Member Info for rivaldo

The CPO price still moving back up - at $1,060 as of Tuesday, almost at the $1,070 or so seven year highs:

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

Strategic Equity Capital have been buying INSE, which is now a top ten holding for them at 5.2% of their portfolio:

Https://quoteddata.com/research/strategic-equity-capital-roots-qd/

"Other new holdings include Inspired Energy (inspiredplc.co.uk), a B2B (business-to-business) corporate energy procurement and consultancy business. This is a stock that other Gresham funds have been investing in since 2011. SEC supported a fundraise aimed at strengthening the company‘s balance sheet and provided it with the firepower to continue to consolidate its sector. Inspired Energy helps businesses manage their energy requirements, offering advice on areas such as procurement and sustainability, often dealing with complex businesses operating from multiple sites."

Excellent coverage on Citywire this morning:

Https://citywire.co.uk/funds-insider/news/the-expert-view-ssp-astrazeneca-and-science-in-sport/a1459641?ref=citywire-money-latest-news-list#i=6

"Wincanton is undervalued, says Peel Hunt

Balance sheet improvements have reduced the risks for logistics group Wincanton (WIN) and its 50% discount is ‘unjustified’, says Peel Hunt.

Analyst Alex Paterson initiated coverage with a ‘buy’ recommendation and target price of 385p on the stock, which closed up 2.8%, or 8p, at 293p yesterday.

‘Given the improvement to the balance sheet, significantly reducing the risk of additional capital requirements, and upgraded growth outlook, supported by robust current trading, we believe the stock is undervalued,’ he said.

The shares currently trade at just 9.5 times 2021 price/earnings and 8.9 times 2022 earnings, which Paterson said represented an ‘unjustified’ discount to peers of more than 50%.

‘We therefore initiate coverage with a “buy” recommendation and 385p target price based on 12 times 2022 price/earnings,’ he said."

Nice buy of 1,237,325 shares at 16p just reported delayed from yesterday.

Good to see Atik capitalising on their involvement in fighting COVID-19 with a webinar and a new primer explaining the necessity for imaging solutions:

Https://www.atik-cameras.com/news/exploring-imaging-solutions-in-life-science/

Hi Hollamatronic (good moniker!).

Why are only SCE and Brembo doing this? Because it takes years in the auto industry to research and perfect a product - and then more years and years to get that new product accepted into a new car programme due to safety regulations etc and finally implemented. That's why it's taken SCE so many years to get to this position on the cusp of global implementation - especially with Brembo already in place with sole supplier status.

But SCE's are now gradually being recognised as superior to Brembo's in performance, weight, ESG credentials etc etc - as well as cheaper in mass production.

Nice contract win yesterday - and the link with Morgan Sindall bodes well going forward:

Https://www.tclarke.co.uk/tclarke-wins-major-engineering-services-project-at-royal-devon-and-exeter-hospital/

"TClarke wins major engineering services project at Royal Devon and Exeter Hospital

2/2/21: Strong Growth in infrastructure continues with our success working alongside Morgan Sindall Construction to deliver an extension and improvements programme for the Emergency Department for this Devon hospital.

The works, which are phased to allow for continued operation of existing facilities, involve a new three storey 3,500 square metre building, including teaching facilities, eight new resuscitation bays, new plant room and a specialist children’s emergency department, with paediatric bays and a separate reception area.

Along with the Emergency Department improvements we have also been selected to work with Morgan Sindall Construction to deliver a new 4 storey plant room to serve the ICU.

Rob Faro, Director, UK South, commented:

“We have spoken about our ambitions to grow our healthcare business and we are delivering against those ambitions. TClarke has the specific capabilities that the NHS is looking for, including our substantial in-house offsite manufacture operation, expertise in smart and digital buildings, leadership in engineering towards net zero carbon and our proven strength and agility as a supplier.

“Congratulations once again, to our expert healthcare teams who are steadily building success upon success. We take nothing for granted and we will keep on working hard to earn and deserve these successes. This is another excellent project for us, delivering a facility of great value for local people.”

Brian Rice, Regional Director for Morgan Sindall commented:

“We have worked closely with TClarke over the last couple of years to design and plan these complex works at Royal Devon and Exeter Hospital, their attention to detail, engineering expertise, knowledge of healthcare environments, ability to deliver outstanding value and approach to open book collaboration is second to none and we are delighted to have them as part of our team”."

