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Cash flow problems strike again! Considering that, in the 22nd September trading update, they confirmed they had received the (Jan and) February payment from PTNP under the 2014 repayment plan you would expect PTNP to have paid SyQic for June and July. Instead we hear they have only paid part of the June payment (and clearly none of the July payment yet), which therefore shows there’s been a slight slowdown in payments. This is not great news - this is why the market is reacting so badly, because they think it’s a sign of things to come. Confirmation that trade debtor balances increasing also adds to the market’s worries about this company and really takes the shine off the huge jump in revenue because clearly a good chunk of that figure is yet to be received. The net cash is low and indicates a placing might occur however, excluding the above’s impact on the cash balance, I doubt it’s the reason for the fall because the company has clearly been investing that money wisely. Having said all of the above I still think the market is treating this SyQic far too harshly for a variety of reasons: Revenue has grown massively to £10.7m. That’s remarkable considering that the original estimates 2014 FY revenue was £7.8m. Piecing together various RNSs it’s possible to work out the following: Average monthly revenue for Jan to June = £0.77m Average monthly revenue for July & August = £0.98m September revenue = £1.16m Average monthly revenue for October, November & December = £3.94m / 3 = £1.31m This therefore suggests that 2015 FY revenue will be £15.7m but, knowing SyQic, it shall be even more. Profit before tax for 2014 should be roughly £2.2m, a huge increase against £0.1m / £0.57m in the last financial year. Additionally the outlook very strong in terms of their Telco model, OTT model, and their expansion into other territories. Conclusion SyQic is clearly growing remarkably fast and is a very well-run company, but cash flow problems (due to PTNP) continue to trouble it. Today’s news is disappointing in respect to those cash flow problems however SyQic will inevitably be cash flow positive sooner or later and so I remain very bullish.

These results are disappointing but not as bad as they look on the surface. On the face of it both PBT and EPS are 55% down. However, if 2015 H2 remains flat on 2014 H2, then the yearly results will be just 25% down. It’s also worth noting that, for AEO, H1 is never as strong as H2. Dissecting the reason for the sharp fall in PBT and EPS: it is because gross profit fell 125k but admin expenses remained constant thus making the profit before tax £125k lower than ’14 H1. These poor ’15 H1 results will mean the yearly results won’t exceed 2014’s but it does appear to be a blip. It is the worst 6 month period they’ve had for ages (it’s had at least 24 months’ of improving performance). And contracts being cancelled is the sort of blip you can sort of expect with a tiddly company like AEO and, just because it has had a bad 6 months, it doesn’t mean it’s not a good & well-run company. Considering its past results the encouraging H2 outlook make it seem like a blip. Combine that with the fact it recently won industry awards (that will help it win contracts in the future) and I feel as though the market has reacted harshly to today’s news. Taking a longer term view these shares look like a bargain. An £125k drop in PBT due to an understandable blip doesn’t justify the current market valuation.

Haha you're right. A lot of GC'ers who are into our fundamentals seem to have ended up here lol. In response: No I haven't added / bought in. I'm still totally "out", partly because Paul Scott's comments tempered my inital enthusiasm. I was getting fairly close to buying and then saw that and thought "...maybe not." But I have to say I'm pretty uninformed as to whether his comments are fair. Wait for Jolly's thoughts - he knows the business better than the lot of us.

MIRA's going to be there http://www.ukinvestorshow.com/index.html#exhibitors So, if anyone attends, please check it out & report back to us here please :)

should be out tomorrow. and they should be good :D

http://www.stockopedia.com/content/best-of-the-benjamin-graham-bargain-screen-91293/

I think this is looking undervalued now / this is a buying opportunity. £1 would be unreal though and it may happen (considering the sentiment here) so will sit on my hands for now...

http://www.iii.co.uk/articles/219205/aim-sell-winners-revealed

http://www.iii.co.uk/articles/219205/aim-sell-winners-revealed Says they have so much further to go too!

BRIT A specialty and reinsurance underwriter in the Lloyd's market, BRIT (BTEA) has an efficient capital structure and exposure to US growth says JPM. It trades on 1.4 times tangible net asset value (TNAV), a discount to the sector average, and offers a dividend yield of 7.5% with potential for a 4-5% special payout. http://www.iii.co.uk/articles/217645/jp-morgans-10-highest-conviction-trades

FY 2014 revenue is up 9% up on last year, slightly less than the 10% I predicted from the HY report but still very good. Cash generation is strong. The cash balance is 63% up on last year, and now stands at £8.5m. The forward EV/EBIT is 8.66, which indicates SFE is cheap. The forward PE ratio is roughly 10.5 – again very good. The yield is 4.5% to 5% from memory. Very good. Market share has grown considerable. Conclusion – this company is growing nicely in terms of revenue, profit, eps, and market share. It has a superb business model, a nice dividend, and a bright future ahead of it. So I’m very pleased to be invested here.

