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This should bring in further interest today.

Mark Watson-Mitchell's 18 to 20 times earnings target would give a share price range of 155p to around 172p - not far off Berenberg's new 180p target:

Https://masterinvestor.co.uk/equities/small-cap-round-up-featuring-centralnic-journeo-safestyle-uk-and-more/

"CentralNic Group (LON:CNIC) – strong second quarter gives encouragement, a purchase for any growth portfolio

On Monday of this week, this global internet services group announced a very positive first-half trading update.

It appears that the company, which derives significant recurring revenues from selling domain names and providing services, saw its Q2 revenues rise strongly.

A 63% jump in revenue to around $174m is anticipated by the company. The reason that its revenues are reported in dollars reflects the group’s totally global business spread.

That in turn leads its broker and NOMAD Zeus Capital to anticipate $348.4m of group revenues for the full year to end-December.

Their analyst Bob Liao reckons that there will be profit upgrades before the year end.

He currently has EBITDA estimates for this year showing $41.4m against $30.6m last year, worth some 10.4c per share in earnings.

Over at Edison Investment Research its analysts Richard Williamson and Russell Pointon are expecting to upgrade their estimates after the interim results are announced on Tuesday 31 August.

Interestingly, they are currently going for only $323.4m of revenues this year, with $39.5m of EBITDA and $26.7m of pre-tax profits, worth 9.93c per share in earnings.

I will just let the analysts fight it out between themselves – for my part I am convinced that this £222m capitalised group has significant and strong revenue and profits growth ahead of it over the next few years.

Its shares at just 96.5p are trading at less than 13 times current-year earnings – that is far too low a rating, especially considering the valuations that the market puts on other less strong groupings who do not have anywhere close to 99% annual recurring revenues.

I would have thought that 18 to 20 times earnings would be closer to a proper value for these shares. I have already predicted that they will trade at 125p/150p within the next couple of years – so take your own view now and decide whether they are going into your growth portfolios."

On the move now - and buyers paying the full 85p offer price.

More very good news from SUR's Twitter account that KT Heating has won a contract for domestic heating contractors for London and the south east for PA Housing...this link indicates that this is, if not RNSable, quite a big deal nevertheless:

Https://www.pahousing.co.uk/latest-news/2021-july/introducing-kt-heating/

"2021 - July, Latest news
We’re very pleased to announce that from 1 August 2021, K&T Heating have been appointed as our domestic gas heating contractors in London and the South East."

"Who we are

We are a registered provider of social housing offering more than 23,000 homes across the Midlands, London and the South East with a range of housing solutions from affordable rent, independent living and shared ownership for those in need."

Excellent - the Chairman's just bought a maiden stake of a chunky 100,000 shares at 82.47p....

Https://www.investegate.co.uk/sureserve-group-plc--sur-/rns/director-pdmr-shareholding/202107281427587985G/

The CPO price is rocketing back upwards towards those multi-year highs......

Https://www.rea.co.uk/websites/reaholdingsplc/English/2450/cpo-price.html

Buyers paying the full 83p offer price or thereabouts now. Looks like the overhang has cleared. Ready for another surge perhaps....

Good to see the share price bouncing somewhat. There's every reason for confidence from here imo given:

- 7.6p EPS forecast this year, i.e a P/E of only 16.6, which is extremely cheap for the sector
- a 5.1p dividend for the year just gone, rising to 5.7p for the current year. i.e a 4.5% divi yield
- news soon about overseas expansion into Austria and then elsewhere
- 100% client retention and 13% growth in active client numbers over last year

Excellent coverage as ever by the Private Punter:

Https://martinflitton1.wixsite.com/privatepunter/post/sbi-on-track-27-07-21

Good to see Liberum retaining their forecasts, i.e expecting 60.4p EPS this year, with a year end cash pile of over £51m against the £122m m/cap.

Today's H1 trading statement was excellent.

Against a £122m m/cap, SBI now have £17m net cash (rising fast as above) and achieved £11.2m adjusted EBITDA in just the first 6 months.....

SBI have confirmed they're trading nicely in line. The non-Covid businesses are now all trading normally, and COVID testing is booming - 9,000 tests are now being carried out every day, expected to grow to 20,000 and possibly more.

And "with significant growth anticipated in second half" SBI are suitably bullish going forward.

