The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
More about Deutsche's Buy recommendation here:
Https://www.proactiveinvestors.co.uk/companies/news/1047201/demand-for-accesso-technology-group-solutions-will-remain-healthy-says-bullish-investment-bank-1047201.html
"Demand for Accesso Technology Group solutions will remain healthy, says bullish investment bank
Published: 13:46 09 May 2024 BST
Deutsche Bank has initiated coverage of Accesso Technology Group PLC (AIM:ACSO, OTC:LOQPF) with a 'buy' rating and a 1,000p price target, saying that it expects demand for its products to 'remain healthy'.
Accesso is a specialist ticketing, e-commerce, point-of-sale, virtual queueing, food and retail, and experience-management technology software and solutions that are used at over 1,200 venues worldwide.
In a note, it said: "Its client list includes the largest theme park operators in the world, as well as ski resorts, museums and key attractions, among others. These systems are mission-critical and key to the digital transformation of processes. We believe demand will remain healthy."
News this morning that RNWH's Seymour Civil Engineering have won a place on Northumbria Water's framework to deliver its £3.6bn AMP8 capital investment programme:
Https://www.constructionenquirer.com/2024/05/09/33-firms-wins-spots-on-3-6bn-northumbrian-water-framework/
Looking extremely good online - you can only buy a maximum 1,500 shares at 81.91p, whilst you can sell at least 25,000 at a nice premium at 80.8p. The shares appear to be in short supply and good demand.
Lightship Chartering, is 51.5% owned by Danish founder and chairman Morten Have. Sune Fladberg, the private company’s CEO, was reported as stating that:
“It’s quite simple, we believe strongly in shipping in the near future and are looking for opportunities to invest further in the industry. We think the valuation in Braemar is very attractive at the moment.”
In early January I assessed that Lightship must have paid up to 290p a share for its holding. Whereas Minna could have been paying around 250p to 275p a share for its position.
Last week the Braemar shares hit 284p before closing on Friday night at 277p, valuing the whole group at just £79m. The company’s results for the year to end February 2024 should be declared within the next three weeks or so.
In its 20th March issued Trading Update the group declared that it had achieved another strong performance, with revenue and underlying operating profit?for FY24 in line with market expectations – at £150m and £18m respectively.
However, impressively it announced that it had an Order Book of $83m, which was 47% ahead of the 2023 figure of $56m.
When asked ‘why invest in Braemar?’ the group responds:
“We are one of only two publicly traded shipbroking companies on the London Stock Exchange, offering an attractive opportunity to invest in the shipping industry without needing to invest directly in ships.
As a leading global shipbroker with offices in London, Singapore, Beijing, Geneva, Perth, Dubai, Athens, Hamburg, Melbourne, Madrid, Shanghai, and Houston, we’re well-positioned to serve key industry players across different time zones and cultures.
Our operations are diversified across Tankers, Dry Cargo, Sale & Purchase, Renewables, Financial and Offshore in order to generate a reliable, less cyclical income stream.”
Broker’s Estimates
Estimates for the current year to end February 2025 are for around £150m of revenues and £15.8m pre-tax profits, worth 46.6p per share in earnings and more than three times covering a 14.0p per share dividend. Analyst Price Objectives for the shares range from 385p to 505p, against Friday night’s closing 277p.
In late March I wrote that:
“The May figures could well see upgrades helping to pinpoint just how undervalued this group’s shares are at last night’s closing price of 256p.
I still find it hard to understand why these shares are so lowly valued, they are destined to rise above the 300p level fairly soon.”
The above estimates show that the shares of Braemar are an extremely attractive proposition, which is more than likely to be the reasoning behind two of its competitors buying into the group’s equity.
On 5.9 times current year prospective price-to-earnings ratio and yielding 5.05% – the shares are almost a giveaway, in fact, I now set a new Target Price for Braemar’s shares at 350p."
Another article on Master Investor - particularly useful info about the two new investors in BMS from the shipping sector:
Https://masterinvestor.co.uk/equities/who-are-the-two-competitors-buying-into-braemars-equity/
"Who Are The Two Competitors Buying Into Braemar’s Equity?
