Member Info for rivaldo

Agreed - terrific numbers. I had a small stake here prior to today, but topped up first thing this morning.

Great news - another US state falls into line....

Https://www.investegate.co.uk/gan-plc--gan-/rns/gan-welcomes-legalization-of-sports-gambling-in-tn/201905280700102206A/

"Tennessee is the 12th State to legalize sports wagering in the US and the fourth to do so this year. Following the launch, 16% of the total US population will be able to place sports wagers online."

"the legalization of online sports wagering is expected to be material to GAN's business, as the Company anticipates existing clients to extend their online GAN-supported operations into the State of Tennessee in 2019."

Given that a sell-off has already occurred, today's statement that guidance is unchanged, and that revenue exposure is actually pretty small, should act as encouragement and reassurance to the markets.

Peel Hunt retain their Buy and 137p target:

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

I like the sound of "the new materials technologies being introduced to market over the coming MONTHS (my capitals) and years".

And here's Canaccord's commentary from Wednesday for those who haven't seen it:

https://www.sharecast.com/news/broker-recommendations/canaccord-reiterates-buy-rating-on-iqe-following-huaweis-us-ban--4330501.html

"Analysts at Canaccord Genuity reiterated their 'buy' rating on British semiconductor company IQE on Wednesday, noting that their expectations for the group's revenues and earnings remained unchanged despite supply chain tremors caused by last week's US ban on Huawei and Tuesday's profit warning from Lumentum.

With IQE management "tracking the situation closely" and following the temporary reprieve issued to Huawei by the White House on Tuesday, Canaccord said it was confident the situation was fluid.

"Overall management does not expect a material impact of the ban on the company," said Canaccord

"We believe IQE has negligible exposure to Huawei in photonics, while in wireless its supply relationships with both US and non-US customers should leave the company relatively agnostic to mid-to-long-term share shifts at the component and OEM level."

The Canadian broker did note that the uncertainty and short-term disruption to the smartphone supply chain caused by the ban could continue to be a factor for IQE shares short-term, but given its unchanged expectation of a significant revenue and earnings acceleration for 2019 and beyond, Canaccord stood by its 'buy' rating and 130p target price."

Commentary today from Graham Neary, who is rightly full of praise for the Sira sale, and from memory has VLE as his largest holding. I'm not a subscriber, so it would be useful if someone could post the remainder of the text from this part available for free:

Https://www.stockopedia.com/content/small-cap-value-report-fri-24-may-2019-vle-iqe-478286/

"Some great news from Volvere last night.

I appreciate the fact that they released it after 6pm, so we had plenty of time to digest it last night. It would be wonderful if more companies did this, wouldn't it? I don't think there's a rule which says that announcements have to be released at 7am!

Anyway. the news is that Volvere has raised £2.55 million (£3 million before bonuses to executives and transaction costs) from the sale of Sira Defence, its small CCTV software subsidiary. The buyer is a large company called NICE.

The multiples achieved by Volvere on exit really astound me. Sira earned revenues of £300k and PBT of £60k last year. Selling it for £3 million tells me that Sira must have developed into a very high-quality business over the years, with a lot of potential, and/or that Volvere is particularly good at finding buyers for its subsidiaries.

You might remember that Volvere's previous disposal generated £31 million (gross), for a consulting company which generated PBT of £3.3 million in the prior year. The multiples for that transaction were impressive, but the Sira multiples are on another level.

The return on investment is also quite good. The RNS yesterday says that Sira was purchased for "£0.005 million". Scrolling back through the archives, the RNS from 2006 says that £30k was the purchase price for Sira and its sister company.

A couple of working capital loans have been extended over the years but the ROI is spectactular whichever way you look at it."

The Cedar Fair rollout is extremely good news imo. It's good to see financially, but more importantly it's a big validation of the quality of the product suite and of ACSO's strategy.

And it's a great reference point to point to for a similar rollout at Six Flags for example.

Commentary here, including a brief comment from Peel Hunt, who agree re Cedar Fair:

https ://www.proactiveinvestors.co.uk/companies/news/220652/accesso-jumps-as-it-sees-strong-start-to-2019-220652.html

"accesso jumps as it sees strong start to 2019
09:00 21 May 2019

The e-ticketing firm said that in the four months to 30 April it had seen “strong demand” for its core ranges and was planning "significant" investments to meet customer demand....

.... Overall, the company said it was “encouraged” by the trading so far this year and remained confident in its full year outlook.

In a note to clients, analysts at Peel Hunt said the Cedar Fair roll out following the Knotts Berry Farm trial showed the “potential” of the company’s product once its different solutions were “fully modular, customisable, and integratable”."

