RE: Tipped overnight by Simon Thompson in the IC17 Nov 2021 08:55
I particularly liked from ST's article the following extracts confirming new info on patents, antenna customer wins etc:
"MTI has recently won blanket orders worth US$0.85m from two key customers for 5G backhaul antennas, and Borowitz notes the majority of the telecoms industry’s investment in 5G is yet to come. As a key supplier to the major mobile network radio suppliers, he views the sales opportunity as significant.
Borowitz also revealed during our results call that MTI has registered a patent for a new smart 5G antenna that is creating interest among the large telecom groups.
In addition, MTI has signed up five new customers for its military antenna business which “opens the doors for systems houses, a good sign for future orders”.
MTI’s Summit electronics division, which represents 40 international suppliers of radio frequency/microwave components, has grown revenue by 16 per cent to $10.5m this year, buoyed by high levels of government spending on defence. The unit
accounts for 40 per cent of group operating profit. Importantly, MTI has signed a three-year strategic agreement with a large, long-term customer operating in the defence sector. The arrangement will speed up interactions between the two companies, make transactions more efficient, and help grow sales. The customer currently places orders for $4m of components, so is significant."
"Allenby Capital pencils in a 2021 net cash pile of $10.4m rising to $12.2m (10.3p a share) in 12 months time – the shares are rated on 18 times cash-adjusted forward earnings, a modest rating for a technology company. A prospective dividend yield of 2.7 per cent and potential for MTI to make earnings-accretive acquisitions are supportive of my 100p target, too. Buy"
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