Member Info for rivaldo

The IC have today screened the entire market using the stringent criteria below.

Only seven AIM companies pass all nine tests (and none atall from the large caps). RNWH are one of them:

Https://pdfs.investorschronicle.co.uk/IC_AlphaScreen_Quality_010221.pdf

"AlphaScreens: the quest for quality
1 February 2021
Aim stocks lead the way in this month’s screen

The holy grail for buy-and-hold investors is to find a business that is capable of generating a high return on capital and sustaining it while reinvesting profits. This screen looks for shares that display these quality characteristics and can potentially deliver significant compounded returns over time"

"?An operating margin higher than the median average (mid-ranking) stockin each of the past three years (i.e. quality that shows some signs ofpersistence).
?A return on equity (RoE) higher than the median average (mid-ranking)stock in each of the past three years (i.e. again, quality that shows somesigns of persistence).
?RoE higher than it was two years ago (i.e. quality is improving as well aspersistent).
?Operating margin higher than it was two years ago (i.e. quality isimproving as well as persistent).
?A dividend-and-debt adjusted price/earnings growth (PEG) ratio belowthe top fifth of stocks screened (ie stocks must not be too egregiouslyexpensive for the growth on offer).
?A price/earnings (PE) ratio above the bottom 10 per cent of stocksscreened and below the top 10 per cent (i.e. not a suspiciously cheap ordangerously expensive valuation).
?Interest cover of more than five (i.e. high RoE is not overly dependent onthe use of debt).
?Forecast earnings growth for each of the next two financial years.
? Positive forecast free cash flow"

The IC have just screened the entire market using the stringent criteria below.

Only seven AIM companies pass all nine tests (and none at all from the large caps). MWE pass 8 out of the 9 and are a terrific 9th out of all the companies:

Https://pdfs.investorschronicle.co.uk/IC_AlphaScreen_Quality_010221.pdf

"AlphaScreens: the quest for quality
1 February 2021
Aim stocks lead the way in this month’s screen

The holy grail for buy-and-hold investors is to find a business that is capable of generating a high return on capital and sustaining it while reinvesting profits. This screen looks for shares that display these quality characteristics and can potentially deliver significant compounded returns over time"

"?An operating margin higher than the median average (mid-ranking) stockin each of the past three years (i.e. quality that shows some signs ofpersistence).
?A return on equity (RoE) higher than the median average (mid-ranking)stock in each of the past three years (i.e. again, quality that shows somesigns of persistence).
?RoE higher than it was two years ago (i.e. quality is improving as well aspersistent).
?Operating margin higher than it was two years ago (i.e. quality isimproving as well as persistent).
?A dividend-and-debt adjusted price/earnings growth (PEG) ratio belowthe top fifth of stocks screened (ie stocks must not be too egregiouslyexpensive for the growth on offer).
?A price/earnings (PE) ratio above the bottom 10 per cent of stocksscreened and below the top 10 per cent (i.e. not a suspiciously cheap ordangerously expensive valuation).
?Interest cover of more than five (i.e. high RoE is not overly dependent onthe use of debt).
?Forecast earnings growth for each of the next two financial years.
? Positive forecast free cash flow"

Excellent results - ahead of expectations for PBT, EPS and net cash - and the for the dividend, which is doubled to a very decent 1p.

The 4.9p EPS is nicely ahead of the forecast 4.7p. So this year's 5.1p EPS forecast may get pushed up to say 5.3p, particularly given the very confident outlook.

77% of this year's revenues are already in place, with a £355m order book which is up 7% despite the pandemic.

And all this was achieved despite Energy Services being badly affected last year bu=y COVID-19. As this effect dissipates then this division's rebound will cause an even greater bounce.

SUR are a "boring" company which masks a number of exciting ESG involvements in home insulation and heating, electric charging, solar etc etc.

There could be 50%-100% upside here this year imo - and hopefully more acquisitions too from that almost £10m cash pile....

Bargain time here imho. The share price is starting to recover nicely - looks like a large/institutional holder decided it was time to take profits.

Seneca Gaming have been added as a new client for simulated gaming:

hTTps://www.businesswire.com/news/home/20210201005268/en/GAN-Adds-the-Seneca-Gaming-Corporation-to-its-Growing-List-of-Simulated-Gaming-Clients

Buyers now paying the full 1.8p offer price, and the price has ticked up again reducing the spread.

Bueyrs now paying the full 1.7p offer price - looking good.

Moving up nicely, and on excellent volumes too - over 7m shares traded already today, so any sellers should have been able to exit pretty easily. I note the buy price has just ticked up to 1.614p, so any supply of stock may just be drying up.

I'm happy to stay invested here for considerable upside.

N+1 Singer this morning presently have a 114p fair value target here.

Worth noting that they see a £35.5m cash pile at 31st December just gone - 32% of the current m/cap. They forecast 3.2p EPS for the current year (2021), so if you strip out the cash that's a current year ex-cash P/E of around 18 or 19.

