Member Info for rivaldo

It's worth re-visiting the fundamentals here.

MWE have a $7.6m cash pile which equates to 6.6p per share. And they also have $5.5m of freehold property as further tangible asset security.

MWE are forecast to make 2.97p EPS this year. If you strip out the cash pile, the current year P/E is only 13.4.

For the year starting in only four months' time, based on 3.39p EPS, the ex-cash P/E drops to only 11.7.

Which is a ridiculously low rating for a high-tech company in the first place, never mind one which is set to benefit from globally exploding sectors like 5G and water management solutions.

Transcript of an interview with ************* worth reading for the very positive vibes:

Https://www.***************************/centralnic-group-qa-record-organic-growth-of-18-loncnic/412856118

"CentralNic Group Q&A: Record organic growth of 18% (LON:CNIC)

Article by: Amilia Stone 3rd September 2020

CentralNic Group plc (LON:CNIC) Chief Executive Officer Ben Crawford caught up with ************* for an exclusive interview to discuss delivering record organic growth & how that was achieved, cash conversion at 138%, monetisation and new management.

Q1: Half year results published and you delivered more revenue this period than the whole of last year. Ben, you must be pleased with these results?

A1: Yes, absolutely. I can’t say they came as a surprise but on the other hand, I guess, there aren’t many companies that are able to say that in this kind of time, this economic difficulty and uncertainty so very happy.

Very good results as a result of two forces at work. We did make four acquisitions in the second half of last year so that obviously made a healthy contribution but we’ve also performed the exercise of doing the proforma numbers, looking at what it would’ve looked like if we’d owned all four of those companies for the first half year last year and comparing to this half. We found that the underlying organic growth rate of the company is 18% on the revenue line which is a much higher number than we’ve ever quoted to the market.

So, we’ve got record organic growth plus the four acquisitions has delivered very satisfying numbers this year.

etc"

Good to see the bid price starting to rise and now at 462p. Perhaps our seller is finally cleared/clearing.

Only weeks to go until a year end trading update, which will reflect this outlook from the interims (which was followed by a "Multiple UK Contract Wins RNS):

"The second half of the year has started well, with good trading across key sectors, especially healthcare, rail and facilities management. We remain confident of delivering a performance ahead of management expectations for the year to 30 September 2020 including a full year maiden profit."

Bob Holt has bought another £23,000 of shares, from participants in the company's SIP. A nice gesture of confidence, and he now has almost 1.3m shares:

Https://www.investegate.co.uk/sureserve-group-plc--sur-/rns/transaction-by-directors---pdmr/202009040940080773Y/

Happy to hold all mine. MWE could be a multibagger over the next year or two given the sectors it's participating in - and the still cheap fundamentals. Plus the large cash pile and freehold property asset backing.

Great to see ST picking up on MWE - and highlighting not only the low P/E but also the involvement in both 5G and climate change:

Https://www.investorschronicle.co.uk/alpha/2020/09/04/tap-into-5g-and-climate-change-themes/

"Simon Thompson's Alpha Reports 38 minutes ago

Tap into 5G and climate change themes

There are not many technology companies that combine forecasts of 25 per cent profit growth this year and a miserly rating of 11 times cash-adjusted prospective earnings. Yet that’s exactly what's on offer with this company, which is a beneficiary of the home broadband explosion and is poised to take advantage of the world's need to manage climate change."

The IC have just updated, and say Buy at 463p - here's the conclusion. I assume their 2021 P/E is based on old forecasts which will now be upgraded.

Hopefully today's news will finally underline to the market the difference between RNWH and the rest of the construction sector in terms of both both defensive aspects and high growth potential:

Https://www.investorschronicle.co.uk/company-news/2020/09/04/renew-bounces-upwards-on-better-than-expected-guidance/

"IC View

The unscheduled trading update sent the shares up by almost a tenth to 463p. Amid the fallout from Covid-19 and an economic downturn, the outlook for UK construction is shaky. But we continue to like the stability offered by Renew’s preference for non-discretionary infrastructure projects that are underpinned by long-term, regulated budgets. It is therefore well-positioned to benefit from the government’s £640bn infrastructure spending plans as well as any other infrastructure stimulus to kickstart the economy. With that in mind, the shares look undervalued at just 12 times forecast 2021 earnings. Buy.

Last IC View: Buy, 474p, 19 May 2020"

Agreed Chestec - imo the current hiatus is a buying opportunity.

Recurring revenues comprised 96% of H1 revenues. Customer stickiness is huge and renewal rates highly predictable. As a tech business with large and global growth potential there's not much more you could want in the current climate.

Nice summary here from a sector specialist reviewer:

Https://domainnamewire.com/2020/09/02/ad-revenue-soars-as-centralnic-turns-in-strong-first-half/

"Ad revenue soars as CentralNic turns in strong first half
by Andrew Allemann — September 2, 2020

Domain monetization contributes to strong first half at CentralNic.

Are ad markets suppressed due to Covid-19?

Not at CentralNic (London AIM: CNIC), owner of domain name monetization companies ParkingCrew and Tonic.

