Member Info for rivaldo

For the record here's what SCSW had to say in their last but one issue (s/be Ok to post now as enough time has passed):

"Watkin Jones

230p Epic code: WJG
(Sharewatch)

The last full year results to be presented by Mark Watkin Jones, the ninth member of the family to run the firm, show the business is being left in good shape. For the year to September, sales rose 20% to £363m, pretax profit by 16% to £50.1m and eps by 14% to 16p - all new records. The balance sheet also strengthened further with £80.2m cash, following £54m cash inflow.

To recap, Watkin Jones’ historical mainstay has been student accommodation development where it buys land, builds accommodation blocks and sells the whole development to institutional investors. Gross profit from this area rose strongly to £60.7m - 84% of group - on sales up 22% at £312.7m. Adjusting for the impact of forward sales, the gross margin for the year was 20.7% and was above the group’s target of 20%.

What makes this such a strong business is that it doesn’t build speculatively but always forward sells sites before breaking ground. Sites can take two to three years to build out, which provides excellent visibility. FY18 deliveries comprised 3,415 beds and there are nine sites (4490 beds) forward sold for delivery in FY19 and FY20 with roughly half falling into each of the two years.

The rest of the gross profit came from managing accommodation, house building and also a move into the Build to Rent space. You may recall when I profiled the shares last year that Watkin Jones had begun to use its existing skill set from purpose built student digs to move into the Build to Rent space whereby an institutional investor agrees to buy a complete block of purpose built rental apartments. Just like with the student accommodation a few years ago, there are structural imbalances.

Watkin Jones’ first Build to Rent deal with investors is for c.1,500 apartments in Reading and Wembley across seven sites, for delivery in FY20 to FY22. As with student accommodation, profits are recognised on a percentage completion basis.

Berenberg forecasts eps of 17.8p for the year. Richard Simpson, Unite’s former property manager who took the helm on 2 January, should have plenty of positive news when he reports in April. Buy."

I suspect the price reaction is largely a function of SIM being undervalued previously - the m/cap was less than the cash pile (and even now is still not much above it).

It's an RNS Reach as there's no specific financial information to validate the tests for a full RNS. An RNS Reach announcement is simply non-regulatory in that sense, but still significant enough to announce.

It's a framework agreement which acts as excellent validation for the company. And for a £7m m/cap company with $5m revenues last year and a £5m-£6m cash pile, even just $1m per annum additional revenues would go a long way :o))

Good to se Robbie Burns (Naked Trader) buying more SCH as per his report last night:

"And... another buy in payments company Safecharge (SCH).

As I mentioned above I do like payments companies as they are in such a hot area of the market with plenty of market share to go for.

Safecharge also pays out a fantastic dividend since I've held it.

It must be a takeover candidate sooner or later even though it has one major shareholder."

Current forecasts are:

this year: 1.8p EPS, 0.7p dividend
next year: 1.91p EPS, 0.8p dividend

That's a current year P/E of 9.4 and a 4.3% dividend yield.

Incidentally, the Corporate Division provides 84% of revenues now, with INSE having a £53m Corporate Order Book and £26m secured 2019 revenues relative to last year's total £32.7m group revenues.

VERY encouraging news:

Https://www.investegate.co.uk/simigon-limited--sim-/rns/simigon-signs-bpa-with-the-us-dod/201904180700085573W/

"SimiGon signs Blanket Purchase Agreement with the US Department of Defense

SimiGon (LSE: SIM), a global leader in providing simulation training solutions, is pleased to announce that SimiGon has signed a Blanket Purchase Agreement ("BPA") with the U.S. Department of Defense ("DoD") Enterprise Software Initiative ("ESI"). Under the BPA, SimiGon and the DoD ESI have established agreed pricing and processes for government customers to purchase the Company's products and services.

ESI is an official DoD initiative sponsored by the DoD Chief Information Officer to both establish and manage enterprise commercial off-the-shelf IT agreements, assets, and policies. DoD ESI lowers the total cost of ownership across the DoD, Coast Guard and Intelligence Communities for commercial software, IT hardware, and services.

