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Dowgate Capital have also issued a new note on REAT.

They have a 100p target price - and that's assuming only 60% of REAT's goal of £5m free cash flow is met.

They go for 6.9p EPS to 30th September, then 8.1p EPS to 30/9/25. That's a P/E of only 9.1.

The cash pile is forecast to rise from £1.0m to £3.0m (against a £17m m/cap).

Extract:

"Polished results display continued progression.

React Group has released 1H results that demonstrate EBITDA growth of 35% from a 13% advance in Group revenue. The Board has confirmed that the Group has maintained its strong sales momentum into 2H and in so doing has secured higher margin business. The Board commented that the pipeline for the remainder of the year ‘remains robust providing the Board with a high degree of confidence in achieving full year consensus market expectations.’

We have left our FY 2024E forecasts unchanged and they assume FY +9% revenue growth. However, we continue to hold the view that there could be an accent on the upside as the year progresses, with contract wins that should benefit 2H, and a strong pipeline for next year.

We maintain our Buy stance with a Target Price of 100p. This still conservatively assumes the Group achieves only c60% of its medium term cashflow target, and we reiterate again, it also does not include any potential value enhancement from deploying the Group’s firepower on acquisitions. We believe the latter to be rightly back on the agenda now the new banking relationships are in place, prior acquisitions have bedded in well, and the LaddersFree digital platform is more than 60% of the way towards completion."

Which is excellent news for TIG's sector as a comparator.

Per Zacks, GoDaddy's consensus EPS is $4.92, so at their current $142.04 stock price they're on a P/E of 28.9. Which is somewhat better than TIG's current year P/E of just 8.9 at 200p...

Https://www.barrons.com/articles/godaddy-crowdstrike-kkr-sp500-fa03cf56

"GoDaddy and CrowdStrike Will Join the S&P 500 Later This Month"

"GoDaddy stock has risen 31% this year. The web-services provider has received activist investor intervention from hedge fund Starboard Value. GoDaddy should target at least “40% growth plus profitability” in fiscal year 2025, Starboard said in a letter to the company earlier this year."

Looks very good and exactly as RNWH have been planning as regards electricity sector expansion:

- "immediately earnings-enhancing"

- material in size at £26m including decent deferred consideration dependent on the founder staying on and profit targets being achieved

- entry into another massive market for the upgrade of the grid that is required to support the UK's zero carbon generation and renewables sector

- once again, to hammer home the message per today's RNS, "targeting end markets where maintenance and renewals programmes benefit from long-term, non-discretionary funding programmes", since Excalon has "a number of long-term frameworks with electricity Distribution Network Operators ("DNOs") across the UK"

A further £74,250 of shares bought back - at 1485p, the highest price to date if I recall correctly:

Https://uk.advfn.com/stock-market/london/volvere-VLE/share-news/Volvere-PLC-Transaction-in-Own-Shares/94018061

Encouraging to see a 107,458 share buy at the full 103p offer right on the bell on a Monday morning. And the bid price is now up to 102.5p.

A steady as she goes month for CPO in May against a really strong comparative due to the odd high season last year, but with terrific extraction rates and also a very good month for PKO in both sales and pricing.

Above all:

"The Palm Operation is continuing to be a strong performer with strong production, high historical CPO prices and excellent extraction rates. We remain well on track with market expectations for H1 2024 which we look forward to announcing next month."

The next (July) update will hopefully comment on the cashew equipment which is expected to start arriving this month, unless there's a separate cashew update.

Happy with this oversubscribed placing, particularly with the pricing at only a small discount at 33p. It looks like the market is rather supportive of the new guy's plans re AI and ML.

Good to see substantial Boardroom buying in the placing, with almost 1.25m shares being taken up by directors and the company secretary, i.e over £400,000. Plus the new NED and senior management are putting in another £220,000.

The RNS does mention that the money is intended partly to be used to fund acquisitions, so there may be news on this front at some point soon.

Healthy buying yesterday and again already today - with a 20k buy at 18p just now.....after a 100k buy at 17p reported late yesterday and a number of other 20k and 10k buys.

New interview with Mark Braund (Chairman) FYI:

Https://www.youtube.com/watch?v=b1rTyj5pRvU

- "high degree of confidence" in meeting expectations to 30th September, i.e 6.9p EPS (which rises to 8.1p EPS for the year starting 1st October, against a 76.5p share price)

- recurring income is up to almost 90%

- in H1 earnings were up 35% against revenues up 13%

- FCF was also up 35%

- since acquisition Fidelis' revenues have increased from £4.8m to £12m

- and LaddersFree is growing 30% post-acquisition

Interesting post elsewhere re an industry commentary on rising freight rates:

"FEWB MARKET UPDATE

04 JUNE 2024

FAR EAST WEST BOUND RATES SPIKING

Further to our May 13th update, the situation in Asia continues to deteriorate.

