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This is significant as Telco have had a long relationship with Advantech and numerous POC etc. This is now in the market and pre installed on white box UCPE equipment for which Telco get a licensing fee. In other words the revenue part of this is now activated.
The importance of this announcement is that Advantech products (in this field) are now coming pre installed with Edgility. The demand for SOHO solutions and UCPE equipment that can handle todays demands means these solutions are well out of the POC stage and being offered to the market. Telco systems gets a licensing fee for all of this. ie They are now getting revenue.
Edgility formerly NFVTime is an essential NFV platform for the Telecoms industry. NFV has long since gone from a "maybe" when Telco started becoming involved to a standard for the industry. Telco systems really are one of the earliest players in this field. The flexibility to run on ARM and Intel was a first in the industry and I am not sure that even today anyone else is offering this option. revenue comes from licensing which is a high margin cumulative stream.
Agricore I agree with your overall take.
the shares have been on a negative run ever since they peaked out at the height of the Covid hysteria. It was the perfect storm of perceived negative events that sent them lower all of which as we are now seeing was unfounded.
BATM mention growth in both divisions with as expected the medical to outperform, but what could really set the cat amongst the pigeons is if we see revenue from NFV Edgility start to trickle in. This is a cumulative high margin revenue shot as Marom explained in a recent podcast. They are multi year contracts so new business is added on to the pile.
Shore have had a very real tendency to downplay results and future guidance. Marom is on the board at Shore or was. I have never seen them underperform Shores outlook, so you might say if Shore says they are good they are. They got it from the horses mouth.
The Stock Market hardly ever makes any sense over the shorter term but as the results due Feb 28th are published the doubt should come out of the equation. ST is not incorrect in his rating and normally companies like this would be trading at a premium to reflect growth in earnings and more importantly in EPS driven by improved margins. I would assume ST will want to see the published figures before commenting. The very considerable IP the company has is not even being credited to the mix, Edgility in Telco Systems and the Medical/Ador new RCA testing platform are seriously valuable assets that are not yet contributing to sales. There is not a listing problem only their inclusion in UK based company indices which has a very limited effect.
The 10% share buy back proposed offers a great way to reward shareholders without going through the rigmarole of paying dividends then getting taxed at source and G** knows where else for that matter. On the subject of dividends buying shares at these levels means you get @1.5% return on your investment. Only pointing out the obvious.
The Rat crossed the line when they advertised their services for Hire to a third party with the intention of discrediting them for financial gain. Whoever paid the rat is in deep trouble should a case be brought.