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Posted over on ADVFN.
https://aitrends.vision/news/trending-news/nexcom-and-telco-systems-launch-pre-installed-5g-iot-solutions-for-virtual-edge-service-management/
Certainly not the time to bail. SP over corrected by a country mile due to unrelated string of events that have nothing to do with the profitability of the company. Share buy back was held up due to the company sitting on materially good or bad news. They have just published a stunning set of results and there is no profits warning so probably a large tie up for Ador or Telco or another cyber contract. Take your pick.
https://ca.proactiveinvestors.com/companies/news/975263/batm-advanced-communications-reflect-on-a-great-year-in-2021-975263.html
You have to ask yourself what changed in 3 months. 2021 was a pivotal year for BATM and forward looking statements are excellent. The company has a FMV @ 80p on almost any metric on pure revenue let alone what the IP is worth.
Dartron there is a decent interview with Zvi @ 3months ago and a recent published set of results.
Agree with your frustration but there are items to consider.... Israeli Tech stocks are badly oversold in general. Diagnostics companies have been hit on all the exchanges, there was the Russell index nonsense, oh and we have a war as well and a recession. There are also restrictions on Company buy backs with respect to conflicts with internal news that could have an effect on the SP if its not in the public domaine. Still the SP has been slammed.
The share price has slid and now completely collapsed against a background of very encouraging published results and excellent forward guidance. The volumes have been very low and the total amount of shares traded in the last 6 months does not amount to much. At these levels some company could take them over for spare change something has to give here because it can not continue like this for much longer.
It's a very comprehensive report and should be read carefully by investors. The only downsides are the Russel Index fiasco which has been interpreted incorrectly and does not amount to a bag of beans in any event and has no effect on the company just an unwanted distraction. Other concern is an increasing backlog of orders due to chip shortages and pandemic restrictions to travel which I can concur has made it tough to get people on site where necessary. Solid year end with a very firm outlook for this year. Company is wildly undervalued.
Yes thats a distinct possibility as they have been held back with pandemic restrictions in getting technicians on site.
Quite often if they are twittering about something we end up getting a RNS.... "quite" being the operative word.
The agricultural shredders and protein by product is a win win ....
In a recent interview Marom said he expected this sector to be very robust and they intended to build up this side of the business and then sell off the Government and defence business and retain the rest of it. Its bundled into Edgility for example.
Its at their discretion and i am sure they wont telegraph this otherwise it will spike the price which I understand there are rules in effect to prevent this from happening. By any metrics known to investing these shares are trading at half price.
BATM passed a resolution to buy back up to 10% of the company's shares. There is no time frame for this and there are constraints in company buy backs to not cause an artificial spike in the SP.
BATM have a FMV of @80p based on pure fundamentals without looking at their growth and value of the IP.
Thats based on comparison with their peers. Thats why they had support for so long at those levels.
The only effect this would have on BATM is the same as it is for any company that uses chips. BATM are primarily focussed on developing IP and achieving subscription revenue from cyber and NFV. They do make some physical hardware ie. UCPE white boxes but expanding manufacturing is not their thing. That said anything that extends the chip shortage will spook investors. Hopefully they will get that sick weasel out of Russia and the Ukraine, he's not well and thats scary.
There is a half decent thread over on ADVFN explaining whats going on. Its all to do with rebalancing from non inclusion in the UK indices which effects tracker funds ability to hold shares. Its a 3% storm in a tea cup. BATM already OK a share buy back to counter this by intentions to buy back and cancel 10% of company shares. Its an Ab Fab chance for investors to buy ......
March 17th BATM have an extraordinary meeting to ratify the proposed buy back of 10% @44million of the company's shares. This will be done from existing funds the company have on deposit. Any holders are about to see their investment go up considerably for doing nothing ! Given the oversold SP position the timing is most opportune.
hTTps://www.youtube.com/watch?v=1b7KD9pE20A
All divisions seeing growth with cyber now adding to full order books and a sizeable backlog. Stupidly undervalued.
Results came in as expected. Any concerns about where future growth is coming from should be allayed. Edgility revenue started to trickle in, new RCA platform for identification and treatment for infectious diseases due to be rolled out in May, Cyber especially in todays environment should do very well indeed, pathogenic waste treatment plants with several key advances very much on course. Huge growing cash pile with more than enough for the share buy back. Company is delighted with the results and we should be also.
BATM has a support value at 85p and a sum of the parts @160p on last years results IMO and FWIW.
The recent SP collapse happened against a perfect storm of misinformation. We live in absurd times.
Mind you the tech sector has seen 40% drop in many otherwise solid shares so thats a large part of it.
BATM has been a defensive stock in the past as they are well funded and don't need to go the the markets for cash. All R&D costs are handled in house. Last years strip out value for BATM was @85p and thats on last years results. Diagnostics, NFV, Cyber are all in the essential items camp.
There have been a plethora of articles recently about the wind down for 3G. Providers need to scramble if they want to stay in the frame. The demand for SOHO solutions and video conferencing demand and information sharing with virtually no latency is where we are heading. The pandemic restricted roll out for NFV enabled devices where the company had to get technicians on site. I would expect that Telco has a large backlog of orders.
Its a very opportune move by BATM to buy back shares especially as the current valuation is half what it reasonably should be at this point in time. Not only does it get around the withholding tax but the 10% buyback at these levels is more like 20% boost for shareholders. I am assuming the company will cancel the shares. It will more than counter the few shares that have to be unloaded from Index funds which on paper would have had little effect in any case.