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Peel Hunt reiterate their Buy and 500p target today:

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

Peel Hunt reiterate their Buy and 500p target:

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

Excellent news yesterday. Hopefully an RNS will follow today. Illinois is quite a large state, with a 13m population, and this could net Illinois "over $12 billion in the next six years":

Https://www.dailyherald.com/news/20190602/illinois-senate-backs-legalized-sports-gambling-more-casinos

Extracts:

"Illinois Senate backs legalized sports gambling, more casinos"

"Six new casinos, along with legalized sports betting, are coming to Illinois after Senate lawmakers approved a massive gambling expansion bill Sunday."

"Link estimated that gambling expansion along with other revenue-raising measures in the bill could net Illinois more than $12 billion in the next six years."

Five states have legalized sports betting in the last few weeks - and another EIGHT could come on stream later this year:

Https://www.gambling.com/news/analysis-the-next-states-poised-to-legalize-sports-betting-1961500

"Analysis: The Next States Poised to Legalize Sports Betting
May 29th, 2019

Legal sports betting bills passed through the legislatures of five statehouses in the past few weeks, ushering in a flurry of activity after months of relative quiet in the legal gaming arena. We’ve now entered a second stage of suspended action, but this is shaping up just to be a calm before another storm of action.

Eight states as well as the District of Columbia are all positioned to take sports bets sometime this year, joining the eight jurisdictions already doing so. In 2019 alone, lawmakers in Montana, Indiana, Iowa, Tennessee and Colorado have approved sports betting legislation.

Meanwhile, another handful of states are still debating legislation in their respective statehouses, several of which seem to have good odds to pass.

Legislation seldom follows a straightforward or simple path, made clear once again by unexpected moves in Louisiana earlier this week. As more and more state houses near the end of their respective sessions, here are the remaining states best positioned to legalize wagering on sporting events in 2019.

etc"

News today of plenty of continuing wins for the Electrical Services division - the locations are about as prestigious as you can get:

Https://www.ptsg.co.uk/news/electrical-services/ptsg-busy-with-lightning-protection-contracts-in-the-south/

"PTSG busy with lightning protection contracts in the south

Premier Technical Services Group PLC (PTSG) Electrical Services division has enjoyed a busy period of work recently with a number of new contracts and ongoing work for some well-known and highly prestigious buildings.

The Group’s lightning protection office in Witham, Essex, is pleased to announce new contracts for the installation of new lightning protection systems for clients including Acclaim, Ardmore, Briggs Living, Countryside and Dornan. Its engineers are also currently engaged in contracts to install lightning protection systems for the following buildings and clients:

Luton Dart (Crownhouse)
Battersea Power Station Phase 2 (Mace)
Peninsular Hotel (Sir Robert McAlpine)
Felnex Site (Barratts)
Nestle Avenue (Barratts)
60 London Wall (Skanska)
80 Fenchurch Street (Skanska)

PTSG is the UK market leader and member of the Association of Technical Lightning & Access Specialists (ATLAS)."

Good luck to you. But it's the core adjusted PBT which analysts use and which the markets refer to as this is what the continuing business is earning.

Eagle eye made an excellent post elsewhere re SDI's Mello presentation the other week as follows:

"The speaker was Mike Creedon, the CEO and the attendance was about 60+ people, so standing room only.

SDI has been a turnaround since 2010 when Ken Ford and Mike Creedon joined the company.
Mike was CEO and CFO in the early years to save costs. Now the company has scale, an FD has been appointed plus two NEDs.

The objective is not just to buy businesses at a multiple of 4 to 6 times, but to generate organic growth. Last year organic growth was 11% supplemented by 20% through acquisition.
The share price has risen from 7p in 2015 to currently stand in the 50's.
The market cap of £50m now attracts a different level of institution which is good.
The CEO has a hands on approach, visiting the UK businesses every fortnight.

Discussing some of the acquisitions:

Astles Control Systems came via the private equity route.
It has been chemical etching since 1946, so is old fashioned technology. It's a dirty business as it involves chemical treatment in a wide range of applications including engraving grids for microscopic slides and gun sights.
It has good margins and was a cash cow for the previous owner. It had sales of circa £2m and EBIT of £600K when purchased. It was purchased for £3.4m (with further earn-out of up to £1.3m).

