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Nobody was expecting much from this H1, so good to see a small core profit, particularly given the project delay outlined today. VENN have approaching £3m cash, so another acquisition may still be on the cards. Not many specifics as regards H2 performance except a general optimism re numbers of clients, recurring revenues etc. Given the cash and revenues I'm of the opinion that VENN is very undervalued. It's hopefully a question of a contract win or two, a steady improvement in PBT and/or another acquisition to kick-start a re-rating. The MMs are fleecing sellers - down 9% on just £20k traded!
I take it back. R did a nice summary 22/8. I just bought at the wrong time in May and have got tired of looking at the red...
Tempted to sell out of boredom.... Someone bought in 2 lots of 100k shares in July and someone sold 2 lots of 100k shares today. Wonder if it was the same bloke/lady/person selling for the same reason..... Someone remind me please - why stay with this?
good news - well spotted
company SKIN today, receiving 3 new patents and trademarks in the USA and Canada: Https://www.investegate.co.uk/integumen-plc--skin-/rns/integumen-strengthens-ip-portfolio/201708240700058267O/
Nicely done threeputt. Up 11% today now - but still extremely cheap imo. And it seems our seller is well and truly gone.
Looks like people are finally waking up to the possibilities here I may have actually got the lowest price here back in July, a proud moment !
on just a couple of small buys. Which suggests - at last! - there's not much stock around. Time for a big rebound imho.
The fundamentals here are telling me that VENN is fundamentally undervalued. That will be the case even if VENN fails to achieve Hybridan's forecast £1.27m adjusted PBT, which I'm not sure they will. If VENN were to achieve only 50% of that - say a £600k PBT - if you combine that with the almost €3m cash pile, the investment in SKIN and the value of the core business as outlined in my post 1005 then VENN is worth considerably more than the current share price. In a small-cap like this, one or two larger sellers can easily drive the share price down to silly levels given the propensity of others to follow them out on a drifting share price, the hitting of stop-losses etc. I believe that's what happened here. It looks like the share price has hit a bottom and is starting to lift itself off that bottom now. The solid H1 update and the confidence for the full year should continue this into and onwards from the H1 results next month.
my buy never showed today...strange.
bought 4000 shares here today to lower my average and hopefully to take advantage of the upsides from here...
Interesting note out from Hybridan a couple of weeks ago. This pointed out that Evotec's recent acquisition of Aptuit was on a multiple of 2.4 times revenues, and on 23 times adjusted EBITDA. Other similar deals include Inc Research buying InVentiv Health at 2.1 times trailing revenues and 13 times EBITDA, Thermo acquiring Patheon at 4 times trailing revenues and 18 times EBITDA, Pamplona buying Paraxel at 2.3 times trailing revenues and 25 times operating profit, Labcorp acquiring Chiltern at 2.2 2017 forecast revenues and 13 times EBITDA etc. Based on their 2017 numbers VENN trades on an EV/Sales of 0.32 times and 4.39 times EV/EBITDA. With £19.3m forecast revenues this year, and £1.27m adjusted PBT, a multiple of say 2.3 times sales would value VENN at £44.4m. This compares to the current £8.2m m/cap - which also includes the (now reduced!) stake in SKIN and the almost €4m cash pile.
Hybridan brought out a new note on Thursday envisaging a 30p+ share price on delivery of 2017 forecasts (against the current 13.75p). Their forecasts are: this year : €1.83 EPS, €3.62m cash pile next year : €2.07 EPS, €4.03m cash pile "Solid H1 2017 After a lacklustre full year results released in March 2017, the growing Contract Research Organisation providing drug development, clinical trial management and resourcing solutions to pharmaceuticals, biotechnology and medical device clients today provided a trading update for the six months ended 30 June 2017. The new financial year started well with the Company securing contract wins in January and February with a value of €5.7m. Total revenues for the Company were ahead compared to the same period last year at €9.11m (H1 2016:€9.06m), with the client and revenue mix well balanced and strong rates of repeat business. Moreover, we understand that Venn, has successfully introduced and delivered cross selling between early and late phase client bases. We estimate that the Sedana contract announced in November 2016 and the €5.7m contracts won in January and February this year will contribute €4.3m in fee income in the current year. The Company has a strong proposal book, which should begin to turn in to business wins now that the full R&D lifecycle proposition is up and running. In addition to this, solid first half performance brings confidence around full year revenue expectations. The sector continues to see growth, with encouraging trends in outsourcing likely to continue. We would expect that Venn continues to evaluate complementary acquisition targets which could at least in part be funded from its current balance sheet depending on size. The Company is well positioned to accelerate its win rate particularly with Biotechnology companies where its offering of a full lifecycle service combined with a customer-centric flexible approach sets it apart from the competition. The shares of Venn have slid by 11% over the past 3 months, and given this trading update and its potential to meet expectations for full-year results, it presents a potential buying opportunity for investors. Delivery of our 2017 forecasts should see a recovery in the share rating and we see scope for the shares to surpass 30p over that horizon which would put the shares on a 16.5x 2018 earnings rating. Cash and cash equivalents remained strong at €3.4m at 31 December 2016 and we are forecasting for FY 2017 cash and cash equivalents of £3.6m. With that said, a HY 2017 cash of €2.9m puts the Company in a strong cash position."
