Member Info for rivaldo

I like the move into cashew nuts, which is a booming sector and complementary to DKL in terms of location.

The option to buy looks to be at a pretty good price. This looks to be a better deal all round than Norpalm.

Now that's out of the way I assume the results will be out pronto.

Agreed Dandee. Finncap have introduced a forecast of 4.3p EPS and a 0.4p dividend for this year along with that increased 53p target price - which gives 61% upside from here.

I particularly like the "27% increase in Health & Safety Inspection fees driven by a raised awareness of fire risk in communal buildings". This should continue to thrive post-Grenfell.

HMLH also "generated £1.3m of positive cash flow despite acquisition spend of £0.3m." Hopefully it's about time for another acquisition or two to further enhance earnings.

including today. But still only on a P/E of 13.

Nice :o))

Two holdings RNS's today - Ravenswood Investment have landed with a 3.7% stake with 3.15m shares:

Https://www.investegate.co.uk/gan-plc--gan-/rns/holding-s--in-company/201806250930013197S/

And Long Light Capital now have 3.96% with 3.37m shares:

https://www.investegate.co.uk/gan-plc--gan-/rns/holding-s--in-company/201806250900013195S/

That's 7.66% of GAN tied up between them and Long Light Capital. Noteworthy that both are American-based investment funds....

WJG are featured on Citywire this morning as one of four shares that professional investors are buying:

Http://citywire.co.uk/money/4-shares-the-pros-are-buying-and-selling/a1131920?ref=citywire-money-latest-news-list#i=3

"Watkins Jones (WJG)

Who’s trading? Citywire A-rated Henry Dixon and Jack Barrat

The trade The managers of the Man GLG Undervalued Assets fund upped their stake in student halls builder Watkins Jones from 2.1% of shares to 5%, worth £26 million at a share price of 206p.

How have the shares performed: After listing at 100p a share in 2016 the business rapidly rerated last year to a November high of 245p. However, after a dip the share price is essentially flat over the last 12 months.

What does the company say: Watkins Jones cheered a ‘successful’ first half in May, with both earnings and pre-tax profit up almost 12%. It has recently diversified into build-to-rent, signing a £68.5 million deal to construct residential properties in Reading alongside fund management group M&G. It expects to deliver 1,500 homes to let by 2023.

What’s the outlook? Jefferies rates the company on a price target of 250p. Management of the business recently passed out of the Watkin Jones family for the first time in its 227-year history, after the company recruited Richard Simpson from Unite, who was reportedly ‘instrumental’ in building its student business. "

XLM are featured on Citywire this morning as one of four shares that professional investors are buying:

Http://citywire.co.uk/money/4-shares-the-pros-are-buying-and-selling/a1131920?ref=citywire-money-latest-news-list#i=5

"XLMedia (XLM)

Who’s trading? Citywire A-rated Michael Clements

The trade: The head of European equities at Syz Asset Management upped his exposure to online gambling marketing firm XLMedia from 6.3% of shares to 7.1% worth £18.6 million at a price of 117.5p.

How have the shares performed: The company remains 30% down since early June, after falling 40% following a profit warning. This means the shares have near halved from a record high of 220p in January.

What does the company say: This month’s update broke a solid run of bullish updates from the business, as it warned that an online gambling crackdown in Australia and pending changes in Europe had cast a shadow over profits. Nevertheless, it said underlying trading remained broadly stable.

What’s the outlook? Berenberg slashed its target price from 290p to 225p following the announcement, but maintained a buy rating. The company is at the bullish end of the analyst coverage, tracked by Reuters, versus a median target of 194p. Much may depend on whether management can maintain a 50% dividend payout pledge."

RNS - good to see a £1.3m contract renewal win today with Network Rail providing revenue visibility for some years ahead.

And won by RTS, the same company for which PEG only paid £1.5m maximum on being acquired a few weeks ago. A pretty good price which is looking better now (perhaps achieved everyone knew the renewal was up for grabs in the near future).

Quite a prestigious win considering RTS are so small:

Http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/PEG/13691177.html

"Under the terms of the contract RTS will continue to provide software licences, maintenance and third line support to Network Rail in respect of its real time failure and incident management system that supports the UK's national rail infrastructure."

New article about the ADS-B work which should provide a nice additional income stream for GMAA given the need for regulatory compliance:

Http://aviationweek.com/business-aviation/gama-aviation-concerned-ads-b-deadline-being-ignored

"Gama Aviation Concerned That ADS-B Deadline Is Being Ignored
Jun 22, 2018

Britain’s Gama Aviation is the latest company to add its voice to the growing chorus of concern that the business aviation community is flirting with disaster if operators continue to ignore the Jan. 1, 2020, deadline for equipping their aircraft with ADS-B technology. Duncan Daines, the chief marketing officer for Gama’s Oxford Airport-based London ground MRO unit, warns that operators face increased costs or having their jets grounded if they do not get the work scheduled soon. ..."

