Member Info for rivaldo

B. Riley have now raised their price target to $35 (from $27):

hTTps://www.streetinsider.com/Analyst+PT+Change/Gan+PLC.+%28GAN%29+PT+Raised+to+%2435+at+B.Riley/17995059.html?classic=1

This is surely very good news for Coolbet and thus GAN:

"In a highly anticipated move, Canada’s parliament on Wednesday approved wagering on individual sporting events, paving the way for eventual introduction in provinces and territories."

https://www.casino.org/news/canada-is-embracing-single-gaming-sports-betting-coup-for-thescore/

A reminder that the InvestorMeet AGM is starting at 11.00. I assume there'll be a chance to answer questions after the formal AGM business, but I'm not sure I've got anything left to ask :o))

Sage of Sidmouth, REAT are forecast - conservatively according to the brokers - to make £505k PAT this year to 30/9/21. The current m/cap is £9.5m. REAT have around £2m net cash, so the EV is actually only £7.5m.

Does a £505k current year net profit against a £7.5m EV seem expensive to you? It certainly doesn't to me. Particularly when REAT are likely to make earnings-enhancing acquisitions to further reduce those multiples.

Https://www.investormeetcompany.com/react-group-plc/register-investor

Finncap retain their 310p target today - I note they also state re today's news that "The company is also working towards filing an IND (Investigational New Drug) with the US FDA in 2021".

They summarise:

"CTA approval – moving to a clinical stage company

Confirmation that the MHRA has given CTA approval for Avacta to start its first clinical study with AVA6000 (pro-doxorubicin) is a major milestone - transforming the therapeutics business into a clinical stage company and further de-risking the pre|CISION™ platform. Having filed the CTA on 23 December 2020, this will allow Avacta to start a Phase I study in a range of cancers to establish safety, tolerability and early efficacy signals. COVID-19 restrictions permitting, Avacta is targeting first patient dosing in mid-year, which should generate first data in H2 2021.

We make no changes to forecasts and reiterate our SOTP target price of 310p, c.60p of which relates to pre|CISION platform. A successful Phase I outcome would see a substantial uplift in our target valuation"

The AGM statement today confirms continued good trading this year - with a further strong hint about on the likelihood of acquisitions:

Https://uk.advfn.com/stock-market/london/react-REAT/share-news/React-Group-PLC-AGM-Statement/84368704

"Mark Braund, Executive Chairman , will make the following statement at the AGM:

"REACT has continued to trade well since the period ended 30 September 2020 with profit and cash generation continuing to be stronger than the prior year. Margins and operational efficiencies have continued to improve.

The impact of the current COVID-19 pandemic continues to be unpredictable however we remain well positioned to support our customers' critical requirements and have a growing pipeline of business to execute on. We remain cautiously optimistic for the remainder of the year.

Our strategy remains to build a leading position across our business through organic growth and, if the right opportunities present themselves, via strategic acquisitions to support our goal of becoming the country's most trusted name in the provision of specialist cleaning, decontamination, and hygiene services."

Canaccord have just issued their first note out on RAI, with a Buy and an 80p target. An initiation of coverage note by a newly appointed house broker will generally be pretty conservative in nature in my experience, allowing for future upgrades. Especially with the 2020 results due in the next couple of months.

I believe there's large upside here given the growing order books. And we may be pleasantly surprised for 2021 with any significan deferrals of work from 2020. In the meantime I'm happy to hold too see the share price reflect the newly forecast 8.3p EPS for next year.

Here's an extract from the new note thanks to Gawain elsewhere:

"Robust cash outlook for 2021E

RA International (RAI) provides specialist facilities and support services in remote locations for international and multilateral clients. Its business is founded on a track record of delivery and integrity in some of the most challenging commercial environments in the world. Since listing in June 2018, its business has changed significantly: it has diversified its operating country exposure, increased its government and commercial customer base, increased the size of contracts it takes on, and has built a significantly stronger pipeline of recurring business. Despite the short-term challenges of COVID-19 on its business, we see the outlook for RAI as highly attractive going into 2021, due a step-change in free cash generation, an increasing share of high-margin recurring services in its earnings mix, and the multiple contract awards secured in 2020. In the short term there remain significant barriers to executing work due to COVID-19 related effects, and we base our valuation on a range that goes from minimal opening up in the short term, through to a top end which sees faster contract progression this year and rapid growth next. We initiate coverage with a BUY and a price target of 80p.