And that EPS forecast includes a conservative reduction in terms of forecast Chinese sales balanced out by increasing growth in VLG's other core markets and products.

When VLG eventually conclude any or all of their three mooted acquisitions, then the earnings-enhancing aspects will likely bring that P/E down substantially.

I'm confident that VLG will continue to grow. There should certainly be lots of news flow to keep things bubbling over the coming weeks and months.

after today's acquisition news.

Smaa but perfectly formed. Looks a bargain at £0.35m for £1m turnover and £0.1m PBT, plus all the synergies which can be expected from cross-selling etc:

Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Acquisition-of-Uniform-Engineering/84209903

Encouraging commentary from REA's results this morning:

Https://www.investegate.co.uk/r-e-a--holdings-plc--re--/eqs/trading-update/20210201070007EQLXJ/

"After an initial firm start to 2020, CPO prices fell away from $860 per tonne, CIF Rotterdam, on 1 January to a low for the year of $510 per tonne in May. Prices then staged a steady recovery from the middle of the year through to the end of 2020 to close at $940 per tonne. These stronger prices have continued into the first weeks of 2020 with CPO, CIF Rotterdam, currently at $1,030 per tonne.

The higher prices now prevailing are materially beneficial to the company...."

"CPO markets should be supported over the coming months by a general reduction in supplies of vegetable oils combined with continuing demand growth as economies start to recover from the set-backs of 2020. In particular, CPO production and stock levels are likely to be constrained by the impact of reduced fertiliser applications by smaller producers in response to weak CPO prices in the first half of 2020."

Trading statement just out indicates that EBITDA will be ahead of expectations.

Cenkos' forecast for 2020 is £6m EBITDA, but VLG report that they'll achieve "not less than" £6m - double 2019's performance.

And that's without any further Chinese oral care shipments in H2, which are "due to resume in H1 2021", and with COVID-affected core product sales which should also return to growth this year.

Plus having "an order book ahead of the same time last year" bodes well.

Announced on Friday night - since N+1 Singer's forecasts only include firm orders regarding COVID-related products, new contract wins such as this £1.2m presumably add nicely to those forecasts for this year:

https://bidstats.uk/tenders/2021/W04/743899598

Cheers - great to see the world waking up to REAT. A 2.5p target price reads well.....looking forward to this week.

A really interesting slide in the latest investor presentation on page 9 from yesterday’s Riley conference - an absolutely blistering start in Michigan!

https://gan-investors.s3.amazonaws.com/1611862503.5cc2c2a1512766be8d7aa3dca0ea5dab.pdf

For the record Arden retain their Buy and 8.2p price target in a new note today.

Their forecasts are looking rather undercooked given (1) CPO prices being almost 40% higher than forecast and (2) and the further acquisition of a higher stake in the cashew project:

"With palm oil prices trading at c. US$1,000/MT (€825/MT) - compared with our current conservative 2021E full-year average palm oil price forecastof €/600MT - and Côte d'Ivoire entering its high-volume season, the outlook for Dekel Agri-Vision’s palm oil operations looks positive."

"We are not currently changing our forecasts but believe that as and when the company completes the acquisition of the additional 16.7% interest in the cashew nut project, this will be accretive to our forecasts and our valuation."

For the record, here's Finncap's summary of their upgrade:

"Strong H1 trading update, target price upgraded to 200p

Following Fonix’s IPO in October 2020, today’s H1 trading update demonstrates continued growth that is comfortably in line with management’s expectations. Total Payment Volume (TPV) has grown +18% in H1 to £123m, as Fonix has successfully executed on its strategy to grow with both new and existing customers, including the BBC Children in Need campaign in November where Fonix’s platform handled £13.9m of the total £40.1m of donations.

Increased levels of customer activity have driven +21% growth in H1 gross profit to £5.8m,and Fonix is continuing to generate strong underlying cash flows that will amply cover the maiden interim dividend expected in March. We conservatively forecast FY21 gross profit growth of +13% to £11.2m, and H1 means that Fonix has already achieved 52% of our FY21 forecast.

As Fonix continues to deliver on the investment case that we explained in depth in November, we expect our conservative FY21 and FY22 forecasts of +11-12% EBITDA and EPS growth could seeupside, andeven on conservative forecasts, Fonix looks undervalued on 15x 12m forward EV/EBITDA and an EFCF yield of 5%. This compares to AIM payment and finnCap Tech 40 peers trading on 12m forward EV/EBITDA of 20-28x with 11-26% EBITDA growth, and EFCF yields of 2-3%. With today’s reassuring announcement we upgrade our target price to 200p (4% EFCF yield or 20x FY22 EV/EBITDA), and look forward to interim results in February."

Good to see over 1m shares bought at the full 1.5p offer price in the last few minutes, the latest being a 770,000 share buy at that price.

Nice 500,000 share buy at 14.25p just reported, and then another tick up so now up 0.5p.