Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
A starting point for discussions re valuation posted from Jeff256 elsewhere - will have a think myself about this tomorrow:
"Well, the pie business is making £2.73m after tax. Apply a PE of 7 on 80% ownership and we get about £15.3m. Add £23.74m cash and we get £39m
Approx £16.90 per share."
Wow - Unilever will attract people's attention....hopefully the first of many.
I've been buying some of these recently. My final buy appears to have perhaps cleared out some stock and caused a tick up?
AEO looks very cheap at these levels considering both the progress made and the NAV security of the cash pile, plus the opportunities both organic and inorganic offered by that cash.
I'm not expecting this H1 to offer fireworks against the prior year given the renewed H2 weighting due mostly to Cannes Lions in June, but the results should be good enough to prompt a re-rating from these levels given the confidence in the general outlook and the current rating.
I was very impressed by the presentation at MelloLive late last year, and also like the extremely clean accounts and straightforward strategy and US expansion.
Another buy from Lincoln - bigger this time at 1.16m shares. That's around £25k spent by him so far in these two transactions - not bad at all:
https://uk.advfn.com/stock-market/london/dekel-agri-vision-DKL/share-news/Dekel-Agri-Vision-PLC-Director-PDMR-Shareholding/93473295
Ex-Schroders fund manager Iain Staples is very positive on RNWH - about 11 mins 45 secs in:
Https://podcasts.apple.com/gb/podcast/the-exchange/id1569138869?i=1000648512846
The reference to "enhancing shareholder value" could also mean perhaps a tender offer to shareholders, at say around £15 per share, i.e around the current NAV.
This could be alongside another acquisition given the huge cash pile.
Either way, hopefully it's time for a little excitement around here.
Here's the rest of Simon Thompson's tip:
"Strength from the military side of the business more than offset a slight dip in revenue from MTI’s 5G backhaul antenna solutions due to slower installation rates in certain markets.
However, as soon as 5G is rolled out in India (a key market), the requirement for MTI's products will be substantial. Also, the group’s automatic beam steering antenna solution that adapts to any small movements caused by different climate conditions is now entering into production after successful testing by key original equipment manufacturers (OEMs).
A climate change winnerA climate change winner
MTI offers investors exposure to the themes of climate change and water conservation through wireless water management systems, too. Water scarcity is a real global problem. Last year, the UN Water Conference reported that global
fresh water demand will outstrip supply by 40 per cent by 2030. This level of challenge underlines the importance of water conservation and the solutions that MTI offers customers (agriculture, municipal authorities and commercial entities), which can reduce water usage by 30 per cent.
In addition, MTI has been expanding its services beyond efficient water usage across public parkland and green open spaces, having recently completed a project to monitor and partially control 40 urban fountains for a municipality in Israel. It could become a valuable future revenue stream for a division that increased operating profit by 8 per cent to $2mn last year.
Admittedly, contract delays at two loss-making projects led to profits reversing at MTI’s electronics division. However, the directors report that increased defence spending by governments is creating a strong market environment to operate in, partially from the Israeli defence forces and partially from international markets via the Israeli systems houses. To this end, MTI’s electronics division has been completing several design wins for both new and existing customers. It augurs well for future sales. House broker Shore Capital expects divisional operating profit to bounce back 25 per cent to $1.95mn in 2024 and contribute to 9 per cent higher group operating profit of $5.1mn (£4mn).
On this basis, MTI is rated on seven times 2024 operating profit to enterprise valuation of £28.4mn. A 6.1 per cent dividend yield and a £0.5mn expansion of the share buy-back programme are also supportive. Trading around the level of my last buy call (‘MTI boosted by defence spending and offers 6% yield’, 15 August 2023), MTI’s shares rate a buy."
TST is a transformed company, with rising sales, profits, a £3m+ cash pile, new software and other products now commercialised, substantial recurring revenues, international sales prospects and a vision led by an experienced Chairman.
Plus a very positive outlook statement for this year.
TST managed to raise margins such that PBT increased 60% and is expected to increase another 40% this year, to give a £1m PBT against an £8m m/cap.
TST are now on an ex-cash P/E of just 7.0 for this year. Jim Slater's PEG is only 0.48.
These indicate that TST is now on a bargain valuation.
MWE have just been tipped by the Investors Chronicle's Simon Thompson:
Https://www.investorschronicle.co.uk/ideas/2024/03/11/mti-is-a-smart-play-on-the-defence-spending-boom/
"MTI is a smart play on the defence spending boom
This technology group is rated on a single-digit earnings multiple even though it is delivering double-digit profit growth, and offers a 6.1 per cent dividend yield
March 11, 2024
by Simon Thompson
Annual pre-tax profit up 12 per cent to $4.8mn
EPS rises 9 per cent to 4.58¢
Net cash of $8.1mn (9.2¢)
The latest results from Israel-based MTI Wireless Edge (MWE:40p) highlight the benefits of diversification as growth from the technology group's antennae and water management systems units more than mitigated a weaker performance from its electronics division.
The antennae business sells 'off the shelf' flat and parabolic antennas as well as custom-developed antenna solutions to a range of commercial and military customers. Buoyed by a sharp rise in military sales, divisional operating profit surged from $0.3mn to $0.8mn. Current events around the world suggest that requirements for military equipment will continue to grow in the coming years as western governments increase their defence budgets, too. Moreover, the conflict in the Middle East has triggered an increase in demand that should lead to higher stock levels of all military equipment being maintained by the Israeli government going forward. Defence-related work now accounts for 44 per cent of group sales.
etc"
Cavendish have increased their target price to 300p (from 270p) this morning.
