Member Info for rivaldo

Brief written notes from yesterday's presentation:

- $8.4m cash and $6.5m freehold property asset backing
- 5G : some 5G antenna deals are pending
- working with 4 of the top 7 telco suppliers/manufacturers (i.e Nokia and not Huawei)
- Water : won several new contracts in Australia with effect from last month
- the new vineyard product is beating expectations
- very happy with progress in China
- Consulting : the "jewel in the crown" this year
- won new contracts for the next 12-18 months, especially as representative of TCom Aerostat systems
- the substantial COVID cost savings achieved should continue for the medium term
- there will be a new water division product launch soon to bring increased growth

Everything sounds really positive, and all three divisions appear to be well set for continued growth this and next year, particularly given the costs savings due to the pandemic.

CAPD initiate another exploration drilling programme, this time for Altus Strategies:

Https://www.londonstockexchange.com/news-article/ALS/drilling-underway-at-diba-gold-project-w-mali/14758086

"Altus Strategies Plc (AIM: ALS, TSX-V: ALTS, OTCQX: ALTUF) announces the commencement of a 10,000m Reverse Circulation ("RC") drilling programme at its 100% owned Diba gold project ("Diba" or the "Project") located in western Mali.

Highlights:
· 10,000m RC drilling programme underway at the Diba gold project in western Mali
· Programme to test resource expansion potential as well as five further priority prospects.....

....The planned drilling programme will be undertaken by Capital Drilling Limited and comprise 120 holes for approximately 10,000m."

MWE just gave an excellent Q3 presentation to all investors - I assume there will soon be a recording of it available.

Very promising across all divisions. I'll write up my notes later:

htTps://www.investormeetcompany.com/mti-wireless-edge-ltd/register-investor

The price has moved up following a 500,000 share trade at 13p, so I assume that was a buy.

after around £35k of buys, hopefully implying that stock is scarce at present.

Allenby Capital have this morning increased their price target to 63p (from 46p).

They've retained their prior forecasts for $4.27m adjusted profit, with revenue down and EBITDA up given today's update. The new 2.9p EPS for this year is simply a rounding difference away from the prior 3p EPS, with 3.39p EPS and 3.79p EPS going forward:

Http://www.allenbycapital.com/research_1102_2186309562.pdf

Here's Allenby's summary:

"Profit growth on track

Today’s update demonstrates 20% operating profit growth at the technology group specialising in comprehensive radio frequency communication solutions across multiple sectors for the first nine months -a function of revenue growth (+2%) coupled with cost savings and operating leverage. A good performance given the global backdrop. EBIT margin increased 150bps to 10.1% and this higher margin means MTI remains on track to meet our FY20 profit forecasts albeit on a lower revenue base and we reduce revenue forecasts by 6%. We anticipate limited cost inflation in FY21 and hence profit forecasts remain unchanged but we trim revenue. We also introduce FY22 forecasts.

MTI has a diversified business and each division can point to structural growth drivers. Despitea good share price performance this year (+28%), the current price fails to reflect MTI’s track record and growth potential, balance sheet strength and yield. We set a new fair value (63pfrom 46p), equivalent to an FY21 EV/EBITDA of 11.4xfalling to 10.1x in FY22."

The RNS headline is somewhat bland - VLG could have made a lot more of this with a "Mouthwash eradicates COVID-19 in clinical trial" or similar headline"!

Kudos to VLG I suppose for downplaying it, though the excitable investor in me wants the wider market to see what's happening here....

- Q3 basic EPS is up 12% on last year to 2.65c, and operating profit is up 20%
- the adjusted EPS will be even better after adjusting for amortisation
- positive outlook, with MWE trading in line with expectations despite COVID-19
- the cash pile is up to $8.2m
- all divisions are trading well, with 5G "gathering pace"
- 5G, water management, and design solutions for tech companies and the military are all in booming areas of the economy

Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Results-for-the-nine-mon/83687081

VERY positive findings from the mouthwash v COVID-19 trial!

"In their published in-vitro[2] study, scientists at Cardiff University concluded that Venture Life's two CPC based mouthwashes eradicated the SARS-CoV-2 (COVID-19) virus completely (>5log reduction, equivalent to 99.999%) within a 30 second exposure."

"Cardiff University went on to state that the 'exact formulation is also important'. Whilst the CPC technology in Venture Life's mouthwash proved highly effective in the in-vitro study, they also tested a third mouthwash, which also contained both CPC and another ingredient, yet this proved ineffective. Their conclusion was that active ingredients in mouthwashes were not, on their own, enough to rely on, but rather it was the construct of the mouthwash formulations that was the critical determinant of a successful outcome. The Board considers the composition of Venture Life's CPC-based mouthwashes to be unique."

Https://uk.advfn.com/stock-market/london/venture-life-VLG/share-news/Venture-Life-Group-PLC-Results-of-in-vitro-clinica/83687127

Techinvest are winding down their fourth long-term Trader portfolio (which has been running since 2000!), and have made their first purchase in their new Trader 5 portfolio.

And CNIC are that first new purchase :o))

As Techinvest say, CNIC are a "mix of strong defensive qualities and good growth opportunities", able to get through the pandemic with little if any adverse impact.

A strong endorsement.

Nice positive intra-day turn at the close on Friday, partly caused by a decent 35,000 share buy at the full 175p offer.

Hopefully this week will see a continuation of the re-rating.

