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Lots of drilling to come in Q4 from Cora Gold per their RNS this morning:

Https://www.investegate.co.uk/cora-gold-limited--cora-/rns/commencement-of-drilling-at-sanankoro/201911190700058122T/

And as featured in the recent Q3 update, CAPD are now confirmed to start drilling in Namibia on this project for Tanga Resources:

Https://themarketherald.com.au/tanga-resources-reports-new-potential-at-copper-project-2019-11/

"RC and diamond drilling equipment from Capital Drilling has entered Namibia and is expected to arrive on-site next week. Planning is well underway for the follow-up drill program to begin shortly.

This drill program is planned to include the targeting of the down plunge southern extension at Main Gossan and testing the new targets identified from ground magnetics."

Https://www.investegate.co.uk/gan-plc--gan-/rns/strong-pa-gambling-growth-for-october-2019/201911190700098263T/

Wow!

As the CEO says, "a game changing moment in Kape's development".

With "90% earnings accretion anticipated in the year ending 31 December 2020".

That's some acquisition:

"This transaction makes our vision a reality by creating one of the most prominent privacy companies globally. In one acquisition, I believe we have positioned Kape to fast become one of the leading digital privacy service providers in the world, empowering consumers to manage their own data and digital security."

...and another RNS - Jupiter Asset Management have also just turned up with over 5%, or 2.18m shares:

Https://www.investegate.co.uk/afh-fin-group-plc--afhp-/rns/holding-s--in-company/201911181153447674T/

I thought the presentation went well and reflected the team's confidence going forward.

It was great to hear that no more funding is needed to get to £17m per annum revenues.

The potential contract pipeline is greater than £50m per annum. £50m would represent 100,000 discs (Brembo produce 200,000). The £10m to build each new production cell would have a mere 18 months' payback.

The build-out plan could deliver another 30%-40% cost reduction per disc.

GrahamITY has also summarised elsewhere as follows:

"there were about 15-18 in the room ( they were competing with Gervais in the main room). From the questions would say less than half were shareholders ( so a few people seeing them for the first time ?). They also had a stand in a very prominent position, so people could see their disc ( and try to lift a steel disc by way of comparison).

Good presentation. They have been asked whether the CMD and MELLO appearance etc are just the warm up for another fundraise. They made it very clear that, for the existing contracts announced, and for existing plans, they have all the funds they need to get through to profitability and cash neutral, and no current intention to raise any more. Kevin does of course point out that a new mega contract ( heaven forbid) might change that, but that any future fundraiser would be AFTER any new contract, when volumes were known.......and hopefully done at a much higher price.

I think they are surprised ( and disappointed) that the three game changing RNS in the summer have not had a bit more of an impact on the valuation. They have converted OEM5, a household name, into a contract, and the further business from Aston mArtin, OEM1 and OEM6 all show that the product is getting adopted across a range of top rank OEMs. The forecasts only reflect existing, signed contracts, so there is nothing in the price, or the forecasts, for any upside. They can see their way to profits and the market does not seem to have reacted. IMHO they just have to stick to their knitting, keep the profile reasonably high ( with regular, say quarterly presentations) and the share price will look after itself."

Great to see Slater increasing to 10.65% and 4.55m shares:

Https://www.investegate.co.uk/afh-fin-group-plc--afhp-/rns/holding-s--in-company/201911180935457312T/

Zeus have left their forecasts unchanged at present - they'll update when the acquisition is completed.

They believe the acquisition will be 43.8% accretive to 2020 earnings....

They already forecast:

this year: 6p EPS
next year: 6.5p EPS

So presumably next year's forecast could rise to above 9p EPS.

Gresham House have been increasing their holding quickly.

They now have 15.6%, or 111.45m shares - so they've bought 10m shares in the month or so since their last holdings RNS.....

Https://www.investegate.co.uk/inspired-energy-plc/rns/holding-s--in-company/201911180855137273T/

Excellent - and not far away too:
http://uk.advfn.com/stock-market/london/gan-GAN/share-news/GAN-PLC-GAN-Appoints-B-Riley-FBR-to-lead-U-S-Lis/81161110

"the next few months"

Excellent news.

