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Nothing special in my opinion.
Good to see the costs are down but then the production levels are also down 11%. Guidance for the full year dropped from 70koz to 66-68 koz.
Liberum have a buy recommendation still but have dropped their target price to 150p from 170p.

When the money printing stops?
That will be years away if ever.

No I’m loaded up with an average of 47p. I see no reason at the moment not to hold these for a couple of years from here. Material costs will likely stay high for 2022 but should improve gradually which ofc would add to the bottom line.

Actually I was a little surprised by the profit generated. The revenues were down £0.7m on forecast but despite the current head winds in increasing material costs SFE managed to increase their operation margins to beat the forecasts. And as they say, revenues are vanity, profits are sanity.
It is looking promising for the coming few years. A dividend is expected mid 2022 now that the company is well back on track. Liberum and Zeus capital both state SFE as under priced with Liberum giving a target price of 80p.

IC review:
Shares in Aim-traded financial software provider Arcontech (ARC:74p) have been massively de-rated since the company issued a profit warning in late November after one customer decided to scale back its market data spend and another decided not to renew its contract because it is switching to a solution in a legacy, bundled contract.

The two changes are unrelated, but in terms of revenue they account for £0.3m of Arcontech’s last reported annual revenue of £3m. House broker finnCap lowered its revenue estimates by 6 and 11 per cent to £2.8m and £2.9m, respectively, for the 12 months to 30 June 2022 and 2023.

Furthermore, the company’s incremental operating margin on new sales is around 60 per cent, so any contract wins or losses have an accentuated impact on profits. This explains why finnCap cut its current year pre-tax profit estimate by 17 per cent to £0.8m and now only expects a flat result in the 2022/23 financial year. On this basis, EPS to fall by from 7.9p in 2020/21 to 6p.

Arcontech’s strong defensive characteristics (recurring licence fees account for 93 per cent of annual revenue) had been a major bull point, so the loss of two customers has clearly undermined investor confidence. The timing is incredibly frustrating, too. That’s because the company’s small sales team has been strengthening the qualified pipeline of potential prospects, and the directors note “renewed client interest in new business projects”. Travel restrictions during the Covid-19 pandemic had made converting the robust pipeline of opportunities difficult in the near term, but as these restrictions are now being lifted then it should augur well for the company to make up the lost ground. This is still a realistic possibility in my view.

Furthermore, the de-rating has been so savage since I covered the half-year results (‘Bargain shares: On the hunt for value’, 6 September 2021), that Arcontech’s £5.4m (40.5p) net cash pile now equates to more than half its £9.8m market capitalisation. This means a business that is still making £0.8m operating profit and generating free cash of £0.6m a year is being valued on a cash-adjusted PE ratio of 5.5. FinnCap is pencilling in a current year annual payout of 3p a share, which gives a prospective dividend yield of 4.1 per cent. The free-cash-flow yield is more than 6 per cent.

The shares are now firmly in bargain basement territory and the company is a bid target as well given Arcontech’s £4.4m enterprise value equates to only 5.5 times operating profit estimates. Recovery buy.

It’s the 1850 level that needs to break. Wouldn’t be surprised if that happens in the next day or so then 1860 and onto 1900.

Just looking at the chart and it broke out of the downward trend channel on Friday which would explain the jump as buy orders were taken once the trend line was broken.

Yeah I presumed an RNS came out, but no. Leaky news I imagine. Good rise on a day the markets are falling.

Yep, the whole sector is up yesterday on speculation of further companies being bought out.

Lol pretty much the same.

Hey threeput. Long time no see. How you doing?

They don't use any Chinese technology.

Just added £1100 at 92p. If this continues to drop its looking to become a takeover target. With the company becoming profitable in H2, this is likely to grow and become profitable for FY22. No debt, £4.4m cash and a £3m facility SNX are self funding. It is looking like countries are moving towards opening up more and living with covid which in turn would see more traffic to its casino side of the business. What is more interesting though is the security in the cities and how that is likely to grow. This is higher margin than casinos.
With a NAV per share of 209p and a broker target of 315p this is looking very cheap now for holding or as a takeover target.

Bought back in today with a small purchase of £1k. Looks like a seller is still around as I can buy way more than I can sell.
Saying that, this is getting extremely cheap with an Enterprise Value of just £5m. Currently has a PE of 12 but if you work it out via EV/EBITDA then it drops down to a low 4. Broker finncap has a target price at 180p. There is support at this level, but with probably Boros selling out it could continue to drop a little more. Boros held 2.47% last count, so no more notifications will be made for him selling. How much is left to sell, who knows. Nav Price per shares is 49p.

Please Sire, can I have some more?

Looking strong here with the drop from the dividend being bought into and the 20ema crossing the 50ema. Just need 180 to be broken and the sp should rise to the next resistance at 220. Even if the share does continue it’s downward trend, it’s still close to the bottom of the trend with £3 being the top. So plenty of room still to move higher.

I believe SED is targeting 20000 Propel motors by 2024.

No, not every product will be a hit but they try to eliminate the poor products first with trials in a few locations before rolling out. The feedback from the products I bought was very good. The products were good and very much liked. The design I liked, I just thought it was more of a present than an advent calendar. By making it a calendar they had to reduce it before Xmas when imo there was no need to do that.

I’ve been watching this since ipo and I liked the interview done with VOX.
What I was concerned about was this twitter link.
https://twitter.com/investmentideen/status/1463589305964806149?s=21

Also, just before Xmas I went into my local Superdrug store to look for the REVB Xmas calendar. Found it on the bottom self. As it was a 12 day calendar and I had gone in on the 11th day before Xmas it had been reduced by £10 to £30. I bought up the 5 boxes they had as presents for employees at my work.
The boxes I thought were nice, looking good but in no way did they look like an advent calendar even when opened up. A gimmick that failed imo. As for the products supplied in the boxes, these were very much liked by the lasses I gave them too. I was told the quality was very good.
So I’m still on the fence with this company.

I’ve been waiting a while to double my holdings and decided to do this today. My buy is the sell shown at 10.878. Still have an average of 16p but I think the tide has turned now. Just need regular news. I’ve a target of 40p.