Spectra (unres) Share Chat (SPSY)

Https://www.proactiveinvestors.co.uk/companies/news/1057225/spectra-systems-revenues-double-co-upbeat-on-prospects-1057225.html

Https://www.youtube.com/watch?v=bfnOg2EWZbc&ab_channel=ProactiveInvestors

Watch or skip to the end where he intriguingly notes there's more good news to come!

Nm

WH Ireland were at the global banknote conference, and their daily says "Spectra was a lead sponsor, major exhibiter, and keynote speaker - significant interest in Fusion - fair value 380p." It is sponsored research but they've been pretty good on SPYS to date.

Spectra Systems #SPSY showcases robust financials with a 4% dividend, underpinned by a clear growth roadmap. Short-term prospects (2024-2026) span sensor contracts to security materials, while long-term (2027-2030) eyes global passport security and high-value holograms. tinyurl.com/2rsxcyh2

https://x.com/lemminginvestor/status/1774070217263460476?s=46

I don’t really believe most of that stuff. I work in asset management and, whilst we don’t really touch companies sub £100m mkt cap, a lot of these boards of full of absolute tripe as to how “II's” work. (Love the acronym II…we never refer to ourselves as such). I didn't on it move today. I already hold and will add when I’m ready. Busy reviewing a few private placement opportunities ahead of tax y/e.

Norma, I hope you got in below the 220s. I got 219.5 but I know it was down at 217, I didn't buy more in case it went even lower. The conspiracy theory boys often say, they drop the price to try and get stop losses triggered then they can buy cheap shares for the big boys. How do you ever work out which direction shares are going to go?

One thing that annoys me on this share is the spread. Someone sells at 214.55 and then 7 minutes later someone buys at 221.5. Then there's the commission. No wonder it's so difficult to make money on shares.

27-Mar-24 11:11:54 221.50 3,380 Buy.

27-Mar-24 11:04:15 214.55 4,117 Sell

GLA

Ditto. I have only just bought in but like the story on a forward basis. Cartor is barely through the door at year end, so it’s all about the future execution. Very inclined to add, just want to see if it goes a little softer in the very short term.

Norma, thank you for your thoughts. I agree with you that there was nothing fantastic but it takes time to integrate businesses and SPSY is young with so much potential. We all want to make our money today and tomorrow not in a few months so people could be holding off until they see the improved results.

The SP did rise a lot going up to 230+ when acquiring CSP, maybe I am expecting too much too soon. I've been holding it since 2017 when I first bought it at £0.73, but 2 months later I had to try and lower my average due to the price being £0.60. Maybe this is another time like that.

GLA

Https://www.proactiveinvestors.co.uk/companies/news/1044094/spectra-systems-eyes-record-year-ahead-after-earnings-climb-1044094.html

#SPSY Spectra Systems' strategic acquisition of Cartor - a game-changer in high-security printing! Market cap soaring from £82M to £88.4M, reflecting confidence in this bold move. https://tinyurl.com/2mpmshs3

The no comments is partially why this is a sleeper share.

Acquisition looks thoughtful as they have been working with company so know them well.

Numbers not going to move the needle initially but at least it is profitable and debt looks remarkably low rate 0.3% if I am reading the RNS correctly. Interested to see what the total debt number is.

The polymer substrate side of the business looks the potentially growing side of business.

This explains why the market is interested and I like the fact that they've spent the last 2 years working closely with the company they're acquiring before they bought it.

https://www.proactiveinvestors.co.uk/companies/news/1035016/spectra-systems-bolsters-banknote-business-with-cartor-acquisition-1035016.html

It should be a relatively seamless acquisition and make SPSY worth far more. I hope! As I write the SP goes over £2.00 on INV

Great RNS the morning. Light on numbers but context can be taken from "largest consumables order." Decent reaction sp wise....not to frothy

Hi Nick,

Glad to see some life in the board - SPSY is so easily dismissed as legacy with banknotes, but theres a great little business here - not exciting but I think in the longer term good rewards for investors.

GL

NtD

I feel a bit like I'm talking to myself. I hope someone is interested and reads this.