For the record, in December's issue when Techinvest made CNIC the first holding in their new portfolio they stated:

"we very much see CentralNic as a long-term holding given the strong niche the company is establishing in the rapidly growing market for global domain name services. We like companies such as CentralNic that are well positioned to build out from a strong defendable base".

And since the new issue of SCSW is out, this is what the previous issue had to say:

Https://www.scsw.co.uk/article.php?id=8791

"CentralNIC

(Sharewatch) CNIC has reported 9 month proforma results to end September (assuming acquisitions completed in H2 19 had been owned for the previous year to provide a better indication of run rate). On that basis, revenue went up 118% to US$169m and EBITDA by 68% to US$22.1m. Adjusted eps were up 23% to 6.7 cents. Organic growth was 17%.

CEO Ben Crawford tells me that the fastest growing segment of CNIC’s business is Monetisation, which is for the first time presented as a separate segment. Team Internet’s spiders allow it to analyse a parked domain’s traffic and place an advertisement (Google is the biggest customer and other bidders are Amazon and Braintree). When someone clicks, the advertiser is charged. CNIC’s take (my guesstimate) from every US$100 spent by an advertiser is perhaps 15%, with 45% to the domain owner. Google keeps 40%. On a pro forma basis, Monetisation ballooned by 39% to US$72.9m of revenues driven mostly by the rollout of Team Internet’s patented SSL Parking technology (basically certifying that the website is the right one for the domain, which improves traffic).

Post the period end, CNIC bought Codewise, a similar businesses to Team, for US$36m. Codewise means it now has “a full stack” (see Tremor - which is an even classier buy), providing the opportunity to widen the margin as it sells direct to publishers and buys direct from domain owners. Strong hold/buy."

£2m contract award yesterday to AmCo for culvert inspections and engineering works, for completion befoe the end of March:

Https://bidstats.uk/tenders/2021/W05/744161554

Brief interview with the CEO. Most already known, but two fresh points which stood out for me:

- they expect to make acquisitions in this H1'21 (one aborted transaction last H2)
- this winter has been cold, and continues to be so, which should increase demand

Http://www.proactiveinvestors.co.uk/companies/news/940009/inspired-energy-highlight--strong-order-book-revenue-giving-forward-visibility-for-business--940009.html

"Inspired Energy highlight 'strong order book revenue, giving forward visibility for business'

Inspired Energy PLC's (LON:INSE) Mark Dickinson speaks to Proactive about their latest trading update, highlighting the increase of their corporate order book.

He says given the current circumstances, this is a 'fantastic result' with the order book increasing to £63,0mln from £57.5mln at the end of 2019.

Dickinson highlights strong customer retention and significant new customer wins.

He also explains their new strategy after the company sold off their price comparison segment to focus on ESG services and the group's Energy Optimisation Services businesses."

Miles McNulty has highlighted DKL today as one of several "UK micro-/small-cap pure-play producers, whose underlying commodities are at/near multi-year highs".

He has quite a following, so we may well find some new interest here:

Https://twitter.com/MylesMcNulty/status/1356569253558816769

...or even "tipped" overnight :o))

CAPD have put the full tip online here:

https://twitter.com/_CapitalLimited/status/1356127927960653824

"Capital Limited @_CapitalLimited ·Feb 1

A positive Buy recommendation from David Thorton of @growthcompany

. David highlights positive market conditions, our stable revenue base from long-term contracts and growth of non-drilling revenue, together with revenue upside of expansion into mining services. #CAPD"

They say Buy and conclude:

"Cheap on a 2022 P/E of 6.5x and 3.5% yield".

The tip seems to have brought in interest with some buying this morning. Hopefully more to come.

The updated major shareholder list post-placing is worth a look - this represents almost 63% of the shares in issue.

Quite a stellar list of holders, with Slater and BlackRock at the top:

Shareholder Number of shares held % issued share capital
Slater Investments 19,121,431 15.2%
BlackRock 10,287,191 8.2%
BGF Investment Management Limited 9,581,824 7.6%
Hargreaves Lansdown 7,470,972 5.9%
Directors 6,440,937 5.1%
River & Mercantile Asset Management LLP 6,437,200 5.1%
JO Hambro Capital Management 5,555,000 4.4%
Close Brother Asset Management 5,538,410 4.4%
Stonehage Fleming 5,093,438 4.0%
Chelverton Asset Management 3,778,000 3.0%

Peel Hunt have raised their forecasts to 6p EPS this year (from 5.3p). That's a current year P/E of just 10.8 - and less if you strip out the net cash.

