Two comments stood out for me from the webinar:
- there are "a number of acquisitions which could double the size of the company"
- every division is profitable and cash-generative despite COVID-19
For the record, here's a transcript of the interview with Zeus's analyst above which reads very well:
A reminder that there's an online AGM and investor question webinar at 11.00 for everyone via InvestorMeet:
The important part of the update is actually exactly the same - word for word - as last year's AGM update, except that last year the Group had merely made a "good" start to the year.
Whereas this year the start to the year is "very" good.
So that's a subtle but encouraging one word addition!
Remember that VLG won a contract to manufacture Alliance Pharma's Kelo-cote product - Alliance's interims this morning bring good news:
"Kelo-cote - scar prevention and treatment
We were particularly pleased with the performance of Kelo-cote, which continued to deliver growth during the first half of the year, with sales up 8% compared with the same period last year at GBP14.2m (H1 2019: GBP13.1m), primarily due to the return of demand from China during the second quarter, as local lockdown restrictions eased. In the rest of the APAC region other countries have been slower to emerge from lockdown and COVID-19 has therefore had a more sustained effect on the brand's performance. Nevertheless, we expect these regions to return strongly as lockdowns are eased, and we continue to embrace digital marketing strategies to reach the end user of the product.
During the first half of the year, we undertook further significant research amongst target users and influencers in the key global scar markets, the results from which we will be using to create new and impactful campaigns to further grow the Kelo-cote brand into 2021 and beyond. Kelo-cote was the fastest growing Top 5 Global Scar Treatment brand in 2019, according to Nicholas Hall DB6 data.
With the scar treatments market in China now growing at 29.6% per annum, Kelo-cote remains well placed to take advantage of this growth, following the conclusion of a new distribution agreement with our partner in July 2020."
WIN have just been tipped in today's Evening Standard as a stock to benefit from the online shopping boom.....
After you’ve clicked for your online order, someone has to deliver it to you. Wincanton runs the lorries and vans that will get them from the warehouse to your door.
Its share price crashed badly during Covid because it has big businesses trucking petrol and building materials around the country. At a time when construction sites were closed and nobody was allowed to drive anywhere, that wasn’t good for business.
But its online delivery work for shops was trading strongly, particularly once social distancing restrictions were lifted to allow its two-men-and-a-van operations to resume delivering furniture and other goods for customers like Ikea and M&S.
Wincanton also runs warehouses for big companies’ online logistics, recently winning a contract to run one of these “dark stores” for Waitrose
It’s also working smarter to help smaller online businesses distribute out of spare space in its warehouses – a potentially big market ahead.
The shares might take a while to recover, particularly as it had to axe the dividend this year, disappointing shareholders who have seen numerous struggles at the business over the years.
However, with previous problems mainly fixed, Wincanton looks like a decent long-term bet."
The writer concludes:
"For the best value growth, my money would be on Wincanton and Tritax Big Box."
SCE's Hardman presentation is now on Youtube as of yesterday:
DB and KJ looked as chipper as I've ever seen them - and deservedly so.
Some interesting quotes, i.e:
- "doing work with lots of OEMs"
- "a number of measurable advantages" for SCE's product won them the OEM8 contract over Brembo
- the OEM5 contract was won for a saloon car in the £50k-£75k price range, i.e SCE are already reaching into the general car market
ODX are advertising for a Sales Order Processor, as "We are significantly expanding our existing manufacturing capacity on both UK sites for the production of Covid-19 tests":
Posted by a reliable poster elsewhere overnight - it seems GAN could be a bid target at $25 (around 50% above current levels):
"Credit Suisse equity analyst Larry Gandler has an interesting idea – Aristocrat could buy an iGaming platform company, and GAN could be the target for $730 million.
Such an acquisition would make sense, filling a niche in Aristocrat’s competition with IGT and Scientific Games.
Aristocrat has been assertive in moving online and has done so through acquisitions – social casino operator Big Fish and non-gambling social gamer Plarium – so buying a platform company would fit the pattern.
A $730 million GAN purchase would be over $25 a share, a nice premium for a stock now selling under $18.
However, CEO and chief shareholder Dermot Smurfit did not relocate himself and his family to the United States and change GAN’s stock listing from London to Nasdaq for just a nice premium. He has bigger ambitions.
Also, as a small company, GAN could always be vulnerable to much bigger companies. Being part of Aristocrat could give Smurfit the financial and marketing platforms upon which to build his technology platform business.
And, as the old saying goes, where there is a will there is a way."
Good review on the respected Techmarketview:
"Kape interims highlight pandemic VPN demand
Digital security and privacy software firm Kape Technologies saw first half revenue almost double to US$59m, buoyed by its US$96m acquisition of provider Private Internet Access (PIA). Pro forma turnover too was up 12% year on year as Kape saw increased demand for its consumer focussed anti-virus, encryption, virtual private network (VPN) and endpoint protection tools amongst homeworkers in the UK and US.
Adjusted EBITDA soared 185% to US$16.4m despite large increases in the cost of sales and marketing costs as the company hunted down new customers. Pre tax profits were stable at US$1.4m, up slightly from US$1.3m in H119.
London-headquartered Kape (formerly Crossrider) has been steadily expanding through acquisition over the past few years, including deals for Intego in 2018 and CyberGhost in 2017. Management hailed the first half of 2020 as one of the most significant in its history in terms of product development, having launched a range of upgrades and integrations for popular web browsers within its largely SaaS-based portfolio.
New debt facilities agreed with Bank of Ireland, Barclays Bank and Citi Commercial Bank last April have given Kape up to US$70m of credit to fund further acquisition activity, and we wouldn’t be surprised to see the company expand its portfolio, revenue and customer base further over the next 12 months."
Barchid, I bought my stake in ACSO originally at around 50p-52p from memory (it's all on the bulletin boards if you really want to research it), and top-sliced a number along the way to £30. It's a shame you weren't around then, as it was quite a ride. Enough said really.....
Take a look at how my other holdings have performed too. Perhaps then you might re-evaluate your opinion :o))
I still hold a decent stake here. This could just be the floor. Certainly, this week's H1 results have been well received by the markets, probably because:
- trading is slightly ahead of expectations
- H1 figures looked as reasonable as could be given the pandemic
- relief at the company now being relatively well financed going forward
- virtual queueing taking off globally spurred on by COVID-19/social distancing
ACSO are not out of the woods yet by any means given the potential for second waves, but there's potentially multibagger upside if and when "normalisation" begins/returns.
New 5-minute interview about SCE with Zeus Capital's Research Director. Doesn't add much to what we know, except:
- there's a potential 2 year extension to the duration of the contract
- confirms it's an EV
- he expects a third major contract to be announced "in the coming months"