Member Info for Bazzaman

Up 10% since the GE result & much further to go IMO.

Tristel's share capital is only up 2.2 per cent in the past year and a number of the new shares issued are to non-directors including those under SAYE. Given the robust earnings growth I feel comfortable with the number of shares being issued, and which are not being sold by them. I also feel comfortable with the investment case and feel a much higher share price will be the end game here. A takeover of the company is a possibility too.

I think the forest (rather than a tree) has been shaken on this one, down another 10% today.

The one that really caught my eye was the somewhat surprising news from Engineering Company SIX HUNDRED GROUP, that it had parted company with its CEO Nigel Rogers. The news accompanied a Trading Update which stated that underlying trading in the year to 28 March 2015 was in line with expectations. It was also added, that the pre-tax profit is expected to be more than £3m which is more than the £2.1m previously pencilled in by Broker FinnCap. No doubt though, that anticipated figure will be flattered by the pension surplus as in previous periods, so it is worth anyone looking at the potential earnings per share baring that in mind. As for the CEO’s departure, there was no indication as to why Rogers has resigned and moved on, although David Buxton the FinnCap analyst apparently pointed out, that having been there since 2012 the CEO had done a good job in turning the group around. I wouldn’t disagree with that view, having spoken the Nigel Rogers on a few occasions I found him very engaging and pretty passionate about the business, so I am sure holders may also be sorry to see his departure. Paul Dupee, the non- executive Chairman who is also managing partner of Haddeo which holds around 25% of Six Hundred will now assume the role of executive Chairman, overseeing the various divisions. FinnCap has retained a 27p target price, citing the apparent value on offer within the current valuation, where the shares sit at 16p. While that may well be the case and as one who has covered Six Hundred a few times now along with holding the shares, I should perhaps be bullish. However for me, it is what the resignation does not say, combined with what also appeared a previously odd stake taken in ProPhotonix last year. On that basis, although I will keep an eye on the shares, the suddenness of the resignation and lack of an explanation is from an investment perspective, just a bit off putting for me.

OK, have a great weekend.

Cambridge-based set-top box (STB) manufacturer and IPTV interface designer Amino Technologies (AMO:AIM) could become an unlikely beneficiary from a US pay-TV market thrown into confusion. Last week Comcast (CMCSA:NDQ) pulled the plug on its controversial $45 billion takeover attempt for rival Time Warner Cable (TWC:NYSE). On the same day UK-based STB supplier to both of those companies, Pace (PIC) accepted a £1.4 billion merger offer from US rival Arris (ARRS:NDQ), a deal that will create an $8 billion revenue a year market leader. That deal, struck on an enterprise value (EV) to earnings before interest, tax, depreciation and amortisation (EBITDA) multiple of 8.2-times represents a 28% premium to Pace’s previous market value, and has got analysts excited about the potential for Amino at 134p. Over the past few years under the guidance of chief executive officer (CEO) Don McGarva, Amino has shaped a clear vision for profitable growth, developing both its product suite and sales channels. With one of the strongest balance sheets on AIM, the company has the ability to play its part in industry consolidation, yet it has to date failed to identify value-adding targets. This suggests that Amino could itself fall prey, especially given its strong cash flows and £20.8 million of net cash (as of November 2014), representing in excess of 28% of the current £73.5 million market value. Analysts believe strong cash generation and margin uplift potential should command an EV/EBITDA of nine-times, implying a 170p-odd share price.

Results next month will be comfortably ahead of market expectations which is driving the SP upwards.

The Conygar Investment Company has completed on the sale of Norfolk House, Birmingham, for £12.3m, a surplus of £1mor 8.8% over the September 2014 valuation. This 115,000 square foot freehold office building had just over 19,000 square feet vacant with 51,000 square feet becoming vacant within six months. The current rental income was £915,000 per annum. Combined with the recent disposal of the 30,000 square foot vacant office building at Geoffrey House, Maidenhead for £4.76 million, the overall portfolio vacancy rate has fallen to 11.8% compared with 18.2% at 30 September 2014

by Robbie Burns, Naked trader - looks like a sound investment

Article has had an impact so far..........

Article is out in today's edition.

Part of the reason for this discount may be the company's reliance on one main scientific area, and the risk posed if a new disinfectant technology supersedes Tristel's brands. However, recurring revenues of 96 per cent should help to calm any nerves about the resilience of the business model, as should the fact that Tristel sells to more than 40 countries. One potentially game-changing country Tristel does not sell to at the moment is the US, despite considerable interest in the company's products from clinicians across the pond. FDA approval of the company's products could come within two to three years, according to analysts at Equity Development, providing access to the largest healthcare market in the world along - with major potential for a re-rating of the shares. Management is understandably keen not to overplay the prospect of US expansion, although it remains a strategic priority, as does growth in Europe. In both cases, regulatory costs will eat into profits. But this is factored into the forecasts in our table and more than outweighed by the potential upside. Tristel's shares have done well since 2013 and there is serious momentum in the growth story. The price-to-earnings-growth (PEG) ratio of 0.8 is only half the sector average and, at below one, suggests earnings growth is being seriously undervalued. Buy.