The numbers look like this:

FYE Dec 2019A 2020E 2021E 2022E

Sales (US$M) 69.1 63.4 59.6 87.8

EBITDA (US$M) 17.3 13.9 13.0 21.3

Net Debt (Cash) (US$M) (19) (11) (7) (14)

EPS Adj&Dil (p) 8.0 5.3 3.7 8.3

DPS (p) 1.3 1.6 1.7 1.9

P/E (x) 8.9 13.5 19.5 8.6

EV/EBITDA (x) 6.6 8.2 8.8 5.3"

New blog post FYI about cleaning post-pandemic:

Https://www.reactsc.co.uk/post/what-does-a-post-pandemic-future-hold-for-cleaning

Extracts:

"What does a post-pandemic future hold for cleaning?

Specialist cleaning for Covid-19 was reactive, but a post-pandemic future includes preventative cleaning regimes using barrier products."

"Specialist cleaning lessons learnt in the pandemic

It’s unsurprising that commercial cleaning is one of the industries that saw an increase in demand for services throughout the pandemic. The sector quickly adapted existing technologies and methods to cope with the new virus. We (and other companies) reacted to the uncertainty felt by all industries, and the enhanced cleaning protocols that Covid-19 demanded. Most professional cleaning businesses were forced to adapt to focus mostly on providing decontamination solutions and saw the demand for the regular projects drop off.

Thankfully, although incredibly infectious, the virus that causes Covid-19 is relatively straightforward to get rid of on surfaces, even in its new more infectious variants. As we know, hot water and soap is a simple way to kill it on human skin. And to eradicate it on hard surfaces, thorough deep cleans and fogging have proven efficient in eliminating the virus from a building. Here at REACT, we used tried and tested methods. Indeed, our robust infection control methodology consists of four steps: test, clean, disinfect, and test again."

"Specialist cleaning using barrier products can be a way forward

In this last regard, one critical development is adopting a preventative approach to cleaning using barrier products. Such innovations mean cleaning professionals can guarantee a long-term surface coating on which bacteria, viruses and other pathogens can’t thrive. Critically, regular cleaning and disinfecting does not immediately remove this barrier, and some manufacturers claim this protective layer can last for up to 90 days. By building the barrier coatings into the deep cleaning regime, and re-applying the coating regularly, cleaning professionals can provide reassurance to their clients."

Partly due I suspect to a huge 515,000 share buy earlier this morning at 165p.

Impressive news from SDI's Chell Instruments:

Https://www.chell.co.uk/news

"08.02.21
Chell Instruments Celebrate Smallest, Fastest and Most Accurate Range Ever

World-renowned gas measurement and control experts, Chell Instruments, have announced their MicroDaq, nanoDaq and nanoDaq-LT range now features the smallest, fastest and most accurate pressure scanners available on the market.

With over 25 products, Chell’s range now features products which they believe achieve the highest specifications in many categories. With more than four decades of development, the full scanner range has been designed to meet pressure scanning challenges in industries including aerospace and motorsport.

Nick Broadley, Managing Director of Chell Instruments, says “We’re thrilled to have developed our complete scanner range to include the smallest, fastest and most accurate pressure scanners on the market. All our products are designed for the very best performance and manufactured right here in the UK. It’s a testament to our engineering team that we’ve developed such a comprehensive range of products which lead in so many areas!”

Chell’s nanoDAQ-LTC-16 is the smallest available on the market. The compact pressure scanner measures only 50mm by 23mm by 9mm but has the same advanced calibration and thermal compensation as the rest of the nanoDaq-LT range. The intelligent scanner’s compact size means it can be used in challenging applications and environments with limited space and access.

Chell’s nanoDAQ32 holds the prestigious accolade of being the fastest pressure scanner available on the market. The miniature pressure scanner can produce fully compensated engineering unit data at a frequency of 4kHz per channel. Combined with its compact size, it makes it a powerful tool for dynamic applications such as wind-tunnel testing.

In addition, Chell’s microDAQ is still the benchmark for high accuracy pressure data acquisition. The ‘single box solution’ provides complete pressure scanning with outputs of over Ethernet and CAN. However, it does so with an accuracy level of better than 0.05% of full scale.

etc"

Excellent interview, cheers. Highlights for me:

- optimistic that 2021 results "should exceed our record results in 2017", which he quotes as revenues of €30m and €4.5m EBITDA
- cashew plant construction is "going well", with Q2 still the goal
- there's a "mass excess of raw cashews" locally
- DKL have apparently test-traded cashews for a couple of years already, which was news to me and sounds like very good planning
- a 15k tonnes capacity plant is being built, with room to build up to 30k tonnes annually
- cashew gross margins s/be much higher than palm oil, becoming " a bigger business" than CPO
- there could be over €4m of operating cash flow in this H1 alone given the high CPO prices
- the third commodity under discussion is now in external feasibility, for progressing in H2 and with excess local supply as per cashews.

Finncap retain their 310p target price today and summarise as follows:

"Positive initial data for SARS-CoV-2 lateral flow test

Highly encouraging positive initial clinical data from 56 PCR-confirmed clinical samples indicate 96.7% sensitivity and 100% specificity in patient samples where levels of virus (viral load) are considered would be infectious.

