sell off completely overbaked. Will plan to add at this level, what an opportunity! Never thought I would see this price again.
impending IC update?
Ditto!....it rejected 60p....again. (out with 25% and missed taking profits twice before - that is trading 25% not to be sniffed at) News of Russia further reducing gas flows spiked the Dutch futures, and it popped past 60. Not a lot of meat in the RNS, I would have thought confirmation of a tie up would warrant an RNS, not a 'we are working on it'. GLA
Sold 10465 shares just before 9 this morning, transparency an all. Think it needs news to pop past the 60p resistance. Russian Gas back on....futures rolled over slightly, it still may hold these levels. Will buy back in at lower levels if the opportunity arises. GLA
last time this hit these levels was Oct 2021, held for most the day and then sold off toward the end of the trading session. Gas almost a 1/4 of the price back then and the Ukraine war was just a rumour. Talk of North Sea Licences opening up should provide further grounding for the rise over 60p this time. The markets are often illogical beasts though.
see if it can breach the 60p resistance, it has momentum and not quite hit the heights of 21/10/2021 - Dutch Gas futures contracts were circa 48 at that point.....now >165.....same share price....go and figure. Gut tells me it needs news to push past 60p......tumbleweeds..........
Impressive RNS, unfortunately, macro market conditions will likely suppress the SP.
"Aim-traded Pelatro (PTRO:22.75p), a company that makes its money by providing 23 large telecoms operators with precision marketing software, delivered a step change in profitability last year. Cash profit rose more than sixfold to $2.8mn (before accounting for non-cash depreciation, share-based payments and amortisation charges) as the operational leverage of the business kicked in on an increasing recurring revenue stream.
Pelatro uses 'big data' analytics (artificial intelligence, machine learning and other analytical techniques) to reveal patterns, trends, associations and behavioural traits of telecom subscribers. These insights enable mobile telecom operators to monetise their data, boost average revenue per user and their share of subscriber spend, while also reducing churn rates. It’s proving popular. The group added three new clients to its customer base last year and now processes data of over 1bn telecom subscribers every day.
However, the real game changer has been transitioning large Asian telecom operators to long-term managed service contracts that produce an annual recurring revenue (ARR) stream and a high level of repeat business. To put this into perspective, Pelatro’s ARR of $4.8mn accounted for two-thirds of last year’s total revenue of $7.2mn, and that excludes $2mn of change requests, effectively repeat revenue earned from clients as products evolve. The group started 2022 with ARR of $6mn, or four times higher than at the start of 2019. Furthermore, the addition of three new customers has reduced concentration risk, with only two clients now accounting for more than 10 per cent of revenue.
The directors are also leveraging Pelatro's position in 'big data' analytics by entering the mobile advertising space, a market that is projected to double in size to $221bn by 2024. Expect the first customer to be signed this year, adding another potentially valuable revenue stream.
Importantly, gross cash of $3.3mn (excluding borrowings of $0.75mn) has been buoyed by $1.9mn received from debtors since the financial year-end, while the strength of the order book is such that ARR is expected to account for 80 per cent of the $9mn revenue forecast this year, says managing director Subash Menon. New house broker finnCap has yet to initiate coverage, but the business is clearly generating strong momentum.
This explains why Pelatro’s share price bounced 21 per cent post results, having been de-rated since the half-year results (‘Dial into a lowly rated tech play’, 28 September 2021). However, even if the share price doubles from this point, Pelatro would still be undervalued as its enterprise valuation is only 1.1 times forecast revenue for 2022 and a miserly 3.7 times historic cash profit, respective discounts of 66 per cent and 74 per cent to finnCap’s Tech 40 Spec Software index. Buy."
....the falling share price in this sky high commodity environment shows the market has little faith in management to deliver on a bigger scale. As previously mentioned, this will not break 60p unless there is significant news. In its current guise, with Dutch gas prices where they are, that is the ceiling for this stock.