In a fit of exuberance they've raised their target price to 70p! This despite there being 77% of this year's revenues already secured, the likelihood of acquisitions, the rebound from COVID for Energy Services, the period already being almost halfway through, etc etc....

I suspect either or both that the share price will soon overtake this target, and that the target itself will probably be steadily increased after the March AGM etc:

Https://www.proactiveinvestors.co.uk/companies/news/940092/sureserve-makes-strong-start-to-new-year-940092.html

Extract:

"Peel Hunt ups estimates, target price, repeats 'buy'

In a note to clients, City broker Peel Hunt raised its estimates and target price reiterated a 'buy' rating on Sureserve.

Analyst Andrew Nussey said: "Momentum in Compliance remains impressive with EBITA +40% to £11.8m and margins 8.6% vs 6.4% (benefiting from its exposure to essential services and engineer productivity). As expected, Energy Services were impacted by project deferral (lockdown restrictions) with revenues reducing 27% and profits falling to £0.8m (vs £4.3m).

"The outlook is upbeat with an attractive order book of £356m (+7%) – providing 77% FY21E revenue visibility. We increase our September 2021E PBT from £10.4m to £11.7m to give EPS of 6.0p from 5.3p. Trading on 10.3x revised September 2021E, the shares continue to offer value and we increase our target price from 60p to 70p."

The 36 minute Hardman presentation is now available to watch here on Youtube:

Https://www.youtube.com/watch?v=TZ_h2NvKELs&feature=youtu.be

Nice to see an early 100,000 buy at 1.79p - well above the 1.75p published offer price. Keen.

Over 27m shares traded and 13% up on the day - let's hope the momentum continues.

Nice summary by Mark Watson-Mitchell:

https://masterinvestor.co.uk/equities/fonix-mobile-charging-to-your-mobile/?mc_cid=c0dc0f36ba&mc_eid=8bcbf5f078

"What do Cancer Research, Comic Relief, Children In Need, Sport Relief, The Big Night, Fishing TV, Global Media, Zing Flowers and The National Trust all have in common?

The answer is Fonix Mobile (LON:FNX). All the above utilise this group’s platforms to enable the user base of their supporters to seamlessly charge donation payments through to their mobile phone bills.

etc"

Here's Cenkos' research update summary from yesterday for the record:

"Venture Life Group has announced a trading update for the year to December 2020.

The company expects revenues to be up 49% to £30.1m and adjusted EBITDA to be at least £6m, up over 100% YoY and indicating a margin of c20% over 500bps up on FY19A’s c15%. These results highlight an exceptional year for the company despite the pandemic. With a balance sheet strengthened to enable targeted acquisitions to build on the double-digit revenue growth we forecast for FY21E, we believe the year ahead should be another exceptional year for the company. We reiterate our Buy recommendation.

?FY20E – Venture Life expects to report FY20E revenues of £30.1m, up 49% YoY and in-line with our pre-update £30.3m forecast. Adjusted EBITDA is expected to be at least £6m, in line with our forecast £6.0m, which we have kept unchanged.

?Revenues – The company states that there were no further shipments of products to China in H2/20E, but that shipments will resume in H1/21E, as such we believe that a certain amount of revenues may have been deferred from FY20E into FY21E. This being the case, it would also indicate stronger than expected revenue generation from product sales outside of China and from third-party brand manufacturing.

?Acquisitions – Acquired at the start of 2020, Venture Life notes that PharmaSource revenues grew through the year despite the pandemic and they have achieved a number of synergies to date. We expect that following the recent fund raise, announced in Nov-20, further acquisitions will be completed through 2021E.

?Forecasts – We have updated our forecasts in-line with the FY20E trading update and given the minimal adjustments have kept our FY21E forecasts unchanged. For FY20E we lowered revenues by £0.2m and offset this at the gross profit line, given the larger proportion of higher margin Venture Brand revenues expected in FY20E.

?Investment thesis – Venture Life has delivered a strong growth year despite the COVID-19 pandemic. Including the PharmaSource acquisition completed in January, Venture Life has delivered 49% revenue growth and an adjusted EBITDA margin up c500bps on FY19A. With further acquisitions set to add to our forecast c11% organic revenue growth for FY21E, we expect another strong year ahead and see the current valuation offering an attractive opportunity. We reiterate our Buy recommendation."