Extremely undervalued now?

which reads rather well.....upgrades likely in August:

Https://www.edisongroup.com/wp-content/uploads/2021/07/CentralNic-Group-Sustained-growth-benign-outlook.pdf

"CentralNic has continued to trade strongly, both during lockdown and afterwards. Benefiting from its FY20 investment programme, the company delivered 9% organic growth in FY20, 16% in Q121 and now 25% organic growth in Q221, with contributions from all business lines. As a result, management expects to deliver revenue for the year ‘well ahead’ of market expectations, with profits ‘in line’ with consensus. As investment normalises, management expects future periods (we interpret this to mean FY22 and beyond) to benefit from increasing operational leverage. CentralNic’s shares trade on an undemanding FY21e EV/adjusted EBITDA of 9.9x and P/E of 13.5x, which does not appear to reflect the growth the group delivered over lockdown in FY20 or its future prospects. We intend to review our estimates with the H121 results due on 31 August 2021."

The full Berenberg initiation note from 22nd June is now available to view for free - it's excellent and is very long!

Https://melloevents.com/wp-content/uploads/2021/07/CentralNic-Berenberg-Initiation.pdf

Lovely finish yesterday, with a closing buy at 760.04p.

It's not surprising to me that there's a re-rating going on. RNWH are in a lovely sweet spot now, with terrific defensive qualities on the one hand, yet also deep involvement in a number of fast-growing sectors all earmarked for large government/regulated/infrastructure investment over the next 5-10 years.

Good to see Simon Thompson tipping KAPE overnight:
Https://www.investorschronicle.co.uk/ideas/2021/07/26/bargain-shares-building-momentum/

Apparently he reaffirms his 375p price target, and he also talks about M&A activity in the sector, in which Kape could be a potential bid target.

From my own perspective, there's plenty of headrooom for another sizeable acquisition, and this isn't a management who are likely to stand still for long.

KAPE's current multiple is ridiculously cheap for its sector, particularly when taking into account the impact of the Webselenese acquisition, which can only be judged in full next year.

The forecast for 2022 is 32.4c EPS, i.e 23.7p EPS. A P/E of 20-25 for the sector would still be relatively good value, but would see a share price between 474p-593p.

Another earnings-enhancing acquisition would raise these targets even further.

Buying coming in at 752p-754p now.

Cheers oogleflugal, will have to find it.

Berenberg recently initiated coverage of CNIC with a Buy and a 180p target price. Today's excellent update should at the least reinforce that stance, but being a much bigger pan-European house their research isn't available to PIs on Research Tree etc. More digging necessary!

PDI are up another 6.7% overnight to A$0.16....so this holding alone is now worth around £12.1m against CAPD's current £154m m/cap.....

The whole listed & unlisted investment portfolio must be approaching $40m, which is close to 20% of the market cap at the moment - and that's even before taking into account CAPD's cheap P/E based on the core drilling business:

Https://www.google.com/search?client=firefox-b-d&q=quote+%22predictive+discovery%22

Zeus Capital have raised their revenue forecasts by 15%, and "conservatively" left their profit forecast unchanged "as the company continues to invest for growth".

They conclude by anticipating profit upgrades later this year:

"Valuation:

CentralNic’s organic revenue growth is accelerating and we see this
potentially leading to profit upgrades as we approach the end of the year.

Furthermore, we expect more of top line growth to translate to profit growth as
the company’s investment levels plateau in future years. As a result, we see an
increasingly strong profit growth profile for CentralNic. This outlook is not reflected in its earnings multiples, which appear to assume marginal growth.

Shares trade at only 9x our conservative 2021 EBITDA estimates and 8% FCF
yield."

A very encouraging H1 trading statement.

Revenues are way ahead of Zeus' and Edison's expectations, and profits are expected to be "comfortably" in line for the year as a whole, which I interpret as CNIC saying that at this stage they're being conservative, but the year end could see them slightly ahead or more despite all the investment for growth which is being made at present.

Cash flows are excellent as ever, with net debt reducing slightly despite the acquisitions etc and operating cash conversion "again well in excess of 100%":

Https://uk.advfn.com/stock-market/london/centralnic-CNIC/share-news/CentralNic-Group-PLC-H1-Trading-Update-and-Notice/85661625

Great new article on FNX by Martin Flitton, aka the well-respected Private Punter in the Cambridge News - I like the sound of the "multi-billion pound" markets to go for and the impending international expansion. And all on a very low P/E for the sector with a 5% plus dividend yield to boot :o))

Https://martinflitton1.wixsite.com/privatepunter/post/fonix-ticking-the-boxes-22-07-21

"FONIX - TICKING THE BOXES - 22/07/21

There was a Trading Update yesterday morning from FONIX Mobile, a fairly recent newcomer to the AIM, where having bought the shares soon after its IPO, I added further at £1.28p earlier this week.

