Member Info for rivaldo

The new Arden note with their raised 8.1p target can be accessed for free here:

hTtps://research.arden-partners.com//view_repos/_06fdf183-3593-43cf-8b49-8546d38c9ad3.pdf

"Dekel Agri-Vision has announced the completion of the acquisition of an addition 14.2% interest in the large-scale cashew nut processing project, currently under construction in Tiebissou, Côte d’Ivoire. (The company’s intention to acquire this additional interest was first announced on 3 November 2020). Following completion, Dekel AgriVision now owns a 52% controlling interest in the project, which is on track for first production in Q2, 2021. We have consolidated revenues and earnings from the cashew business into our group financials and reflected the increased 52% profit contribution from the cashew project. As a result, we have increased our target price, based on our DCF valuation to 8.1p from 7.6p, reflecting a market cap of £36.7m, up from £32.2m, and compared to a current market cap of £10.2m. We reiterate our Buy recommendation."

Good to see VLG newly tipped on Investors' Champion - subscriber-only though:

Https://www.investorschampion.com/channel/blog/a-reasonably-valued-healthcare-company-surely-there-must-be-a-catch

"A reasonably valued healthcare company, there must be a catch! (Updated)

18/11/2020 · Venture Life Group PLC (VLG)

Many healthcare companies, especially with anything relating to aiding Covid-19, have benefited from a strong share price over the pandemic and it is rare to find something of seemingly reasonable value. The shares received another boost on news that its mouthwash might be effective against COVID-19. Check out our updated research here.

Founded in 2010, Venture Life Group (LON:VLG) is an international consumer healthcare company focused on developing and manufacturing non-drug self-care products for the ageing population, which consumers can buy without prescription.

The Group's manufacturing is based in Italy, where a 5,500m² factory is being expanded to produce up to 55 million units per annum by the end of the year, producing both Venture Life's own brands as well as products for others as a contract manufacturer. With over 35 years of experience, the site boasts exciting development capabilities thanks to superior laboratory facilities and knowledge of the market.

The Group has 10 branded products, covering…"

continued:

"New contracts won include a renewal service agreement (potential total award value of US$2.3m) with one of the five largest municipalities in Israel. The irrigation system manages over 1,000 acres of city landscapes for the municipality and has cut water wastage by half. The contract highlights the opportunity for MTI to target in the non-agricultural segment of the irrigation automation market such as sports grounds, landscaping, golf courses, municipal gardens and residential land. China and Australia are key markets for Mottech and a raft of contract wins in the regions explains why Mr Borovitz remains bullish.

Prospects for growth are well underpinned in agriculture, too. Mottech has more than 20 years experience in providing remote control solutions for vineyard irrigation management all over the world, including Australia, Italy, South Africa, South America and Israel. Irrigation of vineyards was previously forbidden or strictly controlled in France, but climate change has prompted the French authorities to allow vineyards in southern France to be irrigated. To tap into the opportunity, MTI developed and launched a new wireless irrigation solution, Tethys. Since launch in March, Mottech and its local partner, AQUADOC, have provided the system to four water associations in France who together provide irrigation water for thousands of vineyards. Mottech’s system already services 4,000 hectares of French vineyards, and is targeting an untapped market covering 200,000 hectares.

Operating under the MTI Summit Electronics brand, MTI’s third division represents 40 international suppliers of radio frequency/microwave components and sells these products to Israeli and Russian customers. It’s a highly profitable business, delivering 42 per cent higher operating profit to US$1.2m in the year to date, and one that has a “healthy order backlog”, says Mr Borovitz.

The other main take for me was the 33 per cent increase in net cash to US$8.2m (7.2p a share) year-on-year after the payment of a US$1.76m cash dividend of 2¢ a share in April. MTI’s high cash conversion rate, and a 20 per cent operating margin on incremental sales, are strong bull points. Rated on a modest cash-adjusted price/earnings (PE) ratio of 15 for the 2021 financial year, I maintain my 70p target price, having initiated coverage, at 40p, in my September 2020 Alpha Report. Buy."

as follows overnight:

"¦ Demand for wireless irrigation systems and 5G backhaul to drive 2021 earnings even higher.

Chief executive Moni Borovitz of Israeli-based MTI Wireless Edge (MWE:57p) was in bullish mood during our third-quarter results call. He had every reason to be, having announced a 20 per cent organic increase in operating profit to US$3m (£2.3m) in the first nine months of 2020 and reiterating full-year guidance. On this basis, house broker Allenby Capital expects a 25 per cent rise in annual pre-tax profit to US$4.3m on revenue of US$40.7m to produce earnings per share (EPS) of 2.9p and support a 25 per cent dividend hike to 2.5¢ (1.9p).

Moreover, expectations of 16 per cent EPS growth to 3.39p in 2021 are well underpinned by robust structural growth in the end markets of MTI’s technology businesses: demand for next generation 5G networks; global warming and climate change; and increased defence budget spending.

