Member Info for rivaldo

Numis reiterate their Buy and 500p target:

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

Up again today on just a 13k buy, with other buyers continuing to pay a premium for stock in the last few days. It seems there's a continuing shortage of stock here.

PEG's share price has increased almost 200% in the last 4 years. Juantheman, With 2019's numbers already largely secured (given an H2 bias), and with a "number of significant new contracts are in the offing" per the statement only two weeks ago, there's room for large upside from the current £15m m/cap imo, particularly if any of those contracts get RNS'd soon.

I've bought some this morning. OPG looked cheap beforehand, and after today's excellent hedging news now looks even better.

OPG (via Dmitri) presented persuasively last week at Mello, and they've delivered quickly on what was promised as regards the hedging.

Despite the farcical LTIP, prospects look great, and it seems the Board are now fully behind a sensible growth strategy.

Peel Hunt have raised their price target to 265p (from 250p) and say Buy:

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

Excellent article about KWS' expansion in Japan and the Far East, and the resulting synergies and cross-selling:

Https://venturebeat.com/2019/05/11/keywords-expands-game-development-outsourcing-in-japan/

"Keywords expands game development outsourcing in Japan
Dean Takahashi@deantak May 11, 2019 10:25 AM

Keywords is becoming a lot more visible as a 6,000-person company for outsourcing game development. It recently added 45 more developers with the acquisition of Tokyo-based Wizcorp,, which, oddly enough, was run by a French man named Guillaume Hansali.

The deal was one of 11 acquisitions that added nearly 750 employees in the past year. While other game companies have been cutting back, Keywords has been expanding and bringing the lower costs of outsourcing to more game companies around the world.

Good to see INSE starting to bounce yesterday and today.

Great post Hewn, very interesting viewpoint.

The fall looks down to just a few nervous nellies who sold on the very unlikely prospects of (1) Corbyn actually gaining power, and then (2) the entire industry being nationalised instantly, without any legal challenge which would tie up the actual event happening for years in legal wrangling anyway.

Excellent news:

Https://www.investegate.co.uk/imimobile-plc--imo-/rns/imimobile-signs-agreement-with-telia-norway/201905210700256083Z/

"IMImobile signs partnership agreement with Telia Norway for Enterprise CPaaS offering

IMIconnect's CPaaS offering, IMIconnect, to be sold to enterprise customers by Scandinavian telecommunications provider

IMImobile (AIM: IMO), the global cloud communications software and solutions provider, has signed a partnership agreement with Telia Norway, with an option to extend to the wider Telia Company - the leading telecom operator in the Nordic/Baltics. The partnership agreement will enable Telia to resell IMImobile's cloud products, including its enterprise cPaaS (Communications Platform as a Service) offering, IMIconnect, to its enterprise customers. IMIconnect enables businesses to rapidly launch and orchestrate two-way, trigger-based customer communications, across 10+ channels.

etc"

which would have been better but for the one-off introduction of IFRS15 which reduced profits by £613k.

Again, the cash pile has fallen as it usually does in H1, but would have been much higher at over £32m had it not been for £14m which was received in April 2019 (post period end).

Nice 11% increase in the dividend.

The outlook sums up the confidence given the high forward visibility:

"The underlying market dynamics for both student accommodation and BtR are strongly supportive of the Group's forward sale model, which combined with our pipeline of forward sold and secured development sites, continues to provide the Group with excellent visibility on future earnings and cash flow. Consequently, the Board remains confident in the prospects for the Group."

Today's AGM statement looks very positive, particularly the outlook statement:

"While the majority of the trading year still remains ahead of us, the Board is encouraged by the trading seen at this stage of the year and remains confident in the Group's outlook, maintaining Board expectations for the year ahead."

And this looks quite meaty:

"Furthermore, we are pleased to note that the successful TE2 and Accesso Passport integration, at Cedar Fair's Knotts Berry Farm theme park is now being rolled out across the 10 remaining Cedar Fair locations."

And "several additional deployments (are) expected between now and the end of 2019" for the combined Siriusware and Passport applications.

To summarise:

Positive start to trading maintaining existing guidance
‘
Seen strong demand for our core solutions, adoption of combined Accesso Passport and Accesso Siriusware 13 locations worldwide, additional deployments expected
'
Successful TE2 and Accesso Passport integration, being rolled out 10 locations.
'
Guest Experience segment, Ticketing stronger than expected; Distribution activities slower in North America; overall trading in line with expectations.
'
Majority trading ahead for the year.

Looks very positive on every level on first reading:

https://www.investegate.co.uk/renew-holdings-plc--rnwh-/rns/interim-results/201905210700066171Z/

Good increase in H1 EPS to 19.2p EPS, giving the possibility of an earnings beat for the year with a slight increase in H2.

A 15% increase in the divi, and a decent debt reduction.

All divisions now seem to be thriving. In particular, the short and long-term outlooks re rail, water, power, 4G and 5G, works at Westminster etc all seem to be coming together extremely nicely.

There's also another mention of "selective, earnings enhancing acquisitions".

Very encouraging - time for a re-rating.

Https://investorschampion.us12.list-manage.com/track/click?u=401dd8b32832cbb528bec3c81&id=5e6bdbef49&e=9c6fe6af47

Conclusion:

"Broker estimates

The strong first half performance, combined with the acquisition of Gould Hall, has
resulted in the house broker lifting forecasts for both the 2019 and 2020
financial years.