GAN are mentioned here in connection with the approval a couple of days ago of the opening of the Ocean Resort Casino in Atlantic City on June 28th:

Https://news.worldcasinodirectory.com/license-approved-for-ocean-resort-casino-set-to-open-june-28-56435

"Just shy of 2,000 slot machines will be housed on the 130,000 sq ft casino floor along with upwards of 100 gaming tables and eight poker tables. The center of the casino floor will feature a 7,500 sq ft sports book to be run by William Hill US, and while it won’t open immediately, Leone said that, on opening day, sports betting will be available at a temporary sports book until the permanent one is ready to go in approximately six weeks.

The property, along with partner GameAccount Network, has also applied for an internet gaming license and is expected to be on offer at the casino from July 1."

Further positive endorsement for ProReveal from an early adopter:

http://www.synopticshealth.com/proreveal-testimonial-derriford-hospital-plymouth/

“The benefit of using this type of technology is that it has changed the way we test so we’re saving a huge amount of money quarterly by not outsourcing our testing and not buying swab kits. Additionally, we don’t have to wait 30 days for test results, we can have them instantly. We are very happy with our ProReveal, it is reliable, easy to use and is saving us money while helping us monitor and improve our processes.”

I note Ashtead produced good results yesterday, with its Sunbelt division (the relevant comparator for SOM) being exceptionally positive:

"Sunbelt US's revenue growth continues to benefit from cyclical and structural trends "

Also, on the Somero website they provide a link to the Portland Cement forecast USA, which gives a good indication to construction activity in the USA and which Somero values as relevant to their sector.

68% of revenues are still from the US.

hTTps://investors.somero.com/news/regulatory-news

hTTp://www.cement.org/economics/forecasts

US Forecast - Spring 2018

The economy is strong. The performance of the job market and real GDP growth that has materialized over the past several months signals stronger near-term growth momentum. This momentum is reinforced by a supportive fiscal policy in the form of the relaxation of some federal spending caps, and the likely additions to infrastructure spending contained in the budget."

The outlook statement was also very confident.

Hopefully all this bodes well for SOM too.

Nice - tipped in the Times Tempus' column:

Https://www.thetimes.co.uk/edition/business/chief-s-share-spree-sends-weak-signal-hcsvgm3h7

"Iomart

More businesses and public sector organisations are moving away from IT arrangements in which servers and infrastructure are located in their offices.

These physical elements can be held in distant data centres often operated by third parties. It is this change that Iomart believes it can exploit. The Glasgow company provides businesses with the online and digital infrastructure they need. It has data centres around the UK and a growing presence in Europe, Asia and the United States.

Angus MacSween, its co-founder and chief executive, has long said that the transition into the cloud would be slow and steady but could give Iomart huge scope to expand.

There was a 300p per share approach valuing the company at £320 million from a rival, Host Europe, in September 2014, which investors thought should have been accepted. However, the talks broke down and the Aim-listed business, in which Mr MacSween has a near 16 per cent stake, has grown well since then through a mixture of organic expansion and acquisition.

Annual results released this month showed underlying profit rising 7 per cent to £24 million on revenue of £97.7 million for the 12 months to March 31. The company was loss-making and produced turnover of £11.8 million less than in 2009. The most recent dividend was lifted 20 per cent to 71.8p per share while the company's market capitalisation is more than £425 million.

Mr MacSween has secured further firepower for deals with a new £80 million financing facility. As he points out, most customers tend to stick with IT providers if they do a good job with 90 per cent of Iomart's revenue classed as recurring. It also has a wide spread of sectors with no single customer accounting for more than 1 per cent of its revenue.

The shares are up more than 20 per cent over the past 12 months and have been changing hands at close to 400p in recent days. Finncap analysts recently increased their target price on the shares from 415p to 450p while N+1 Singer and Shore Capital are among the others who are bullish on Iomart's prospects.