The DoD ESI provides an effective method for approved software publishers, hardware vendors and service providers to streamline sales to the DoD ESI customers. The total potential sales amount for all selected vendors under this BPA is approximately $238.6 million over a period of 10 years commencing 1 April 2019.

SimiGon President and CEO, Ami Vizer, said: "We are delighted to join DoD ESI under this BPA. Through signing the BPA, SimiGon joins blue chip technology companies such as IBM, Microsoft, Oracle and Adobe as an official DoD ESI BPA contract holder.

The BPA is another validation of SimiGon's technology, software products and business model as a viable solution for Federal agencies seeking advanced training and simulation solutions for multiple domains."

in line with guidance:

- nicely up on last year's Q1
- net cash is up strongly to almost $11m
- increase in fleet utilisation to 52% from 44%

Https://uk.advfn.com/stock-market/london/capital-drilling-CAPD/share-news/Capital-Drilling-Limited-Q1-Trading-Update/79722943

Most importantly, the outlook remains strong:

"We continue to see robust tendering activity in West Africa and remain confident of further contract wins in the region in the coming months"

Jonas Lundstrom from EUSP's Swedish homeland continues to buy - he's bought another 830,000 shares since his last RNS, and now owns 3m shares, or 4.18%:

Https://uk.advfn.com/stock-market/london/eu-supply-EUSP/share-news/EU-Supply-PLC-Holdings-in-Company/79723046

I came across this excellent series of articles analysing EUSP from a holder of the stock - although they're a year old they shed a lot of light on the company and are well worth reading:

Http://wheeliedealer.weebly.com/educational-blogs/eu-supply-eusp-buy-rationale-part-1-of-2

Http://wheeliedealer.weebly.com/educational-blogs/eu-supply-eusp-buy-rationale-part-2-of-2

Http://wheeliedealer.weebly.com/educational-blogs/eu-supply-eusp-response-to-comments-from-andrew-latto

The specialist building arm of the Renew Group, Walter Lilly has secured a pre-construction services agreement for a £55m headquarters project for the London Institute of Medical Sciences - which is a decent chunk of the next couple of years' construction volume secured until 2021:

Http://www.constructionenquirer.com/2019/04/16/walter-lilly-wins-55m-london-medical-hq-project/

Cannacord say Buy with an 800p target:

Https://highlightpress.com/2019/04/17/ig-design-group-igr-earns-buy-rating-from-canaccord-genuity.html

Looks like more acquisitions are on the way:

Http://www.cityam.com/276368/electronics-manufacturer-discoverie-looks-break-into-us

" Tuesday 16 April 2019 3:55pm
Electronics manufacturer Discoverie looks to break into US market with acquisition

London listed electronics manufacturer Discoverie has made its first move into the United States with the £14.8m buyout of US parts maker Hobart.

The parts supplier for electronic devices announced the acquisition alongside the buy of another firm in the UK, as well as a £29m fundraising round via a share placing.

Discoverie makes parts for renewable energy, transportation, medical equipment and industrial wireless connections. Hobart makes custom transformers, inductors and magnetic components.

The acquisition marks the small cap listed firm’s first inroads into the US market. Discoverie chief executive Nick Jefferies told City A.M.: “They have a customer base that is almost entirely in the USA. That brings us revenue and opportunity to sell more in the US market.

“Allied to that, they have manufacturing in Mexico, which enables us to make products on the continent in the Americas rather than making it in India or China which we currently do, and shipping it all around the world. It makes a more efficient supply chain for us.”

Jefferies added the £29m placing would help fund future acquisitions. He said: “We’re looking for more businesses that are based in central western Europe, but increasingly in North America, that design niche, custom electronic components that can be sold into growth applications which are used worldwide. So watch this space.”

Whoa - 10.2m shares traded in the last 10 minutes. Hopefully the closure of an overhang.

