Member Info for rivaldo

Excellent new presentation by ACSO here - good to see the ambitious target of $200m revenues with margins of a minimum 27% by 2025.

That would entail pretty impressive 43% revenue growth by the end of next year and substantial growth in EBITDA margins (assuming that's what he means):

Https://www.youtube.com/watch?v=CbKD7pnY7zQ

Https://masterinvestor.co.uk/equities/centralnic-updates-expected-next-week/?mc_cid=67e9717022&mc_eid=981c83cee2

Extracts:

"Brokers’ Views – A Value Of 279p A Share

Analyst Bob Liao at Zeus Capital considers that the company’s shares are underrated, trading at the bottom of its peer range while delivering strong growth and earnings performance.

He reckons that the current valuation is at odds with the substantial cash generation that his brokerage is forecasting.

For the current year he estimates $771.8m revenues, $91.8m EBITDA and 20.7c in earnings.

For next year his figures indicate a revenue of $818.4m, $97.3m EBITDA and 22.1c per share in earnings.

Liao suggests that the group’s strong growth is set to continue and that its outstanding growth and track record of earnings outperformance are not factored into the shares’ low multiples.

Max Hayes and Katherine Thompson at Edison Investment Research take the view that CentralNic is now at critical mass, with its business positioned for sustained growth.

For the current year their estimates are for $833.7m revenues, $94.4m EBITDA with 20.0c earnings.

The 2024 period, they reckon, could report $909.6m sales, $103.0m EBITDA and earnings of 22.1c per share.

The analysts have fixed an implied share price value of 279p a share."

"My View – These Shares Are ‘As Cheap As Chips’

Next Monday we should see a very interesting AGM Trading Update being announced and at the same time the group will be reporting on its first quarter trading.

I have the view that there is so much more to come from this company – its management has clear views on where it wants to go and how to progress its overall prospects.

I also feel that we could be getting another share buyback programme in the short term.

Having already stated that I have made CentralNic group one of my ‘star picks’ for 2023, its shares at just 123p currently only capitalise the company at £355m, which is far too under-priced a level to be missed.

Up to 150p then 180p and above are my predictions for the shares this year."

Up 19% now - and at new 5-year highs.

Hopefully the rubber band has snapped upwards :o))

An intriguing move. You'd have thought CAPD's advisers would establish there was buying interest in CAPD's shares before doing this? Stifel in particular are a huge American investment bank so should have some heft in making this worthwhile:

https://uk.advfn.com/stock-market/london/capital-CAPD/share-news/Capital-Limited-Commencement-of-Trading-on-the-OTC/90789936

Looks like Harwood (or others) are still buying - online you can only buy a maximum 300k at almost the full 1.2p offer, whilst you can sell at least 1.6m in one swoop at a nice premium at 1.131p.

OT : two other microcaps which have both produced good news this week and look good value to me are TST and SYS.

Extracts from WH Ireland's update today FYI:

"Full year results in line; positive outlook for FY 2023E

Touchstar is a supplier of mobile data computing solutions and managed services to a variety of industrial sectors. This morning, the group has released results for the 12-months to 31 December 2022, in line with the trading update provided in January and illustrating strong growth in recurring revenue, profitability and cash generation.

Since the beginning of the year, trading is reported to have been strong, with an opening order book of £1.7m, opportunities being presented in new territories and with the potential to undertake bolt-on acquisitions to enhance the existing product base and footprint. On the back of the results, we leave our forecasts unchanged and introduce FY 2025E estimates for the first time.

The shares trade on an FY 2023E PER of 12.0x falling to 9.5x in FY 2024E and are backed by a strong net cash position equivalent to 41p per share. With 40% of revenue now being recurring in nature and good growth opportunities ahead, we believe there is the potential for the shares to re-rate as the strategy continues to be successfully executed. We see fair value for the shares at 120p."

"WHI view: Good progress has been made in the year against the group’s key strategic objectives and we view the momentum being demonstrated as being highly encouraging. On the back of today’s results, including the positive start to the new financial year, we leave our forecasts unchanged and introduce FY 2025E estimates for the first time.