Also good news re Six Flags in China - Six Flags Zhejiang construction making progress despite trade tensions...

hTTp://translate.google.com/translate?u=hTTp://jxrb.cnjxol.com/html/2019-05/22/content_1179625.htm

Good to see buying at 136.2p today, and relatively small volumes causing a decent jump up.

Here's the tip in full....

"Renew Holdings (RNWH) has made a strong start to FY2019, clocking up a record performance in the six months to March. This is partly due to the benefit of last year’s acquisition of QTS, but new framework agreements secured in energy and infrastructure have improved prospects for the engineering support services group.

It acquired rail contractor QTS last May in a bid to strengthen its rail infrastructure business ahead of a planned 25 per cent increase to spending on operations, maintenance, support and renewals in the current regulatory ‘control period’. The deal certainly appears to have been a wise move. Renew reported a 110 basis point increase in the adjusted operating margin, while adjusted EPS rose 15 per cent. Statutory profits benefitted from an exceptionally weak comparator after the group took a loss on the disposal of gas pipe business Forefront in February last year. Still, on an adjusted basis profits rose 39 per cent.

Much of the non-discretionary work that Renew targets is won through framework agreements, and it succeeded in joining a wide range of such agreements in the period. It won places on, among others, a decommissioning services framework for the Dounreay nuclear reactor, the Environment Agency’s flood and coastal risk management programme for the South-East, and its first framework related to 5G cellular technology. It’s order book now sits at £580m, from £558m in September.

Broker Numis is forecasting EPS of 39.9p for the Sept. 2019 year-end, up from 35.6p in FY2018.

IC View
Shares in Renew have struggled since we tipped them back in September, but with this update, things look to be on the up. The price-to-earnings ratio is still shy of the group’s five-year historical average, which we think fails to acknowledge its success in winning frameworks and positioning for the upcoming spending increases in water and rail. Buy."

VLE now have £36.65m net cash - compared to a £35.8m m/cap. Plus Shire must be worth £6m at minimum, or say 200p per share. Then there's the £2.6m freehold property in Shire to add on.

In other words, there's substantial upside from here even without any new acquisitions.

Thx to you too Gailes5. I tend to post on quite lonely threads as most on LSE don't seem to like profitable, well-run companies trading on cheap valuations! Take a look at HMLH and RTC for example - now there's two REALLY boring, slightly illiquid companies at extremely cheap valuations.

Richard Simpson, CEO, and Phil Byrom, Financial Director, discuss the group's interim results, the ongoing strength in their student accommodation division, and the opportunities in Build to Rent:

https://www.youtube.com/watch?v=pL4El4euWUg

Tipped as a Buy in the IC tonight. I don't have full access, but apparently it repeats a BUY recommendation at 422p and quotes Numis' forecast EPS of 39.9p for this year to 30/9/19:

Https://www.investorschronicle.co.uk/tips-ideas/2019/05/23/renew-benefits-from-rail-acquisition/

Wow, a very pleasant surprise. A great result - £3m for a company making just £60k PBT on £390k turnover :o))

Congrats to the Landers. If anyone ever doubted their acumen then this is yet another reason to think again.

Who knows, perhaps we'll be wrong footed once more with the sale of Shire. Or perhaps an acquisition.

Very happy to continue to hold for the foreseeable future in the knowledge that my shares could not be in safer hands.

Cheers Agesilaus, appreciated. I share your thoughts re the food sector. However, if anyone can make things work it's the Landers.

If VLE can buy a complementary business, they can reduce overheads by sharing with Shire and extract whatever production and other synergies there are.

Above all, VLE have managed to increase Shire's turnover by over 50% since the start of 2015 via Aldi, Lidl, Iceland etc. They can utilise their contacts with these growing chains to the benefit of the acquired entity.

Artemis VCT say this today in their results:

"It is now just over a year since we invested in Pelatro and the company has delivered on the expectations set out at the time. Indeed, a growing number of telecoms companies are adopting Pelatro's software and the acquisition of Danateq has bedded down well."

They also say they actually sold some PTRO as it represented too high a weighting for them given its relatively "early stage of development", so this may explain why the share price fell back from the highs

"Kape - Technologies Sales to grow 48% this year
92p Epic code: KAPE

(Sharewatch) The booming cyber security sector in the US has been well-documented with the market worth US$153bn and expected to grow by 52% by 2022. One company that specialises in cyber security and looks cheap is Kape (KAPE; 92p) and during the month I met with chief executive Ido Erlichman following 2018 results.

