Member Info for rivaldo

Numis reiterate Buy with a 900p target after yesterday's AGM update, and Shore Capital also say Buy:

Https://www.sharecast.com/equity/Renew_Holdings/broker-views

Peel Hunt have reiterated their Buy with a 900p target:

Https://citywire.com/funds-insider/news/expert-view-virgin-money-vodafone-games-workshop-renew-strix/a2408163

"Peel Hunt: Renew is a key engineering pick

Engineering group Renew (RNWH) is benefiting from multiple growth opportunities and compounding cashflows, says Peel Hunt.

Analyst Andrew Nussey retained his ‘buy’ recommendation and target price of 900p on the stock, which slipped 0.5%, or 3p, to 729p yesterday.

A short update from the group for its annual general meeting confirmed trading was in line and the order book was growing.

Nussey said the outlook for the group was positive ‘given the structural growth drivers, specialist capabilities, order book visibility, and proven ability to manage inflation and skills pressures’.

He said he ‘confidently’ retained his recently increased 2023 pre-tax profits estimate of £61.5m.

‘The September 2023 estimated price/earnings ratio of 12.1 times fails to reflect the quality of the compounding cashflows as well as the multiple growth opportunities afforded by the sector-leading balance sheet and management team,’ said Nussey.

‘Renew remains a key sector pick.’"

I'd also comment that the Puma fund manager's commentary I posted earlier is understated given RNWH's high profile in fast-growth infrastructure areas like nuclear, water management/flooding, 5G, highways, EV charging, rail electrification etc.

RNWH are the second largest holding in Puma's AIM Inhertitance Tax Service Fund, at 6.9% of the portfolio.

Their Q4'22 factsheet just issued has a spotlight feature on RNWH. The conclusion (see below) is interesting.

The Fund Manager above states that a P/E of 16 is too low for RNWH. Since at 740p RNWH are actually on a historic P/E of only 12.7 based on 58.3p EPS to last September, that would equate to a minimum share price target of around 950p:

Https://www.pumainvestments.co.uk/img/repeater/d40c5e52ee.pdf

"Valuation

Renew has a high return on capital and stable profit margins, however the lower growth nature of its industry and its lower profit margins, warrant a lower rating than businesses with similar returns on capital. Nevertheless, a P/E multiple of 16 and a free cash flow yield of 8% appear too low for a business that has had an earnings-per-share CAGR of 18%
over the past 11 years."

Danske Bank are still buying strongly - they now own over 8%, or 8.285m shares.

Per SDI's web site they had 6.98m shares at 23/12, so they've bought around 1.3m shares in just over a month:

Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Holdings-in-Company/90111231

Good to see today's rise. Last year's year end trading update was 14th February, so not long to wait.

MWE have around 5p per share of cash, so with 4.4p EPS forecast this year by Allenby MWE are on an ex-cash P/E of only 10.1.

Which seems very low imo given MWE's involvement in it three sectors of water management, 5G/telecoms and defence.

There's also a new article by Mottech about using Climate-Smart Agriculture to mitigate energy use in irrigation etc:

Https://mottech.com/news/the-role-of-climate-smart-agriculture-in-the-fight-against-global-warming/#

The price is moving up again with 10.2p being paid to buy. Hopefully the sizeable director buying will attract further attention here.

Excellent post Agricore, cheers.

N+1 Singer have retained their 72p target price and 4.1p forecast adjusted EPS for 2023, whereas Cenkos forecast 6.02p adjusted diluted EPS for 2023.

The two forecasts are always some way apart for some reason, presumably because of differing treatments for amortisation.

Whatever the case, VLG now looks very good value on either measure!

Interesting to read in Edison's new note that CNIC trades at an average discount on EBITDA of 65% to its Online Marketing peers. I note that GoDaddy's current EV/EBITDA is 23.1 compared to CNIC's historic 6.7 and 2023's 6.0.

Which would value CNIC at 400p.

At these attractive levels it's surely just a matter of time before one of the sector behemoths comes in with a bid for CNIC.

More Location One expansion announced today with new branches at ADF's baes in Longcross and Bridgend, which should help with cross-selling, operational synergies etc:

Https://uk.advfn.com/stock-market/london/facilities-by-adf-ADF/share-news/Facilities-by-ADF-plc-Location-One-opens-Longcross/90106694

Hopefully a trading update coming soon, perhaps the week commencing 13th February given last year's update on 11th February. The acquisition of Location One on 1st December will have complicated matters as regards the year end figures, so may have pushed back the finalisation somewhat.

Good to see Shore Capital raising their forecasts for 2023 by 7%, noting that there should be an £88m cash pile and that there could be further upgrades with March's figures:

Https://www.proactiveinvestors.co.uk/companies/news/1004839/accesso-technology-group-a-buy-say-shore-capital-analysts-1004839.html

“If momentum continues into the first quarter, the forecasts could be considered overly cautious and Shore plans to review its figures alongside further detail in March,” said the analysts."