It is worth noting that net cash per share is now equivalent to over 50% of the current share price (and forecast to increase). With rising levels of recurring revenue, and the potential to invest the free cash in growing the business further, as well as the potential for the introduction of a dividend and share buyback programme, we believe valuation multiples have significant scope to expand."

WH Ireland have retained their 120p target for the time being, but "believe valuation multiples have significant scope to expand".

They forecast PBT to rise sharply to £0.7m this year, resulting in a slightly higher 6.7p EPS (presumably due to higher tax rates), though of course they did undercook last year's forecast.

Similarly, the cash pile is forecast to rise slightly to £3.6m. Again this seems very conservative.

The EPS is then forecast to rise to 8.4p and 9.7p in the next two years.

With 41p per share and rising in cash, it's easy to see a share price of anywhere from 150p up to 250p over the next year once the market starts looking forwards.

Even more fascinating - there is absolutely no overhang from those sold shares and apparently big demand for more.

Online now you can buy a maximum of a measly 800 shares at 29p - there is just no stock available. Whereas you can sell a whopping 50,000 shares at a premium at 27.8p - an unheard of amount for SYS.

Excellent results as expected, with 6.6p EPS achieved and the £3.5m cash pile representing 50% of the m/cap.

Recurring income is up again to 40%, and cash generation is terrific with £1.8m cash generated from operations in the last year.

Crucially the outlook is excellent, with the order book up massively to £1.7m and the outlook described as "very positive".

There's also the promise this year of (1) a dividend and share buybacks, (2) bolt-on acquisitions and (3) international expansion.

Ian intends to step down in 2024 having done a fantastc job, but that likely gives him another year in charge, and I have no doubt he'll find a like-minded successor.

TST is now a growth company with sizeable recurring income and huge liquid asset backing per share. It deserves to be priced at minimum 120p imo and possibly up to 150p:

https://uk.advfn.com/stock-market/london/touchstar-TST/share-news/Touchstar-PLC-Final-Results/90784460

MTI Wireless Edge will be featured on Mello tonight on the BASH session (Buy, Avoid, Sell or Hold)

Https://melloevents.com/mm170403/

Use code TwitMM50 for half price tickets

News from Mottech:

Https://mottech.com/news/implementation-of-mottech-icc-pro-autopilot-in-automated-farming-practices/#

"Implementation of Mottech ICC Pro Autopilot in Automated Farming Practices
March 26, 2023

Discover the power of our innovative ICC Pro Autopilot system that combines advanced irrigation control with accurate irrigation recommendations, leveraging AI, machine learning, and advanced sensing systems to revolutionize automation in agriculture.

How does the Mottech ICC Pro Autopilot system transform automation in agriculture?
Introduction to Mottech ICC Pro Autopilot

The Mottech ICC Pro Autopilot is a groundbreaking technology that combines advanced irrigation control with accurate irrigation recommendations. This unique solution integrates irrigation and sensing systems in a single-screen display, providing real-time irrigation operation based on sensing system recommendations. By combining AI and ML, ICC Pro Autopilot recommends the exact amount and timing of irrigation to maximize agricultural production.

Features and Benefits of ICC Pro Autopilot

Based on the collected data analysis, the ICC Pro Autopilot system establishes an irrigation protocol for all types of crops and soils. With a safety mechanism that prevents incorrect water usage, the system ensures efficient and sustainable irrigation management. With a user-friendly app, farmers can remotely monitor root activity and apply smart irrigation, making agriculture more efficient and accessible.

etc"

Christopher Mills/Harwood Capital continue to buy - they've bought another 4m shares to go to 87.5m shares and go above 8% to 8.27%:

Https://uk.advfn.com/stock-market/london/react-REAT/share-news/React-Group-PLC-Holdings-in-Company/90777948

Good to see the share price rising.

The new Harry Potter TV series is planned by HBO to be filmed over the next 10 years! It would be a great continuing stream of income if both/either of ADF or Location One were involved:

Https://deadline.com/2023/04/harry-potter-tv-series-max-release-date-cast-1235323284/

Online just earlier you could only buy a maximum 2k shares at the full 29p offer price, whereas you could sell 35k shares at a premium at 25.65p.

