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It is interested in expanding its footprint on the West Coast of the US, where last year it acquired three companies, and in Germany plus possibly France. On the potential of the consumer business, Ben-David is still upbeat, although recent experience has made him a little more circumspect with his analysis of the opportunity. “We had the idea of going into the consumer market and came under pressure to make forecasts for how long it would take to get products out. Of course, when you’re partnering with major international companies you can’t always dictate the timetable,” said the Waterlogic CEO. “Developing the technology and finding the customers; it all takes time, but we know that now, and are pleased to be rolling out products to consumers in Japan, Turkey, Russia and Italy.”

The company used to boast of an addressable market of around US$2bn a year, which was based on commercial sales to businesses in the US and Europe. However, its market has increased to US$14bn since the development of its Firewall products aimed at consumers as well as businesses, using ultra-violet technology to purify at the point at which the water is dispensed. Firewall eliminates the chance of contamination from the nozzle from which the water is dispensed and is a huge leap forward in technology that creates two massive opportunities. The first is the consumer market, and the group has developed a range of models for the home that are being sold by partners such as Indesit Hotpoint. It will market under the Waterlogic name in Japan through its distribution partner, Alconix. The Firewall technology also has a ready market in emerging nations such as India, where water quality is still an issue, and the company has a distribution agreement with Eureka Forbes The competition for the company is still traditional bottled water, where the group has a significant edge. There are companies that install point of use units, but none have the economies of vertical integration provided by Waterlogic’s manufacturing arm. And it is this, allied to the ability to reduce central costs such as marketing spend, which provides an instant win when Waterlogic makes bolt-on acquisitions. The cost of sales drops, and profits instantly rise. Its largest deal to date was done in Australia, where it bought Cool Clear Water, a company that turns over A$16.9mln and made EBITDA of A$9.3mln. It acquired Culligan as part of the same deal, sewing up a further A$6.9mln of revenues. The total cost was A$60mln, though this has given the group a fairly significant base in Australia. It means the group is carrying net debt of around US$35mln, although it still has headroom with its lenders and cash of US$13.8mln that will finance other, probably more modest, bolt-ons to the business.

Certainly what the directors and those others who have acquired shares recently are buying into is a strongly profitable, cash generative business where 50% of the revenues are recurring (from 18% in 2009). So far, we have skirted around exactly how the AIM-listed group makes its money. The product it provides is a fairly straightforward plumbed-in unit that purifies at the point of use – i.e. in the office or canteen in which it is installed. The dispensed water is certified as 99.9999% pure, and can be provided hot, cold and sparkling. It is significantly cheaper than traditional bottled water and the huge plastic bottles used to fill the old traditional water coolers. It is also more environmentally friendly than the bottled alternative and “hassle free”, chief executive officer(CEO) Jeremy Ben-David said. The units, which are made by its fully-owned manufacturing business in China, are either rented to companies directly, sold to them (with a maintenance contract), or installed indirectly by partners, often as part of a much larger contract. The group also has a network of resellers in territories where it doesn’t currently have a presence

The market can be an unforgiving place when expectations are dashed – though often the punishment can be disproportionate to the crime. For investors, this presents an opportunity; a chance to get into a growth stock well below its real valuation. Waterlogic (LON:WTL), the maker, installer and vendor of mains-fed water coolers, has felt first-hand the wrath of investors. Teething problems in bringing its new consumer offering to market, allied to the rather tepid performance of the indirect business, led the group to warn on profits. However, this is likely to be a temporary setback, and the latest guidance reveals the business will probably post revenues of US$120-$125mln (up from US$101mln) and underlying earnings (EBITDA) of US$20mln (up from US$14.7mln). For investors, there is an opportunity. The shares, which were changing hands for more than £2 in May, are now worth 103p. This values the group at £80mlmn, or just 6.5 times underlying earnings (EBITDA). Management think the stock is cheap and there has been a rash of buying since the interims on September 16. Only time will tell whether they are correct.

“However, the cautious approach to restarting operations should bode well for performance when production is restarted with the latest guidance being prior to year end. “We expect patience to be rewarded first by the onset of shut-in production and then via the rapid ramp-up to highly material volumes and cashflows from the low risk development wells.” McGeary adds that operationally Eland can achieve significant momentum next year when a six well campaign – targeting 54.2mln barrels of reserves - kicks in. Northland rates Eland as a ‘buy’ with a 161p price target, nearly 60% above the current price of 103p per share.