Each year, a staggering 300,000 NHS patients pick up infections while being treated at hospitals in England. Part of the NHS response to this has been to recommend the disinfectant products of Aim-listed Tristel (TSTL), which are now supplied to around 700 public and private hospitals in the UK. The company's main technology is its patented chlorine dioxide formulation, a highly effective disinfectant that can kill C.difficile spores in 30 seconds. In addition to hospitals - which account for 86 per cent of turnover - Tristel's sprays, gels, foams, liquids and other products are used to clean surfaces and instruments in pharmaceutical clean rooms and veterinary practices. A skin-friendly product has also been developed and is being rolled out, pending some regulatory hurdles. Tristel floated in 2005 and now boasts real sales momentum. It has generated record revenues in each of the past four six-month trading periods, and in the final half of 2014 grew sales by 15 per cent to £7.4m, in line with a sales goal of £20m by 2016-17. In the UK, which accounts for two-thirds of revenues, the key to sales growth is improving ties to hospitals' infection control teams and targeting specialisations such as cardiology and ophthalmology, where adoption of Tristel's products is less widespread. Increased scale has helped widen net margins, which are forecast to increase by 150 basis points to 15 per cent in the financial year to the end of June. This is leading to rapid EPS growth, which should also support forecasts of dividend increases. The shares should reward investors with a 3.8 per cent yield next year. And it's not only the shares' yield that represents attractive value. Tristel's enterprise value is 12 times forecast operating profits, and 1.8 times this year's expected sales. Based on these valuation measures, Tristel is valued at a discount to the sector of a quarter and a third, respectively.

Northland Capital stays buy on Amino Technologies, target raised to 150p from 140p

to Top-up on these falls, Simon T from IC expects a year end target of 80p to be reached & I'll be happy with that.

Engineering company 600 Group (SIXH) has been making use of its strong balance sheet this year to spice up its business. The company has issued £8.5m-worth of loan notes with an 8 per cent coupon to fund the £3m acquisition of 80 per cent of TYKMA, a US laser marking company, as well as to refinance some existing debt and boost working capital. Attached to the issue of the loan notes, the company issued 44m warrants convertible at 20p until February 2020. The warrants, if exercised, would be equivalent to half of the current 90m shares in issue and could therefore potentially significantly dilute existing shareholders should the share price perform really well. That said, money raised from any exercise would cover the cost of the loan notes. The TYKMA acquisition is significant as it substantially boosts 600 Group's presence in the growth market for laser marking. TYKMA's 2014 revenues of $8.4m (£5.6m) compare with turnover of £7.6m generated by 600 Group's Electrox laser business in its last financial year. Broker FinnCap predicts the acquisition will boost EPS by 15 per cent in 600 Group's recently-commenced financial year. While first-half laser-marking sales growth came in at 15 per cent, the company's machine-tooling business, which accounted for four-fifths of first-half revenue, had a tougher time. The environment for the machine-tooling business may have improved during the second half based on industry data, but 600 Group has yet to issue a trading update for the financial year completed at the end of March 2015. 600 Group's shares look very cheap and should earnings growth begin to emerge there is clear scope for upside, but the warrants can be expected to slow the pace of any ascent above the 20p level.

The property boom has well and truly percolated out of London and the prosperous south-east of England. But has it reached as far as Wales? Property developer Conygar (CIC) is well placed to benefit if it has, and a 13 per cent increase in book value in the year to last September suggests that interest in regional property assets is growing quickly now. Conygar specialises in bringing land through the planning process and selling it off in parcels to retailers and housebuilders. This is where the hidden value is; a 93-acre site at Haverfordwest, for example, is on the books valued at £17.2m, but a 10-acre chunk sold to J Sainsbury fetched five times the book value. Following completion of infrastructure work, Conygar will be marketing the residential land on the site, and already has planning consent to build 729 houses. At Holyhead, the gateway to Ireland and an area ripe for redevelopment, planning consent has been secured that could accommodate 326 waterfront apartments, a 500-berth marina and 50,000 square feet of retail and leisure space. All of this is on the books valued at just £10m. The shares are modestly ahead of our buy tip (180p, 5 December 2014), but trade at a significant discount to a very conservative book value. Given the locked-in value, that looks unjustified. Buy. JC

NETPLAY TV the interactive gaming company delivered its full year results to the market, which revealed a large drop in pre-tax profits, that was somewhat muddied by impairment charges and the amortisation of intangible assets. Holders of the shares would also no doubt have been disappointed by the lack of previously muted news on a potential return of some of the large £14.2m cash pile which accounts for a large chunk of the £25.5m market cap. I guess the problem the company faces and indeed the dilemma posed for investors is whether the business is capable of once more delivering growth, which in previous years had been pretty marked, but which has recently stalled. The much publicised point of consumption tax has been the culprit, being something of a dark cloud hovering over the business and in its statement last week the company added that the full environmental impact of this was yet to be seen. It went on to talk about being in a strong position in relation to mergers and acquisitions to perhaps counter concerns and that appears to be an area which would seem to be on the agenda. On a positive note, its relationship with Chanel 5 has been strengthened and its agreement now runs until 2018, while a seemingly decent final quarter of 2014 appears to have extended into the first quarter of this year. Looking at the forecasts for this year the pre-tax profit of £2.65m as highlighted by N+1 Singer gives EPS of 0.9p and a PER of 9. While given the chunky cash position that appears to look cheap, the unknowns regarding the POC tax and longer term uncertainty as a small operator are likely to continue to plague the company. The shares are back down to 8.6p and are I would guess, destined to remain subdued for the foreseeable future, although the cash should at least provide a level of support. In my last comment on the company here, I was tempted to take an interest around this price and the shares did briefly rally to 10.5p. However, even allowing for a decent yield (dividend upped by 10%) the uncertainty is for me pretty much tantamount to a mere rolling of the dice and on that basis I will not be getting involved. Having said that, Netplay may be worth keeping an eye on as further industry news unfolds, while should the shares actually retrace markedly in the short term, they may also be worthy of another visit.

As Simon has this share in his bargain shares 2015 picks, will be interesting to see his comments on these results. maybe today if not by Monday.

No idea, but it will be back as the dividend will drive it up.