Looks like shares are scarce to meet the demand out there.

Encouraging in all respects as regards resolution of production issues, order pipeline increase, increaseing of production capacity etc.

Finncap have repeated their 120p target price this morning, and Zeus have reiterated their 130p valuation.

Today's RNS is handily summarised by Zeus:

"Surface is back on track". Which says it all.

I'd love to see an update on OEM3 - hopefully SCE are saving this up for a separate RNS at some stage.

An encouraging in-line year end update today, especially compared to the likes of others in the sector like SWG and NCC - credit to the management here.

With 3.7p EPS in the bag that's a historic P/E of only 7.8 even at the full 29p offer price.

Cash generation in H2 looks good, with net debt down to an insignificant £1.3m compared to £1.9 at the interims.

Crucially "Momentum from the year end has continued into FY24". I suspect Liberum will initiate cautiously, leaving room for forecasts to be beaten, so maybe 3.8p-4p EPS forecast for this year.

Zeus had a fair value of 61p here, i.e 100% upside from the current share price.

Now up 9% today - the 750k buy was quickly followed by four 250k buys and a 150k - that's 2.38m of buys so far today with not a single sell.

Atlantic Capital Markets have this morning emailed out a report on a "Secret AIM stock" which is a "diamond in the rough".

You have to click the link to find the stock is CNIC:

Https://atlanticmarkets.azurewebsites.net/secretAIM?email=adriangraham100@hotmail.com&src=BASEsecretAIM

Conclusion:

"Summary

Make no mistake, the share price has seen rapid growth since the float, and this is all in line with the underlying revenue and business growth seen up to now. The big question is: can it continue? That all being said they are, and continue to be at the forefront of their market and with an ultra-entrepreneurial attitude to growth this trend should continue.

They also reap the rewards of a rather unique marketing strategy that doesn’t rely on tracking, so is not threatened by Apple’s privacy rules. As the company has full visibility over its domains, it can use context to place ads. They use specific software to place the ads, so as its scale increases so does profitability, giving it truly independent ability to grow rather than constantly being in the shadow of the tech giants such as Apple. The recent announcement of a dividend and continued growth in the cash flow also add to the investment argument. However, a word of
caution, it is a fast-moving and ever-changing industry and while CentralNic has established itself as a leader in the sector be aware it is a fast-moving and ever-changing sector. Like all stocks operating in this sector you should always be cautious of overcommitting and shares like this should always occupy the speculative end of the portfolio....for now!!!

But the investment proposition looks strong, the introduction of a dividend should also appeal to a fresh wave of income buyers and analysts are also sticking to their 250p target price."

Thx re the IC article - apparently it's in today's print edition, which seems to have led to decent buying so far today with a net 133k or so of buys.

The buying price has now moved up from 40.65p to the current 41p full published offer price, which hopefully bodes well.

Cloudsurfer77, I cannot take seriously any poster who takes extensive research and then somehow deduces that the contributor is a company employee. Especially when it would take approximately half a second to look up my multi-year and extensive posting history on LSE and conclude otherwise. Honestly, it's laughable!

CAPD's investment portfolio has performed incredibly well to date, but really simply acts as an extra confidence booster as regards asset backing of some 20% of the m/cap. The investment community doesn't seem to take much notice of it, as sharp moves upwards and then down in the portfolio haven't brought about any particular share price reaction. But it may be a different story if (a) the portfolio continues to rise, or in particular (b) if CAPD successfully liquidate the three prime portfolio investments and suddenly add £20m to cash.

In addition, there's always the likelihood that Allied Gold Corp, which represents around a £10m unlisted investment, may resurrect its previous IPO plans which were postponed due to poor markets - this would likely also crystallise a large gain for CAPD. The chances of this must be increasing given that gold is now above $2,000 and around all-time highs.

Nice £118,000 buy at 167p reported this morning from late yesterday partly explains yesterday's rise.

Worth noting that sector comparator JDG are on a current year P/E of 26 - now almost 50% above SDI's current year multiple.