Investors in Eland Oil & Gas (LON:ELA) will be rewarded for their patience, according to City broker Northland Capital. Eland is on the cusp of starting production at the Opuama field in Nigeria. First oil was previously anticipated this month and, two weeks ago, Eland said it was confident this crucial milestone would be reached before the end of the year. While the pace, set by the company’s Nigerian partners, has fallen behind schedule, the considerable project will deliver significant value and will be a catalyst for the company to grow further. In a note issued on Wednesday, Northland analyst Andrew McGeary said: “It has been a frustrating year for Eland’s management that has had to adapt to the pace of national operator, Nigeria Petroleum Development Corporation (NPDC). “Further delays are disappointing but unsurprising in light of the challenging operating environment and the nascent status of NPDC.

Positive Points: Aggreko has traded in line with its expectations with underlying revenues and trading margins slightly ahead of the same quarter a year ago that saw the company generate revenues of £37 million from the London Olympics. Aggreko enjoys high barriers to entry through its fleet and global network of depots. The company expects to spend around £230 million in the current year, and £140 million in the first half of 2014 on fleet capital expenditure. Diversity of both customer type and geographical location is enjoyed.

Negative Points: Third-quarter revenue from the company's Power Projects division was 2% down on an adjusted basis with trading margins slightly behind last year and order intake at similar levels to last year at 105 megawatts. The company said it has not yet seen an improvement in the pace of orders, although interest remains strong. With much of the group's business conducted overseas, foreign exchange movements can (and have) impacted. New entrants may be attracted into the market by Aggreko's high returns. With operations in around 100 countries, many in Africa, Asia and Latin America, some jurisdictions expose the group to political instability.

Financial Highlights: Local business revenues in the third quarter were up 4% on an underlying basis, with underlying margins ahead of last year. Power Projects revenues in the third quarter were 2% down on an underlying basis with trading margins slightly behind last year. Net debt decreased by £83 million in the three months to 30th September 2013, and stood at £469 million, £216 million lower than the position at 30 September 2012.

Interim management statement: Temporary power supply provider Aggreko said it is trading in line with expectations. Group revenues and trading margins in the three months to 30th September were slightly ahead of the same period last year and excluded £37 million of revenues generated from the London Olympics recognised in the third quarter of 2012. On an underlying basis, the Americas region grew revenues by 6%, Asia, Pacific and Australia (APAC) was 17% lower than last year, due largely to off hires in the last twelve months in Japan and Indonesia. Europe, Middle East and Africa (EMEA) grew 8%, helped by full production from 430MW of gas in its contracts in Mozambique and Cote d'Ivoire. "For 2013, we expect that group profit before tax will be in line with market expectations" the company said in a statement

Big boys institutional

SACOIL HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number 1993/000460/06) JSE share code: SCL AIM share code: SAC ISIN: ZAE000127460 ("SacOil" or the "Company") RENEWAL OF CAUTIONARY ANNOUNCEMENT Shareholders are referred to the announcement dated 12 September 2013 containing details of the conversion of the Gairloch debt to equity (the "Specific Issue") and the capital raising of up to R570 million by way of a renounceable rights offer (the "Rights Offer"). As the pro forma financial effects of the Specific Issue and Rights Offer have not yet been published, in line with the JSE Listings Requirements, shareholders are advised to continue to exercise caution when dealing in the Company's securities until a further announcement is made. 25 October 2013 ENDS

http://www.lse.co.uk/share-regulatory-news.asp?shareprice=BGL&ArticleCode=i7bi8yjd&ArticleHeadline=GIBRALTAR_RESOURCE_ESTIMATE_UPDATED

still holding here for long term prospects which in my view look very good ......good luck all.

Positive Points: Record quarterly copper production of 207,300 tonnes was reported, an increase of 32% and driven by improved operating performance and grades at its Los Bronces and Collahuasi operations. Nickel production increased by 7% to 9,600 tonnes. Metallurgical coal production increased by 9%. A number of self-help initiatives and improved financial targets have been outlined by the new Chief Executive. A review of the group’s business portfolio remains ongoing. Adjustments were made under the previous CEO including the August 2012 acquisition of a 40% shareholding in De Beers and the sale of a 25.4% shareholding in Anglo American Sur to a Codelco. The interim dividend payment was maintained at 32 US cents per share. Foreign currency fluctuations, particularly in relation to the South African Rand and the US dollar, have worked in the group's favour. Speculation regarding a potential takeover has previously been rumoured. China remains the world’s biggest consumer of commodities. The world's second-largest economy grew by 7.8% in the third quarter of 2013 from a year earlier. The latest expansion was the strongest since the 7.9% growth reported for the fourth quarter of 2012.

