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Hi.
I'm thinking of buying into BXP, looks a cheap share for such good growth potential. Could someone clarify these 2 points please.
1. Are BXP dividends subject to withholding tax? I so, what %age.
2. Don't think these can be held in an ISA. Please tell me if I'm wrong.
Thanks
John
This telecoms marketing solutions specialist could well prove to be an ideal buying opportunity for tech investors who enjoy the thrill of speculation on young but fast-developing companies, writes Mark Watson-Mitchell.
Way back in the November 2018 edition of the Master Investor Mag, analyst Richard Gill pinpointed the investment attractions of a relative AIM newcomer called Pelatro (LON:PTRO), with its shares then trading at 69p.
They subsequently touched 98p in early April this year. Just two months later they fell back to 71p, which was only days after the telecoms precision marketing specialist announced its 2018 results.
Now, trading at around the 76p level, I consider that this could well prove to be an ideal buying opportunity for tech investors who enjoy the thrill of speculation on young but fast-developing companies.
Pelatro specialises in providing telecoms companies with marketing solutions software offering both flexibility and agility for the optimisation of business results in just one tool – the mViva MMH suite, covering loyalty management, gamification, survey and data monetisation, contextual marketing and unified communication management.
Customers across the world include: Smart Axiata (Cambodia), Inwi (Morocco), Celcom (Malaysia), Telenor (Norway and Pakistan), Ncell (Nepal), Sudatel (Sudan), Expresso (Senegal), Tele2 (Sweden), Dialog Axiata (Sri Lanka), Globe Telecom (Philippines), Bahamas Telecom, Robi Axiata (Bangladesh), PrimeTel (Cyprus), VNPT (Vietnam), Digi (Malaysia), and Grameenphone (Bangladesh). More are in the pipeline, with contracts being negotiated all the time, and several said to be close to being awarded.
The company now has some 18 clients across 17 countries, with massive cross-selling opportunities, hopefully helping to boost its revenue and earnings growth. Based in the UK, the company has subsidiaries in Singapore and the USA. It also has an important development partner in Bangalore, India.
This multichannel marketing hub specialist was founded way back in 2013, was then built up by a very experienced telecom team and eventually went public in December 2017. It is still at a very, very early stage of its development, but the group’s potential is substantial.
Remembering that all of its revenue is based in the US currency, earnings of 10.1 cents per share for 2018 and estimates for this year of 15.4 cents, when converted, come out as 8p for last year and 12.2p for this year.
So, with the shares trading at 76p that puts them on a mere 9.5x price-earnings ratio for 2018 and possibly just 6.3x for this year. That is incredibly low for such a fast-growing technology based innovating software group, a specialist in its chosen telecoms sphere. Institutional holders in its equity include: Chelverton (6.62%), Rathbones (5.37%), Herald (4.80%), Artemis (4.74%), Killik (3.84%), Hargreave Hale (3.16%), and Maven Capital (3.09%). Meanwhile, Kiran Menon and Virun Menon each hold 14.88% of the equity, whil
Not sure when the merged divi would be due, but it will be twice covered by earnings. Merged divi would have to be a few % lower than Redde's current 10.5%. Share price moves yesterday have rebalanced market caps for both companies, which acknowledged a (very low IMO) 10-11% undervaluation of Redde shares. Redde shareholders will hold 46% of combined company. After Fridays price moves, Redde cap now £340million, Northgate £419million. £340mill is 45% of combined £759mill.
Oh No. Not Northgate again! Sold out of these about 9 years ago at about £2.80, soon after the 10 for 1 share offer. Spanish market looked far to shaky. Since then, share price has gone nowhere. Redde's doubled in value since their share issue in May 2014, with much more generous dividends. Redde way undervalued, especially after the overreaction to losing 1 (albeit big) contract. No way will I be voting for this merger.
The P/E on this sounds almost too good to be true. There's sound reasons why Chinese small cos, especially JQW, are currently lowly priced: ie 1. director running off with the money in 1 or 2 (out of 1000s?) of small Chinese cos) 2. large Chinese floats absorbing liquidity from Chinese market 3. Greece making folk very risk averse 4. Lack of news and research on JQWas China not easy to report on I reckon this is worth a punt, without risking too much on it. When QPP Quindell was too good to be true at 38p, I put 5% of my SIPP wodge in, & cashed out at £1.53 and £1.48. I've put 2% in JQW today, previous bought 3% last month at 12p (oops). As gross profit nearly = Market CAP, risk/reward ratio is massively in the reward favour. Very good chance it'll zoom when final figures out (without looking, might be 8 months off). DYOR