I was hoping to top up this morning, but you could only buy a maximum 1k shares online! Crazy. Evidently hard to get hold of stock.

Note too that CNIC today confirm they're trading at the top end of expectations for this year....

Some random notes from me about INSE's presentation at Mello. I thought the CEO was an excellent presenter, full of passion and industry knowledge. In particular, he knows this sector inside out and has built up and sold similar companies before:

Latest forecasts:

- this year: 1.83p EPS, 0.7p dividend
- next year: 2.08p EPS, 0.8p dividend

- INSE have a 13% leading share in a fragmented market, and are one of only two buyers in the sector
- INSE recently won a new contract with Boots (there were bids from 7 or 8 competitors), and also have extended a contract with Travis Perkins through to 2023
- there's a £60m Corporate Order Book (this against £49m revenues forecast for 2019)
- all of Travis Perkins' energy invoices go to INSE and they input directly into TP's accounting system, set TP's budgets, manage their accruals etc, so are a major data management business
- client retention rates are high at 85%, and any churn is only due to acquisitions
- there are four growth drivers with non-discretionary, recurring imperatives:
(a) compliance with regulation, audit etc
(b) procurement savings
(c) energy accounting
(d) optimisation of energy usage, green efficiency etc

Huge opportunity in optimisation, which is £860m of the total £1.25 billion market. Three of every four UK businesses use a business like INSE, but only one in six have optimisation.

UTW were in almost entirely different markets to INSE, representing only 7% of INSE's business.

Historic private equity take-out valuation have been at minimum 10 times EBITDA. That would be £230m for next year, against the £112m current m/cap.

INSE are rolling out RPA, which has the potential to automate 20% of the labour force.. They aim to increase TCV (Total Contract Value), reduce costs further using their Mumbai admin centre, and to make 4-5 acquisitions per annum.

Re the Ignite Energy acquisition: bought 40% for £5m. Only 10 customers, but makes £12m revenues and £3m EBITDA, embedding staff in clients' operations. WH Smith have made £3.8m annual savings, and SSP £1.5m. INSE have 500 other clients who could make similar savings....

There's a pipeline of acquisitions through to 2024, and INSE aim to grow revenue per meter from £220 to £840.

INSE as a sector-leading player have more leverage with energy suppliers than competitors , i.e in getting rebates from those suppliers for clients.

A few random notes about the Mello presentation from me. I was surprised at how packed the room was - and this was one of the larger rooms. More good news and this could pick up a lot of interest:

- MWE have paid a dividend in each of the last 8 years
- all four acquisitions since 2013 have been successful and earnings-enhancing
- MWE has almost $11m in net cash ($5m) and property (net of mortgage) against the £31m m/cap
- no single customer has over 7% of sales
- has patents and own IP in antennas, big R&D team
- rapid take-up of 5G expected, so increasing demand for backhaul, in readiness for 5G adoption take-off in 2021
- MWE are the only company with a full range of both Dual Band and Flat Antenna products for 5G backhaul
- existing customers have 30% market share in backhaul (MWE have 4 of the top 7 players with a 90% share, excluding Ericsson, Huawei and NEC)
- MWE make 20% additional profit on every extra $1 of revenue
- in Antennas, as well as the 5G opportunity there's further growth expected in RFID re luggage tracking tags which are being rolled out by airports
- the M2M division (Mottech - water management) has grown 50% since its purchase in 2015
- Mottech are the global prime distributor for Motorola's IRRInet solutions, for pumping, irrigation volumes/timing etc
- Mottech have already won a $3m contract from a single Chinese municipality over several years. Imagine the potential if this is replicated in just a few more such municipalities....
- Mottech also have a big opportunity in French vineyards, where there are 400,000 hectares not irrigated which they need to do due to climate change etc. MWE are about to release a software modification for the wine industry
- MWE will continue to buy in large blocks of shares and then sell them on to satisfy growing institutional demand
- defence spending has a large opportunity in India given MWE already have an office there to fulfil the requirement that such increased spending must be carried out locally

Excellent numbers this morning - and likely further good news to come at regular intervals from all quarters.

