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Peel Hunt have a 2200p price target here and say Buy:
Https://citywire.com/investment-trust-insider/news/expert-view-close-brothers-standard-chartered-centrica-jet2-informa/a2436332?re=117430&refea=218441
"Jet2 flying high in Peel Hunt’s eyes
Airline and package holiday group Jet2 (JET2) continues to gain market share and the delivery of new aircraft will allow it to expand further, says Peel Hunt.
Analyst Alexander Paterson reiterated his ‘buy’ recommendation and target price of £22 on the Citywire Elite Companies A-rated stock, which added 2.6%, or 35p, to reach £13.61 on Thursday after the group lifted its guidance following resilient winter travel demand.
It bumped its full-year profit guidance to between £510m and £525m versus the previous expectation of £480m to £520m as demand in bookings remained strong.
‘Winter 2023/24 bookings have performed well, with sectors booked up 17% and average pricing for both flight-only and package holidays robust,’ said Paterson.
‘The mix of higher-margin package holidays has again increased slightly, to 60% for the inter period due to the resurgence in city breaks.’
Paterson said the company is ‘a well-invested, high-service customer proposition that continues to gain market share’.
‘Five new A321neo aircraft have been delivered on time, with a further six due by the end of full-year 2025, allowing the group to continue expanding in a capacity-constrained market,’ he said."
Nice - guidance for the year ending 31st March raised, with the mid-point PBT up nicely to £517.5m (from £500m).
Plus JET2 are "encouraged" by booking for this summer, with package holiday customers up 17%, load factors ahead and seat capacity up 12.5%.
Hopefully yesterday's move up and the early tick up this morning is indicative that any large sellers are now out.
The £22m m/cap here is truly ludicrous when compared to a zillion other companies on the market - there are companies with virtually zero or little revenues who are valued at far more!
news of msalabs expansion to double their capacity:
https://www.linkedin.com/feed/update/urn:li:activity:7162655029965807616/
"msalabs
2d •
our val d’or laboratory has been undergoing a significant expansion and the new works are almost finished. this laboratory is twice the size of our existing facility and we’ve added space for a second photonassay™ unit, semi-automated sample preparation facilities and a substantial storage area.
✅ the new semi-automated sample preparation process will have capacity for processing more than 30,000 samples per month, and will further reduce turnaround time for results.
✅ we`ve added sample pulverizing capabilities to further improve tat and reduce costs for icp multi-element samples sent to our hub lab in langley (including lithium samples)
✅ we are further reducing waste with a new photonassay™ jar cleaning robot system which will enable reuse of sample jars.
✅ additional storage for pulp and co**** reject samples will allow for more efficient sample storage and retrieval
the new laboratory will be finished and ready to begin processing samples by the end of the week. if you would like to discuss our services, please contact val-d-or@msalabs.com"
Good (though not particularly material) to see the £300k contract renewal for RTS's software licences, maintenance and support services:
Https://uk.advfn.com/stock-market/london/petards-PEG/share-news/Petards-Group-PLC-Contract-Extension/93271673
I actually though this news the other day was much more significant - Siemens (a PEG customer) has transferred a load of train building work from Austria to its Goole factory:
"for a busier-than-expected spring opening, creating 2,400 jobs and signaling a resurgence in British manufacturing. The factory will produce 94 energy-efficient metro trains for the Piccadilly Line, modernizing the fleet and easing overcrowding during peak hours"
And:
"Siemens is setting its sights on securing additional contracts for both the London Underground and mainline railways"
I have no idea whether PEG will directly gain work from this. But perhaps it signals that the hiatus in UK train contracts is at last beginning to break. If so, PEG are likely to be one of the beneficiaries:
Https://bnnbreaking.com/world/siemens-goole-factory-a-new-era-for-british-manufacturing-and-the-piccadilly-line
BGF Investment Management have been buying - they now have 9.57% (up from 8.03%), or 9.96m shares:
Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Holdings-in-Company/93264096
Rugged mobile computing contract win:
Https://www.touchstar.co.uk/blog/damart-case-study
There's been no year end trading update as yet - remember TST would be obliged to issue a trading statement if they were materially ahead of (or behind) expectations.
