Member Info for rivaldo

Excellent and pleasantly surprising performance by Shire in H1 - a £240k profit in H1 is an impressive £400k turnaround on last year in such a seasonally weaker half.

The full year should now make impressive reading following the big demand-led investment and roll-out of Aldi, Lidl and Morrisons stores.

Net assets per share have soared to 1356p per share - with no goodwill - including £19.7m cash.

Very happy with that, and the comment about new acquisition opportunities increasing. VLE are in prime position to take advantage of the current climate.

Excellent interview with the CEO...

Https://www.proactiveinvestors.co.uk/companies/news/903436/enteq-upstream-s-technology-partnerships--now-delivering-commercial-returns--903436.html

- "tremendous start to the year"
- "very strong half"
- SW China is making a very big push for shale. NTQ got 3 new Chinese customers in H1, including the one who've put in the big new order
- growth drivers are (1) the new tech products and (2) international sales
- NTQ are also growing in the Middle East and Russia
- Shell have already worked on the new drilling tech product for 5 years, built a prototype and drilled a well with it. But they're not a tech commercialisation company, and they chose NTQ above a number of others to partner with and re-engineer the product and make it even better

I thought there was a rather bouncy, upbeat feel to today's interims. Essentially break-even for H1 - with a 29% increase in EBITDA to €1.4m - and lots going on in the background. CPO prices have risen, and cashew production isn't that far away. Funding and partner/investor support are strong. I'm happy to hold and wait for the new initiatives to come to fruition.

VSA Capital retain their Buy and 12p target, and conclude as follows:

"With a potentially record year in terms of CPO production, a second agricultural project coming online within the next 12 months, refinanced debt with a supportive long-term financing partner and higher CPO prices in H2, we maintain our BUY recommendation and DCF-derived target price of 12p."

They also note:

"DKL’s decision to carry over 3,000t of stock from H1 for sale in the low season looks like a smart decision given the recent palm oil price increase."

Moving up again after a nice 50,000 share buy at 65p...

OT : those interested in "picks and shovels" stocks like CAPD might also be interested in Enteq (NTQ), an O&G stock, especially after their trading ahead of expectations statement this morning.

Great stuff - always nice to wake up to a "beating expectations" statement...

NTQ have almost £9m net cash, and are likely to make $1.2m or more EBITDA in this H1 alone.

They also have a number of new products which are no longer blue sky and are making commercial sales. Plus the IP associated with those products.

All this for a mere £18m m/cap.

A good update. The key point here is that SDI are "comfortable" with both current trading and expectations at this early point, suggesting that they're pretty relaxed about being in line and may well do a degree better than that assuming things continue to go well.

H1 results are out, and are pretty reasonable in terms of results and encouraging in terms of outlook, with prior guidance of $10.5m to $11.5m EBIT reiterated, against a now £48m m/cap.

The overriding sense is that this large, sprawling business is being steadied, and that the period of investment and consolidation is starting to coming to an end and beginning to deliver (i.e Bournemouth, US Ground etc).

Cash flows were poor, but these were due to one-offs such as short-term changes to billing procedures and slow recovery of particular receivables.

Interesting comment from the Chairman, suggesting that acquisitions are still on the agenda:

"The Board will continue to oversee the reforms the Company is implementing in terms of corporate governance and financial discipline, whilst supporting the Company's organic and acquisitive growth strategy, with the aim of delivering stronger future shareholder returns."

They now have over 8%, with 2.49m shares:

Https://www.investegate.co.uk/ramsdens-holdings--rfx-/rns/holding-s--in-company/201909240854533640N/

The IC yesterday published a GARP (Growth at a reasonable price) screen. CAPD were one of only 2 small cap shares that met all 7 of their criteria for a GARP share (on a PE of 11 with a PEG of 0.7).

H1 results could be any day soon judging by prior years. Not expecting a lot from Shire given the heavy H2 seasonality, weak pound, rising labour costs etc, but with the £21m m/cap (1.834m shares in issue) likely almost entirely covered by cash Shire is effectively in for free at present.

INSE has become Birmingham Chamber of Commerce's preferred energy partner, which should bring in more business:

Https://inspiredenergy.co.uk/inspired-energy-plc-partner-with-greater-birmingham-chambers-of-commerce/

"Inspired Energy plc Partner with Greater Birmingham Chambers of Commerce

16th September 2019

Inspired Energy has become Greater Birmingham Chambers of Commerce’s (GBCC) preferred energy partner.

