waiting for jam tomorrow so I’m out. Good luck to those who buy in at the right point, if that point ever comes.
If next set of results are solid then this price looks ridiculously low.
Whilst Simigon has yet to deliver on its strategy the current share price is now way to low as a small amount of investors have unloaded in this down beat market.
Simigon has cash and equivalents of appx £5 million whilst its market value at 7.4p is only£3.8 million leaving the business being valued at a negative value.
Any good news and this would double in price if not more, but even without that it should be worth the cash holding at about 10p a share.
Its way oversold.
Another contract win but MCAP stays pretty much still at only 4m ( cash of 6m last financials) must be plenty of shares floating about.
Business seems good so hopefully a rerate in near future.
Cheers.
Two excellent contract wins with the US Air Force in the last couple of weeks.
The transition to SaaS should hopefully be over the main short-term impact in terms of loss of lumpy licence fees and replacement build-up of recurring income.
If SIM can continue to win such prestigious contracts, then the following phrases from last year's Finals should be achievable for this year and going forward:
"the Company expects to quickly resume cash flow positive activities and profitability"
"positions the Company well to deliver improved financial performance in 2019 and beyond""
Hopefully Finncap will re-initiate forecasts following the H1 results next month. With $6m net cash, plus large trade receivables, SIM certainly have the firepower to further their aims in VR, AR etc.
"SimiGon, Ltd. (LSE: SIM), a global leader in modelling, simulation and training solutions, is pleased to announce that it was awarded a further strategic contract with the United States Air Force ("USAF") to provide Virtual Reality (VR) systems for Columbus Air Force Base (the "Contract").
This Contract further strengthens SimiGon's position in providing Virtual and Mixed Reality technologies for training.
Awarded as part of a USAF-wide, rapid innovation effort, the Contract clearly demonstrates to the market that SimiGon is a reliable integrator and supplier of VR and MR systems for its clients."
So the recent BPA may be working. Hope so as I went in head over heels on that basis. Market cap and cash may be almost on a par now. High potential business in for free, but so far a loss making business. So more contracts will be very good news.
Qualifies for 2 screens on Stockopedia, interestingly while one is in Bargain - expected - there is also one in Quality: R&D breakthrough.
"Patience, my boy, patience..."
PS. The scary bit is that "rapid innovation effort". Why would that be happening in the US DoD?? The premise of the BPA seems to me to be that speed is more important than value for them at the moment - not that SIM is not value for money, but that they don't want departments taking time on long term hunts for the ultimate bargain but getting on with it. In summary, what are they gearing up for?
With great technology & such a low market cap surely it must be on the radar of bigger tech companies.
Cheers.
Still way to cheap.
Cash alone supports current MCAP.
Have been posting losses, but are expecting to return to profitability 2019/20.
Final results are very clear that they are increasingly recurring business.
5m market cap is just way to low.
Will keep buying little bits at these prices.
I get the extremely cheap share price. But how are prospects improving ? Haven’t SIM been printing losses for a couple of years?
Creeping back to 9p on lack of news.
Will add a few more as fundamental prospects look good.
Cheers.
Market cap about equal now to cash held.
Would think that a decent contract anoucement would see a nice rise.
Few trades Friday afternoon, otherwise nothing much happening, but an 8% rise today???
With SIM trading at essentially break-even, blue chip clients globally, the potential in simulation training, unmanned aircraft, VR and AR, and the $6m cash pile relative to just a £1.5m EV at the current share price, let's see if this year justifies the increased optimism in the outlook.
Finncap have updated today and hope to relaunch forecasts asap. They conclude:
"Transition: the on-going transition to SaaS impacted sales as license revenue is spread over 5-12 year (reduced by 85% this year) yet 2018 was one of Simigon’s strongest delivery years. This should improve the long-term financial security but leaves the current valuation looking extremely cheap on core metrics."
Pretty decent results today, particularly as regards H2'18 compared to H1.
SIM made a loss of only $0.3m excluding the one-off bad debt provision - and in H2 this loss was just $0.04m.
So SIM is now trading essentially at break-even. And this outlook reads well in that respect:
"By increasing SaaS-based contracts for more recurring revenue and better long term visibility, together with intensive R&D investment and business development efforts on multiple market opportunities, the Company expects to quickly resume cash flow positive activities and profitability."
This £5.6m m/cap has $6m net cash plus around $2.4m net trade receivables/payables.
SIM have written off $2.34m of R&D expenses - and this increased to $1.3m in H2, yet SIM still almost achieved break-even.
