Member Info for rivaldo

The Government have just announced £600m to kick-start "improvements to rail services in the north of England", primarly for electrifying the Transpennine route.

Https://www.bbc.co.uk/news/uk-england-53510438

It just so happens that Amco-Giffen have already been contracted for works on the Trans Pennine route to allow for electrification - and RNWH two years ago expanded their capabilities to include their own Electrification and Plant internal design team.

All buys today, with the buying price moving up nicely to 33.75p from 32.74p, hopefully indicating that the seller is now out.

Allenby Capital have initiated with a 14 page note - forecasts to be introduced at a later date:

Http://www.allenbycapital.com/research.html

Conclusion:

"A great time to get on board – Nevertheless, we believe that with the continuing development of new polymers and additives, Itaconix has the potential to leverage its market leading technology into a wide range of end products for the global consumer base. Large speciality chemical companies do not generally seek to invest in new chemistry research, rather relying on smaller niche innovators to act as nurseries and then, when successful, buy them. We believe Itaconix is one such innovator that could well be taken out for many times its current EV. Consequently, we are excited about the Group’s prospects and enthusiastic regarding its medium/long-term potential"

The CPO price has jumped up to $685:
https://www.rea.co.uk/websites/reaholdingsplc/English/2450/cpo-price.html

Malaysia is losing up to 25% of palm oil yield due to labour crunch:
https://www.reuters.com/article/us-malaysia-palmoil-wto/malaysia-losing-up-to-25-of-palm-oil-yield-due-to-labour-crunch-mpoa-idUSKCN24L03A

And there's continuing upward pressure on CPO prices:
https://m.economictimes.com/markets/commodities/news/palm-climbs-over-2-as-rival-oils-gain-supply-worries-mount/articleshow/77100588.cms

Seymour Civil are already working on a first phase of land reclamation across the first 50 acres at the former Redcar steelworks.

And now the STDC have up to £130m of demolition works planned for the area - lots of potential/likely work here for Seymour Civil as well as VHE:

Https://www.theconstructionindex.co.uk/news/view/demolition-contractors-alerted-to-redcar-steelworks-opportunity

"Demolition contractors alerted to Redcar steelworks opportunity
3 hours

The South Tees Development Corporation is planning to spend £130m on demolition services for urban regeneration in the northeast.

The South Tees Development Corporation (STDC) area covers approximately 4,500 acres of land to the south of the River Tees in Redcar, including the former Sahaviriya Steel Industries (SSI) steelworks site as well as other industrial assets.

Earlier this month, STDC submitted plans for a 4.5m sq ft manufacturing space on the site of the former steelworks – the biggest planning application in the north of England. The construction phase of the development would create 1,000 construction jobs during its eight-year build, with 9,000 more in permanent roles when complete, the corporation said.

Hartlepool-based Seymour Civil Engineering is already working on the first phase of land reclamation across the first 50 acres.

Now, STDC has published a prior information notice (PIN) alerting the demolition sector to a framework that it plans to establish

It is anticipated that the procurement will be divided into two lots: above £750,000; and below £750,000 in value.

“The estimated expenditure through this framework is anticipated to be in the region of £130m, but it is possible that additional demolition projects could be added during the term of the framework, taking the total value potentially to £130m,” the PIN says."

Gold is now above $1,850....and Tamesis Partners have released their new research on CAPD.

They've retained their 100p price target (with $135.3m revenues for the year). Their forecasts are rounded, so I calculate they go for 7.22c EPS this year and 8.25c EPS next year, i.e at $1.25 that's 5.8p rising to 6.6p EPS.

They summarise as "extremely undervalued" - th EV/EBITDA in particular looks ridiculously low, highlighting the excellent cash flows:

"So overall a lot of things going right for the company that should continue to deliver reward for shareholders,not least the gold price environment. Management continue to lay down a strong track record in revenue and EBITDA growth – see table below. As such the shares continue to look extremely undervalued; trading on a 2020E EV/EBITDA and P/E of 2.8x and 10.8x respectively, falling to 2.6x and 9.4x respectively for 2021."

Gold now up to around $1,840.

Amongst CAPD's investee companies, Arrow Minerals are up 25% overnight to AUD0.01 (so back up to cost), with Mali Lithium up 8% to 0.14 compared to 0.095 cost.

Along with their 100p target price, Finncap now forecast revenues increasing to £26.7m this year, from £24.5m last year, adjusted PBT rising to £4.4m (from £4.3m), and EPS rising to 3.7p (from 3.4p) with 4.1p EPS next year.

I suspect that SDI are being conservative with their outlook as always. They could have said that the outlook was too uncertain at this stage etc etc, as most companies are doing, but instead they're already able to say that this year's figures will be "at least" in line with last year's, which instils in me a degree of confidence about how things are progressing.

Moving up again. If KAPE were trading on an American exchange it would probably be trading at double the current rating.

Can't remember offhand if the CEO or anyone else have ever mooted dual-listing KAPE in the USA?

Pretty sure that's correct TraderPete. Perhaps they're waiting for a larger contract to be signed off so they can release the new forecasts in tandem :o))

"MACQUARIE RAISES GAN

Chad Beynon of Macquarie raised his target for GAN to $29 saying the second quarter iGaming performance is a positive for GAN as partners in New Jersey and Pennsylvania continue to perform well.

