Member Info for rivaldo

Looks like today will be a good day here - order books at record highs, margins up, a rosy outlook going forward.....

An excellent update.....and also great to see D&M now up to 75% of profits.

Https://www.investegate.co.uk/discoverie-group-plc--dscv-/rns/trading-update/201807260700047908V/

Extract:

"The positive trading momentum seen last year continued into the first quarter, with the Group on track to deliver earnings in line with our expectations.

Group sales in the period increased1 by 12% CER2 and 3% organically3 against a strong prior year comparator, and orders increased by 16% CER and 7% organically. The Group order book, of which over 80% is for delivery over the next twelve months, rose to a record high of £135m, up 20% CER year-on-year and up 13% organically.

New project design wins, a key driver of future organic growth, also grew strongly with a number of successes in our key target markets, in particular, the renewable energy, transportation and industrial markets.

The Design & Manufacturing division ("D&M"), which generates around 75% of Group profits, saw broad-based organic growth with sales increasing by 5% and orders by 13% on an organic basis as the division continues to benefit from its focus on key structural growth markets and cross-selling."

And:

"Group gross margin increased over the prior year, reflecting the continued focus on products with higher added value.

With a clear organic growth strategy and an active pipeline of acquisition opportunities, the Board expects to make further progress throughout the year."

RNS tonight - Canaccord (and their clients) continue to buy. They're now up to 12.17%, or 7.95m shares - they previously had 7.66m:

Https://www.investegate.co.uk/imimobile-plc--imo-/rns/holding-s--in-company/201807251731297882V/

Lovely new highs (and still some way to go to Peel Hunt's 3100p target).

The reason for today's rise is presumably Six Flags' H1 and Q2 numbers, announced nine hours ago, which came in ahead of forecasts for revenues.

They actually missed slightly on net earnings, but that's irrelevant - ACSO benefits from the increased revenues.

Most importantly, the outlook statement is extremely positive. Here's the results:

Https://finance.yahoo.com/news/record-first-half-revenue-six-100000074.html

Extract:

"Record First-Half Revenue for Six Flags
Business Wire•July 25, 2018

GRAND PRAIRIE, Texas--(BUSINESS WIRE)--

Deferred Revenue Up $32 Million or 16 Percent and Active Pass Base up 8 Percent at End of June

Six Flags Entertainment Corporation (SIX), the world’s largest regional theme park company and largest operator of waterparks in North America, today announced that revenue for the second quarter of 2018 increased $23 million or 5 percent from the second quarter of 2017 to $445 million. The revenue growth resulted primarily from a 3 percent increase in attendance to 9.8 million guests, a 2 percent increase in guest spending per capita and a 9 percent increase in sponsorship, international licensing and accommodations revenue. Adjusting for the nearly 200,000 guest visits that occurred during the first quarter versus the second quarter due to the earlier timing of Easter in 2018 versus 2017, second quarter 2018 attendance grew 5 percent."

“I am confident 2018 will be another record year for our shareholders as we continue to innovate and execute on our five-pillar strategy to drive our business to achieve our aspirational goal of $750 million of Modified EBITDA by 2020.”

Berenberg have today increased their target price to 225p (from 220p) and say Buy:

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

It's crazy imo that IQE are now on a forward P/E of 22 or so, with a strong Balance Sheet, and on a PEG of only 0.73.

And those ratios are likely to be significantly improved following upgrades post-interims, as suggested by the new analyst reports out yesterday.

You just have to read yesterday's two RNS's to realise the growth coming here - which has now been secured by the new forward supply agreement with IQE's "largest customer".

As well as the potential from GaN on Silicon, cREO, QPC etc.

Hopefully given the rosy outlook this is the last throw of the dice (or almost the last) from the doubters.

each day. Hopefully new highs coming soon.

Interesting to see from this new Edison report that KAPE are now on an ex-cash P/E of only 14.5 for next year.

With another acquisition or two from the forecast $53m cash pile, the ex-cash P/E could fall substantially, perhaps even down to single figures:

htTps://www.edisoninvestmentresearch.com/research/company/Kape-Technologies

"Kape’s acquisition of Intego for $16m looks a good fit. It broadens Kape’s portfolio by adding anti-malware software and significantly strengthening its Mac offering. We see good scope for sales synergies through cross-selling and leveraging Kape’s customer acquisition platform. The deal boosts our FY18 and FY19 EPS by 2% and 9% respectively, while synergies should strengthen beyond our forecast period."

as one of their "Great Ideas":

"Snap up digital economy winner IMImobile for potential big gains

Online and mobile marketing solutions player has consistently outperformed

Global commerce is increasingly shifting to online and smartphone applications and we anticipate IMImobile (IMO:AIM) will be a long-run digital economy winner.

