REMINDER: Our user survey closes on Friday, please submit your responses here.
SNT - Sabien Technology - MC at 0.09p - £800k
* Cash at June 2019 - £890k
* Small Placing in May at 0.1p
* Large TR1 holder who took more in the placing has also added open market recently (27th June)
* Company to show small profit before tax in next results due October for the first time since 2013
* In the latest contract win, the management reported they had signed a 2 year framework agreement, which hopefully means more orders on there way.
* There’s been contract news every 2 months since February so I’m thinking another contract will hopefully land in the not to distant future, considering it’s now 2 months since last contract.
* If the company can secure another contract similar in size to the one in April, I believe the market will have to start taking them seriously.
* Company is arguably in the best position they’ve been in for years, and share price at or close to all time lows.
High risk considering previous failures and share price slide but currently trading below cash levels and with regular contracts being won this year, I consider this a very decent risk reward play for a turn around, down to the management to keep the contracts coming, and I’m banking on they will, as why would a leading UK energy and services company sign a framework agreement if they don’t intend to use SNT for more business?
The smaller the company, the bigger the potential move can be...
Yep nice finish yesterday with a 5m but at full ask, that was the third 5m buy of the day!! Agree market cap to low, we are now only sitting at currently cash levels! Company in arguable the best position it’s been in for some years, happy to continue holding for higher
Nice couple of big buys in there along with a decent buy a few days ago? Maybe HIHL loading a few more under their 0.1p placing price
I had a few the other day, just a trade only, but at sub £700k market cap, with cash above that (£890k in June) and contracts landing every 2 months since February, I’m have a trade on the fact another contract lands relatively soon. Also results shouldn’t look terrible, should be the best set for a long time, and lastly TR1 holder recently increasing on open market up to 25%
Holding the gains well and doesn’t look like anyone wants to sell here, consolidate just under 9.5p ready for the move through that resistance and onto 12 and 15p next, news could simply through the chart out the window with this one
Haven’t sold any, same as I didn’t sell on the last rise to 12p - not interested in tiny volume, I’m looking for a big volume day here after news and see where we are at - pretty crazy selling at almost cash levels
Chart looks great, all moving averages now tightly bunched and a solid break through the 50ma which is what has previously held it back.
Today’s volume 610k and a VWAP of 8.25 meaning roughly £50k of trades moved it 40% - imagine what’ll happen when we get £500k of trades - it’ll multibag intraday on that volume
20p is a very realistic price target considering market cap will still only be £6.2m and with £2m plus cash in the bank still. If volume does arrive here, with the Free Float being so small and the tiny market cap, it really could do a big overshoot move on news - looking forward to it myself - see you at 20p first target
Let’s also remember he was only officially appointed in November - 2 months is now getting on a little to hear from him, but I’m thinking the ‘bad’ news regarding Sweden out the way (wasn’t terrible news, it just didn’t meet centerra golds criteria), now for positive news regarding the abbeytown project in Ireland and then I fully expect Anton to show his face with investor preso and interview/s
Holding also, valued at cash at this level so one has to think very little downside, assets having zero value attributed to them currently.
Poorly Priced due no PR, could that be about to change, will be interesting to see if Anton buys a few on market also!
Think we could be an update away from a strong move, chart looks good for it
Lastly in the BRH interims it stated - This is a pivotal time for Braveheart. Growing prospects at Kirkstall, Paraytec and Gyrometric continue to excite the Board, while the investment portfolio, combined with our substantial cash continues to provide solid underpinning to our balance sheet, and developments in our fund management business offer a new source of fund management revenue in the next financial year.
All for a £4m MC company - currently my largest holding, scary at times as it is incredible illiquid, so if you needed to release your cash you could be looking at a big discount to what you paid - but exciting as I see this as my safest hold given the research above, I’m sure this is going to be trading in the 25-30p range at some stage next year and possibly higher!