Why The 23% Return On Capital At Spectra Systems (LON:SPSY) Should Have Your Attention!

https://simplywall.st/stocks/gb/tech/aim-spsy/spectra-systems-shares/news/why-the-23-return-on-capital-at-spectra-systems-lonspsy-shou

CP I too am surprised at the lack of movement but always have been since I started here in 2017 when I was buying at 60-70p. I wonder if it's because people find it hard to exactly understand what they do.

Simp Wall St say,

'Outstanding track record with flawless balance sheet'.

23 % undervalued but has an analysis price target of £3.07 but after these results, will it be more? We've seen how AI stocks have jumped.

What will happen if a big tech company decides they want that profit as well?

To answer your question I bought more today and if it drops more and I have the money I will buy it again.

Remarkable that there has been hardly any movement in the sp. I can't believe that the "market" had "built in" the profit growth just announced.

Recommend that holders and lurkers read this morning's RNS. And consider the overall strategy of focussing on (and achieving) increasing sales of the diverse product and service lines, the promising trials of new lines and the CEO's statement that the "company is on track to achieve record earnings and meet market expectations for the full year".

What do you think? Is this a "buy" or a "sell"?

A very quiet BB here but what can we say when the company is continuing its success?

Those who may worry that bank notes may disappear can be content with the diversification of the company going into a testing programme for smartphone-based authentication solutions with a UK passport firm and gaming software operation which now has also gone live with the New York State lottery. Long may I hope this continues.

https://www.proactiveinvestors.co.uk/companies/news/1027507/spectra-systems-on-course-for-record-earnings-following-robust-first-half-1027507.html

Coz he wasn't thanked?

To say super quiet is an understatement. I've been holding since 2017, buying a selling every now and then, as I think the
company is good but would love for people to share their knowledge here about the company. Why has the SP dropped so much over the leaving of chief financial officer Colleen Hamill?

Super quiet on here isn't it. Not sure if that's a good or bad thing. Financial look good, but massive spread, few trades and seemingly illiquid shares. One post on here in 12 months. I hope to hang around long enough for the dividend, but am wondering if us shareholders are somewhat superfluous for this company.

https://www.proactiveinvestors.co.uk/companies/news/1009613/spectra-systems-releases-2022-year-end-financial-results-with-sizeable-growth-1009613.html

https://www.proactiveinvestors.co.uk/companies/news/977383/spectra-systems-achieved-what-we-said-we-would-as-central-bank-customer-work-increases-977383.html

I have a feeling you're the twenty trader

Nice article on Spectra I found this morning, takes an in-depth look at Spectra's future growth potential https://www.thetwentiestrader.com/post/can-spectra-systems-continue-to-milk-the-cash-cow

Looks like seller continues to sell despite bullish statement. How low is seller prepared continue to sell.

Got hit 10% no love for great stocks in this market

The SP performance is so underwhelming when the underlying results are very good.

Perhaps SP will catch up?

2 good RNS's explain the price rise.

Nicely up today on price but volume still small. Leaks of some progress going into the AGM perhaps.
There is also this investor event https://melloevents.com/mellomonday-21st-june/
Well no declaration on those big trades, so they were traded by a holder technically not already a large holder, or these trades did not affect their overall holding over a 3% threshold. No declaration of buyback either. The mysteries of Aim shares.

Well not sure if it is under the 3 per cent rule but they have to declare it under the share buyback program. They have couple of days to do so i believe under the rules. It would certainly be a sign if strong confidence that they are doing pretty well.

Very good numbers this morning & a new customer in the mix too.
Under a lot of people’s radars, but I’m happy to hold.

Hi 13martyn13
I somehow timed it right with a second and my last buy before ex-div just before midday.
Looking good today.
Cheers for your answer, I read back through the same paragraph.

""In spite of the Covid-19 pandemic, the Company has delivered excellent performance during 2020. The Company's revenues have increased by 11% and PBTA is up 15% over 2019 driven by larger demand for our materials to meet increased banknote demands of one of our existing central bank customers as well as equipment sales to this same customer."