The trading update is out - and it's terrific. The £25m m/cap looks ridiculously cheap imo against:
- a PBT of £4.75m!
- Shire Foods made a core PBT of £3.86m (up from £2.78m), up almost 40%....
- the cash pile is up to £23.74m, against a £24.8m m/cap!
- NAV is up to £14.82 per share and £37.5m
Even better:
- investment opportunities are improving
- and re Shire:
"We have been encouraged, however, by the levels of new business opportunities we are seeing in Shire and remain cautiously optimistic for the remainder of the year"
The final sentence is also interesting - perhaps they're suggesting special dividends here?
"we are focused on enhancing shareholder value and, inter alia, continue to monitor and review our ongoing requirements in terms of the cash required to deliver our strategy"
In the year when JL so sadly passed away, congrats to Nick in particular.
Crikey, DKL must be cheap :o))
It's taken a long time, but finally we see some director buying. Good to see the CEO buying 500,000 shares. The share price has evidently reached a point which can't be resisted. Hopefully we'll see other directors stepping up too.
The H1 results can't be faulted, with EPS up over 16% and the cash pile up 33% to over £11m.
And FNX are promising a special dividend or further buybacks with that cash pile.
Note that:
- December was a record month and H2 has started strongly
- 99% recurring income
- major new product now released
- further international growth being promised
- "strong pipeline of commercial opportunities, including significant enterprise deals in the UK and overseas, which provides the Board with confidence in the ongoing success of the business"
Love the management here. They underpromise and overdeliver and have barely put a foot wrong.
There's been 23 (count 'em!) different buys this morning of 1 share each at 9.39p and now 9.49p.
I know some buy 1 share to attend the AGM, but that's just a one-off. Can someone educate me as to why this happens?! Is it really a code to signify something as some think (this always seems like the usual b.lcks conspiracy theory to me). At least the share price has ticked up a nice 0.45 today.....
WH ireland summarise today as follows FYI:
"Today’s full year trading update demonstrates the progress that has been made in the business, with the execution of Touchstar’s multi-year strategy coming to fruition in a material improvement in profitability in FY23.
While our forecasts imply further organic growth as the group continues on its trajectory towards higher margin software licence and recurring revenues, we also note the very healthy net cash position (making up ca. 39% of the market cap), which brings the potential for bolt-on acquisitions, value being realised through further share buybacks, and further internal investment opportunities.
With the shares currently trading on a FY 2024E EV/Revenue of just 0.6x, EV/EBITDA of 2.4x and PER of 10.8x, we continue to see significant upside for the shares. We see fair value for the shares at 140p (previously 120p), which would imply a FY 2024E EV/Revenue multiple of 1.0x."
Shore Capital have an 80p fair value here.
They note that "FY23A results were slightly ahead/in line with expectations".
They've maintained their forecasts for this year and forwards, which they note are firstly conservative and secondly exclude any potential acquisitions from the cash pile.
They go for 4.5c EPS this year, with a 3.3c dividend.
Net cash is forecast to rise to $9.3m - around 20% of the m/cap.
They conclude:
"Outlook and valuation:
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 is well-placed in both defence and India. Similarly, we would also expect to see good demand for the defence-related products and services of Summit/PSK. We have an 80p 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)."
Likely good news for RNWH today (particularly its J Browne and Enisca subsidiaries)....
Https://www.constructionenquirer.com/2024/03/11/extra-180m-of-water-spending-to-prevent-sewage-spills/
"Extra £180m of water spending to prevent sewage spills
The government has fast-tracked investment of £180m over the next 12 months in a bid to prevent more than 8,000 sewage spills polluting English waterways.
The new funding commitments are in addition to water companies’ existing £3.1bn investment into storm overflow improvements for this price review period (2020-2025), as well as their ongoing annual investment to maintain the performance of the existing network.
Examples of measures include accelerated wetland construction programmes, investment in AI systems to help manage storm loads, the installation of thousands of new in-sewer monitors to check flows and spot blockages early and the recruitment and training of specialist staff.
Environment Secretary Steve Barclay said: “The amount of sewage being spilled into our rivers is completely unacceptable and the public rightly expects action.
“This £180 million of accelerated investment, which will stop more than 8,000 sewage spills over the next year, is a welcome step forward as we continue to push for better performance from water companies and hold them to account.”
Nice coverage on Master Investor:
Https://masterinvestor.co.uk/equities/small-cap-catch-up-time-reat-eman-and-foxt/?mc_cid=8820943cc5&mc_eid=db9f9bbaf2
"Time Finance (LON:TIME) – Ready To Tick Higher
We now know that the full year results from this independent specialist finance provider will be better than market expectations.
We will have to wait until the Bath-based asset, loan and invoice finance company issues its Trading Update, covering the nine months to end February this year, which is due to be published on Tuesday 26th March.
Analyst Andrew Renton at Cavendish Capital Markets was previously looking for the year to end May 2024 to show total revenues up from £27.8m to £30.8m, upon which he expected to see adjusted pre-tax profits improve from £4.4m to £5.7m, lifting earnings up to 4.6p (3.7p) per share.
For the coming year he was forecasting £33.1m revenues, £6.7m profits and earnings of 5.4p per share.
However, after the 26th I wonder whether he will be upgrading his estimates?
The group’s shares have been up to 44p, that was in late February, since when they have dipped to 36p before picking back up to 39.5p by last night.
These shares are cheap and take little account of the £37m capitalised company’s growth potential in the price."