Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Agreed. I've just added another 7133 shares @69.575
Hydro first up - thanks for the flow of informed commentary on MTR which adds value to this BB. I have filtered out the manic de-rampers so now only read comments from the long term holders. I have no problem with you cheerleading for the pension maker possibility - if I didn’t feel the same I wouldn’t still be here.
My investment case is the same as yours - proven copper discoveries now in development, lots more promising exploration under way, a long term bull market for copper, NAV underpinned by the NSR and stake in SFR, shrewd investments by their trading team, and a well managed operation who appear to respect the interests of shareholders.
I nearly sold out 1 year ago, but decided to double down and trade the range between 20-30p as we go. I can’t see any single event on the immediate horizon which will shift the share price significantly, but can envisage a point down the road at which Sandfire buy MTR to consolidate their position in the area. Effectively a share buy back with added value for Sandfire. Anyone else see this as a possibility?
Patience of a saint indeed needed on this one. Just looked back through my broker account - my first MTR purchase was on 10.11.2017 - £10k worth @ 2.04p. Back in the days when Bonker was telling us this would be a pension maker. Now Hydro has taken over as the chief "pension maker" cheer leader. I have "range traded" MTR on highs and lows since then to reduce my average buy price - but it's still one of the largest holdings in my SIPP. So it's now been nearly 4 years and the share price has gained 20%. Not quite the promised land I was hoping for - and I suspect there are others on this BB who have been holding as long as me if not longer. But as the good book says (in Hebrews 11. 1)
"Now faith is the assurance of things hoped for, the conviction of things not seen"
Thanks Taylot that’s a really useful summary. I sold a chunk of my MTR shares on the recent spike up to 30p, but bought some back again last week on the dip. Now it’s back to a “hold and wait” phase…
I’m a wee bit confused now about the corporate relationship between MTR and Cobre and the assets that they hold individually and jointly. Can anyone on this BB explain how this now scopes out? I’d be grateful this.
Just bought 12,720 at 23.49p. Good top up opportunity IMO
Sold my SUMO shares yesterday and recycling some of the profit into FDEV - bought 436 shares @ 2,289 this morning. I expect Tencent to make a move for FDEV too at some stage - happy to hold and wait for this to happen. Hello and good luck to all holders.
Sold my entire holding yesterday. Happy to bank some substantial profits. Not so happy to see another promising British tech company in foreign ownership. But the potential of an acquisition by Tencent was one of the reasons I bought in the first place. This was always on the cards from the moment Tencent took their initial stake in SUMO.
CNIC are looking more and more like a quality growth stock and one of my more comfortable “hold and wait” investments on the AIM Market. The new AI investment looks promising. I have posted below a summary of the investment case from the CNIC website for any newbies visiting this chat.
https://investor.centralnicgroup.com/investors/investment-case/
CentralNic supplies the tools for businesses to get online: domain names, hosting, websites, email, website security, brand protection and domain monetisation services.
Market
Total addressable market: $30 bn
Strong cash conversion – services are paid in advance;
Quality earnings – subscription services with recurring revenues;
Organic growth: 2% (mature markets) to 10% (developing markets).
CNIC investment case
Proven business model – revenue multiplied 100-fold since listing
Recurring revenue – around 99% of revenues from subscription products
Highly predictable renewal rates – between c.65% and c.95%
New revenue streams provide significant upside potential – related services such as hosting, cybersecurity and brand protection
115% cash conversion (pre-tax) in 2020 – annual subscriptions paid in advance
Automation and Superior Technology provide sustainable competitive advantages
Client list includes Fortune 500 technology giants, global brands, governments and SMBs
Total addressable market – market for online presence services estimated to be worth $30bn, ample space to grow our businesses
Global consolidator – global business with successful acquisition strategy in fragmented market
Experienced and entrepreneurial management team – 11-year track record led by innovative team unafraid to challenge status quo
Superior, trusted technology platforms – superior automation, speed and resiliency, zero DNS downtime in 20+ years
https://assets-us-01.kc-usercontent.com/8c961317-6aee-00a7-e4b6-ae38cd847d2d/04701b91-a708-4cd3-a470-bce1b78a60fd/DSM3061_Downing%20Strategic%20Mico-Cap%20Investment%20Trust_Factsheet_Jul%20(Jun)%202021.pdf
In June, the Company’s NAV increased by 0.7% and the share price decreased by 2.3%. This performance
masked a reasonably active and positive month in terms of results and investing actively. We have several
ideas in WIP which we hope to convert over the coming months pending positive diligence, notwithstanding a
toehold added in June which was subsequently bid for (see below).