Nice endorsement from a Fund Manager....

Https://www.morningstar.co.uk/uk/news/197104/5-minutes-with-franklin-templetons-richard-bullas.aspx

"5 Minutes with Franklin Templeton’s Richard Bullas
8 November, 2019
Richard Bullas, manager of the Bronze-Rated Franklin UK Smaller Companies fund, reveals why he likes unloved UK small-caps and a childhood dream of becoming a pilot"

"What's a stock in the portfolio you’re excited about?

DiscoverIE (DSCV), an electronics designer and manufacturer that sells its products in growing markets such as the medical and renewable energy - that gives it a great outlook. It has also a strong track record and is the third biggest holding in the fund."

Reads well - continues to be very cheap imho:

Https://www.ftadviser.com/your-industry/2019/11/11/afh-boss-frustrated-at-valuation-drop/

Extract:

"Companies November 11 2019
AFH boss 'frustrated' at valuation drop"

"According to broker Liberum AFH is currently "significantly undervalued" and trading at a historically low rating of 8.2x the price to earnings ratio, despite showing strong organic growth.

Liberum said this was partly due to investor concerns around cash conversion, which it said had now improved, and predicted a re-rating to 14.5x was "likely".

Mr Hudson said: "Given the strong performance over the year it has been frustrating that the valuation multiple of the group has fallen significantly below that of the sector average in spite of our continued growth and increased shareholder return.

"We continue to focus on delivering shareholder value through the profitable growth of the business."

Funds under management at the wealth manager hit £6bn this year, up from £4.4bn in October 2018, of which its acquisition spree contributed £1bn in assets."

Lovely move up - overhang cleared after huge volumes yesterday perhaps.

At Mello this week I saw a presentation by SimplyBiz, and as part of a discussion on the changing nature of their sector, which is rapidly consolidating, their CEO specifically mentioned AFHP as a very well-run company carrying out a particularly effective strategy.

Which was encouraging to hear!

Hi draft. So what do you think of Team Internet - is it a good company, well run, profitable etc? I know nothing about Matomy....

Peel Hunt reiterate their Buy and 280p target today:

Https://investing.thisismoney.co.uk/broker-views/

The re-rating gathers pace.

And a new Fistreem web site - with the first piece of news flow including some interesting closing comments from Mike Creedon (the CEO):

Https://www.fistreeminternational.com/news/new-website/

"Fistreem International relocates to Cambridge, UK to provide manufacturing excellence and support for customers globally
October 30th, 2019

Fistreem International, a global leader in the development and manufacture of water purification products and vacuum ovens for scientific applications, is delighted to announce its relocation to the Synoptics site in Cambridge, UK. The move will ensure Fistreem has access to technology, manufacturing and marketing expertise, as well as the capacity to support its global scientific customer base.

Fistreem, acquired by Scientific Digital Imaging (SDI) in September 2018 will be operational at the Synoptics site in Cambridge by the end of October 2019. where its main activity will be to produce the Cyclon Water Still, one of the world’s leading water purification brands. Fistreem in Cambridge will also manufacture the Calypso water stills as well as vacuum ovens.

To complement the relocation, Fistreem has launched a new corporate identity including a new website www.fistreeminternational.com and new product literature detailing the full range of Fistreem products and services its Cambridge site provides. Technical services and spare parts will also be available from there, ensuring that Fistreem’s customers and distributors receive the level of product support they need.

Mike Creedon, CEO of SDI commented: “The relocation of Fistreem to the Synoptics site in Cambridge will provide the company with the space, expertise and infrastructure to expand. Additionally, because Fistreem is now fully integrated into our AIM quoted SDI Group, it will also have the funding for that expansion, enabling it to fulfil larger contracts, that it has not previously been able to support. The move is very positive and we look forward to seeing Fistreem go from strength to strength in its new location.”