One of the stars is Atik that manufactures cameras. Based in Lisbon, it is a low cost quality manufacturer. It is now looking to triple the size of the factory following a big OEM contract win. The turnover was £1m when acquired, but it's now grown to £4m.

Sentek is the second star in the business and recently capacity has been increased.
Based in Braintree, it produces many products for Siemens, so serves a growing market.

The most recent acquisition is MPB Industries which is based in East Peckham.
It is an old fashioned business producing flow meters and process control instrumentation.
What's good is that Peter Astle is a mentor to the business and SDI sees good opportunities for growth.

Mr Creedon then summarised what SDI looks for:

Businesses are usually UK based, selling worldwide and both profitable and cash generative. It should also have a strong financial track record and strong management. It doesn't look to buy cheap, but looks to pay a fair price.
There is an opportunity pipeline of around 20 opportunities, but four are real.

Mike Creedon runs a tight financial ship, so don't expect him to attend investor events too often.

The 2018 Annual Report is very informative, but the company has run out of hard copies.
However, it is available to download from their website:

Https://scientificdigitalimaging.com/investors/reports-presentations

Encouraging RNS re further Chinese investment in the cashew nuts project - somewhat convoluted, but VSA Capital have summarised it nicely as follows. First production isn't that far away in H1 next year assuming all goes smoothly (which is not a given here!).

VSA retain their 12p target price:

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

"West African agricultural company DekelOil Public (DKL LN)# has announced a €1m investment into its investee company Pearlside Holdings from Hong Kong-based existing investor Concordia Corporation to assist with the development of its cashew processing project at Tiebissou in Côte d’Ivoire.

Concordia has increased its stake in Pearlside to 32.9% for a €1m investment at a €6m pre-money valuation. DKL’s stake in the project will reduce to 37.8% from 43.8% as a result of the financing (with a partial conversion of a short-term bridge loan made to Pearlside from DKL during the transaction offsetting a small part of the dilution). DKL has retained its option to secure a majority stake in the project with a call option over an additional 17% of shares in place. First production from the facility remains on track for H1 2020. The cashew season starts in Côte d’Ivoire in February and runs to June. The project will stockpile nuts during the start of this period until the facility becomes operational.

Existing project investor Concordia has increased its stake in the Tiebissou cashew project to c32.9% at the same nominal valuation that DKL made its own investment last December. However, due to DKL issuing shares at a premium to acquire its stake, its effective deal valuation was lower (c€4.2m). This additional investment further endorses the value of the project and will permit the drawdown of the already-agreed development loans.

We now estimate the project could deliver an additional c€2.2m in attributable profit to DKL by 2022 (assuming the option over the additional 17% is exercised).

Following the increased trading volume in the company’s shares last week we also note last night’s TR-1 announcement detailing the acquisition of c.13m shares (c.3.7% of shares outstanding) by a New York-based high net worth investor. This supports our thesis that the company is fundamentally undervalued at its current share price."

Five buys in 30 minutes of around 50,000 shares - strange, but encouraging :o))

Finncap today reiterate their 180p target:

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

Https://www.investegate.co.uk/ideagen-plc--idea-/rns/contract-award-with-new-tier-1-airline-customer/201905300700095349A/

"New Contract Award with New Tier 1 Airline Customer

Ideagen PLC (AIM: IDEA), a leading supplier of Information Management Software to highly regulated industries, is pleased to announce that it has won a new SaaS contract with a new Tier 1 airline customer, worth £1.2 million over its three-year term.

The airline, a global leader operating over 3,000 flights across six continents, will use Ideagen's safety management software Coruson to enable 65,000 users to log and report all safety incidents across its entire operation.

Ben Dorks CEO commented: "We are delighted to be awarded this important contract with a prestigious new customer. The implementation of systems to further improve airline safety is vital for the industry and it is a testament to our product and people that another global airline has selected Coruson. It is also encouraging to see the sales momentum of last year continuing into the first month of the new year."

Up to £16.6m buyback at 1290p :o))

Octopus are continuing to buy - they now have 17.07% and 12.86m shares, up from 16.07% and 12.09m shares per their last holding RNS, so they've bought another 750,000 shares or so:

Https://www.investegate.co.uk/renew-holdings-plc/rns/holding-s--in-company/201905291357545018A/

Apparently the first PA casino (SugarHouse) started testing yesterday, and will be fully live by Friday assuming no problems. Parx is likely to be in the next two weeks according to a poster elsewhere.