ADVICE Buy
WHY Loyal customers and strong track record of meeting targets"

I noticed these comments from Peel Hunt supporting their 25p target:

Https://www.standard.co.uk/business/smallcap-spotlight-goldstone-strikes-gold-in-in-southwest-ghana-a3867476.html

"A short AGM update confirms trading in line. The integration of Q1 acquisitions (Systemslink and ECM) are progressing well and performing in line. The outlook remains positive and we maintain our December 2018 PBT of £11.1m to give EPS of 1.5p (including SBP and s/w amortisation). Shares trading on 12.6x December 2018 continue to offer material upside given the pace of growth, new market opportunities (including cross selling) and further scope to consolidate end markets. Buy"

Great tip for PTSG today in the Mail on Sunday by Midas should see decent buying coming in, and quite rightly at these levels having consolidated for a while:

http://www.thisismoney.co.uk/money/investing/article-5877725/MIDAS-SHARE-TIPS-Making-buildings-safer-sure-bet-growth-PTSG.html

Good to see the hint that further acquisitions are likely - plus the ambition to triple the size of the business:

"PTSG is actively eyeing up prospective deals, as well, which will fuel growth."

"A stated ambition of expanding PTSG into a £500m business – almost tripling in size over the next few years. Brokers have pencilled in revenues of around £68m and profits of £14m this year. A 12.5% increase in the dividend to 1.8p is forecast, but this is primarily a growth stock".

I like the emphasis on growth too:

"this is primarily a growth stock, rather than an income-generating share.

Midas verdict: PTSG provides essential building services across the UK. The company has more than 17,000 customers and looks after 150,000 properties so it does not rely on any individual business or sector for work. Teasdale is driven and ambitious and the shares, at 178p, should do well. A good addition to investors’ portfolio, particularly for those looking for a long-term growth story."

Canaccord have been buying quite heavily. They're now up to 10.23%, or 6.13m shares. They've bought almost another 1m shares since their last disclosure: Https://www.investegate.co.uk/sanderson-group-plc--snd-/rns/holdings-in-company/201806210700051003S/

From the IC today - they say Buy: Https://www.investorschronicle.co.uk/shares/2018/06/20/news-tips-mears-inspired-energy-sirius-minerals-more/ "Inspired Energy (INSE) has reportedly traded in line with expectations for the first half of 2018. In a brief statement ahead of the AGM, the group highlighted the acquisitions of Systemslink 2000 and Energy Cost Management as boosters to its client offering. It has also brought in a long-term incentive plan for senior management. Buy."

Here's the full tip FYI: "I have been casting my eye over the annual results from Aim-traded investment company Volvere (VLE:940p). It’s a company I know well, having included the shares, at 419p, in my 2016 Bargain Shares Portfolio. I last advised running profits ahead of the full-year results (‘Bargain Shares: Beating the market’, 12 Mar 2018). They were eye-catching. Volvere’s pre-tax profit surged by 74 per cent to £3.45m on record revenue of £43.4m, driven by the performance of Impetus Automotive, a provider of consulting services to the automotive sector in which Volvere has an 83 per cent stake. Impetus trebled its pre-tax profit to £3.3m (better than I had expected) on revenue of £27.3m, reflecting an improved client focus, and a major contract for the management and delivery of a large automotive manufacturer's learning and development activities in the UK. Impetus accounts for just £3.7m of Volvere's net asset value (NAV) of £26.1m, or 659p a share, so is effectively in the books for little more than its annual pre-tax profit. Volvere’s 80 per cent stake in Shire Foods looks undervalued, too. It’s valued in the accounts at £6.2m, representing less than eight times underlying pre-tax profit of £830,000, which was earned on slightly higher revenues of £15.8m. True, profits slipped as margins took a hit from higher raw material and staff costs, and restricted the ability to pass on these increases to customers. However, finance director Nick Lander notes that “in recent months there has been a greater realism about the need to either increase consumer prices (or reduce the quantity of product supplied at a given retail price), or to absorb cost increases from Shire.” A planned £950,000 investment in new equipment will enable Shire to manufacture its products at a higher margin, offering substance to the directors’ view that the business will return to growth this year. That possibility is not being priced in. That’s because if you strip out Volvere’s net funds of £16.3m, a sum worth 445p a share, from its £34.3m market value, then the stakes in Shire and Impetus are effectively in the price for £18m, or only 4.4 times their combined annual pre-tax profit, and this ignores any value in Volvere’s small digital CCTV business. Run profits."

Peel Hunt reiterate their Buy and 25p target: Http://investing.thisismoney.co.uk/broker-views/

Good to see the CFO is leaving on amicable terms, and with sufficient time in hand to hand over to the new appointee. But more to the point, there's also hidden in the RNS these encouraging comments about trading and outlook: "I leave behind a business which is in good shape and with excellent prospects." The Board confirms that the Group continues to trade in line with its expectations and will report Preliminary Results for the year ending 31 May 2018 on 17 July 2018."