As they haven't we should be able to assume that TST traded in line with expectations for last year.
I would rather TST had formally issued an RNS confirming this. But many companies don't, and I know some brokers are stupidly obstinate in sticking strictly to the rules and not considering the likes of us as shareholders.
As a reminder, the expectations are:
- 6.7p historic EPS for 2023, rising to 8.7p EPS for this year
- a maiden 1p dividend rising to 2p this year
- a £3.3m cash pile at 31st December, rising to £3.4m at the end of this year, aginst an £8.2m m/cap, i.e 40% of the m/cap
Assuming I'm correct TST remain extremely undervalued imo on those metrics.
Today's January production update is reasonably encouraging.
CPO sales are up 38% year on year and production is up 56%. Sales prices are down hopefully temporarily, so overall sales numbers are slightly down on last year, but margins may make up for this with lower FFB prices being paid.
Above all, perhaps this good start to 2024 production signals a healthy H1 high season to come.
And global CPO prices remain strong at $965 as of last Wednesday.
Cashew news is steady as she goes, so this is currently a wait and see until Q2.
The m/cap now is just £7.5m. The fall is unsurprising in these markets given the crazy wait for cashews to begin and then ramp up production, but with the core CPO business being nicely profitable there comes a point where this surely has to be a bargain!
Https://masterinvestor.co.uk/equities/react-group-ready-to-clean-up/
Extracts:
"REACT Group Ready To Clean Up
By Mark Watson-Mitchell 12 February 2024
A Cash-Positive business and operating on 87% ARR"
"I know that I haven’t featured my favourite ARR investment criteria for any stocks recently, but as regular readers will know I just love Annual Recurring Revenues.
It is any finance director’s key number and this group operates on a very high figure.
To know that your company’s revenue intake has certain fixed levels for the year ahead, surely makes the assessment of future capital expenditure that much easier.
So, when I alight upon companies where their business has high levels of guarantee going forward, it makes me almost salivate upon the assumption that ‘risk’ is being severely reduced."
Conclusion:
"Analyst Views
Greg Poulton at Singer Capital markets rates the group’s shares as a Buy.
For the current year to end September he is estimating £21.2m of revenues and £2.1m of adjusted pre-tax profits.
He has a Price Objective out on the shares at 1.9p.
In the middle of January, the group appointed Dowgate Capital as a Joint Broker to the company, I now understand that it will be issuing a note on the group shortly.
My View – 1.60p Target Price Holds Firm
This little group has achieved excellent organic growth over the last three years, running at an average 24% per annum rate in that time.
And that long-term growth in its 87% annual recurring revenue will also help to boost still further its operating margins.
I consider that this little group has sensible ambitions in its future expansion.
It has a declared aim to grow to a £50m value within the next few years.
Against its £13.5m market capitalisation, a positive point is that it ended its 2023 year with £2.1m cash in the bank.
The recent bolt-on acquisitions that it has completed have all been accretive and I am sure that other smaller to medium sized targets are being lined up, certainly as the group steps up its M&A expansion phase.
The group has a good pipeline of potential business and as it gets its digitisation completed, I can envisage even more cross-selling opportunities being presented and being worked upon.
It would be sensible if moves were made to lose the current ‘penny share’ status, that could give it more investor credibility – which it certainly deserves.
The group’s shares, which closed at just 1.25p on Friday night, are a Strong Hold for existing shareholders and should prove to be a bargain for new investors."
News that Aldi is spending £550m this year expanding its store network, and wants to grow it's current 1,000 stores to 1,500. Which should be good for Shire:
Https://www.retail-week.com/grocery/aldi-commits-550m-to-bolster-store-network-in-2024/7045577.article
Great to see over 11m shares traded - and now the bid price up again to 1.35p, with buyers paying the full 1.4p offer price.