Finncap estimate Food Intolerance to have returned to profit with a £0.4m EBITDA in the last H2. This division alone underpins the current m/cap and prospects look good for the current year.

They expect £0.9m net debt, with £2m available facilities.

Patience is (as ever!) required for CD4, but the potential is large and relatively short-term now rather than being "blue sky", so I'm happy to hold given the core profitable business with CD4 effectively thrown in for free or not very much.

Lots of coverage of the overnight Apple/Qualcomm settlement - this is excellent news which will see 5G growth move nicely forward:

Https://www.thetimes.co.uk/edition/business/chip-war-ends-in-apple-qualcomm-deal-8pmzgcqt0

Extracts:

"Qualcomm, which is valued at $85 billion, supplies wireless communication chips for most Android devices and several iPhone models. It also owns important cellular communications patents that allow it to collect royalties for nearly every smartphone sold worldwide. Its 5G modem chips are considered to be market-leading."

"Apple is now almost certain to have secured access to Qualcomm’s 5G modem chips, which are to be used for the next generation of super-fast wireless mobile data. Apple was expected to have had to rely on 5G chips from Intel, another chipmaker, which is behind schedule in developing them."

"The settlement also involved a “multiyear chipset supply agreement” and a two-year option to extend the license agreement, which became effective on April 1."

Lovely stuff - "Underlying EBITDA* is now expected to be materially ahead of the Board's previously upwards revised expectations".

And the $11.9m cash pile - almost $1m ahead of what was expected in February for the year end - compares with a £15m m/cap....

International sales are growing, as are North American sales, and new products are on the way:

Https://uk.advfn.com/stock-market/london/enteq-upstream-NTQ/share-news/Enteq-Upstream-PLC-Trading-Statement/79713045

and apparently the year end trading update will be in the first couple of weeks in May.

With 2.4p EPS forecast this year - and a £1m cash pile - a 23.5p share price looks pretty cheap to me.

Especially with £14m of this year's forecast £19.4m sales already secured by order books (including £1m from the new £1.5m contract win) - up from £12m at the same point last year.

R&D expenditure is stated to be "much lower in 2019", which will help cash flows and thereby the potential for further acquisitions.

The results will be H2-weighted, but the markets is used to this - and PEG is in a better situation to most companies because they've already secured most of the necessary orders for the year.

Given the potential for new contract RNS's, and the confidence in the outlook as below, I remain optimistic, especially at this current share price:

"The Group has a strong pipeline of new contracts under negotiation which it is anticipated will add to the orders for delivery in the second half of 2019 and for 2020. These together with the Group's strong market position provides the board with confidence in its prospects for the year ahead".

Finncap retain their 488p valuation.

They haven't yet included today's acquisitions in their forecasts, but state:

"With prospects enhanced by these acquisitions and debt reducing, the risk/reward has
further improved and we expect the valuation discount (me - to sector peers) to close."

With current year forecasts at 29.2p EPS, with a 10.1p dividend, DSCV looks pretty good value at current levels.

Good to see a quality investor like MG saying on Sunday he's taken a position in EUSP representing 4.1% of his portfolio:

Https://twitter.com/MGinvestor/status/1117404509679046656

"6/n EUSP (4.1%) -Rebought end March 2019 up 0%. Feel the price at this level offers good risk/reward. For £6.7m mcap you have: possible inflection point? Profitable, sticky rev has been growing consistently 70% recurring, part of framework agreements. CEO founder holds sig amount"

The year end update has been brought forward due to today's acquisition news.....

Excellent trading update, summed up by:

"Trading in the fourth quarter continued strongly and the Group expects to deliver full year earnings in line with the Board's expectations."

Plus good cash generation with better than expected debt.

And we have an institutional placing at 400p to help with two more nicely profitable acquisitions. A very good price considering where the share price fell to only recently. And I suspect the acquisitions will be earnings-enhancing more quickly than next year given the various synergies which DSCV have already proved they can achieve.