The multi-channel customer engagement, marketing and commerce specialist is separated from its rivals thanks to a superior track record of consistency.

It has racked up growth in revenues, earnings before interest, tax, depreciation and amortisation (EBITDA) and pre-tax profit, all while throwing off impressive amounts of cash.

‘IMImobile is one of the most consistent performers in its peer group, mainly reflecting its geographic and sector spread, strong software products, and business-to-business focus,’ is how one analyst describes the company.

Full year results to 31 March 2018 were in line with already upgraded forecasts, showing revenue up 46% to £111.4m.

The fact it only managed 7% organic growth was largely down to challenging markets in the Middle East and Africa offsetting much better performances across the US, Europe and the Far East. Adjusted EBITDA of £13.4m was up 17% year-on-year and also beat consensus estimates.

IMImobile has been consolidating its position in the UK cloud communications space and growing its international operations through acquisitions.

Infracast, Sumotext and Healthcare Communications have been bought during the past year or so, adding considerable scale, bolstering financial services and healthcare expertise and allowing greater cross-selling across its client estate. Customers include Vodafone (VOD), BT’s (BT.A) EE business, British Gas-owner Centrica (CNA) and IBM.

Buying businesses does come with associated costs and IMImobile must constantly invest in its technology platform to keep it top notch.

It’s also worth noting the company’s habit of making hefty payments in stock, and while that has no effect on cash flow, it does help to explain the gap between adjusted and reported profit, which was £10.1m versus £2.7m last year respectively.

On 3 July it bought Canadian mobile engagement solutions provider Impact Mobile for £15.8m, a significant deal in terms of strengthening its footprint with North American mobile operators, retailers, government agencies and major household brands. That should equal more cross selling opportunities down the line.

The acquisition adds an extra £1.2m to forecast pre-tax profit both this year and next, according to Investec’s estimates, to £13.1m and £14m respectively. That implies a price-to-earnings multiple of nearly 19 falling to 17.6, hardly demanding by digital economy growth stock standards.

Investec calculates the stock will hit 400p over the next 12 months, implying 45% potential upside."

Service contract won to visit Network Rail's HQ every 6 months:

Http://www.ptsg.co.uk/news/ptsg-keeps-network-rail-track/

And an inspection contract win at Trinity shopping centre in Leeds:

Http://www.ptsg.co.uk/news/ptsg-secures-contract-trinity-leeds/

New pan-European partnership agreement:

Http://www.acalbfi.com/uk/articles/articlesContentPage/Acal-BFi-signs-pan-European-agreement-with-Rebellion-Photonics/NA-000786

"Acal BFi sign pan-European agreement with Rebellion Photonics

Acal BFi have further developed their photonics and imaging portfolio by becoming Rebellion Photonics’ sole technical partner in Europe to offer their range of next-generation gas-leak-detection and monitoring systems. Some of the biggest oil, gas and chemical companies in the world use Rebellion Photonics' technology to mitigate high-risk safety and environmental issues, loss of product, delays to production and the related economic losses.

Customers across Europe can now access high-quality hyperspectral imaging technology with advanced detection algorithms to identify and quantify gas releases in real time. This cutting-edge technology is fully autonomous and automated, capable of detecting leaks day and night with a response time of less than one second, and is unaffected by wind and other weather conditions. The system automatically detects, identifies and quantifies the gas, generates an alert, and provides real-time video of the leak, allowing the operator to take immediate mitigating action.

Accurate detection of gas leaks up to 1.7km away

Rebellion Photonics' gas-cloud-imaging (GCI) cameras use proprietary technology, both visible spectrum and infrared video, to detect leaks up to 1.7km away. The self-calibrating hardware is significantly more accurate at detecting gas releases than most traditional imaging systems, eliminating the need to buy additional gas-detection hardware.

Unlike other gas-leak-detection systems, Rebellion’s GCI technology both identifies and quantifies gas leaks for most hydrocarbons and other dangerous gases. For example, GCI cameras can detect a cloud of ammonia 2m in depth with an average concentration as low as 7ppm, accurately estimating the volume of gas emitted.

etc"

SVS Deep Value Fund are keen - "very cheap and there is a clear expectation that better business performance will emerge in the not too distant future":

Https://www.sharesmagazine.co.uk/news/shares/drilling-down-on-enteq-upstream-view-from-a-value-investor

"Drilling down on Enteq Upstream – view from a value investor
23 July 2018, 11:57

One of the longer term holdings in the SVS Church House Deep Value Fund (B79XM02), Enteq Upstream (NTQ:AIM) ‘came back to life with a bang during April’, according to portfolio manager Jeroen Bos (pictured below).

At 32.5p, Enteq’s shares are up 33% on the 24.5p average paid during 2014, although they’ve recently been as high as 40p for a 63% paper gain and Bos believes this stock ‘should do very well over time, with the much improved outlook for the oil price.'