Demand is outstripping supply causing ocean rates to surge and space on vessels sailing towards Europe is becoming even scarcer.

This problem is compounded further with a lack of empty 40ft High Cube containers, particularly in Northern China.

Industry analysts are predicting ocean freight rates for a 40ft to reach $10,000 by July, although this is only a prediction, we are seeing all carriers increase their rates on an almost daily basis now.

Today ALL carriers are >100% booked and therefore rolling containers, with various carriers confirming they already have roll pools in excess of 5000 containers.

With the surge in demand and the roll over containers this is compounding the problem further as the main gateway ports are becoming overwhelmed, with vessel berthing times increasing further and effecting schedule reliability.

There is no doubt that these issues are not going to be resolved in the short term and we would continue to encourage all of our customers to book as far ahead as possible, with a minimum of 4 weeks notice.

Future Forwarding will do everything we can to mitigate the problems and delays, but please understand this is an industry problem beyond our control.

We will continue to keep you informed with any developments and once again, thank you for your continued support.

With kind regards

Future Forwarding Co. Ltd"

SDI have been tipped by City Confidential with a 104p target price in their latest issue:

Https://www.cityconfidential.co.uk/cityconfidential-newsletter-may-2024/

Extracts:

"SDI Group – 71.5p

The recent trading statement from the AIM-quoted designer and manufacturer of scientific and technology products has provided reassurance on the results for the year to 30 April 2024. Although these will not be as good as the previous year, the current financial year should see a return to growth once again and, in our opinion, the share price now offers excellent value.

The shares stand on a relatively modest p/e ratio and although there is no dividend the growth prospects more than make up for this. The share price hit 200p in March 2023 and although we do not expect the shares to rise to that level anytime soon, we do think that a rating of 14x the earnings for the current financial year is

achievable. That sets a share price target of around 104p, an increase of 45% over the current level, thus justifying our recommendation of BUY."

"The trading statement released on 20 May covered the period to 30 April 2024 and confirmed that revenues would be in line with market expectations at around £65.9m. This figure includes a first-time contribution from Peak Sensors (acquired in November 2023) and full year contributions from a couple of businesses acquired in July and October 2022.

The second half of the year saw an improvement in both profitability and cash generation over the first half and this enabled net debt at the year end to be maintained at £13.2m despite the company spending £3.3m on acquisitions during the period. It is pleasing to report that the increase in revenue was seen pretty much across the board although Scientific Vacuum Services did see a fall in revenues after delivering a large contract in the first half of the year.

The company is therefore confident that adjusted pre-tax profit for the year will be in the order of £8.0m, which is pretty much in line with market expectations.

Outlook

The company has always maintained that 2024 was going to be a more difficult year as the effects of overstocking by customers (which had benefited earlier years) began to unravel. However, it is pleasing that despite this impact, the company has continued to do well, remaining profitable and also cash generative. It does seem likely that 2024 will be the low point in the current cycle and that revenues and profits will start to increase from the current year."

"The company’s subsidiaries operate in growing end markets and this obviously provides the potential for future growth. The appointment of Stephen Brown as CEO in January also appears to be having a positive effect as he has considerable experience in the industry having held senior positions in prestigious global product and technology focused businesses. Despite the prospects at the group, the shares stand on a relatively low rating and we therefore rate th

REAT are presenting at Mello online on Monday - and it's actually free to register if you use the code SHR100:

Https://uk.advfn.com/stock-market/london/react-REAT/share-news/React-Group-PLC-Presentation-at-MelloMonday-Webinar/93996258

REAT will be re-rated (as long as they continue to perform well!) on the basis of their huge repeatable/recurring income, excellent cash flows, large potential for cross-selling/upgrading of contracts - and the very cheap P/E multiple/rating.

well, it looks like bms didn't make the small cap cut this quarter after all. that web page has been pretty accurate in the past.....typical!

https://*********************/newsfeed/article/ftse-russell-ftse-uk-index-series-annual-review-june-2024-2430323

From REA's AGM update this morning:

"Global CPO production is now growing at a lower rate than global vegetable oil consumption and, with limited availability of plantable land and increasing regulatory restrictions constraining expansion of oil palm hectarage, this situation is likely to continue. Accordingly, CPO prices may reasonably be expected to remain at remunerative levels for the foreseeable future."