"Our two decade long relationship with a major world central bank continues to drive the introduction of more advanced products and an increasingly steady stream of hardware sales which could result in the combined development and manufacture of sensors worth over $50MM from 2019-2025."

"These highly stable revenues underpin our growth and enable us to continuously innovate with products that could lead to more explosive growth in the coming years."

"The Board therefore believes that the Company, by achieving key business milestones, will continue to perform well and has excellent prospects for maintaining strong earnings in 2021 and beyond."

"Finally, the Board of Directors will be extending the share buy-back authorization of up to 4,500,000 common shares through the end of March 2022, under the same terms as announced on April 10, 2019. A total of 846,000 common shares have already been purchased and retired under this authority."

Price has picked this afternoon, XD next Thursday 9.5c, but maybe a mention somewhere?
All very welcome though.

Hi Gavster, I think as far as their technology for cleaning millions of bank notes in 1-2 hours would’ve been pushed due to pandemic.
They do state in the last results :
"Our two decade long relationship with a major world central bank continues to drive the introduction of more advanced products and an increasingly steady stream of hardware sales which could result in the combined development and manufacture of sensors worth over $50MM from 2019-2025

"These highly stable revenues underpin our growth and enable us to continuously innovate with products that could lead to more explosive growth in the coming years."
I like to think with the patents they own and the industry they work in, SPSY have carved out a niche for themselves.
Five years of a final dividend and share buybacks going on in the background, can only help our share price.

Hi 13Martyn13
I've also bought about the same price.
As a new investor and out of interest do you or anyone else reading this see their success last year as being in anyway due to the pandemic or in spite of the pandemic ?

Taken advantage of the drift down in price and picked up another 5100 @ 159p.
XD on 3rd June too.

Low in the channel, dividend in a few weeks, accounts look solid and progress is upwards.
Unless i'm missing something from initial research, this looks good for short term trade to ex-div then I'll decide whether to keep as an investment for a longer term, need to hold or top slice.
Cheers all and GL.

Does anyone know who the seller is - who is holding up SPSY? Cheers

should be worth 220 now but the seller has kept us at these lows.

Good evening spsy viewers . Great to see a positive move today and really pleased that spsy is pursuing a buyback programme. I have bought in 2020 for the long term and expecting 300% or more rise. Anyone care to give a view as to when we hit £3 - I think October this year.
Gla
NtD

via small company champion

https://twitter.com/LEMMINGINVESTOR/status/1374402355496591366

The Annual Results today make excellent reading. The prospects are huge and indicate that growth rates are going to accelerate substantially over the next few years. I have taken the opportunity to build on my stake.

Morning all, this looks like an interesting company I'm currently researching. Does anyone know why this listed in the UK not the US?

https://www.smallcompanychampion.uk/2021/02/spectra-systems.html

I really fancy SPSY as a long term holding position. Their balance sheet cash position and initiation of share buybacks are both really positive and promising signs for me and underline the strength and confidence of management in the business.

Moreover, the CEOs comments in September sounded very promising: “Spectra Systems is on track to deliver an excellent performance for the full 2020 financial year and expects to significantly exceed market expectations for 2020, in spite of the Covid-19 pandemic.”

Wondering what people’s price target are for this in the long term?

Also noticed the company issued its Q1 trading updates on:
- 4th Jan 2017
- 1st Feb 2018
- 18th March 2019
So any guesses on a date for this years update!?

This will do well today. Big China deal.

That’s what we are worth today

I mean, we could talk a little about how things are going. Couldn't we? The central bank contract now places this share as undervalued in my book, I hope it doesnt take 2 years for the market to catch on. This is going somewhere.

ADVFN's thread is like Piccadilly Circus compared to LSE's sleepy somerset village. How strange!

Quiet is good as far as i'm concerned, keeps the hysterical rampers/derampers away so we can have civilised conversations. I got in at 80p and have been pleasantly surprised by the two recent updates. Their financial year is Jan-Dec and they have already said 2018 would exceed expectations! Looking forward to more updates in the same vein. I topped again this week.