BOOST FOR BOS

The oil services business released an upbeat trading statement during April that has caused the share price to jump, providing a boost for Bos’ SVS Church House Deep Value Fund, a concentrated portfolio of holdings exhibiting deep value characteristics seeking to generate long-term capital growth for investors.

‘In this statement, management stated: “The board is pleased to report that both full year revenues and underlying EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) are expected to be significantly ahead of its expectations’, says Bos.

He continues: ‘The company has been listed since 2014, and the highly regarded management team had expectations that Enteq Upstream would become a consolidator in the sector by buying smaller oil services companies, a process they had previously, very successfully, undertaken with a different company. Enteq Upstream is this management team’s second incarnation and the aim was to repeat a very successful operating model.’

‘Due to the collapse in the oil price, the company struggled to execute this strategy, so management instead concentrated on protecting the business during the downturn and not committing funds while the market was in free-fall. Apart from one purchase, it continued to protect cash reserves to such an extent, that at the low point, cash on the balance sheet was greater than the company’s market capitalisation.’

‘By this stage it could be said that the company was truly cheap, albeit operating in a very, temporarily, difficult sector. Fast forward to April 2018 and an encouraging trading statement was all that was needed to propel the shares to higher levels. With profitability expected to make an appearance and an improving oil industry outlook, we should expect the shares to move to higher levels in the future,’ says Bos.

‘This is a great example of value investing. We buy shares that appear to be deeply depressed, but on balance sheet terms they are very cheap and there is a clear expectation that better business performance will emerge in the not too distant future.’"

N+1 Singer retain their Buy and 181p target price.

They'll update their forecasts after the interims next month and summarise as follows:

"N+1 Singer view

IQE’s H1’18 trading update shows a solid first half performance, with double-digit constant currency sales growth in each of its core markets. Alongside the update the group has announced a major Wireless contract renewal with a Tier 1 customer, worth $60m through to September 2019. The capacity extension at the Newport facility is reported to be proceeding to plan and the board has approved a Wireless expansion programme in Taiwan to reduce the costs of converting reactors between Wireless and Photonics. IQE is expected to be strongly H2 weighted (40:60 H1:H2 revenue weighting), with the expected ramp-up of Photonics in H2’18 and into FY’19 key to our positive stance. We continue to expect further positive news flow as the year progresses and remain supportive."

FYI here's a new interview with a managing director at Gresham House, which of course owns a large stake in IMO:

Https://www.directorstalkinterviews.com/gresham-house-strategic-plc-qa-highlights-final-results-longhs/412754503

"I’d be remiss not to talk about IMImobile as it remains a high conviction and big stake in the fund. It published its full year results last week, that’s also year ended 31st March, the results were very good, they were marginally ahead of expectations on gross profits and EBITDA and inline on EPS so seeing continued strong performance and a great outlook for that business

Following their results, actually just this morning, they’ve announced they’ve a further acquisition of a company called Impact Mobile which is a leading messaging and consumer engagement based in Canada and they’ve paid C$25 million for that plus C$2 million of deferred consideration to be paid in 6 months. This is a business that’s generated C$4 million of EBITDA and with a growth rate of about 17% so I think very attractive multiple, it’s all been funded through cash and a banking facility so meaningfully earnings enhancing and providing great platform to extend their other capability into the North American market.

Impact Mobile does about 20% of its business in the US and 80% in Canada so it gives IMImobile a good beachhead to continue to develop a story in the North America market. Again, a complementary fit, the ability to take in the product that they’ve got so looking forward to significant further development on that front."

Prospects look extraordinarily good looking forwards, this paragraph being crucial:

""We are now engaged with over 20 VCSEL chip manufacturers in Asia, North America and Europe on qualifications for mobile, sensing, automotive and datacom applications. We are already fully qualified and in mass production with six of these companies and in final qualification stages with an additional six more. Furthermore, as detailed in our announcement of 9 July 2018, we reached a production milestone for our NIL technology which demonstrates our ability to bring to market some of the leading materials solutions that we have been showcasing and sampling to our customers. We have significant engagements for our other core technologies, including GaN on Silicon, cREO and QPC, and these are proceeding as planned. The H2 2018 ramp for Photonics has already started and we look forward to the rest of 2018 and in particular the further ramp up which is expected in 2019, with considerable anticipation."

I also wonder if today's second RNS re the renewal of the contract with the "largest customer" will allay any fears which might have been out there, partly contributing to the drop from the highs.

The Taiwan expansion will raise Wireless capacity by 40% - another terrific signal.

There aren't many companies out there with this global and significant potential. Time for a bounce.