The company reported revenue of $111.3 million for the first half of 2020, up 124% year-over-year. This was, in large part, due to the acquisition of Team Internet’s monetization services. The monetization segment contributed $48.5 million in revenue.

CentralNic says that revenue per thousand (RPM, the opposite of CPM) increased by 33%. This is a surprising result given that many ad platforms saw decreased bidding because of the pandemic.

The company also credits SSL monetization with part of the boost. By SSL monetization, the company is referring to how ParkingCrew enables SSL on domains that receive a lot of traffic.

The report also states that the monetization segment has one customer that represented more than 92% of the segment’s revenue during the period, amounting to USD 45.0m. This is most likely Google, which provides the main advertising feed for ParkingCrew. The number is higher than I assumed and shows that traditional PPC parking — not Tonic’s zero-click network — drives almost all of the revenue."

Mark Watson-Mitchell at Master Investor updated briefly last night on SUR as follows, with a 70p target:

"Almost three times the average daily volume in the shares of Sureserve Group (LON:SUR) on Friday helped them close strongly at 52.5p. Last night they closed at just 51p, Remember, I have a 70p target price on this company."

Mark Watson-Mitchell at Master Investor updated last night on CAPD as follows, with a 100p target:

"Capital (LON:CAPD) – going from strength to strength

This Africa-focussed mining services group enjoyed a cracking first half year to end-June.

Its revenues were up 18.8% from $54.8m to $65.1m, while its net after tax profits were a stonking 168% higher at $13.6m ($5.1m), boosting basic earnings 170.5% from 3.7c to 10c. Its dividend was only raised from 0.7c to 0.9c per share.

This was a strong performance from the group, with drilling rig utilisation increasing. But then so too has the price of gold in the first half year, which is a driver for some 90% of its business.

Tamesis Partners are looking for current-year revenues of $138.3m, giving a pre-tax profit almost doubled from $14.6m to $28.3m. They have put out an increased price objective of 102p for the group’s shares.

Even brokers Peel Hunt have increased their price objective to 86p.

Executive Chairman Jamie Boyton stated that, “the mining business is seeing increased tendering activity, providing further optimism of higher activity levels in the second half and into 2021.”

I continue to have high regard for this company’s prospects, its value and its share price and retain my latest target price of 100p. The shares closed last night at 76.5p."

SCSW magazine noted that the prior forecast for the year finishing this month was £36.2m profits, or 38.9p EPS. So today's upgrade implies a 10% uplift in profits. The same assumption gives almost 43p EPS.

The prior forecast for the year starting next month was £39.9m profit, i.e 43.2p EPS - which RNWH have delivered a year early.

If forecasts for the year about to start increased by 10% that would give 47.52p EPS.

At 460p that gives a soon-to-be current year P/E of only 9.7.

Which is far too low to start with imho, without even looking at forward P/E ratios which would make RNWH even cheaper.

A couple more small buys today. The spread is down to a lovely small 40p at 1500p-1540p - so this is a good time to buy before the spread widens again to the more usual 60p-100p.

SCSW tipped RNWH last weekend, and stated that the shares "could in a couple of years be making an assault on £10".

Which would be nice.

Terrific update today:
https://uk.advfn.com/stock-market/london/renew-RNWH/share-news/Renew-Holdings-PLC-Trading-Update/83198908

- trading "materially ahead of current market expectations"
- strong cash generation
- the 30th September will see a net cash position, again ahead of expectations
- the acquisition of Carnell is going very well
- and this was achieved despite the nuclear maintenance activities having largely wound down, so imagine the effect when these are fully working again!

RNWH's share price should be substantially higher than this imo given (1) its defensive strength, (2) its increasing growth potential in all its divisions over the next few years, and (3) its likely single-digit P/E.

Someone keen to build a stake prior to the interims which should be out in the next 3-4 weeks perhaps.

Not long to build a stake then :o))

Great to see Unicorn Asset Management increasing to over 5% per yesterday's RNS. The 193p/194p bid price is nicely solid despite a few small sells.

And WIN have been shortlisted four times - the most of any nominee - in the annual Supply Chain Excellence Awards:

Https://www.logisticsmanager.com/supply-chain-excellence-2020-awards-shortlist-revealed/

Apparently SDI are featured in the IC this week, as one of 14 high quality small caps.

And Techinvest also promised they "will write more next month" on SDI after their brief introductory Buy tip last month. The next issue is due this Saturday.

News yestreday - so I calculate another £300,000 or so of cash in the kitty:

Https://www.investegate.co.uk/cora-gold-limited--cora-/rns/holding-s--in-company/202009020945058092X/

Good to see CAPD top-slicing and realising excellent profits. Perhaps just a question of safety-first and topping up the cash pile. Unless there are other opportunities presenting themselves - perhaps even an acquisition rather than another gold share investment?

Excellent news - with lots more to come, including the full marketing launch later this month.

And this is globally significant too, with WHO emergency use approval coming in due course "which will open up opportunities for the test to access global tenders where this approval is required."