Blencowe Resources: Aspiring to become one of the largest graphite producers in the world. Watch the video here.
Actually I think he's realised that if he wants to do more M&A, he needs to get share price back up to a reasonable level - otherwise he is going to struggle to raise funds from the City at any sort of decent price, without massive dilution.
The answer is clear - get the £40m of acquisitions already purchased to start to perform by adding new contracts and growing business organically....
Fabulous trade update with revenue, EBITDA and cash all upgraded (again!) by Somero.
I just can't get my head around why people are selling at £5.00 - at least 10% undervalued IMO.
Expecting a second wave of buyers here, as soon as a wider audience sees the value here - probably will be tipped by Investors Chronicle as a stonking buy for share price growth and mega dividend.
Basically the news at the presentation was the same as the HY results. We are all waiting for contract updates (hopefully some new contract wins which typically come in Q3 and Q4) and trusting that they can deliver at least the same revenue as last year.
Profits should be better as margins have improved.
The new location in the Netherlands sounds interesting.
Basically share is cheap as chips at current price, no debt, profitable. Just needs some contract wins and / or coverage by the financial press to get the share price moving again.
Rich
Interesting article by Marshall Wace who are probably one of the biggest shorter funds, who thrive on driving UK share prices down and instead are happy to blame company boards for poor share prices
- because BOD apparently have been putting dividends for pensioners ahead of driving growth..
Laughable..
I'm a bit surprised that people are selling these shares around 20p today - Okay a bit of profit taking, but surely these shares could push up hard with a just bit of media coverage over the weekend, linking the new variant and mentioning in same article progress made by Scancell with their human COVIDITY trial phase 1. Also the partnership with the Scientists at the Centre on Global Virus infections.
- Isn't today's new of the new variant, exactly what we as Investors have been looking for in the way that Investors got excited with NCYT, AVCT, SNG etc back in Spring 2020....
There's a view that the recent share price weakness has been caused by Unicorn fund managers, who have been liquidating their Acorn Income fund.
Unicorn did hold around 10% of Somero, so a very big holder.
Liquidation is nothing to do with Somero's value, just a decision to shut this fund and liquidate assets.
Certainly there has been a big seller in the background for a while - I looked to buy around 500p several weeks ago, as share had fallen from high of 550p (RNS excellent results were declared). Lots of other smaller investors saw this as an opportunity and bought in, but despite massive buys around 500p, share price didn't move for several weeks.
Once buyers dried up, all it took was a few sellers and the market makers walked the price down, so it was moving towards 20% below year high, so many PIs capitulated and sold their stock triggering more falls etc.
Yesterday I believe was the bottom (but this is AIM so who knows!!)
I'm hoping that Unicorn are now all out / nearly out and we will get a Holding RNS over the next day or so.= to confirm.
Clearly the share price is a bargain now at these levels - I added more yesterday at 459p.
Rich
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