The ship has steadied and diversification is increasing. At this level perhaps we may see the start of a relief rally, especially if the major sellers are now finished:

https://www.investegate.co.uk/xlmedia-plc--xlm-/rns/trading-update/201807240700034993V/

This looks an incredibly good earnings-enhancing acquisition - a pre-tax P/E of just 11.4 for a cybersecurity and malware business making $1.4m historic PBT looks terrific value.

Plus high recurring income, cross-selling opportunities...

https://www.investegate.co.uk/kape-technologies--kape-/rns/acquisition-of-intego-for--16-million/201807240700034990V/

Maven Income and Growth VCT 5 reported results on Friday and had this to say their £3.85m investment in IDEA:

"In the year to 30 April 2018, Ideagen delivered results that were again in line with expectations. The company recorded a 33% increase in revenue to £36.1 million and a 40% increase in adjusted EBITDA to £11.0 million. The organic growth rate of 11% was supplemented by the contribution from the acquisitions of Logen, Covalent, IPI and Pleasetech, which completed in the prior year.

The company continued to strengthen the quality of revenues with significant growth in Service-as-a Software (SaaS) business as bookings increased by 174% with recurring revenue now accounting for 62% of turnover (57% in the previous year). This increase in revenue was driven by new and existing customer wins, with notable wins including Scandinavian Airlines, AirAsia, Lockheed Martin, Bayer Pharmaceuticals and Verizon.

In addition, the company acquired Medforce, a company that has developed a product suite to support productivity and legal compliance through its workflow and information management tools. This business was acquired for $8.7 million in cash which was payable at completion and funded with a mixture of debt and cash.

This acquisition represents Ideagen's first US purchase, a territory that has been identified as a key area of growth and which has generated over 50% of all new logo wins and 70% of all new SaaS wins in the first half of the current financial year."

Https://www.gamaaviation.com/news/european-news/aircraft-management/

"17th Jul 2018

Gama Aviation wins Bombardier Global 5000 and Gulfstream G650ER contracts

Gama Aviation leverages global team to win new aircraft management contracts

Farnborough, 17rd July 2018 – Gama Aviation, the global business aviation services company, is pleased to announce it has secured two new aircraft management contracts after the completion of competitive tenders for both. The first, a three-year contract, will see the company oversee the delivery and subsequent management of a Bombardier Global. The aircraft, once delivered from Bombardier, will fly extensively within the US, Europe and Asia.

Mark Gascoigne, European Managing Director commented: “Our client will use the aircraft intensively for time sensitive missions. On understanding the mission requirements and logistics, we determined how we could reduce single point failures via our global network to minimise schedule risk and downtime during each flight. Our passion to simplify and de-risk an otherwise complex logistical exercise was the primary reason for our selection, something that no-one else, in the view of our client, could achieve.”

The second contract awarded this month, sees the addition of a new type to the fast-growing Asia fleet. The Gulfstream G650ER will join the fleet on delivery, making it the second Gulfstream to join the Asia fleet in the first six months of this year.

Sergio Silva, General Manager commented: “We are extremely pleased to add another tail to the fleet in Asia. We are seeing an increasing trend amongst knowledgeable owners in Asia, towards companies that have the capability to support the full capabilities of their aircraft, whether at its home base or down route in say, Las Vegas. This simplifies the mission for the pilot, the owner representative, the EA and the owner, as they understand they’ll receive end-to-end support from us locally and via our comprehensive global network.”

So now we have a revised offer from Consort received on 13th July, plus a PUSU deadline extension to 13th August....looks like discussions are getting serious.

Terrific acquisition news - very small, but excitingly its's in the area of AL and machine learning, marking KWS' entry into this field.

Importantly, these solutions "are now ready for commercial roll out", and "can leverage the worldwide reach of Keywords and its extensive client relationships. As part of the agreement, Silicon will collaborate with Keywords in introducing the technology to Japanese game developers and publishers, and it has a non-exclusive right to resell the YD solution into the non-games markets (such a healthcare), in exchange for a share of the associated revenues":

Https://www.investegate.co.uk/keywords-studios-plc--kws-/rns/acquisition/201807230700074096V/

"Andrew Day, Chief Executive Officer of Keywords Studios, commented:

"We have been looking for opportunities to establish a foothold in the exciting area of video game analytics for a few years. This acquisition brings industry leading technology and capabilities to Keywords that we believe we can support, enhance and roll out to our clients thanks to the engineering, player research and video game specific data science skills we have within the business. While YD is pre- revenue, it is a rare asset and we expect the first clients to start implementing the software during 2018.



"As games continue to transition to a service model from a product model, the use of sophisticated analytics engines like this to automatically understand player behaviour and trigger real time decisions in-game will become increasingly valuable to our clients. The use of AI to constantly adapt the predictive models to changes that are made in the games, such as when new items, expansion packs and promotions are introduced, is critical to the future of the video games industry so we are delighted to have secured this leading-edge technology."