Good to see the Chairman buying at 178.75p:
I sold this morning, for better or worse.
I really didn't like this Money Marketing article (thx topriser), which sounds terrible. Particularly the "significantly" reducing recurring income and this paragraph:
"“Our recurring income linked to investments has already reduced significantly and we believe that wealth management new business will decline or cease after tax year end,” Hudson wrote."
My sales were accepted without a price fall at first, but now the price seems to be falling. I note that AFHP haven't yet issued a Covid-19 update, so if that article is anything to go by it won't read well.
Good luck to holders.
I topped up with a few this morning. You can sell plenty at a premium at 19.7p online, whilst there's only a few available online at 20p now.
So hopefully a move up is imminent.
Today's news is fine by me. Small dilution, a nice £2m cash top-up in difficult times, big commitments from two investors with impressive backgrounds....hopefully they will have been convinced by prospects in general and news flow to come.
Agreed. Today's update was as good as one could expect at present, and the Chinese approval news is even better.
Finncap have retained their 25p target price. They've reduced ever so slightly their EBITDA forecast for the year just ended, to £0.7m.
They have however retained their prior forecasts of £1.8m EBITDA and £0.4m PBT to March'21.
- there's potential annual demand for 6m CD4 tests
- Chinese approval for the self-test Food Detective version could take 2-3 months
- the Chinese FD market could generate 0.5m annual tests within 18 months, or $7.5m revenues annually
The usual March trading update is now slightly late. I wonder if this is due to VLE being in the midst of corporate action? This could of course be an acquisition - but might it also be disposal news? The time to sell Shire (including the small Indulgence operation) would be at the peak of its attractiveness - which is now.
The Landers are keenly aware of the timing of these things, and of leaving something for the next man - perhaps they will utilise the current boom in demand to allow a respectable exit for Shire.
It would be great to see VLE sitting on a £30m+ cash pile having sold Shire for £10m+, particularly in the current environment. Anyway, pure speculation at present.
Analysis from Shore Capital this morning:
"Engineering services provider Renew (RNWH) is delivering activities critical to the Covid-19 response and Shore Capital says the fall in the shares presents a good opportunity to ‘buy’ the stock.
Analyst Tom Fraine retained his ‘buy’ recommendation and ‘fair value’ price of 570p on the shares, which fell 2p to 374p yesterday.
The group continues to operate across the majority of its sectors as 80% of its activities are deemed critical to battling Covid-19.
‘Despite the impact of Covid-19 being unclear, we are encouraged to learn that the majority of the group has continued to be operational in its critical sectors and we highlight Renew’s ability to control costs to a much greater extent than many industrials,’ he said.
‘We consider the 34% share price fall since the start of 2020 to be an excellent opportunity for investors seeking to benefit from increased public sector spending in regulated markets.’"
There's a second tip for KAPE today! This time from Progressive Equity Research, who highlight some stocks "whose business models are well adapted to these changes, or who might see a change in long-term structural demand".
They summarise KAPE as follows:
"Kape – one of the few to already announce usage uplift, Kape has seen growth in the sale of VPNs in recent weeks, mainly in the US and Europe, from people keen to protect their increased domestic online activity."
Well, I thought that was rather encouraging for an £8m m/cap company....
- £2.2m cash at 31st March
- profitable in Q1, with £4m revenues for the quarter, up 30% on last year
- $1.2m of virus-related orders in the last two weeks of March alone
- £8m+ of recurring revenues per annum
- Ghana unaffected by closures
Time for a decent bounce perhaps.
There's a "wall of cash" ready to support companies on the brink according to Bloomberg.
Including VLE's - the Landers will be inundated with opportunities in the coming weeks and months:
David Kempton on Citywire has tipped KAPE this morning:
"I have also bought back into Kape (KAPE) on the basis its cyber security software will enjoy strong increased demand from the new army of home workers. Home Wi-Fi and personal laptops are much more susceptible to cyber attack.
Last Autumn Kape bought LTMI, a leading US-based digital privacy company with more than one million paying customers. The doubling of Kape’s customer base to 2m globally is forecast to increase 2020 profits nearly 10 -old for a PE of 12 and 0.1 PEG."
Good news today - Berenberg have been appointed as Joint Broker with Tamesis.
Since CAPD don't need any money since they're so cash-generative, the reason for this is obviously to get a much more powerful, big name broker on board who can spread the word and get the share price moving to where it should be.
No disrespect to Tamesis, but this is a very nice step upwards.
Today's trading update is about as encouraging as one could expect in the current climate:
- 80% of RNWH's activities are deemed critical
- H1 to 31st March is nicely in line with forecasts
- Carnell integration is going well
- the most profitable Engineering Services divisions are those deemed critical
- cash generation is strong and the Balance Sheet sound
- the management team are sound/responsible and have cut their salaries by 20% and implemented cost reductions/deferrals
The share price is down by 30% from prior levels - given that 80% of activities are critical, hopefully the current situation is more than priced in already.
That's a confident gesture, with MWE stating they're one of the few companies around who are still going to pay their 2c dividend....
"Moni Borovitz, CEO, commented "In light of the current COVID-19 crisis, earlier this month the board reviewed its decision to pay a dividend and having considered the Company's strong balance sheet and the outlook for our industry, we decided that the dividend payment should proceed"."
Peel Hunt have upgraded Cranswick to a Buy - you might just as easily substitute VLE (or Shire Foods) for Cranswick in this article:
"Cranswick PLC (LON:CWK) is likely to be benefitting from the surge in demand for food through UK retailers amid the coronavirus lockdown, as well as from higher prices and demand for pork in China, analysts reckon....
“Schools are unlikely to return until autumn and summer holidays are likely to be spent at home, which means demand through retailers will remain high,” the Peel Hunt analysts said in a note to clients.
Over at Liberum, analysts also seemed to have picked up that Cranswick “continues to trade well” in its core UK market amidst high consumer demand for staple protein sources of sausages, bacon, ham and chicken.
”With food and farming deemed essential by the government during the coronavirus crisis, all of Cranswick's facilities are running at high operating rates, the Liberum analysts said in a separate note on Monday.