On Friday there was breaking news that four Sureserve companies (Aaron Services. Sure Maintenance, Everwarm, K&T Heating)have won places on a new £800m energy efficiency framework for the public sector:

https://www.pbctoday.co.uk/news/energy-news/energy-efficiency-framework-2/85323/

Only 5% of the £800m would be worth £40m, and SUR have four companies on the list so it could be worth a lot more. SUR's four businesses equal 11% of the 36 companies, i.e 11% of the £800m = £88m.

And there was a terrific close on Friday, partly sparked by a late 150,000 share buy at 50p and then further buying at 52p.

New highs coming soon methinks.

If MWE make 3p EPS this year they'll soon be on a historic P/E at 52.5p of 17.5. This will fall next year to only 15.5 based on Allenby's 3.39p EPS forecast.

But MWE have a $7.6m cash pile which equates to 6.6p per share. Plus they also have $5.5m of freehold property as further tangible asset security, i.e another 4.8p per share.

That's 11.4p per share of tangible assets. Even just deducting the cash pile, that leaves around 46p of EV playing 3.39p EPS - an ex-cash P/E of 13.6 for a company concentrated on fast-growth areas like 5G and water control/preservation.

after a series of small buys at steadily increasing prices.

The £8.7m m/cap is well backed up by $8.8m of well-managed cash, so the tiny EV means the core business, patents etc are in for almost nothing.

The interims were as expected given the huge rig count fall in the USA, partly offset by good international sales in China, Saudi etc.

Good to see two directors putting decent amounts of cash in at these levels in the last day post-interims. I would have said there's unlikely to be much short-term excitement, but actually the oil price may recover a fair bit on good COVID news - plus NTQ have said that:

"the expectation of a medium-to-long term supply contract being awarded to our (Saudi) partner. The outcome of the accreditation is expected to be known before the end of March 2021."

NTQ remains one to put in the bottom drawer and wait for potentially large upside on in particular Shell's SRSS technology and other new products.

Byotrol has an impressive list of collaborators now, including Solvay, Shell, Boots, SC Johnson etc.....

hTtps://www.prnewswire.com/news-releases/shell-lubricants-us-and-turtle-wax-inc-announce-collaboration-with-move-clean-to-launch-total-vehicle-hygiene-services-for-the-automotive-industry-301172004.html

""Shell Lubricants US and Turtle Wax, Inc. Announce Collaboration with Move Clean to launch total vehicle hygiene services for the Automotive Industry"

"Move Clean's initial solutions are anchored by Turtle Wax, Inc.'s proprietary disinfecting solution called Defend-X®, that features Byotrol® Technology and is an EPA-registered surface sanitizer that kills over 99.9% of germs, including cold and flu viruses, 2009-H1N1 Influenza A virus, Respiratory Syncytial virus, Coronavirus, Rotavirus and Norovirus. When used as intended, it keeps surfaces sanitized for a full 24 hours with only one application. Defend-X is categorized in the lowest toxicity level (Level IV). Defend-X cleans worry-free, meaning it is non-staining and non-corrosive; there are no harsh chemicals and it does not contain bleach or alcohol."

I liked from today's RNS:

"Demand for IP licensing remains robust, with the team exploring multiple new opportunities both in the UK and internationally."

Also comforting that net cash remains strong, that trading remains in line and that "competitors with weaker performance chemistries continuing to withdraw from our market".

I assume an update from Finncap will show unchanged forecasts for the moment, but there's plenty going on.

Here's a very good summary of MWE by hastings/ the Private Punter written only a couple of weeks ago, which hasn't been posted here before and is well worth a read:

Https://martinflitton1.wixsite.com/privatepunter/post/timber-mwe-looks-well-placed-29-10-20

Apologies if already posted, but I agree with this Pharmiweb.com analyst:

Https://dailybusinessgroup.co.uk/2020/11/db-live-covid-test-firms-oversold-economy-rebounds/

"9am: Testing stocks offer value say analysts
Omega

Pharmaceuticals analysts believe shares in testing firms such as Synairgen and Scottish firm Omega Diagnostics have been oversold on the back of the vaccine news from Pfizer and BioNTech.

“While the results are very promising, we believe there was a large over-reaction in the market in response to the news,” says Mark Brewer at Pharmiweb.com.

“It should not have been unexpected – we hoped for positive results from vaccine manufacturers this month, and we hope there is more to come, as AstraZeneca-Oxford University and Moderna are also due to announce initial results this month, and overall there are 11 vaccines in Phase III testing.

“However, these early results do not diminish the urgent need for COVID-19 treatments and testing, which will still be required for years to come. We consider the price falls to stocks such as Synairgen (-39%), Avacta (-36%), genedrive (-38%), Omega Diagnostics (-25%) and Open Orphan (-9%) to offer good buying opportunities.

“Even if a vaccine is perfectly effective, this will take years. Until then, the vast majority of the population will need to rely on treatments and testing for COVID-19.”

About time :o))

IMO there's a possible one or two-bagger here in a relatively short timeframe if the business continues to thrive as it has.

SQC's October article implies around 6.1p EPS this year and 7.5p EPS for next year, whilst Tamesis's August note forecasts 10.7p EPS for this year (including large investment gains) and 8.5p EPS next year (prudently including an investment loss). I assume SQC's numbers are exclusive of investment gains.

Either way, the huge tangible NAV of around 60p per share (including the cash pile) gives further excellent backing to the current share price. And I suspect there may be upgrades to come.