BRH back down at under 16p on the ask (£4.3m MC at 16p)
NAV at 14.7p (seems pricey for an investment company) - But BRH aren’t just an investment company - they have the fund management business (which is about to be enlarged) which is profitable and pays all the PLC costs - also investments are undervalued in the book as highlighted below
BRH have 2 fund management business, Viking fund and Strathtay Ventures. Strathtay ventures is going to transfer all activities to their main fund (Viking fund managers) and will then be closed, this will save on operating costs running 2 separately. Viking Fund are also in the due diligence stages to significantly enlarge the fund, backed by a large U.K. financial organisation, this will ultimately lead to greater income and higher profits for BRH.
Dividends accepted by the courts and BRH announced they intended to pay a dividend next year.
Cash of over £1m
Kirkstall doing well under Lonza - before Lonza came along, Kirkstall were going to raise £2.5m at a ‘pre money’ value of £5.6m - BRH own 37% - so that would have valued BRH share of Kirkstall at £2.1m - that was last year, before Lonza came on board - the current book value of kirkstall is £900k, clearly hugely undervalued.
Paraytec still awaiting news on £4m funding/partner to take bladder cancer test to market (BRH own 56.5%) - but interims confirmed they are now profitable and cash positive.
Paraytec funding round of £4m if it goes ahead at 50% dilution would value BRH diluted share at £2.26m if done at 40% dilution would value BRH share at £3.39m - current book value of Paraytec is £530k, again clearly undervalued.
So although NAV is 14.7p the book value of all BRH 15 investments is £2.2m - where as Paraytec or Kirkstall could cover the entire book value alone once proven as per above
Not forgetting their 3rd strategic investment Gyrometric - Gyrometric presence has picked up massively in the last few months, with apparent interest from major players in the wind turbine field, if they manage to secure a deal with one of these it will be massive news which will prove the technology, and one that I believe will re-rate BRH alone.
BRH own 18% of Gyrometric directly and 7% of remote monitored solutions (RMS) who own the majority stake in Gyrometric and also Geocurve.
BRH hasn’t really had major news since 2016 when it sold one of its investments for £367k which saw an overshoot spike - the reason being the free float is tiny, it’s illiquid, it’s under the radar and it hasn’t recently placed new funds, these are all the factors I believe what could see BRH spike again on a Gyrometric deal.
Gyrometric have recently announced they are hiring staff due to significant increase in sales opportunities - also in the BRH interims they stated
‘A test programme for one of the major manufacturers of wind turbines is expected to commence in the next few weeks and serious enquiries from several others are being pursued’
La
Yes, plenty to look forward to Cityal, plenty of catalysts coming short term, to name a few, Paraytec raise update/completion, which could prove to value our share in Paraytec more than the current £2.2m book value of all 15 investments. I also find interesting the last RNS regarding the conversion of loan notes by BRH and another share holder into Paraytec shares, which now means we have 56.5% interest in Paraytec, that will put BRH in the driving seat on any negotiations for the £4m placing, also in that RNS it stated Paraytec was now profitable and cash positive.
On top of Paraytec news, we have fund management expansion news to look forward to, dividend confirmation, potential Gyrometric contract wins with large players in that field and the interims. I do hope the interims include a detailed overview on how Kirkstall are trading since the Lonza marketing and distribution agreement, before Kirkstall done this deal with Lonza they were relying on their technical staff to drum up sales and still managed to grow them by 35% in the prior year. Lonza have 600 sales staff, so sales could have a dramatic increase and I’m really hoping they give some idea how it’s going.
Ultimately, I’m very confident in the management here and in particular Trevor Brown, he has proven time and again how he can cut costs back, as has also been seen at another of his companies RMS (remote monitored solutions) and he also holds a large chunk at just shy of 30% in both of those companies.
I have recently added to my holding and I’m very happy to have a fairly sizeable amount now going into a news rich period, but am considering this a longer term hold anyway after extensive research on all 3 strategic investment companies and in particularly Paraytec and Kirkstall, I believe BRH holding in these 2 companies, in time, will dwarf the current market cap of BRH of £4.5m, and potentially as soon as next year.
Lastly, the shares here are very illiquid, and buying any sort of size can prove very tough, so I am happy to have a decent chunk of these now, as trying to build a holding when the catalysts start to land will prove nigh on impossible, I look forward to the months ahead.
Good luck