Negative Points: Iron Ore production fell by 24%. Production at its Sishen mine was impacted by ongoing pit constraints and safety stoppages. Thermal coal production in South Africa decreased by 1%. As of its half year results, underlying or adjusted operating profit fell by 15% to $3.3 billion. Unadjusted profit for the half year attributable to equity shareholders declined by 68%. Business returns - attributable Return On Capital Employed (ROCE) – declined from 14% in H1 2012 to 11% in H1 2013. Group labour relations remained strained. Write-downs or impairments against the value of previous investments were taken as of the group’s 2012 full year results. A $4 billion post-tax impairment was taken against its Minas-Rio iron-ore project in Brazil, with expenditure on the project continuing to rise. A $0.6 billion post tax impairment was also taken against platinum projects. Given broad uncertainty over the outlook for the global economy, commodity prices remain volatile. For the first nine months of the year, the Chinese economy grew by 7.7%, keeping it on track to achieve the government's growth target of 7.5% this year, but still the worst performance for China in 23 years. Industry-wide cost pressures remain a concern. Industry-specific risks include government actions, such as controls on imports, exports and prices. Also, new forms or rates of taxation and royalties, and increased government regulation overshadow.

Third quarter production update: The miner reported mixed production output, with the share price falling by over 3% in early stockmarket trading. Iron Ore production fell by 24%. Production at its Sishen mine was impacted by ongoing pit constraints and safety stoppages. However, a plan to address the current pit constraints and a longer term operational strategy is expected to be presented by the end of the year. Export sales volumes decreased by 5%. More positively, record quarterly copper production of 207,300 tonnes was reported, an increase of 32% and driven by improved operating performance and grades at its Los Bronces and Collahuasi operations. In all, despite ongoing operational issues and uncertainty over global economic health, the relatively new CEO has announced initiatives to improve performance,

While cash on deposit is not earning very much for Cohort at the moment, it represents the potential to create significant value for shareholders and the market does not seem to be pricing in at the moment. Meanwhile, the MoD has billions of pounds to spend and good incumbent suppliers like Cohort are rarely replaced. Three years of uninterrupted growth in both underlying pre-tax profit and dividends looks certain to continue, too. So, with 47p per share of cash forecast for the year end, a property portfolio worth another £7m, or 17p per share, and trading at only a small premium to book value

Even if Cohort does nothing, the underlying business is in good health. Working for government and defence primes like BAE Systems, Thales and Raytheon means Cohort has no bad debts. And management reckons UK defence cuts are over, which is a relief, given the MoD generated almost three-quarters of sales last year. Roughly a third of the MoD’s £35bn annual budget is earmarked for procurement, and Cohort is well-placed. The group has recently announced a number of wins such as £4.1m to demonstrate the airworthiness of F-35 Joint Strike Fighters and £11m for external communications gear bound for the latest Astute-class nuclear-powered submarines. There are also inroads being made into non-defence markets such as traffic monitoring and secure IT systems for schools. All this helped the order book grow by £6m in the first quarter to £102m.

Most defence contractors have struggled to plug the gap left by US military budgets, but not Cohort (CHRT). The small defence systems and training company works mostly for the Ministry of Defence (MoD) where budgets have stabilised, and spending is shifting from tanks and guns to intelligence assets, submarines and combat aircraft - all areas where the company excels. But despite its strong prospects and a substantial cash pile, the shares trade at a sharp discount to the sector. Despite Cohort's encouraging trading outlook, its diminutive size could arguably justify the fact that its PE ratio of 11.2 times, based on rolling next-twelve-months (NTM) consensus forecasts, represents a 15 per cent discount to the sector average. However, that's before the company's cash is taken into account. Broker Investec estimates that by the end of next April net cash should have risen to £19.1m - equivalent to more than a quarter of the current market capitalisation - before reaching £23.1m the following year. Based on the broker's forecasts and adjusting for interest earned on cash deposits, this implies a cash-adjusted NTM PE ratio for Cohort of just 8.1. That represents a near 40 per cent discount to its peers, which on average have net borrowings equivalent to 12 per cent of their market capitalisations. With cash on deposit earning so little at the moment, it is perhaps understandable that the market has been paying little attention to this aspect of Cohort's business. However, acquisitions could bring the attractions of Cohorts strong balance sheet to the wider attention of the market. Cohort spoke to possible targets at last month’s arms fair in Docklands, but it won’t overpay and is under no pressure from major institutional shareholders, either. However, Investec "conservatively" estimates that acquisitions that used up the cash pile could boost earnings by between 15 and 20 per cent. That implies an eye-catching forward PE ratio of about 9 for the year to April 2015, which would make the current valuation anomaly stark.