Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investors. Watch the full video here.
Disappointing results, however, there are some positive in there and its clear they are building for the future.
I like the increase in sales headcount and also the link up with the N American distributor of SecurEnvoy.
A number of the costs are temporary blips like FX and the cloud hosting costs which will return to normal in H2.
Very strong H2 last year and bigger contract wins give me belief that they can do the same again in H2 this year.
A bit like watching England football, poor first half and they make life hard for themselves but have real potential to turn things round in second half.
Cheap at 92p. I continue to hold
Great to see ST pushing HVO - however clearly every time share moves above 10p, there are sellers offloading.
Fresh money today and big volumes should see the sellers have an opportunity to exit HVIVO (although goodness knows why they want such a pittance for their shares??)
As others have mentioned, now that it's on Simon T's radar, he will keep referring to it every few months and keep pushing for his target price which is great news for us holders!
Quick recap and summary on Shearwater - cyber security and software company
FY results to 31/3/22:
+ Revenue (organic) up 13% to group record of £35.9m
+ Adj. EBITDA up 19% to £4.4m
+ Margin maintained at 12%
+ Adj. profit before tax up 24% to £3.0m
+ No debt
+ Cash £5.6m
For this year:
RNS 13/4/22 - Brookcourt (part of SWG) announced a new contract win with a telecommunications company worth potentially £21.0m. Made up of initial 3 year deal worth £12.9m with option to extend for another 2 years for extra £8.0m,.
On this news the share price rose 30% to 145p
SWG (with only 23.8m shares in circulation) is currently valued at 100p/share or £23.8m, with cash at end of March of £5.6m and 0 debt). To me this is a p/e of around 6.0x which is ludicrously low for a growing business in cyber security.
Buying opportunity for the smart investor
Market down hard again on US Fed interest rate rise expectations - probably will be 0.75% as expected, but labour market still running "hot", so could be a full 1%....
IGR price down hard despite solid H1 results only a week or so ago.
Opportunity to buy more and hold for recovery. Hopefully. LOL
Adding this morning at £1.67 / £1.69. Daft drop considering these were pushing £2.20 not long ago.
Nothing changed, just private investors selling a few and market makers dropping bid down hard to generate volume.
Can't see how RFX can do anything but well in deep recession to come...
Love a 25% discount!
Scancell was also covered in the Times "market watch" yesterday after the market closed. It's behind a paywall but says the following:
Scancell in brreakthrough deal
Scacnell Holdings shares rose to their highest level in more than 4 months after the drugs maker bagged a licensing agreement with Genmab, the Danish biotech giant.
Genmark now has exclusive rights to develop and commericalize Scancell's investigational anti-glycan monoclonal antibody in multiple products..
Under the terms of the deal, Scancell will receive an undisclosed, up front payment and will be eligible for milestone payments up to $208m for each product that is developed etc
Well there's 8 different market makers offering 16.5p bid on level 2 - looks like this is the platform from which the share price will take off, when this gets wider news coverage. Hopefully the MSM will pick up later, although obviously Rishi Sunak news is getting wall to wall coverage right now.
Feel a bit sorry for the traders who've thrown their shares away this morning, clearly this will break 20p with any decent coverage and hopefully more good news shortly.
Nice TU this morning for H1 to end Sept:
+ Strong trading in both divisions, with sales, profit, margins and cash flow significantly improved v LY
+ Ahead of board expectations
= Board believes customers have bought forward, to avoid repeat of supply shortages they experienced in 2021.
= Therefore, strong H1 weighting to results.
+ Board expects FY profit to show a small improvement over LY.
I've added today at 86p on the update - looks like turnaround has started. Most companies seem to be reporting weak H1 results and relying on H2 to deliver on FY expectations..
I much prefer "results in the bag" with strong H1 and Board moderating expectations for H2, with the current macro conditions.
Shorters who took new positions in The Hut Group (THG) when they were down around 32p (11/10/22) must be feeling the pain with the share price bouncing up over 50% to 50p in less than 7 days. ..
Anyone think that the BOO shorters will take some notice and maybe start to slowly unwind their positions here?
Just added first small tranche here at 91.8p.
Pretty much at the year low share price. (Year high 225p.)
Market cap 89.3m shares at 92p = £82.1m
Debt at around £21.4m. Profit for FY22 was £15.8m, so p/e by my rough calcs is around 6.5x.