Liberum have replaced Zeus, who were only in place for ten months.

I suspect this management team are ambitious, and Zeus haven't done much for the share price despite SYS having traded well and made acquisitions. Hopefully Liberum will do the trick.

She certainly chooses her employers well as for example both Halma and Acal (now Discoverie) have been terrifically successful:

Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Board-Appointment/90106675

An encouraging AGM update - can't ask for more than that at this stage. Everything's trading well and with "momentum", giving confidence ahead.

The key takeaway is that the order book is absolutely storming ahead - it's now £861m, compared to £775m at 30th September. A rise of 11% in just four months is extremely impressive:

Https://uk.advfn.com/stock-market/london/renew-RNWH/share-news/Renew-Holdings-PLC-AGM-Statement/90106599

Berenberg say Buy and have a 250p price target - a mere 75% upside :o))

Https://www.sharecast.com/equity/Centralnic_Group/broker-views

The maximum shares you can buy online is now just 5k after a 7,500 share buy at 90p reported after the close yesterday.

SUR's Everwarm are part of a £30m-£35m Leicestershire Council framework contract win "to deliver a programme of domestic retrofit – Green Homes Leicestershire – securing a range of funding streams to deliver energy efficiency and renewable energy installations to social rented, private rented and owner occupied properties across the county":

Https://bidstats.uk/tenders/2023/W01/790036880

Good to see TST recommended for this new contract win by a third party:

Https://www.touchstar.co.uk/blog/hd-group

"On the recommendation of Minster, HD Group selected TouchStar’s TS8200 handheld as the mobile computing technology to support the real time data capture in the new operation. The new handhelds will equip warehouse operative with advanced scanning capability, help identify and track goods within their fulfilment process, capturing accurate stock information that together with Minster, will help support an efficient and flexible operation."

"Kerry continues, “Since the system went live, we are excited by the numerous operational benefits the technology is starting to deliver. The support we have received from both companies so far has been excellent, and we look forward to the potential benefits the system will be able to offer us as we continue to grow our operations.”

...and also a good RNS this morning from CAPD's point of view from long-term client Resolute Mining re Syama:

Https://www.investegate.co.uk/resolute-mining-ltd--rsg-/rns/december-2022-quarterly-results-and-cy23-guidance/202301310700013802O/

"I am pleased to report that Resolute has recorded its fifth consecutive quarter of increased production, closing out a productive year for the Company with 353,069oz gold poured, exceeding our 2022 guidance of 345,000oz."

"Total exploration spend for the December quarter was $3.9 million, with intensive drilling programs continuing in Syama throughout the Quarter. The full year exploration expenditure was marginally higher than the $15 million guidance due to accelerated drilling at Syama North in the December Quarter based upon the positive results being returned."

"The Syama North gold deposit remains open down-dip over the entire 6km strike length. Diamond drilling is ongoing and expected to continue throughout 2023 to extend and increase Mineral Resource confidence in the deposit."

Edison have a new note out. They've raised their forecasts in line with the update, so here's their forecasts - Edison's are well below Zeus's for some reason, but CNIC are still ridiculously cheap on either measure:

last year : 18c EPS (Zeus 19.9c EPS), i.e 14.63p EPS
this year : 19.4c EPS, (Zeus 21,3c EPS), i.e 15.8p EPS

I also note that Edison forecast net debt to reduce to a mere $2.8m at the end of this year:

Https://www.edisongroup.com/research/unphased-by-challenging-environment/31906/

Tipped in the Telegraph once again - this time recommending SDI as one of two new stocks which readers should buy for their Inheritance Tax portfolio:

Https://www.telegraph.co.uk/investing/shares/two-new-stocks-determined-avoid-stung-inheritance-tax/

"Two new stocks for those determined to avoid being stung by inheritance tax

Questor Inheritance Tax portfolio: these stocks have special appeal for those who want to pay less inheritance tax
By Richard Evans 27 January 2023 • 7:31am

Today we will carry out a small-scale refresh of our Inheritance Tax Portfolio: following a cull of four holdings in October we will add two new ones. We’ll also update on some recently added stocks as well as on one that dates back longer.

New holdings: Premier Miton, SDI

These are both stocks we have already tipped for the general readership, as opposed to those who specifically want shares likely to be exempt from inheritance tax.

We named Premier Miton, the fund management company, as our stock tip of the year on Jan 11 and recommended SDI, which makes scientific equipment, two days ago.

We believe (although one can never be 100pc sure) that both qualify for “business relief”, the tax break that gives rise to inheritance tax exemption, so we add both to our IHT Portfolio now.

Questor says: buy

Tickers: PMI, SDI"