Member Info for 42trader

Mentioned today by Lawrence Hulse in interview with Paul Hill on Vox.

https://www.youtube.com/live/39Hbt9T9odU?si=b2s12HXYgECN9j2o

These days, the low number trades are generally spread betting.

Get the plasters out.

Been waiting on 271p and took the nibble today.

The SP is hitting the bottom of the trend channel for weekly and monthly charts, so could bounce from here. If not, 200-220p range will be my next buy.

Lets see what the Interims show on Wednesday.

1 trade - fictional. Next you'll be talking of Riddler!!

Not 100% sure, but I's say the recent funding was taken well, and rare earths are becoming the hot topic atm especially when the US are talking of possibly funding the company further due to the lack of rare earths outside of china's domain. The company is sitting on some good grades in quite a few areas. The share price has been depressed for some time now as these companies tend to struggle getting to production as it cost so much and takes many years.

Hello Troajan. I was just wondering if the volume here today would guest us with your appearance. Hope your well.

Thats correct. It's Labor day, when the US celebrate their ever increasing unemployment.

My thoughts exactly GLR. This has the potential to be a massive bagger if people are prepared to hold for quite a few years. So I look at it as, buy a small amount that would not bother me if I lost the lot, then hold for many years. The potential return would be live changing. Ofc, these gambles rarely pull off and the chances are the company will be taken out long before I would have a chance of seeing huge returns, but still a takeover would still likely be at multiples of the current price.

I agree shandy. Nothing bad has been said this year so far, just positive news. All is looking good. To me it looks just like the share price is in a consolidation period after a good run last year. If the company keeps giving positive news the share price will eventually have it's next leg up. In the mean time, the Stoch and RSI have slowly been moving down, the 200 SMA is slowly climbing and getting closer to the current price, while trade volume has been gradually dropping and is below the average daily volume. All indications that the consolidation period is coming to an end. When that happens, is anyone's guess, but barring any negative news, this should rerate. There are so many positives to this company. Profit making, growing revenues, cash and no debt and in a sector that is only going to grow over the coming years. And then there is the factor the company is seen as one of the best, if not the best, in it's class. Just a waiting game. The only real negative I see is that it would of been nicer if the dividend was bigger while we waited.

Excellent avocet123, this made me laugh!

£180k and £178.5k

2 large trades gone through today. £160k and £158.5k

Interesting that there has been a few £0 trades posted today. Not seen that before.

More good news. The smaller contract is the interesting one imo. Opens up the doors to more contracts from that area. It would of been interesting knowing which gaming firm it is. There are quite a few firms in that sector of The Tribal gaming. The Manila contract upgrade confirms how happy companies are with synectics and shows it is the best in class. Hopefully these contracts are the ones to move the sp out of the current trading range and hit new highs.

Here's the link for those that missed the webinar yesterday.

https://www.youtube.com/watch?v=gZGS64UBfyc

Nothing really new in it. I think the point to take away is that this is more of a longer term investment. The company is on track and progressing well. I liked the fact that the company has no intentions of doing a share buy back program with it's cash pile as they see the company able to better use it's cash for organic growth. Too many companies out there are doing buy backs, simply because they do not know what to do with surplus cash. This imo highlights that SNX is confident on growing. Besides that, the share count is too low if anything and a buy back would only make liquidity worse.

Yes, good news indeed. One 7th of the market cap. That will take the EV down to £39.5m and then down another £3m next year. The company has plenty of cash, excellent new order last week and new orders should start coming in now as it's been a year or so of slow down while the customer inventories were high. As ST said, the SP has broken out of the downward channel. On a weekly chart the SP hit the bottom of the upward channel back in March and the top of that channel is around the £6 mark.

Shandypants2- it is no as simple as that. Different sectors of the market are valued differently. SNX is not a young company, 20 years old. Tesla is a bad example. First it is a US stock and US stocks are valued higher. Also Tesla is not really valued on it's performance, a lot of it's value is investments made in Musk. It is a one off stock. Generally stocks with very high PE are stocks that have the potential to change the way things are done, coming up with a completely new idea. Wise, filtronics and Beeks are good examples of this. These companies have the potential to be making hundreds of millions in profit. Snx is not a company like that. What Snx is, is a good well run company that has planned to grow and expand. It will not revolutionise the world. So working on a forward pe there is risk. If all goes well though snx will continue to grow over the next 5 years and the share price will steadily grow as it grows the profits. The share price will not likely get too far ahead of itself. It will rise over time as the profit rises. The main points for snx are, it is run very well, no debt, R&D done without getting dilution, keeping the profit margins level. Then there is the sectors it is servicing that are in need of extra security due to critical structure or like the gaming sector that went through a down turn during covid and is now a growing sector. Then it has security in cities ect where it needs updating where Ai comes into play. There is a lot of contracts to be won for snx over the coming years as technology changes and the world adapts to it.

Providing nothing negative happens, snx will likely grow it's SP in spurts as it slowly grows, then consolidate, then go up again. Also, be aware the liquidity is not great for snx, so it can move very quickly, both ways. Because the company is a low market cap, well run and has cash, there is also a possible opportunity of it being taken over.

Tried a couple of dummy sells and buys. 8.6p spread. I was able to sell all my holdings which is not that common. I was also able to buy £14k worth. So, a fair amount of trading going on. Yesterdays trades was over double the daily average. Chart wise, if the share price can hold or increase a little today then it looks like it has finally broke out of the recent wedge and I'd say that the share price should quickly move back to the highs from the beginning of the year, around £3.60. If that resistance can then break then £4 and higher, but I'd expect some new contract announced to be able to make that happen.

I think you have miss understood my point. By todays pe figures it is not cheap, but by a forward pe it is not expensive. It all comes down to whether you believe the company will hit the targets or not. Going by the interim results it looks to me like they will actually exceed the targets and in the next 6 months we will get a rns saying ahead of expectations.

The company has been run very well over the last few years and tends to be a little over conservative with it's forecasts. But I'd rather it did that than over promise and disappoint. Hence why I have held these since £1, and added to over time. I hold 10000 shares, so a reasonable holding. If all goes well then I will hold for quite a few years as I believe the company has the potential to double or triple in price.

I am not surprised at the decrease in price so far today. While the results were excellent, there is nothing that wasn't expected.

The company is not cheap. though it is not expensive either.

The company expects the second half to be equal weighting as the first half but expects revenue forecasts to be in line at £65. So I would expect some increase in forecasts over the next 6 months especially if the company does do similar revenues to the interims as that would indicate fy revenues of £70m.

A big positive is the increase in cash and profit margins staying the same, despite rising cost and future growth costs. This clearly shows the company is being run very well. Security will only grow over the next few years as the world changes and SNX is well placed to accommodate this.