GAN should generate $9.1 million in revenue in the second quarter and $1.9 million in EBITDA, he said.

GAN remains the top iGaming pick given high growth and a clean balance sheet, he said.

He forecasts EBITDA of $11.9 million this year, $16.9 million next year and $24.6 million in 2022 with earnings per share of 14, 27 and 44 cents.

Overall, iGaming had a slight pullback in June as expected, but sports betting’s return to growth could offset any declines in iGaming, he said."

ITX are presenting to Proactive from 6.00pm on Thursday along with others - register here:

Https://event.webinarjam.com/register/501/wyy3gsr9?j=504073&sfmc_sub=207590540&l=86_HTML&u=22638357&mid=100009383&jb=133

Finncap have introduced new forecasts and a very nice 100p target price.

They support the theory that SDI will report revenue and profits "at least" in line with last year, i.e likely better than but at worst the same as. They go for 3.7p EPS rising to 4.1p EPS next year - though of course SDI are flagging more acquisitions, which should enhance earnings further.

It's interesting to see JDG's trading statement, which is also out (conveniently) today. They seem much more downbeat than SDI, and seem to have lost out all round from the pandemic, whereas SDI have benefited from COVID-19 in a majority of their divisions and are actually thriving in some cases.

Moving up nicely on the contract win news - perhaps an overhang cleared now too.

Good news - and that's from just one customer. It'll give a nice boost to the H2 numbers too.

Excellent figures indeed. The £4.3m adjusted PBT is ahead of expectations of £4.2m, and £24.5m revenues are a good £0.5m above forecasts.

The outlook looks good too, particularly this comment which suggests another 44% rise in adjusted PBT this year:

"For the financial year ending 30 April 2021 the Group expects to report year on year revenue growth and profits at least in line with FY20."

There's some lovely understated commentary along with nuggets of gold. You'd think that the COVID-19 business seems to simply balance the downturn in certain divisions, until you read that:

"Atik, which has worked with this OEM supplier for three years, has increased camera production for them by approximately 10-fold. Atik forecasts it will continue to supply at this increased rate for the next 6-9 months, enabling Atik production to continue at full pace."

And:

"MPB has worked with Penlon for 25 years and has increased its supply rate 20-fold to meet critical delivery timescales."

With SDI's non-COVID related business returning to normality, SDI could benefit from the double whammy of business as usual as well as COVID-19 related business AND new customers and sales resulting from the pandemic and increased awareness of SDI.

Indeed - that's a terrific trading statement. Plus the outlook is as positive as you could hope for. And look at those 90% recurring revenues....

H1 has been great, and the figures for the year as a whole are bang in line with forecasts. Given that things are going so well, further upgrades would seem a strong possibility, helped by new products and the PIA integration advancing ahead of expectations.

Allenby Capital have commented on the news today and conclude as follows:

"Allenby Capital comment:

Mottech enables its customers to significantly increase efficiency through better use of water, fertiliser, energy and labour and also increase yields through professional remote and accurate irrigation. As climate change brings greater variation in weather events and more frequent weather extremes, the need for better management of water resources increases. As a result, Mottech's addressable market continues to expand. Mottech has more than 20 years' experience in the provision of remote control solutions for vineyard irrigation management in multiple geographies including Australia, Italy, South Africa, South America and Israel and Tethys will marketed in these markets as well."

Good to see that following Friday's surge, online remains nicely even-stevens. You can sell a maximum 35k at 71.15p and also buy a maximum 35k at 73.7p.

There's terrific coverage in today's Times too, with an interesting reader comment that "This app could be used throughout Europe. Spanish growers also have time slots to irrigate".....

Https://www.thetimes.co.uk/edition/business/irrigation-on-tap-benefits-winemakers-in-france-ncj08s5xd

"Irrigation on tap benefits winemakers in France

French winemakers will be able to water their vineyards with a tap of their smartphones thanks to a technology group listed on Aim, London’s junior market.

MTI Wireless Edge, an Israeli manufacturer of antennas that works with Nokia on its 5G network, has signed up 200 vintners in France to use a new wireless irrigation system, called Tethys.

Until recently, irrigation of French vineyards was forbidden or strictly controlled but climate change has forced the authorities to ease restrictions in recent years.

Water to most vineyards in southern France is supplied by local water associations through a network of pressurised pipelines designed in the 1960s, although these can easily be overloaded if too many farmers water their crops at the same time.

To solve this problem, MTI’s Mottech division has created a phone app that allocates a specific time slot when the winemakers can turn on their water supply. The app also lets them select how much water they want sprayed over their fields.

At present, the Tethys system covers about 4,000 hectares of vineyards, although MTI bosses believe that there is potential for this to be extended to 200,000 hectares over the next year or two.

“Mottech’s new Tethys system in the world that enables vineyards to choose in advance the exact time, date and amount of water to be supplied,” Moni Borovitz, the chief executive of MTI, said. “All of this is placing Mottech in a good position to expand its services at a time when climate change is like to force a further softening of irrigation restrictions in France.”