These data significantly de-risk the lateral flowantigen test development programme, bringing closer the prospect of significant revenues in 2021 and helping to accelerate commercial discussions regarding the roll-out of the test when it is approved for professional use (targeted by end Q1 2021). Avacta will now move into the full clinical validation of the test, manufactured at scale, at clinical trial sites already identified in the UK and Europe. We reiterate our 310p SOTP target price."

Wahey :o))

96.7%...and:

"96.7% for samples with a Ct value below 26. Importantly, out of a total of 26 negative samples tested with the lateral flow device, the test correctly identified all 26 as negative, giving a clinical specificity of 100%."

Coming to somewhere near you before the end of March....excellent news.

Wonderful stuff.

And they're able to state this with six weeks to go before the year end, so things must be looking very good indeed.

Especially as management here are generally prudent, i.e definitely not ones for overstating things.

Https://uk.advfn.com/stock-market/london/calnex-solutions-CLX/share-news/Calnex-Solutions-PLC-Trading-Update/84340024

Yep, great to see that late 100,000 buy at 2p.

Good to see less than £3k of buys causing a 3.5p move upwards this morning.

announced this morning:

"Surface Transforms (AIM: SCE) announces that the Company was notified on 11 February 2021 that Kerry Wood, who is a PDMR, purchased a total of 9,504 ordinary shares of 1p each in the Company ("Ordinary Shares") during the recent open offer. Following this purchase Kerry is beneficially interested in 377,600 Ordinary Shares. "

SCLP up to 26p :o)) HYG have 12m shares now worth £3.1m.....HYG's m/cap is only £2m with 8.1m shares in issue.

In summary, I calculate HYG have £1.5m cash,12m SCLP shares, plus essentially £200k each in Arecor and Fuel 3D and £120k in Insense Ltd.

Here are my full notes from the excellent presentation.

Management here really look like a "team", working together with the same goals and ambitions having transformed the company from the prior management.

This Q1 has been "the best quarter we've ever had". The £505k PAT forecast is "prudent and achievable". And those quotes are from the CFO, who's normally the most consevative member of the management team.

The cash pile is up to £2m now.

Acquisitions will be of a decent size - there's £3m of firepower including the invoice discounting facility, so there will be NO dilution – and will be earnings enhancing.

REAT’s markets are favourable as they’re fragmented and are consolidating, with lots of smaller operators.

The core business achieved excellent revenue and gross profit growth in the last year – despite the effects of COVID-19 on that core business and excluding the £441k COVID-19 revenues.

25 key customers have “huge untapped potential” for additional revenues. For example, one rail customer has grown from £550k revenues to £980k in one year. Another in a different sector has grown from just £13k to £475k in the same period. And an FM customer has grown from £45k to £170k with “more to come”.

Allenby Capital’s forecast revenue increase is described as “relatively moderate”.
It’s “very hard” for other cleaning companies to replicate what REAT do in contract maintenance.

Finding additional staff is easy as they’re plentiful – REAT don’t even have to advertise due to email applications. Staff churn is low. And top operators/specialists earn between £30k-£50k. Partner network revenues are a growing and valuable asset, but only around 20% of Reactive revenues, so relatively small at present. The average response time is only 3hours and 42 minutes.

As regards rail, REAT do NOT do the quick 10 minute turnarounds which would fluctuate with usage – they do the obligatory periodic deep cleans which have to be done regardless of passenger numbers.

The CEO and FD are not highly paid. They will get bonuses if the company does well, and are rewarded primarily via an EMI-efficient LTIP with share price hurdles up to 2.8p.

Taking the charitable view, one could argue that the sellers (1) took the chance to sell into big liquidity given that the the UK Government contract news was now out in the open, and (2) that with this news released this was one of the few windows in the year in which senior employees would be free to sell without insider restrictions, particularly prior to further contract news soon.

In addition, by far the major seller is the FD, who's generally the most poorly paid director by some margin. He still retains a large holding, but his sale is perhaps more understandable.

On the other hand, it's easy to take a more cynical view :o))

I'll continue holding as I prefer the wider picture, particularly with big news flow seemingly imminent.

Results will be out on Monday 1st March - only two weeks away:

Https://uk.advfn.com/stock-market/london/centralnic-CNIC/share-news/CentralNic-Group-PLC-Notice-of-Results/84332339

A Monday is often the day to announce good news (and Friday bad!). Given the confidence shown on 30th November in the 9 months' results, we can be pretty confident that these results will indeed reflect good news.

The results are on 18th March, so not too long to wait. We know they will be good from the trading statement, and the outlook should be very rosy judging from all we know.

Hopefully we'll see some buying interest before then in anticipation and then more following the prelims.