By Mark Watson-Mitchell 07 May 2024
It could prove to be excellent timing for the latest declared buyer of equity in my favourite shipping services group Braemar (LON:BMS). Later this week its larger competitor, the £1.23bn capitalised Clarkson (LON:CKN), will be holding its AGM, so we will, no doubt, get an update on life within the sector.
Second Shipping Sector Group Buys In
I noticed that another shipping services group has recently been putting together a declared stake in Braemar’s equity.
On Friday afternoon last week, it was declared that Minna Invest GmbH from Hamburg, Germany had put together a 992,398 shareholding in BMS. There is scant information available about Minna Invest to tell us immediately who is behind the stake.
However, I have found out that Jan Peter Döhle and Jost Döhle are the two Managing Directors of Minna Invest.
The Döhle Group covers all parts and aspects of the modern shipping business:
“We offer a wide range of services including financial, commercial, and technical support, as well as insurance and crew management. Apart from our complementary activities provided by the companies within the Group, our core competencies lie in chartering as well as sale and purchase. With its numerous offices, subsidiaries, and partner companies located worldwide Peter Döhle Group offers tailor-made solutions for the whole shipping industry.”
The Döhle Group controls the world’s largest tramp-owned fleet of containerships, comprising a total of around 415 highly modern vessels. The fleet ranges from small feeder vessels of around 300 TEU up to ships of 13,000 TEU capacity (a TEU is a 20ft long equivalent unit container). All the fleet’s ships fulfill today’s market requirements such as super-slow steaming and high reefer capacity. Many are equipped with their own cargo gear, making the fleet versatile as well as technically and commercially competitive in all areas of the world.
The Döhle group, which has more than $8bn assets under its management, offers a wide range of services: sale & purchase; technical management; crew management; insurance; commercial management; bunker trading; financial restructuring; corporate services; shipping software; and shipping agency & logistics.
That Now Makes Two Competitors Recently Into The Equity
Readers may well remember that on 10th January this year I noted that another player in the shipping sector had bought into the BMS equity. I revealed that an ambitious Geneva-based shipbroking company had been putting together a ‘major shareholding’ in the group’s equity.
Lightship SA had bought some 1m shares representing 3.04% of the issued stock.
Further to my prior post, Diagen.AI actually raised CAD$1.5m in Q1 as announced on March 6th:
Https://diagen.ai/diagen-ai-inc-announces-unit-financing-and-appointment-of-davidson-company-llp-as-independent-auditor/
In the press release they also state they intend to IPO "later this year":
"The Company will execute future ongoing rolling closings periodically, with a final closing early Q2 of 2024. Use of proceeds of the financing are for general working capital, completion of the Company’s audit and launch of the Company’s intended go public transaction later this year."
Allenby Capital have retained their 75p target price and summarise:
"MTI Wireless Edge Ltd* (MWE.L, 42p/£37.1m)
Contract wins across PSK and Antennas (07.05.24)
• Three orders totalling c. $3m, with the bulk to be delivered in FY24.
• Two contracts received by PSK, part of the MTI Summit division, from two Israeli customers for the provision of services and the installation of systems for the Israeli government, PSK's largest client and a long-standing customer. The other received by the Group's Antenna division is for military antennas from an Israeli system house and represents a repeat order.
• Forecasts and 75p/share fair value unchanged.
Allenby Capital comment:
The contract wins demonstrate the benefits of MTI's long-standing relationships with its customers and the quality of its product set, based on its comprehensive communication and radio frequency technology stack. Defence spending continues to increase worldwide and also in MTI's domestic market and the wins help to underpin our FY24 forecasts."
Richard Griffiths, the well-known City boy and major player has just bought another 251,466 GMAA shares at 96p and 95.9p. He now owns almost 733,000 shares.
Why would he be buying substantial shares at above the 95p tender offer price and just before the delisting on 30th May? Am I missing something, or is something afoot? Perhaps he wants to be part of the delisted entity and will wait for a re-listing at a much higher price in a couple of years?
New all-time highs again.
Peel Hunt have raised their price target to 1050p, but with material upside potential in a 19 page note.
Their upside model incorporating (1) higher organic growth than their conservative forecasts and (2) acquisitions from the cash pile, would deliver 91p EPS to Sept'26. This would certainly support a share price of 1500p and possibly 1700p-1800p imo.