That could perhaps have been perceived by some as a leap of faith, given that the shares had retraced from a peak of £1.90p implying that there may be something ominous on the horizon.

As it transpires, the update in this writer’s view was both positive and upbeat, suggesting that at the current price of £1.25p and with a market cap of £129m, the shares represent very good value.

With Fonix - which is a mobile payments platform business - you have a growth stock that enjoys strong cash generation with the added attraction of a progressive dividend policy in place.

The latter is providing a decent yield on the back of a total 5.2p payment for the year ended, which then moves to an anticipated 5.7p for 2022 which is somewhat rare across the space.

Yesterday’s update stated that the financials were comfortably in-line with expectations with total payment volume growing by 10% to £233m.

Importantly, expansion has continued with no churn experienced and it now has over 100 active customers across sectors including media, gaming and charities.

There was also some welcome news on its expansion plans away from its core UK market, which is an area that could really assist in the growth ambitions ahead.

This sees Fonix revealing that it has established its first overseas operator connections with a pending launch in Austria which should be followed by another European territory relating to service launches.

Looking at the last in depth FinnCap note, the adjusted EPS figure for the coming year 2022 is currently set at 7.6p which sees the stock trading on a forward PER of 16, which looks very good value for a growing company that is seemingly well placed to extend its footprint.

etc"

Excellent new coverage on Pro-active Investors - not just over 100% to Berenberg's 180p target price, but also "a price target multiple times higher than the current share price of CentralNic” given its sector comparators' ratings.

Here's part 2 of the article:

Https://www.proactiveinvestors.co.uk/companies/news/955597/centralnic-group-should-be-a-doubler-berenberg-is-convinced-955597.html

"“Overall, this business makes the ad market more efficient by connecting buyers and sellers of ads (especially in niche categories) and CentralNic takes a circa US$0.15 revenue share for this service,” Nagaraj wrote, with the industry-leading software using machine learning to match advertisers with high-conversion users, helping them meet their revenue target, with 24/7 recurring revenues for the AIM-listed company.

As for the valuation, applying peer multiples of leading domain businesses of around 25 times underlying earnings (on a ratio of enterprise value to EBITDA) and adtech firms around 40 times EBITDA, “investors could easily justify a price target multiple times higher than the current share price of CentralNic”, which has trades at around nine times EBITDA.

Therefore, despite the recent rise in share price to 89p, there is still circa 100% upside to the broker’s 180p target price."

Excellent new coverage on Pro-active Investors - not just over 100% to Berenberg's 180p target price, but also "a price target multiple times higher than the current share price of CentralNic” given its sector comparators' ratings:

Https://www.proactiveinvestors.co.uk/companies/news/955597/centralnic-group-should-be-a-doubler-berenberg-is-convinced-955597.html

"CentralNic Group should be a doubler, Berenberg is convinced

Some of the pushback from investors has been about why the shares are therefore so cheap, for which the answer is the company is “not well understood”

The bank hosted a ‘fireside chat’ with the company to address pushbacks and queries from investors after a previous note that identified CentralNic as one of the top three shares to buy in the networking and communications subsector.

“We remain convinced about our thesis and we think the stock can materially re-rate once the online marketing segment prints high-teens growth for a few more quarters,” said a note from Berenberg analysts Bharath Nagara and colleagues.

Setting out their thesis, the analysts said virtually 100% of CentralNic’s revenue is software-as-a-service-based recurring revenue, with its legacy business of selling domain names growing organically at circa 6% annually.

“To this, we add what the market is completely missing: 1) the potential to cross-sell more value-added services, which can effectively double the top-line growth for the domain businesses; and 2) the new online monetisation business, which has the potential to grow at 20% annually and add c35% upside to our base-case 2023 EPS.”

Some of the pushback from investors has been about why the shares are therefore so cheap, for which the answer is the company is “not well understood”, being made up of a number of smaller businesses that are themselves difficult to understand.

As the company’s origins were in selling exotic, non-dotcom, domain names, investors had been sceptical about its long-term success, but the analysts said the entry into long-term contracts with fixed price increases and pass-through agreements means CentralNic’s wholesale business “today sells virtually every domain name in the world”, while the retail business can breach higher margins through selling certain sought-after names.

Answering other pushback related to the ad business, the analysts first explained that 75% of the online marketing business provides software that allows advertisers to acquire specific customers online for a target budget, with the remaining quarter coming from software that monetises websites of expired companies – known as parked domains – with ads."

Up 6p today, and moving up each time on any decent buying. Looks like our overhang has cleared.....