No delayed trades AFAICS, so the upturn must simply be background demand after the "materially ahead" trading update and before the results soon on 12th June.

Commentary from Shore Capital - some nice share price targets:

"AFH's Valuation Lacks Future Deals Scenario: Shore Capital

0952 GMT - AFH Financial Group's current valuation isn't close to capturing either the quality or growth in earnings, says Shore Capital, citing the company's healthy pipeline for future deals. "Our three-year forecasts make no assumptions about future acquisitions and still project compound annual EPS growth of 25%," says the U.K. investment group. Shore adds that its initiation report set a fair value range of 490 pence to 650 pence, "with a blue-sky scenario at 765 pence" where AFH meets its aspirational three-to-five year targets to double funds under management to GBP10 billion and generate Ebitda of around GBP35 million on annual revenue of GBP140 million."

The new broom continues to revamp governance, with today's appointment of PWC as auditors a definite upgrade on Grant Thornton.

Interesting new article about the Bournemouth expansion:

Https://www.flightglobal.com/news/articles/gama-plots-mro-expansion-with-new-flagship-facility-458461/

Extracts:

"Gama plots MRO expansion with new flagship facility
28 May, 2019

Gama Aviation – one of the largest business aviation services providers in the world – has its eyes set on rapid expansion in the maintenance sector, and sees the recent opening of a new flagship facility in Bournemouth, UK as crucial to achieving that ambition.

Formally unveiled on 16 May, the 12,540sq m (135,000sq ft) base at Bournemouth International airport, in southern England, is integrated into Gama's current MRO network, which includes a further 29 facilities worldwide.

"It's another piece of a global network that we are building, such that our clients and third parties have maintenance coverage where and when they require it," says Gama chief marketing officer Duncan Daines.

"Gama puts the total cost of the consolidation and revamp of the Bournemouth site at £1.2 million ($1.5 million), but this outlay is dwarfed by recent awards, from undisclosed customers, of £90 million-worth of long-term support contracts for special-mission aircraft.

The move to the new site has also enabled Gama to enter the airline MRO sector for the first time, with initial deals from British Airways and TUI. "We have a flexible arrangement to provide space in Bournemouth for when these carriers need the extra capacity to maintain or repair their airliners," says McVicar.

Gama is keen to expand that commercial offering and build on its existing business jet and turboprop MRO support operation.

Work in Bournemouth is evenly split between the business aviation and defence/special-mission sectors, with customers including high net-worth individuals, corporations, governments, law enforcement agencies and air ambulance operators."

"Gama offers a broad range of MRO services, including base and line maintenance, aircraft-on-ground support, component overhaul, bespoke design and installation for special-mission and VIP aircraft.

"We are particularly busy at the moment performing ADS-B [automatic dependent surveillance – broadcast] out upgrades, with owners and operators coming to us in increasing numbers as Europe's June 2020 compliance deadline approaches," says McVicar."

Encouraging AGM statement this morning - trading in line with expectations, which are for 12.9c EPS, i.e around 10.2p EPS.

Since XLM "continues to be a highly cash generative business" the cash pile likely remains at around $40m-$45m despite all the buybacks - against a £111m m/cap - which are now set to continue pending approval today.

And earnings-enhancing acquisitions remain high on the agenda.

Around £75,000 of shares traded so far today. This is almost becoming a liquid share :o))

It'll be interesting to see what happens if/when VLE make their next acquisition.

In some cases a cash pile is seen as a dead weight on a share price. For the first time VLE are in a position to make a really meaty acquisition. Given the Landers' disposition I doubt they'll spend more than say £10m on a single acquisition, but hopefully this level of spend would excite the market given the potential multiples on offer from the Landers' track record.

The defensive aspect of the currently almost £37m cash pile would obviously reduce, but I'd have thought the former would outweigh the latter. We might even see the share price start to rise nearer to parity with the true NAV.

Looking like new recent highs coming soon. Moving up on almost no trades, perhaps suggesting background demand, though there may be delayed trades still to be reported.

RNWH are still only just above a current year P/E of 10, which considering its long-term security and recent successes in winning large framework agreements is simply too low.