Kape uses a network of thousands of affiliates to sell software subscriptions for internet security products, for instance, across publisher websites such as PC Magazine and TechRadar (part of Future Plc), with which it has revenue sharing arrangements. Since Erlichman joined three years ago he has completed a string of acquisitions - Cyberghost and ZenMate, which are two suppliers of VPN privacy software and also Intego, a supplier of malware protection, antivirus and firewall software, which supplemented the existing performance software division (clean up software for computers that might be running slow due to corrupted software). Erlichman knows a good thing when he sees it. He points out that the beauty of all his businesses is the great margins and that customers carry on paying for use of the software.

The scope of the transformation is mind blowing but that doesn’t come across at first glance at the 2018 figures with Kape reporting sales of US$52.1m and profit of US$8.8m. First, Zenmate and Intego were only in for a part period - two and five months, respectively. Second, Kape invested US$10.2m in growing its customer base in 2018. Typically it might spend US$100 under its affiliate model to get a new customer but only recoups US$85 in the first year. This depressed reported profits by c.US$1.5m. By month 15, however, Kape has recovered everything. In fact it is capitalising part of the cost and writing it off over 22 months, after which there is no associated cost of acquisition, so this falls straight to the bottom line. Average customer lifetimes suggest that for US$100 spent on marketing Cyberghost, for instance, it recovers US$300 over six years.

The proportion of customers now paying on a continuous basis has soared from 14% a year ago to 53% and is set to hit 70% by 2020. Last year Kape added 529,000 new users organically and 197,000 through acquisitions, taking the total to 830,000. Things are stepping up a gear now. It already has 45 staff in Tel Aviv focused on innovation, 80 in Bucharest focused on infrastructure management and 200 in Manilla to support the customer base. This allows acquisitions to become hugely accretive in its hands - Zenmate, which was lossmaking on a standalone basis, became instantly profitable and is the dress rehearsal for a bigger VPN acquisition in due course.

Even without more eps enhancing deals, forecasts are for sales soaring to US$77.3m, pretax profit to US$12.6m and eps to 5.1p this year and US$88.1m/US$16.3m/7p next. The PE ratio drops to 10.1 next year when you exclude the US$40.4m cash (21p pe

Reiterated by Peel Hunt today:

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

Nice - taken out at 436p :o))

Would have been preferable in some ways to keep long-term, but this is a decent premium. Given that Sagi has recommended the deal it's probably unlikely there will be a successful counter-bid

I had similar sentiments with my holding in EUSP, which was also taken over just the other day. I suspect the weakness of the pound has something to do with these overseas takeovers of UK-based companies.

Results out - £34.1m cash and £12.50 per share of net assets:

Https://uk.advfn.com/stock-market/london/volvere-VLE/share-news/Volvere-PLC-Final-Results/79969366

As already flagged really. Perhaps the most interesting line for long-term shareholders is:

"We continue to look at targets in all sectors but, in particular, we believe there is an opportunity to build a larger group of food businesses, leveraging our competencies in this area."

I also note that most of the 2018 investment in Shire was funded via external debt rather than using VLE's own funds. The comment about being at the heart of their customers' business "over the longer term" perhaps suggests that Shire will be retained for a while yet, especially given the remark about building a larger group, but I'm sure this wouldn't rule out an opportunistic sale at the right time.

Very bullish interview with the CEO:

Https://www.yorkshirepost.co.uk/business/renew-celebrates-record-half-year-1-9780767

"Renew celebrates record half year

Engineering services group Renew Holdings has reported record half year trading following the £80m acquisition of leading Scottish railway contractor QTS last May.

The Leeds-based firm said its order book rose 4 per cent to £580m and is underpinned by a solid foundation of long-term frameworks, including significant new awards during the first half of the year.

Renew's chief executive Paul Scott said: "QTS has bedded down really well. We're absolutely delighted. It's not only made a strong contribution, the way it has engaged and embraced becoming part of the group has been excellent.

"Post-acquisition, it has overcome a number of hurdles involving reviewing its framework so not only has it contributed well, the foundation it has built for future visibility is equally strong.

"That's a testament to the way we acquire businesses. We don't break their brand strength and identity. We don't change. We actually help businesses thrive under our ownership."

Mr Scott said Renew is looking to make further acquisitions.

"We have this fine tuned acquisition search criteria. Whatever we look at has to be accretive and it has to be operating in regulated markets in UK infrastructure and have an established brand identity and customer value," he said.

"Equally we have an ambition to organically grow the group. We have a track record of doing that. We're delighted to deliver 8 per cent organic growth in the period. It's a double stranded approach to our growth strategy."

Mr Scott said that rail activity is driving growth in its core engineering services division.

"From December through to the end of March, we had a really strong run of activity," he said.

"Nationally we were really strong in our maintenance and renewal activity.