And of course there's also today's other extremely interesting news re the commencement of an AR training programme with Israeli Air Force:
Https://uk.advfn.com/stock-market/london/simigon-SIM/share-news/SimiGon-Limited-Simigon-kick-off-reseach-programme/79781713
"SimiGon kicks off Augmented Reality maintenance training research with the Israeli Air Force
SimiGon (LSE: SIM), a global leader in providing simulation training solutions, is proud to announce that it has commenced a ground-breaking Augmented Reality ("AR") research programme with the Israel Air Force ("IAF") (the "Programme"). The Programme will utilise SimiGon's R&D investments in the Virtual Reality ("VR") and AR domains with respect to aircraft maintenance training by providing the invaluable ability to test and refine technologies in the demanding, up-tempo operational environment of the IAF.
SimiGon designed and developed AR and VR enhanced products and technologies will be used by the IAF in the research programme with the IAF providing logistical support and subject matter expert feedback. The Programme is expected to place SimiGon at the forefront of technology and it will enable the Company to use this technology in various domains. As the market for AR and VR enhanced training takes off, it is expected that this Programme will have positive impact on the Company's business opportunities.
SimiGon Vice President of Research and Development, Hagai Piechowicz, said: "SimiGon's training technologies will be making a great leap forward with this Programme. Our R&D team will rapidly design, develop, prototype and test our newest training technologies for the AR and VR aircraft maintenance environment in the IAF F-16 squadrons."
Good news today re a $1.41m extension to the US Air Force contract:
Https://www.investegate.co.uk/simigon-limited--sim-/rns/usaf-logistics-support-contract-extension/201904240700048686W/
SIM must now have a considerable portion of forecast revenues for this year already secured.
This is another validation of SIM's business. And there's an interesting concluding comment which hints at more to come:
"Management expects this Contract to generate new business with the USAF and other Government end users."
As jam tomorrow goes this is really good, really like it. It's not a contract, but they are on the list of "approved" software providers for the whole U.S. Department of Defense, (and boy, what a list it is: IBM, Microsoft, Oracle and Adobe, etc.)
It is not just a nice statement of intent from Simigon but deliberately initiated by the DoD itself to make purchasing easier for it's own deptartments, with agreed pricing and processes already established with selected approved suppliers. NB approved, with pricing already agreed.
And the SOPs [standard operating procedures] already down sorted and on paper. The military works on SOPs, and a huge part [90%?] of what they do is train.
The only problem is that SIM doesn't supply standard office kit and software, which is what this 10 year budget appears to me to be for, but very high tech VR training kit, with accompanying software. However they are in and officially approved, the pricing and procedures are agreed, and they may be the only ones on the list selling applicable VR training solutions. Once accepted through this, and using the prepared pricing and pathway, it may open the way into what must be a simply ginormous US DoD training universe.
As Rivaldo says, just a small contract would make a big difference to a minnow like SIM, but a successful first contract would I believe open the door to very, very, much more.
If they had to choose one client across the world to be an "approved provider" for surely it would be the US DoD.
And this validates that SIM's offering is as good as any out there, there's no way they could get it otherwise.
It's great to have the opportunity of this price retrace to top up big time.
flipped a coin on this or MXO last week, flipping coin!!!!!
As a part of a diversified portfolio, I believe that:
- with the £5m-£6m cash pile almost equal to the m/cap
- with a number of long-term blue chip customers
- with the transition to recurring revenues largely complete
- with the obvious potential in VR/simulation
- with similar potential in diversification into related areas
- with a number of contract RNS's securing income for this year
- and with a more positive outlook for this year and going forward per the last trading statement
the upside remains large - if SIM finally get it right - and the downside from this £6.3m m/cap (there are only 51.4m shares in issue) is relatively limited.
‘the bro..ers now are selling the clients shares the ones they sold them high on the opening ..Now is up to you to hold ,or to sell either way your losing /...’
It’s reassuring to know that there are commentators such as yourself with a deep understanding of how the market and its animals work. So often, on sites such as these, we are bombarded with uninformed, ludicrous or just plain deranged comments. I suspect you must have at one time worked in the business. Maybe you could tell us.
Just catching up. Fantastic update. At last we are on our way. Well done ALL!!!!
the bro..ers now are selling the clients shares the ones they sold them high on the opening ..Now is up to you to hold ,or to sell either way your losing /...
Well the RNS reads fine to me, the number of shares in issue makes it look like a profitable little company. I'm onboard and imo looks promising.
yep
spike and pull the rug from under
thought the rns was misleading and a bit spoofy
The mugging that is done on aim is sickening ..The mms are disgusting ,buy this cheap before the opening selling as his ,then pull the price down to the same before ..This is robing not a market ..