FY results due 3/11/22. We already know what these are from the TU,
What we don't know is how they have performed for last couple of months as the cost of living crisis has deepened, and people have cut back on discretionary spending. However, they aren't selling big ticket items - if you need a kettle or iron, you'll buy regardless. Also, the Director buys at 120p gives me confidence.
Lovely buy - hopefully today's RNS gives those who wish to sell an opportunity to exit around 5p, thereby allowing share price to move upwards significantly. Should see further share buys coming in, when wider market audience sees the backing of Jeremy, and the relative short timescale for results by end of 2022.
Risk v reward just got a whole load better, in my humble opinion.
Poor HI results. Revenue slightly down at £20.5m (LY HI 20.9m) but margins lower at 45.1% (LY 52.5%), Operating profit £1.1m (LY £2.6m) and cash at £3.3m (LY £8.6m). Cash down due to expansion costs and building inventory for H2.
Had been a fan and holder here for several years but sold this morning, before share price collapsed 15%.
May come good in H2, but too many risks with wider economy at present.
Quck recap and summary on Shearwater - cyber security and software company
FY results to 31/3/22:
+ Revenue (organic) up 13% to group record of £35.9m
+ Adj. EBITDA up 19% to £4.4m
+ Margin maintained at 12%
+ Adj. profit before tax up 24% to £3.0m
+ No debt
+ Cash £5.6m
For this year:
RNS 13/4/22 - Brookcourt (part of SWG) announced a new contract win with a telecommunications company worth potentially £21.0m. Made up of initial 3 year deal worth £12.9m with option to extend for another 2 years for extra £8.0m,.
On this news the share price rose 30% to 145p
SWG (with only 23.8m shares in circulation) is currently valued at 90p/share or £21.42m with cash at end of March of £5.6m and 0 debt). To me this is a p/e of around 5.3x which is ludicrously low for a growing business in cyber security.
Yesterday the whole market was battered down by the reaction to the Conservatives mad mini budget and plans to borrow and spend more; without an OBR forecast. The market makers as always took full advantage, with small caps having their share price bids dropped hard from the outset. Saw it yesterday on level 2 where MMs offering shares at 90p (bid 83p spread 8%) I did dummy buys for 6000 plus shares at 90p and they didn't have enough to fulfil bid. Obviously dropping bid hard spooked a few private investors who binned their share for a pittance.
As soon as we get any good news (either in economy or particularly SWG) MM's will raise this back over 100p.
Buying opportunity for the smart investor
Just remember that AGM is next Tuesday 20th Pinocchio, so you are running out of time...
You may get in at 85p, I doubt it though.
Perhaps best to buy now at around 100p, rather than hoping to get in lower, then missing a 40% jump on update / contract renewal / new contracts etc.
Quck recap and summary on Shearwater - cyber security and software company
FY results to 31/3/22:
+ Revenue (organic) up 13% to group record of £35.9m
+ Adj. EBITDA up 19% to £4.4m
+ Margin maintained at 12%
+ Adj. profit before tax up 24% to £3.0m
+ No debt
+ Cash £5.6m
For this year:
RNS 13/4/22 - Brookcourt (part of SWG) announced a new contract win with a telecommunications company worth potentially £21.0m. Made up of initial 3 year deal worth £12.9m with option to extend for another 2 years for extra £8.0m,.
On this news the share price rose 30% to 145p.
So how do I feel that share is currently available to buy at 101.5p?
Well disappointed, but it also shows that sentiment rather than value has led to a high proportion of AIM stocks including SWG being battered down by nervous PIs exiting as they are worried about recession, inflation etc.
I've taken the opposite view which is this stock is an absolute bargain and continued to add, including yesterday at 101.5p
SWG (with only 23.8m shares in circulation) is currently valued at £24.16m with cash at end of March of £5.6m and 0 debt). To me this is a p/e of around 6.2x which is ludicrously low for a growing business in cyber security.
However others no doubt such as Pinocchio will hang in the wings making negative comments and try and get in at a lower price. Fair play if you do, but we all see the potential here of a very undervalued stock, that could easily jump another 30-40% in one morning on another big contract win or just decent update on latest performance.
Sometimes you've got to play the long game - if they keep pushing prices up at Primark, the media will crucify them.
However if they absorb as many costs as possible, whilst keeping prices affordable they will be lauded by the media and this will ensure long term customer retention.
Many will also trade down to Primark clothes as the cost of living squeezes discretionary spending.
I've added this morning. Yes, all businesses are in for a rocky 18 months, but I bet my bottom dollar that global food corporation can weather the storm better than most. Put shares away in bottom drawer and come back in 18months.