MTI sells 5G backhaul antennas to support mobile phone operators roll out their 5G networks, helping to transfer the data from mobile users to the operator’s network. The segment accounted for a tenth of MTI’s antenna division’s revenue of US$12m in 2019, and demand is set to surge in 2021, and for many years to come as operators upgrade their cellular network infrastructure to 5G. MTI has sales arrangements with four of the seven manufacturers of mobile infrastructure networks so is well placed to benefit. It’s doing just that, having recently won a US$0.5m landmark single order contract for a 5G dual band backhaul solution. Earlier this month, MTI also won a US$0.65m initial contract for military antennas with a new European customer which “has potential to become a larger customer for MTI”, says Mr Borovitz. The military segment provides a reliable income stream and enables MTI to reapply the technology developed in commercial markets.

MTI is also a smart play on climate change. World Bank estimates that 25-30 per cent of freshwater is wasted, and an eye-watering 2.8 billion people across 48 countries are expected to face water shortages by 2025. Agriculture, including the wine industry, holds the key as it is responsible for 70 per cent of all freshwater usage. MTI’s Mottech wireless water control and management system addresses water scarcity issues by providing high-end remote control solutions for water and irrigation applications based on Motorola's IRRInet state-of-the-art communication technologies. It has shown to produce a 30 per cent increase in crop yields while reducing costs from efficient use of water, fertiliser, energy and labour. Robust demand for Mottech’s irrigation systems is MTI’s main profit driver, the segment producing a 30 per cent operating profit surge in the year to date to account for half of MTI’s total profit."

Cheers mick-b, appreciated. Reads well.

Bid price up to 53p - hopefully about to hit new 4-year highs.

News - the additional stake purchase in the cashew project is now complete. Commencement of production remains scheduled for only 6 months' time now.

And note the other reiteration - "our palm oil operations on track to post a material year on year improvement for the second half":

Https://uk.advfn.com/stock-market/london/dekel-agri-vision-DKL/share-news/Dekel-Agri-Vision-PLC-Completes-acquisition-of-cas/83720879

Finally, the CPO price is again up, to $870 - closing in on 2020 year highs of $875:

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

This one suggests the share price could double to 107p....

Not the most in-depth analysis I've ever seen (!), but good to see anyway, particularly from a charting point of view:

Https://www.ii.co.uk/analysis-commentary/mti-wireless-edge-ltd-heres-how-share-price-can-double-ii514199

Up another 6% today.

Given the potential for rapid growth from green energy as per the prior post, it's worth noting that SUR are almost on a single-figure P/E for the current year at 53.5p - with a £3m and growing cash pile:

Consensus forecasts:

Historic to 30/9/20 : 4.64p EPS
Current year to 30/9/21 : 5.23p EPS

SCSW updated on its KAPE tip in the October issue as follows FYI:

Https://www.scsw.co.uk/article.php?id=8678

"Kape
166.5p Epic code: KAPE

(Sharewatch) Kape’s H1 shows sales increased 97% to US$59m. Adjusted EBITDA increased by 185% (22% on a proforma basis) to US$16.4m while the adjusted EBITDA margin increased to 27.8% (H1 2019: 19.2%). Adjusted EBITDA margins improved by 8.6% to 27.8% as the benefits of operational gearing kicked in.

Subscriber numbers increased to 2.38m. Overall, Kape invested US$29.2m cash into direct marketing (US$11m more than last year) so the benefit of this comes next year. Kape ended the half year with US$25.6m net debt.

Digital Privacy, which comprises three VPN brands (CyberGhost, PIA, ZenMate), saw revenues balloon by 277% to US$24.6m (78% of total). The period, of course, includes PIA for the first time and this contributed US$24.3m to sales so organic growth in the Digital Privacy segment excluding PIA was up 47% to US$17.9m. Having virtually doubled its VPN user base last year, this was mostly down to a full year contribution from last year’s additions rather than picking up new customers.
Speaking to CEO Ido Erlichman, he also adds that the period saw the launch of a new product, the CyberGhost 8 Privacy Suite, which gave things a lift. This is a comprehensive security suite and 25% of users wanting VPN opt for it. Rather than just being an upsell, Erlichman notes that it also boosts lifetime values and reduces churn. With Kape therefore increasingly throwing its marketing dollar at growing VPN sales over security product sales, the Digital Security segment fell 5% to US$16.7m.

The integration of PIA continues apace and Q3 synergies will climb towards the upper end of the US$3.5-4.5m expectation, driven by cost reductions from the consolidation of servers and offshoring its support from Denver to the existing centre in Manilla.

Increasingly end-users working from home are turning to VPN for secure search capabilities and the market is expected to grow from US$25bn in 2019 to reach US$70bn in 2026.

N+1 Singer forecasts eps of 13.3 cents for the full year with 14.9 next year but could rise as Erlichman says the pipeline for M&A is healthy. I think he might magic a rabbit out of the hat soon enough."