As part of the partnership, Inspired Energy will be sponsoring flagship Chamber events, including being headline sponsors of the Autumn Expo, Future Faces of Sales and Marketing award at the Future Faces dinner and the Business of the Year award at the Asian Business Chamber awards in December.

etc"

Allenby retain their 38p target and say:

"MTI Wireless Edge Ltd* (MWE.L, 30.5p/£26.2m)
Contract win: Military antennas (23.09.19)

Contract win in its Antenna division for the supply of military antennas to an existing European customer. The order is worth c. $1m over the next 15 months.

No change to forecasts or 38p/share fair value.

Allenby Capital comment: Further good newsflow and management reports strong sales interest in its portfolio of antenna products across the whole frequency spectrum.

MTI also continues to invest in its 5G backhaul antennae that represents a substantial global opportunity as MNOs roll out 5G networks. No change to forecasts or 38p/share fair value."

That's a $1m contract win of course :o))

Another $1 contract win, and some particularly encouraging comments about current demand for 5G and antennae:

Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Contract-Win/80775670

"Contract Win

MTI Wireless Edge Ltd (AIM: MWE), the technology group, focused on comprehensive communication and radio frequency solutions across multiple sectors, is pleased to announce that its antenna division has received an order valued at approximately US$1 million, for the supply of military antennas to a European customer over the next 15 months.

MTI's antenna division General Manager, Dov Feiner, commented: "We are delighted to win this order from an existing customer. We continue to see strong sales interest in our current portfolio of antennae products across the whole frequency spectrum. We also continue to invest in the commercialization of 5G backhaul solutions which we expect will drive sales growth as mobile phone operators roll out their 5G networks globally."

That's two wins in just a few days....

Https://www.bristolpost.co.uk/news/bristol-news/three-blocks-flats-built-too-3326159

""Housing for 345 students is set to be built in St Paul’s after a developer whose plans were rejected by Bristol City council appealed the decision and won.

The Watkins Jones Group applied to turn a warehouse space, two car parks, a commercial printers and an art and dance studio next to Wilder Street into three student blocks stretching from three to six-storeys high.

Its proposals were rejected by a Bristol City Council planning committee over fears that the development would open the “floodgates” to students in the area close to Stokes Croft.

The Watkins Jones Group appealed the decision made by elected councillors in September 2018."

Following the appeal, a government planning inspector ruled in the developer’s favour."

Hopefully these consistent rises this week mean the overhang is finally cleared.

A few brief notes from the investor meeting in random order....

- MWE met with Herald and Miton, together with around 5 other institutions who aren't currently shareholders, and alongside other retail broking meetings
- MWE want to use their cash to make earnings-enhancing acquisitions. They looked at around 50 companies last year, but only liked 3 or 4
- R&D is around $1.2m-$1.5m per annum, which is all written off (no capitalisation). A prudent lesson for most other companies
- H1 usually has better cash flows than H2
- apparently Miton and Herald increased their stakes by buying up the shares which had been bought back
- re controllers for irrigation, a city like Sydney might use 2,000 such controllers, whereas individual farmers would buy 5 or 6
- MWE act as Nokia's development house for their antennae. This is fully funded by Nokia, but MWE own the IP
- each of the three divisions should grow by at least 10% per annum, with 5G growing faster

Mark Watson-Mitchell has just written this article contending that SCE could be the next ASOS :o))

Let's hope so....

Https://masterinvestor.co.uk/equities/surface-transforms-could-this-loss-maker-turn-into-a-winner/?utm_source=Daily+Bulletin&utm_campaign=0c4c718ead-Daily_Bulletin_20190919&utm_medium=email&utm_term=0_25eff0bb7f-0c4c718ead-34898813

Conclusion:

"I repeat that buying shares in Surface Transforms is extremely speculative, but I get the same buzz about this stock as I did when I spotted a little company called As Seen On Screen (aka ASOS) way back in 2003."

Looks like the impact of the recent OEM contract wins is finally kicking in. And today we have the announcement of a Capital Markets Day on 30th October to show off the new factory and production cells:

Https://www.investegate.co.uk/surface-transforms--sce-/rns/capital-markets-day/201909190700188819M/

Nice finish yesterday, and moving up nicely today on relatively small buying. Hopefully an indication that the overhang is cleared, or not very far off.