Forecast revenue for 2019 is lifted £900k to £35.3m with pre-tax profit left unchanged at £5.4m but EPS increased from 8.0p to 8.1p. For 2020, revenue forecasts are raised £2.8m to £39.0m and pre-tax profit by £100k to £6.0m, pushing forecast fully diluted EPS number from 9.0p to 9.1p.

Sanderson continues to look in great shape with organic growth planned from the fast expanding Digital Retail division and renewed growth impetus from the enlarged Enterprise division.

- Outlook

With a strong sales pipeline, management expressed confidence in being able to make
further progress in the second half of the year."

22nd May.

For the record, current m/cap - £35.1m.

Cash pile at 31/12/18 - £34.1m (presumably more now). Plus £2.9m retention on the Impetus disposal to be received March'20. Plus Shire Foods. Plus Sira Defence.

Today's news shows that the London office property scene is likely to thrive for some time to come:

Https://www.thetimes.co.uk/edition/business/new-office-sites-show-little-sign-of-brexit-blues-jh5wwqhc9

"The construction of office buildings in central London is at its highest level since the EU referendum....

....Deloitte found that 37 new office schemes were started in the six months to the end of March, adding 3.5 million sq ft to the development pipeline. The amount of office space being built was 12 per cent higher than Deloitte found in its previous survey in November. New starts included the construction of two buildings in King’s Cross that have already been let to Facebook.

etc"

Tipped tonight in a long article by Master Investor - and it doesn't even mention the £80m cash pile, which reduces the P/E still further:

Https://masterinvestor.co.uk/equities/watkin-jones-offers-a-compelling-growth-story/?utm_source=Daily+Bulletin&utm_campaign=112286e8e9-Daily_Bulletin_20190516&utm_medium=email&utm_term=0_25eff0bb7f-112286e8e9-34898813

Conclusion:

"Broker estimates suggest that the current year to end September 2019 will see revenue up £28m at £391m and pre-tax profits coming out at £51m, giving some 16p in earnings and 8p in dividend per share. The 2020 year could well see sales of £433m and profits of nearly £56m, worth 17.75p of earnings and 8.7p in dividend per share. Already, with various developments projected and pre-sold, even further out estimates suggest that revenue could reach £620m in five years-time, pushing profits up to over £75m, with earnings ranging around 24p per share.

At the current 225p the shares of Watkin Jones trade at just 14 times current year earnings and a mere 12.7 times prospective earnings. And just a few years out and 24p of earnings would take them down to 10 times earnings. This is a quality stock that is about solid growth and I see the shares heading to 300p with relative ease."

The results should be good given the recent positive trading update, and the share price is continuing its steady upward trend in advance of those results:

Https://www.investegate.co.uk/renew-holdings-plc--rnwh-/rns/trading-update/201904010700043534U/

From AML's interims this morning (SCE are supplying the cc brakes for the Valkyrie hypercar) for the record:

Https://www.investegate.co.uk/aston-martin-lagonda--aml-/rns/1st-quarter-results/201905150700120359Z/

"The Aston Martin Valkyrie was also shown at Geneva and the initial prototype build has commenced. There is an extensive programme of dynamic events planned over the summer, with a dedicated period of testing building into the final stages of the year. With the first delivery planned for later this year, a progressive ramp-up will see deliveries building towards run rate maturity from Q2 2020."

Good to see Belgians investing here :o))

Https://seekingalpha.com/article/4262687-option-generators-monthly-portfolio-update-new-buy-hold-position?page=2

His main thesis on WJG is very detailed and worth a read:

Https://seekingalpha.com/article/4259140-watkin-jones-hidden-fast-growing-developer-57-percent-upside-potential

Conclusion:

"Takeaways

In my base scenario, investors who now load up on the shares will enjoy FCF yields of 13.3% by 2028, whereas on a cash-adjusted basis that figure skyrockets to 42.8% as the company keeps at least half of its free cash flow inside. In other words, Watkin Jones' shareholders will benefit from the incremental compounding effect of growing cash flows and a mounting cash pile.

I believe an annualized dividend growth in excess of 6.63% (equal to revenue growth) is quite reasonable for the next 10 years, considering the undisputed reputation of delivering schemes right on time while capturing additional management fees after completion.

In essence, my investment thesis boils down to the fact that Watkin Jones has cash flow visibility, will enlarge its exposure to BTR, might forward sell assets to an investment vehicle and this move would accelerate Watkin Jones' growth and thus create a much larger and stable scope for its activities.

As a result, Watkin Jones' reputation will continue to strengthen, allowing for potential multiple expansion (a lower risk premium courtesy of the company's defensive and predictable business profile since it also forward sells developments). Most importantly, the company is operating a non-cyclical business with consistent growth in student applications and a significant crunch in supply and demand. It's not unrealistic that the group will pay out special dividends, but share repurchases would be a more effective way of enhancing total shareholder returns. I rate the shares a strong buy with upside potential of at least 57% based on a WACC of 7.83%"

27.75p paid for 20,000 shares just now, well above the 27p published offer price.

A good year, with PBT up to £2.8m from £2.3m. With revenues ahead of expectations, some additional investment meant that PBT was in line, rather than ahead of expectations as might have been the case. Hopefully the additional investment will be reflected in even better figures for the current year.

I'd hope to see another acquisition or even two this year which should lift earnings again.