SCSW updated on CNIC in its October issue as follows FYI:

Https://www.scsw.co.uk/article.php?id=8673

"CentralNIC - 20% eps accretive acquisition of Codewise

88.5p Epic code: CNIC

(Sharewatch) CentralNic is adding serious scale to its Monetisation division with the purchase of Codewise for US$36m in cash. To help pay for the deal, it has placed 40m shares at 75p to raise £30m (US$39m).

Based in Krakow, Codewise is just like the existing Team Internet business. It comprises Zeropark (an ad exchange platform connecting domain investors with online marketers allowing the monetisation of traffic) and Voluum (a SaaS marketing suite that helps customers track and analyse traffic sources, campaigns and performance data to optimise advertising campaigns).

In the year to end June, Codewise had sales of US$60.3m and made an ebitda of US$7.4m - so the business is being acquired for just 4.9x ebitda - making it hugely eps enhancing from day one. CentralNic is targeting about US$1m of synergies.

Zeus has upgraded its eps forecast to 8.7 cents this year and 9.1 next."

RNWH's Carnell, AmcoGiffen and Clarke Telecom are all electric vehicle chargepoint installers.

So there are likely to be substantial benefits from the proposals in the UK green energy plan to be outlined later today:

Https://www.thetimes.co.uk/edition/news/boris-johnson-promises-revolution-in-homes-roads-and-industry-n6xzp6jld

"Electric vehicles

The government has brought forward the ban on the sale of new petrol and diesel cars and vans by a decade to 2030. It is one of the earliest deadlines of its kind in the world.

Hybrid cars with a combustion engine will be sold until 2035 provided they can drive a “significant” distance in zero-emission mode, probably 30 miles or more. The government has also committed itself to consulting on phasing out new diesel lorries."

"On public transport, money has been allocated for electric and hydrogen buses, with at least one town or city getting a fully electric fleet by 2025."

SUR stand to benefit from three of the measures in the new green energy programme to be outlined today.

Firstly, a lot of EV charging points will be needed:
hTtps://www.msn.com/en-gb/news/uknews/new-petrol-and-diesel-cars-banned-from-sale-after-2030-under-pm-s-green-plan/ar-BB1b6B4i?ocid=msedgdhp:

Secondly, SUR install heat pumps, and thirdly SUR survey and install other energy saving measures in properties:

Https://www.thetimes.co.uk/edition/news/boris-johnson-promises-revolution-in-homes-roads-and-industry-n6xzp6jld

"Homes and public buildings

The government has pledged to install 600,000 heat pumps a year by 2028 as part of plans to make homes, schools and hospitals greener.

Ministers want gas boilers replaced by electric heat pumps, which extract heat from the ground or air surrounding a building. However, they are expensive and poor quality installations have undermined consumer confidence.

Earlier this year the government announced a £2 billion green homes grant scheme, with vouchers of up to £5,000 for energy-saving measures."

Good to see MWE attracting more attention now. I note the buying price has increased to around 53.4p this morning.

The report can be downloaded here for free, but you probably have to sign up first as I did:

Https://aiminvestor.co.uk/wp-content/uploads/2020/10/MTI-Wireless-November-2020.pdf

"Summary

•MTI Wireless Edge (MWE) is exceedingly well positioned to benefit from the global 5G rollout and it is also playing a key role in helping the agricultural sector manage issues around water scarcity.

• September’s 5G contract win represent a “significant” step forward in MTI’s 5G backhual anntena business.

• MTI have an increasing strategic focus on the fast growing Chinese smart farming market.

• A proven track record of delivering revenue and profit growth underpins MTI’s foothold in high growth markets."

Libero, I explained in my original post that I was using the ex-cash P/E since this was the most appropriate measure given REAT's very high net cash balance.

This measure - which is commonly used by most analysts - puts REAT on a likely P/E for the year starting in only two months of only around 8 to 11 depending on which forward estimates you use. And that was at a higher share price when I wrote my post - the share price has probably dropped 5%-10% since then.

This, and the accompanying PEG, make REAT very cheap at these levels in my opinion.

Obviously if you use (a) what are about to become historic figures and (2) a straight P/E excluding the cash pile, then the P/E rises accordingly. I prefer to use my forecasts to reflect what's actually happening and on the Balance Sheet rather than looking backwards.

For perspective, Finncap stated on 14th July that VISITECT alone could be worth £45m-£70m.

Then the existing non-China Food Intolerance business alone could be worth £60m.

These alone - even at the lower end - cover the current £105m m/cap, with absolutely nothing for the additional and potentially huge Chinese Food Intolerance business and nothing at all from COVID-19.

Up nicely again today on essentially no trades. I assume there's healthy background buying interest and not a lot of stock around.

This is primarily about reducing your own exposure to COVID-19, by eliminating any viral load in your mouth and therefore either stopping you getting it or much reducing the impact if you do get it. Though of course this would then make you less likely to spread it, since you either wouldn't have it at all or would have a much reduced/weaker amount of it.

I use mouthwash at home, and it seems obvious to me that I should use a mouthwash like VLG's Dentyl which would reduce the viral load from any potential or actual COVID-19 infection rather than another mouthwash which provides no benefit.