I note that international CPO prices have risen nicely in the last week to $1,030:

Https://rea.co.uk/investors/CPO-price/

I assume the next monthly update will be on Monday (the 10th). Hopefully including a slow and steadily improving cashew news update too.

Good to see RNWH spreading the word today via a Capital Markets Day for analysts and investors - there's a good story to tell:

Https://uk.advfn.com/stock-market/london/renew-RNWH/share-news/Renew-Holdings-PLC-Capital-Markets-Day/93994872

And here's news of a Network Rail contract win for RNWH's QTS subsidiary. Note that this is just the first year of the programme and annual maintenance work will follow:

Https://www.railtechnologymagazine.com/articles/clearer-tracks-safer-journeys-network-rails-vegetation-management

"Network Rail has started an extensive vegetation management programme to clear 250 kilometres of the Edinburgh-Glasgow and Borders railway lines.

The work is part of the first phase of a wider programme of vegetation management programmes across the Scottish railway.

Ayrshire-based QTS has been awarded a contract to deliver the first year of the programme, which will see trees and vegetation cleared up to six metres either side of the tracks on land within the railway boundary.

Following this process, the railway will undergo an annual maintenance programme to control vegetation growth."

The note that stands out for me from Hardman's report is that $48.5m on R&D last year, but of this only $2.2m was capitalised - all the rest is written off against profits.

This is extraordinarily prudent and conservative relative to almost all other companies.

A predator looking at ACSO for its global/geographical reach and client base would quickly realise that once you strip out this R&D write-off ACSO is hugely cash-generative and much more profitable than even based on its post-R&D profits and EPS.

Hi SingaporeSteven, per the link below the FTSE index changes are announced tonight (after the close), so we'll find out then. Again per the link, BMS are still due to be promoted tonight to the Small Cap Index:

Http://www.stockchallenge.co.uk/ftse.php

TIG's record and prospects speak for themselves:

2022 - 20.0c EPS (actual)

2023 - 23.2c EPS (actual)

2024 - 28.5c EPS

2025 - 31.5c EPS

2026 - 36.9c EPS

On a current year P/E of 8.7, a PEG of only around 0.4 - and importantly on a large discount to sector comparators - TIG is still extremely cheap imo even after the recent rise, and remains a tantalising prospect for an incoming bid.

From today's Times - Maersk "raises its profit guidance for second time in four weeks amid rise in freight costs":

Https://www.thetimes.com/business-money/economics/article/shipping-giant-maersk-is-full-steam-ahead-w9sf5grwt

"The Danish shipping giant AP Moller-Maersk lifted its profit guidance for the second time in the past four weeks on Monday on the back of rising freight prices amid disruption to the global network.

Maersk said that a surge in demand for goods caused by businesses replenishing inventories before the busy Christmas trading period had added to existing pressure on global supply chains.

This dynamic has pushed up freight rates sharply in recent weeks, boosting the finances of the world’s foremost shipping companies."

"A concoction of factors have served to jolt international supply chains over the past year, reigniting a sharp increase in freight rates after they surged during the peak of the Covid-19 pandemic."

"Attacks on ships passing through the Red Sea by Houthi rebels in response to Israel’s offensive in Gaza have forced vessels to reroute around the southern tip of Africa, elongating transit times.

Strong demand for tradeable goods from businesses seeking to fill stocks ahead of the busy festive period has collided with already strained supply chains. Businesses typically source their Christmas stock months in advance."

"According to Drewry, the supply chain advisers, the average cost of a container has climbed to $4,226, above the peak reached in the immediate aftermath of the Houthi attacks in the Red Sea.

Analysts at Jefferies, the broker, said: “Container freight rates have surged across the majority of global routes recently due to capacity constraints, healthy underlying demand and a head start to peak season.”

Deutsche Bank analysts said that Maersk had only highlighted all “the trends that we already know such as strong demand, Red Sea disruption and port congestion”."

Hardman have just initiated coverage of ACSO in a 39 page report.

They don't give a target price as such, but have a 934p valuation from regression analysis given that ACSO:

"trades at a significant discount to its AIM enterprise software peers, in spite of the company’s attractive growth profile along with improving cash generation and rising operating margins":

Https://www.investegate.co.uk/announcement/eqs/accesso-technology-group--acso/initiation-of-coverage-on-accesso-technology-/8239641

"Investment summary:

accesso is a unique investment proposition in an ever-declining UK software universe, as peers have been snapped up by industry buyers and private equity. The stock rebased following the 2018 sell-off and pandemic and now trades at substantially more value-oriented levels, supported by improved cash generation. accesso sizes its total addressable market at $2.3bn, giving it a ca.5.9% market share and with plenty of scope for growth"