Clearly is you look at cash they lost 600k from the End 2016 results so it is not profitable. Yet. I imagine lots of expensese on IPO. Also sales of 9m in 1h 2016 is a sales flatline. Sales end 216 were 18m. Need some big wins and then we will turn corner.
what's that saying ? the market can stay irrational longer than you can stay solvent ?
Seems CRAZY to me. I'm no expert but the fundamentals do look good, there is as Rivaldo points out loads of cash, good (great??) earnings coming in, with continued good prospects. Seems to me a solid statement - so the SP falls 10%!! It's not as if it was expensive with vast expectations. Is it all in the wording, and the way they choose to phrase it? If the BOD all start buying shares in the next 3 months I'm in too! One company makes a positive statement today (IQE) and it's up 30%, another makes a solid one and is down 10. Such is AIM?
Well we will do annual revenue of around 15 Million GPB, some 3 to 5 million in profit and we are capitalized at about 8.5 million. 💉🌡 Medically in the best of health here. I guess only the published results will get this a re rating, it looks tremendous value when analyzing the fundamentals. GLA all holders a little more patients and patience should reward
Pretty good H1 trading statement, in particular expressing confidence going forward. Note the €2.9m cash against the £9m m/cap: Https://www.investegate.co.uk/venn-life-sciences--venn-/rns/half-year-end-update/201707200700075675L/ "The new financial year started well with contract wins of €5.7m secured in January and February, as previously announced. Overall, the Company has achieved total revenues of €9.1m (H2 2016 €8.84m) for the first six months of the year. Our client and revenue mix remains well balanced with strong rates of repeat business and we have successfully delivered initial cross sales between the early and late phase client bases. We have a strong proposals book which coupled with this solid first half performance provides confidence around full year revenue expectations. We finished the first half year with a cash position of €2.9m (€1.75m as at 30 June 2016)."
.... now take it down 3% and counting. Still no action? Any chart ideas out there?
More small buying coming in - having a decent effect on the share price too. OT : ADJshares, doing just fine thx, like yourself I hope. Not me in CGH though!
How now? long time. Hope your CGH ? did well for you. I was not convinced by yesterday. Thought it looked a bit contrived to stimulate some buys. It worked to an extent but will be interested to see whether it can get out of its slump.
Hi AdJShares. Imo, as per my prior posts, the hiving off of SKIN should have benefited the VENN share price by (1) crystallising value which wasn't there before and (2) highlighting the core business, which judging by prior results and outlook should be nicely profitable with strong growth prospects. VENN should even profit from Brexit given their location! I can only surmise that the low share price is due to either a large-ish seller or two over the last few months, and investor boredom given there have been no contract RNS's for a while. If the former, today's price rise gives some encouragement that perhaps any overhang has been cleared.
Is it the opinion of knowledgeable investors here that the stagnation in the VENN share price is due to it's association with SKIN. It would seem logical if that is the case that they need to just sell their portion of the SKIN shares to a third party, tell the market that they're not going to give them away to shareholders but find a buyer at any price for the shares and have done with it. The number of new contract RNS's are less than 1-2 years ago (from memory) but my understanding is that VENN is still a very desirable entity. They sold off SKIN for a reason but what they hv done is sold it but let it park on their lawn. Any other views?
Hy to end June came out at end of September last year...but a contract win before thnen would be nice.
....any idea when we're due any?