Volex (-0.1%) and Ramsdens (+2.6%) reported full year and interim results, respectively. Volex’s were
predictably strong and showed great progress on the strategic priority to achieve 10% operating margins.
Looking forward, we think that the business continues to guide conservatively, particularly around electric
vehicles and healthcare, where we calculate run rates which are well ahead of consensus. The latest acquisition,
DE-KA, is performing extraordinarily well and the 25% capacity expansion and new large customer contract
will be significantly accretive to earnings. We think that the business ought to continue its upgrade cycle
through this year on an organic basis, while expanded debt facilities and organic free cash flow provide ample
opportunity to continue inorganic growth. Ramsdens reported an encouraging set of interims in an otherwise
tricky period, navigating country wide lockdowns with what is a predominantly physical retail-based model.
We have previously mentioned that we expect the recovery here now to be in 2022, with the main catalyst
being a return of the FX business. We are also encouraged by the potential to generate significant rent savings
going forward, which ought to improve profitability.
Elsewhere, Hargreaves Services (-3.2%) reported a pre-close trading update which was in-line with previously
upgraded earnings per share (EPS) guidance for this year from 20p to over 50p, and upgraded price target to
530p. We see scope for further catalysts over the next 12 months through the Services and Land divisions.
Digitalbox (flat) announced the non-executive director appointment of Phil Machray who has worked for Reach
– the largest commercial, national and regional news publisher in the UK – since 2004. This is a strategically
important position as Phil brings significant M&A and digital experience, both highly relevant for Digitalbox’s
roll up, digital focused strategy.
In last month’s factsheet we reported that we were progressing through the initial stages of diligence of a new
investment. In the month, we took a toehold position in this company, having completed multiple rounds of calls
with management, the board, investors, industry experts and competitors. The company was subject to a bid
approach 15 days after we acquired our position and we fully exited based on risk weighted to the downside
should the bid not be su
A positive set of quarterly results. This is a very different business now compared to the CNIC of 12 months ago, with the acquisitions now delivering serious incremental revenue and profits. The market hasn't spotted it yet, so IMO this is a good time to be buying CNIC. I'm not buying any more at the moment as I'm already overweight on CNIC. But if the SP drops below 80p I'll be very tempted.
In April, the Company’s NAV returned 7.6% and the share price returned 5.5%. The discount widened slightly to 14.5% on the back of the strong NAV performance. The portfolio continues to benefit from improving sentiment with four holdings increasing by over 20% and only three detractors in the month. The company realised a significant portion of its Real Good Food investment in the month.
FireAngel Safety Technology Group (+46.0%) announced a significant partnership worth over €21 million to develop a next generation alarm. Subsequently, the company announced results which highlighted a challenging past year, but a much brighter future, aided by a fundraise to fund growth and efficiency investments. AdEPT Technology Group (+23.5%) announced the acquisition of Datrix, a supplier of cloud-based networking, communications and cyber security solutions. We think that Datrix fits nicely in AdEPT’s portfolio and believe that 2021 looks increasingly positive for the group, with a raft of strategic progress made in the previous 12 months. Flowtech Fluidpower (+20.9%) also announced pleasing results which highlighted management’s hard work through a challenging Covid year. We think that the business is in great position to, firstly, recover to pre-pandemic levels of profits, and secondly, grow, through exposure to a market with increasing tailwinds and through taking organic and inorganic market share. Our remaining toehold (+20.8%) also continues to perform well and is trading ahead of expectations post re-opening. It has generated over a 2x return since we began purchasing in January.