"We're on every route in every region. LNE has probably been the busiest route and region for us. It's about bridges, culverts and embankments. It's about embankment stabilisation. The rail network has a major programme of activity around its embankments. The last thing you want is the embankment interfering with your train operating programme."

Looking forward, the group said it expects full year results to be in line with expectations.

"We've had a really strong start to the year," said Mr Scott.

"The operating performance has been strong. It's about the strong foundations. Our order book is underpinned by a number of frameworks which has strengthened in the period in all of our three sectors."

Engineering services revenue rose 25 per cent to £282m in the six months to March 31 and the division's adjusted operating profit increased by 48 per cent to £19m.

Renew increased its interim dividend by 15 per cent, reflecting confidence in future growth."

Nice contract win for a number of IDEA's different software services:

Https://www.ideagen.com/company/news/ideagen-secures-ambitious-software-project-with-joramco

"Ideagen secures ambitious software project with Joramco
Tuesday, May 21, 2019

Ideagen’s Q-Pulse, Q-Pulse Risk and PleaseReview will be implemented to support Joramco’s organisational growth with particular focus on quality, safety and risk

Ideagen has announced it is to supply its software to a major aircraft maintenance organisation in the Middle East.

Joramco, an independent commercial aircraft maintenance, repair and overhaul (MRO) organisation based in Jordan, will adopt Ideagen’s Q-Pulse, Q-Pulse Risk and PleaseReview products.

Joramco will use Ideagen’s software as it aims to automate and support key processes associated with its quality, safety, risk and regulatory requirements...

.....Operating for more than 50 years, Joramco – majority owned by the Dubai Aerospace Enterprise (DEA) since 2016 – has maintained a strong track record as a leading commercial aircraft MRO organisation.

Joramco serves a wide range of customers across the Middle east, Europe, Asia, Africa, Russia and across the Commonwealth of Independenet Estates (CIS), offering services on several aircraft models from the likes of Airbus, Boeing and Embraer fleets.

etc"

Simon Thompson raises his target to 265p today:

Https://www.investorschronicle.co.uk/comment/2019/05/21/watkin-jones-primed-for-highly-profitable-growth/

"Watkin Jones primed for highly profitable growth
Simon Thompson

.....Adjusted half-year pre-tax profits rose by 10 per cent to £26m to deliver an 8 per cent increase in underlying EPS to 8.11p and supported an 11 per cent hike in the payout per share to 2.75p. Analysts at brokerage Pell Hunt expect a full-year payout per share of 8.1p covered two times by forecast EPS of 16.5p, while Paul Hill at Equity Development estimates Watkin Jones will produce an eye-catching 44 per cent ungeared return on equity from its asset-light business model this year.

UK Purpose built student accommodation (PBSA) offers an above-average yield profile compared with other mainstream property asset classes, strong and stable performance both in terms of investment yield and occupancy levels, and a relatively low-risk income stream with the ability to capture annual rental growth. This greatly appeals to institutional investors, which is why all 5,329 student beds Watkin Jones plans to deliver in the 2019 and 2020 financial years have been forward sold or are in the hands of solicitors. The group’s PBSA development pipeline of 9,100 beds across 20 sites is worth £850m and stretches out to 2022. Importantly, current supply of 639,000 PBSA beds in the UK (Jones Lang La Salle estimate) is well below the 750,000 intake of first year and international students, so new stock can be easily absorbed into the market. University applications for the 2019/20 academic year are on the up too, a reflection of the fact that the UK has 12 of the world's top 100 universities.

Watkin Jones is also growing its Build-to-Rent (BtR) activities and has now secured eight sites to construct 1,800 units for delivery in the next four years to meet institutional demand. Unibail, PSP, L&G, Aberdeen Standard, M&G, and Invesco are all increasing their exposure to this asset class, attracted by the UK’s ongoing population growth (the UK's population is forecast to grow by 7.5m by 2035), the urgent need for additional rented accommodation and attractive investment yields (4.25 per cent in prime regional sites). Watkin Jones’ board continues to explore the possibility of creating a separate investment vehicle to accelerate development of this business, acting as asset manager, and retaining a minority stake. Expect news on this front by the year-end.

With the benefits of a capital-light and forward-funded business model, analysts expect closing net funds of £90m (35p a share) by 30 September 2019, rising to £101m (39.5p) a year later. On this basis, the shares trade on a modest cash-adjusted PE ratio of 10 and offer an attractive prospective dividends yield of 4 per cent for the 2020 financial year. The shares are worth buying and I am raising my target price from 250p to 265p. Buy."

Lakestreet Capital Partners have increased to above 10%. They now own 7.4m shares, so have bought almost a further 300,000 shares:

Https://www.investegate.co.uk/carclo-plc--car-/rns/holding-s--in-company/201905211020117008Z/