The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
Yes surely ripe for a takeover at this price...
I don't understand how they have award winning software, and have picked up some big contract wins in the last 3 years but seem unable to kick on with the revenue streams in the same way that other businesses in cyber security grow so quickly
Quite impressive that you can buy at £1.28 now
- This values business at £30.5m.
- Holding £4.4m cash and made £2.4m profit last year.
- EBITDA and margins stronger in H1 this year, than last year
- I'll be happy if revenue slightly down in Full Year if margins and profit are significantly up
However surely they can get some revenue growth in a "hot sector" of the market and with recent acquisitions:
- Paid £30.3m for Brookcourt; £7.4m for Secarma; £1.7m for GeoLang - all acquisitions in last 4 years.
Okay so H1 revenue is slightly down, but margins up and EBITDA up.
You can buy at £1.32 currently valuing business at £31.4m with cash £4.4m and no debt.
Assuming H2 results are in order (and we know 50% are already contracted or renewals) then if the EBITDA rolls through into similar or better FY profit of £2.4m as last year, then the current p/e is around 11.25x by my rough and ready calculations.
Surely cheap and a takeover target at this level?
100% agree with your post - SWG is crazily undervalued.
I guess PI's are nervous as Board don't put out a lot of information, so share holders are left to stew, whilst the share price slips on no news, often on tiny volumes.
I'm thinking that maybe the RNS update is being held back because something is happening behind the scenes - eg takeover, acquisition etc.
Fingers crossed we get some news soon!
ATB holders
Rich
I've got the feeling this will end the day in blue.
Just a few sellers taking profit on news earlier today and MMs dropping bid hard to get cheap shares.
Excellent RNS, just needs time for market to pick up on the news and attract new buyers in.
No doubt Simon Thompson will continue to push this in IC on a regular basis, with good reason as excellent prospects.
Calnex covered by Michael Taylor in Investors Chronicle on line today - he's taken a position and plans to add to it, if it breaks through resistance at 130p.
I'd expect this to be covered in this weeks hard copy of the IC under "The Trader" feature
Stop loss at 90p
Thank you fleurs for posting the Grenfell towers inquiry links on here - I spent a couple of hours yesterday reading these and decided to sell into the rise this morning, to reduce my portfolio risks.
Great results - this business has loads of potential going forward and probably seriously undervalued, but I will stand aside now until the Grenfell inquiry and any fall out from it subsides. I'm worried about fines / reputational damage.
Rich
Agree about overhang - yesterday you could buy initially at 147.25, sell 147.0p, much tighter spread than shown on level 2.
However mid morning, the bid was dropped to 145p - seemingly without any major sells and you could buy £10K plus shares at 146.4p. Obviously someone had dumped a load or was selling in the background without it being declared by the MMs.
I fully expect price to be walked down by MMs so that they can blend in yesterdays big sell in as a "buy" at sometime over the next day or so.
Its frustrating as an Investor that share deals aren't more opaque - I guess we just have to read between the lines and understand the MMs little games!
Roll on next week's AGM - hoping for a positive statement over trading in H1