This share price should be at (say) 1.6p-1.7p imo in a relatively short timeframe, and hopefully back up to Singer's 1.9p target price.
Great to see the write-up in the Mail's Midas column.
REAT are simply very good value at these levels:
- they produced £2.44m of operating cash flows in the recent results, against a £13.1m m/cap
- recurring revenues are up to a huge 87%, i.e around £17m. Company valuations often value ARR at anything from 2 times up to say 5 or 6 - even at the lowest level this would still value REAT at £34m - itself a multiple of the current m/cap
- I calculate Singer's forecast EPS for this year to 30/9/24 at 0.156p, so at 1.25p REAT are on a current year P/E of just 8.0, never mind going forward on increased EPS forecasts
- cash flows and balances are more than sufficient to manage deferred consideration and are predicated to allow for further earnings-enhancing acquisitions
Today's RNSNON looks good - an actual first SABER purchase order!
Everything's progressing well in terms of build programmes, further testing, technology demonstrations etc.
And SABER's applications include "hydrocarbon production, geothermal energy, methane capture and CCS (carbon capture and storage)".
The CEO concludes with "This is another positive step along the road to full commercialisation of the SABER technology in a market that has a demand for this strong alternative method of steering while drilling":
Https://uk.advfn.com/stock-market/london/enteq-technologies-NTQ/share-news/Enteq-Technologies-PLC-SABER-Tool-Update/93252029
An impressive new NED appoinment announced this morning.
ITX certainly don't need more cash at present! So maybe there's some sort of corporate activity in the works, or perhaps this is just a strengthening of the company's credentials in anticipation of further growth to come and heightened investor/City interest?
Https://uk.advfn.com/stock-market/london/itaconix-ITX/share-news/Itaconix-PLC-Appointment-of-Non-Executive-Director/93241326
Great to see a couple of director buys reported today, particularly the CFO making his maiden purchase with 90,000 shares.
I always see CFO share buying as more interesting as (1) the CFO should know more about the company's finances than anyone and (2) they're normally the least wealthy of the directors by far.
Good to see in today's RNS that the new share option packages won't vest until a 24p share price has been achieved, which would be rather pleasant.
In addition, (1) the new options are exerciseable at 8p and not nil cost, and (2) almost all pre-existing share options have been cancelled.
Hopefully these are all signs that the new team mean business and are at least trying to recover investor confidence:
Https://uk.advfn.com/stock-market/london/getech-GTC/share-news/GETECH-Group-plc-Board-Changes-Grant-of-Share-Options/93220770
Firstly, Fundamental Asset Management hold RNWH in their portfolio, and their fund manager is very positive about RNWH in this new podcast - listen from around 15 minutes in:
Https://investorschampion.com/channel/podcasts/episode-4-of-the-investors-champion-podcast
Secondly, an Octopus Investment fund manager talks about some of his portfolio investments, RNWH included:
Https://www.youtube.com/watch?v=nMYlYyzim-E&list=PLUKFTWcWnEqA6qO0AHvBiULcN81WHDaN7&index=2&ab_channel=WealthClub
Also, it's relevant to see a rail recruitment industry specialist who works with RNWH's AMCO having a record results year and being similarly bullish:
Https://www.railmagazine.com/news/people/2024/02/06/rise-in-rail-recruitment-sees-specialist-expand-into-new-premises
"Coleman James partners with SMEs and PLCs in the rail industry, including AmcoGiffen (part of Renew Holdings PLC), VolkerRail, Motion Rail and RES Group.
"Much of our growth is aligned to recruiting personnel to fulfil CP6 infrastructure projects, particularly for Tier 1 and Tier 2 contractors," explained Andrew Mackay, Managing Director at Coleman James.
"We’ve built successful, long-term partnerships with SMEs, owner-led businesses and Plcs, particularly across telecoms, civils and signalling. For our next phase of growth, we’ll be targeting infrastructure companies on the CP7 framework as well as major projects across the rail industry, who share our commitment to deliver quality and value, through sustainable recruitment strategies."