Buy shares of Finsbury Food Group, Midas advised in the Mail on Sunday. The cakemaker struggled after the financial crisis but it has strengthened its balance sheet and doubled in size by buying breadmaker Fletchers. The deal expands Finsbury's range and takes it into new markets, bringing a relationship with Marks & Spencer. It also has a growing place in the eating out-market. The plan is to bed down the Fletchers acquisition while keeping an eye out for other acquisitions. Finsbury should also benefit from falling costs for raw materials. The company is on a growth path and has a progressive dividend policy.

RBN’s share price has fallen by double digits today but it seems rather unjustified and so this looks like a decent buying opportunity. The BoD said the year ahead looks challenging but (thanks to the madrox acquisition) there should still be earnings growth. Being conservative and predicting earnings remain flat (and stripping out exceptional profits last year) still gives an P/E ratio of 11 and EV/EBIT ratio of 9.2 – both very undemanding; and the TNW is 80% / 120.6p of the share price, providing a good margin of safety. So, all in all, the market has treated their RNS today very harshly in my opinion. If it reaches 140p or less I’ll be super tempted to buy in!

RSA Insurance's shares were given a boost on Thursday by an upgrade by Credit Suisse from 'neutral' to 'outperform', as the bank delivered an upbeat outlook for the UK insurance sector. "The fundamental appeal of the UK life and savings companies is underpinned by low interest rate risk, solid growth dynamics and attractive dividend profiles," Credit Suisse said.

The drop is entirely unjustified because there's plenty of reasons for optimism here 1) The 2014 FY results will be superb 2) PTNP are paying what they owe SYQ nicely 3) SYQ will become cash flow positive at some point during 2015 4) The new business model which SYQ are shifting to is not dependant on Telcos (like PTNP) and thus there is no chance of this cash flow problem rearing its ugly head again. In conclusion SYQ is extraordinarily cheap, it's very profitable, increasingly profitable, and - for those who get the business model - a diamond in the rough. I certainly won't be selling.

Looks like someone bought close to £600,000 of stock there right towards the end of the day, hence why the share price shot up 5% the way it did. Wonder who that was....? :)

Sutman, I would be surprised by the lack of movement once upon a time but AIM is hardly a place that’s dictated by logic! This time last year I was busy saying how the 2014 HY results would see this fly. That was prior to us finding out about the cash flow problems which, for a while, truly did concern me. However, enough is going on (PTNP paying SYQ sticking to payment plans, paying back faster than expected, and – most importantly – the business shifting away from being so Telco-dependent) that I am back to being very confident again. I think this will inevitably be a multi-bagger from here. It’s a case of when, not if. I reckon the 2014 FY results will attract market attention and has the potential to be a decent catalyst for the share price. But the size of the catalyst largely relies on how the information is portrayed. If the BoD can instil some confidence by saying what I’ve said in my 2nd paragraph in an effective way the share price could rise nicely. However, if they can’t / don’t, then we might see more of the same …until SYQ becomes cash flow positive that is – which will either happen in H1 2015 or H2 2015 – and thus prove that PTNP are paying up and the cash flow problems are behind us. If the BoD could combine that with a demonstration of how the new business model reduces the chance of something like this happening again that’d be ideal. In my eyes SYQ is a gem that’s been buried under the **** that has come from PTNP causing cash flow problems. Once SYQ emerges from that the skies the limit for this very fast-growing and increasingly profitable business. 2015 ought to be a much better year! Best regards, Dan

The Partnership with UK GlobeTel Ltd sounds promising. However you can't take news like that too seriously when it lacks figures. Let's just hope it works well and some figures come out at some point that could actually give the market something to get excited about. The receipt of PTNP payments for March & April is obviously good news, however - as I've said previously - I wish PTNP were paying SyQic back faster. What is particularly encouraging about this is that in SYQ's 3rd December RNS they said they understood PTNP would be paying them by the end of the calendar year ...and they did. It's further evidence that PTNP have turned a corner and are now keeping up with the payment plan, if not exceeding it. If this continues SYQ will become cash flow positive in the near future. All in all I'm very bullish and I a 3% fall doesn't concern me (although I appreciate the fall was greater when you posted - MM games maybe?)

very off 9% fall today?

http://www.whatinvestment.co.uk/comment-and-analysis/2476832/the-ukand39s-first-ever-crowdfunding-exit-and-what-it-means-for-investors.thtml