Detractors were mainly in the form of Duke Royalty (-5.9%) and Digitalbox (-6.6%). Duke Royalty announced the successful results of its placing which we talked about in the last factsheet. Digitalbox reported no new news in the period.
Arguably the most significant news in the period is the partial redemption of our investment in Real Good Food (RGD) loan notes. RGD sold Brighter Foods for £43 million, and RGD loan note holders will receive £23.1 million of these proceeds. DSM has received over £5.3 million and has now recovered more than the cost of its investment in the 10% loan notes while retaining £2.0 million in these notes, £1.2 million in 12% convertible notes, and a residual amount of RGD equity. As at 11 May, this reduces DSM exposure to RGD to below 10%. We think there is scope for the remaining RGD business, Renshaw, to recover and return value to RGD debt and equity holders.
Finally, DSM made a new investment in Tactus – a private business that provides multi-branded IT hardware to retailersandthepublicsector.
Tactus had a transformational year and DSM partially funded the acquisition of CCL Systems which provides Tactus an e-commerce platform and access to the fast-growing PC gaming space. Management’s ambition is to create the premier gaming e-commerce platform. DSM invested £1.5 million split 50/50 in 10% yielding loan notes and equity.
Delighted that after 5 years the market is starting to realise the hidden value in MTR. I’ve held this for 5 years now and nearly sold out in frustration 6 months ago. Instead I took a deep breath, kept the faith and bought another 300k shares at around the 20p mark. I’ve sold 180k of these back over the last few days to bank profits and derisk my overweight position in MTR. Still holding a fair chunk of these though. MTR has a pattern of retracing back a step or two after a rapid rise so I would not be surprised to see this back in the mid 20’s soon. I’ll be happy to be wrong on this prediction though ;-). Thanks to all those on this board who continue to post sensible analysis and views on MTR. GLA and here’s to a bright future for MTR and credit to their team for finally delivering the returns to long term shareholders. Big MJ has probably ordered another Ferrari!
Hi all I’ve taken an opening position in this trust today with 12,919 units @77.4p. It looks to have a good spread of promising investments across UK microcaps and I’m looking to build a bigger position in time if performance holds up. I have a 2 year investment timeframe for this with a stop loss of 50p and an exit target of 150p+. Best of luck to all holders.
Still undervalued. Added to my holding today - another 11,702 shares @ 85.35p. Quarterly results to be announced on June 1st and if they are still "trading in line with expectations" as announced in the recent RNS then I expect these to show healthy profits and cashflow. I wouldn't expect to see an offer for CNIC from one of the big players in the immediate future, but I suspect they are "on the radar" already. I'll be happy for them to keep making healthy profits, make a few more bolt on acquisitions to strengthen their market position, and maybe pay down a bit of debt. Oh and a shareholder dividend would be nice too. Are you reading this CEO Ben Crawford? :-)
Just bought another 96,136 shares at 19.75. I've no real idea when the tide will turn for the MTR share price. But with copper at these levels and SFR still drilling away, I'm sure it will one day...
Yes it's annoying when your timing is out and you buy just before a slide in the share price. But my investment plan for PRSM is to hold for 2 years+ so plenty of time for recovery. In fact, I bought another 1,210 shares @ 1,239 this morning.
Rivaldo - organic growth of the core business is single digit % so I wouldn't call this spectacular for a tech business. But the overall results are very promising and I still see CNIC as being under valued and under the radar. That's fine by me and I have added another 16,059 shares to my holding today at 93.4p.
Added more to my holding this morning - another 657 shares at 1,521.
@Bertie hold on to your shares and wait - this is a great British tech company with massive potential. I see this dip as a buying opportunity and have bought shares in PRSM last week. The market opportunity for them is huge and growing fast, and they are undervalued compared to their peers in the USA. They need to move to a cash break even point asap, but last year's results show good progress towards that goal:
Recognised revenues for the last financial year increased by 46% to £141.4m
Recurring, subscription-based, licence revenue accounts for 98% of the total.
The Group plans to reach cash break-even by the end of the financial year ended 31 October 2021.
The FY20/21 pipeline is stronger than at the same point in 2020.