They summarise:
"Momentum and visibility drives TP increase
• Time to revisit – Ahead of the 1H24 results (14 May), we revisit the powerful investment case and update our M&A/blue sky scenarios.
• Upside risk – We retain estimates across the horizon, but see upside risk building, given profitable market share opportunity across key markets.
• Increased target price – Visibility into new regulatory periods, positive drivers and the M&A opportunity lead us to raise our TP from 950p to 1,050p.
We believe that Renew’s strategic focus on developing its leading positions across infrastructure-led markets, through its operationally-led competitive advantages, leaves it well-positioned to sustain attractive, cash compounding growth. The shares remain undervalued, in our view, given the quality of earnings and both the organic and acquisitive opportunities. We retain our Buy rating."
"Investment case.
Growth is underpinned by consistent cash generation, leading to compounding free cash flows. We look for FY24E net cash of £47m, providing management with attractive capital allocation options. We expect the M&A pipeline to be reasonably active with management remaining disciplined (we note the two small transactions already announced this financial year). We believe that under this leading management team, Renew remains well positioned to continue to deliver attractive, long-term shareholder returns. A better appreciation of these opportunities has supported a deserved rerating, but the September 2025E PE of 14.2x and FCF yield of 7% still fails to reflect both the organic and inorganic opportunities and the synergies that both drivers can bring to Renew, in our view. Our target price implies 15.9x FY25E EPS."
Shore Capital have retained their 80p target following the contract wins.
They forecast 4.5c EPS this year, along with a $9.3m cash pile, or 8.5p per share.
That puts MWE on a current year cash-adjusted P/E of only 10 at 44.5p - and also paying a 6% dividend at 3.3c.
They conclude:
"As mentioned above each of the divisions has growth drivers with, in our view, Mottech well placed to potentially see much stronger demand than we forecast for its water management and control software. Typically, this improves the efficiency of irrigation systems, while reducing the cost of operating them. The Antenna division is likely to benefit from the rollout of 5G across the world as it already supplies seven of the top ten operators with its technologies and as illustrated by today’s further contract win is well-placed in defence as well as for the rollout of 5G in India, in particular. Similarly, we would also expect to see good demand for the defencerelated products and services of Summit/PSK, as shown by today’s contract wins.
We have an 80p per share fair value on the basis of a DCF analysis, which is more than corroborated were MTI to achieve an FY24F EV/EBITDA multiple of 12.8x (the average of our peer group). The next news is likely to be the reporting of Q1 FY24F results later this month."
Https://www.ii.co.uk/analysis-commentary/four-aim-shares-are-potential-bid-targets-ii531587?
"Team Internet Group (TIG)
Share price: 138.6p
Market cap: £346.7 million
Domain name and online marketing business Team Internet Group remains modestly rated despite the strong growth exhibited in the past couple of years. Most of that growth has come from the online marketing division, and it may be that the earnings are not thought to be high quality. Even if that is so, a prospective multiple of seven appears mean, particularly given the strong cash generation.
Acquisitions have been important in accelerating growth, but there is organic growth. In 2023, revenues were 15% ahead at $836.9 million, including organic growth of 13%. Underlying pre-tax profit improved from $70 million to $77.2 million. Net debt increased to $95.3 million because of share buy backs and acquisition payments. The company has also commenced paying dividends.
This year nearly $90 million in cash is likely to be generated by operations. Team Internet has spent $41.8 million acquisition of Shinez, which creates and promotes content across social media and search engines.
First-quarter figures will be published on 13 May. These are expected to show continued growth. The acquisition of Shinez was not completed until the end of April so will not be included. If the valuation does not improve then Team Internet’s strong position in the domain names sector and the cash generative growth of the business would make it an attractive bid candidate for a private equity firm."
Good to see another institutional shareholder buying and now declaring a major holding. Minna Invest GmbH now have 992,398 shares and 3.01% of BMS.
They don't appear as having over 2% on the latest market summaries, so they must have bought quite a few relatively recently:
Https://uk.marketscreener.com/quote/stock/BRAEMAR-PLC-4001661/company/
Great news - and almost all of this will benefit the current financial year, which is looking stronger and stronger following further contract wins and the excellent outlook in the prelims.
And likely more to come:
"as defence spending continues to increase worldwide, we expect to see further contracts materialize"
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Contract-Wins/93787433