Member Info for rivaldo

Good to see VLE confident enough to buy back £74,000 of shares at 1480p:

Https://uk.advfn.com/stock-market/london/volvere-VLE/share-news/Volvere-PLC-Transaction-in-Own-Shares/93947795

From the respected Techmarketview:

Https://www.techmarketview.com/ukhotviews/

"Wednesday 29 May 2024

SysGroup partner with Softcat to expand AI/ML services

SysGroupMid-market managed services provider and reseller SysGroup has announced a partnership with infrastructure product and services firm Softcat, focusing on AI and Machine Learning (ML) opportunities.

SoftcatData analytics and ML is one of SysGroup’s five key areas (alongside data storage and management, data connectivity, data engineering, and IT security) which the company has segmented its technology into in order to support its end-to-end Managed IT Services business strategy (see Mixed results for SysGroup in H1 - managed services up, but overall revenue down). The company declared last year that the overarching theme of its strategy was to build an integrated data solution platform that “positions SysGroup as the go-to end-to-end data solution provider for SMBs embarking on their AI/ML journey”.

As my colleague, Kate Hanaghan, commented in the context of Softcat’s FY23 results last October (see Softcat progresses through FY23), Softcat had been refining its partner ecosystem in order to deliver a broad range of services to end customers (some delivered by the in-house team; some via partners). Today’s tie-up will bolster that overall partner provision with additional AI / ML expertise (beyond Softcat’s existing relationship with Microsoft around the pilot pilot), and also provide SysGroup with a key go-to-market route for its AI/ML offering too."

Singer Capital retain their 97p target price and forecasts of 6.8p EPS to this September, with 7.7p EPS from this October.

Net cash is expected to be £1m at September rising to £2.6m at Sept'25.

They note that H1 PBT is 53% of this year's forecast - so things are loking good for a beating of expectations.

And they note that M&A potential could add 26% to EPS forecasts, i.e giving rise to 9.7p EPS next year.

They summarise:

"Strong H1 outturn confirmed

React’s H1 results were well flagged in the 25th April update, confirming a revenue outturn of £10.6m (H1’23: £9.3m, H2’23: £10.3m), with repeat/recurring revenue at greater than 85%, and an adj. PBT outturn of £1.1m (H1’23: £0.8m; H2’23: £1.0m). This represents 53% of our full year forecast. The pipeline for the remainder of the year remains robust which provides the Board with confidence in delivering full year expectations, as well as supporting the outlook for FY25.

We therefore make no changes to our forecasts, with momentum expected to continue into H2. We remain at Buy with a 97p TP, noting React’s defensiveness, high recurring revenues and attractive margin."

"Shares attractively valued given M&A potential

Management remains focused on scaling the business through both continued organic growth (we expect adj. PBT growth of 12%-16% p.a.) and M&A (supporting upside potential). React trades on a Sep. ’24 P/E rating of 11.3x, falling to 9.9x, broadly in line with its 3 year average FY1 P/E rating (10x). We target a 10x Sep. ’25 P/E multiple but take into account M&A potential which we estimate could add 26% to our EPS forecast. This drives a 97p target price (28% upside), underpinning our Buy rec."

Great news. Summed up by:

"As one of the UK's leading IT Solutions and Services Providers, Softcat's endorsement opens up new avenues for SysGroup in the AI/ML markets. An ongoing engagement with a prominent independent pension and investment management firm, underscores the potential impact and tangible benefits of this partnership"

Excellent H1 results. Lots of confidence in the outlook, and given that REAT have achieved well over 50% of forecast EBITDA in H1 there's a good chance that forecasts will be beaten.

Particularly with all the contract wins already announced. And I don't think the three renewals of healthcare contracts valued at over £0.5m per annum noted today - now expanded - have been announced before as they were post period end?

REAT also have £0.7m net cash now, so are well financed in terms of paying the final Laddersfree instalment and the investment programme.

With forecast 6.8p EPS, and potentially a decent beat of that figure, REAT remain very cheap imo, especially given well over 80% recurring revenue.

OT : I don't like this adjusted EBITDA EPS and wish they'd also give us the normal adjusted EPS calculation!

£62,000 of sells today at 1443p or so all absorbed without a problem. Perhaps there's an ongoing buyback in the background, or simply a buyer out there snapping up shares.

Online you can buy just a maximum of 500 shares at the full 100p offer, whereas you can sell 9,000 at 96p.

Which bodes well.

Uh-oh, ta, but I'm not bothered about the effect, merely the fact that there appears to be little stock around to satisfy apparent demand out there, which is always a good sign.

Finncap have increased their target price to 392p (from 385p).

They forecast 44.93p underlying EPS this year (38.1p EPS fully diluted), a P/E of 6.6 at 294.5p. And a 14p dividend, i.e a divi yield of 4.8%.

They note that "these are conservative forecasts, reflecting the current stable business operations, and do not assume the addition of a significant number of experienced broking teams or the impact of future M&A. Obviously these are core elements of the growth strategy, providing potential upside to our forecasts."

They summarise:

"Outlook.

The worldwide fleet remains low by historic levels and seaborne trade continues to grow, providing a positive outlook for the business, notwithstanding normal cyclical movements in individual shipping sectors. Various events around the world have led to increased voyage distances, placing further supply pressure on the worldwide fleet. Braemar ended FY24 with a strong order book and reports a positive start to FY25. The strategy remains to grow market share and expand the business by adding new broking desks or adding to existing ones, and via potential M&A should the right targets emerge and make a good fit with Braemar.

Our DDM valuation analysis implies a target price of 392p (385p previously), a potential 29.4% upside. At the current 303p, the FY25E P/E (underlying EPS) is 6.7x (8.0x adjusted diluted), with an EV/EBITDA (underlying) of 4.4x and our forecast 14p dividend provides a prospective dividend yield of 4.6%."

I saw the CFO presenting at Mello last week and was very impressed.

The vision and skill of management in building a complete omni-media and monetisation model in Online Marketing is obvious and likely to result in continued growth imho. TIG have successfully diversified these revenue streams, and the means of supply of traffic into their customers' "journeys", and are looking to continue to do so by acquiring new customers, growing existing ones, cross-selling and new product launches and contracting new suppliers, as well as the use of AI/machine learning.

Billy reiterated that TIG remain confident in at least meeting expectations once again. And the strong cash generation and high Online Presence recurring income will continue to enable a mix of further acquisitions, organic growth, buybacks and dividends and debt reduction.

The CEO and CFO presented at Mello last week and were extremely impressive imo. Most of the battle in investing is in finding good management, and these two seemed to know what they were doing and where they were going.

I didn't learn much I didn't already know, but the current rating does look extremely cheap given TIME's terrific track record over recent years.

TIME are probably never going to trade on a P/E in say the high teens, but based on 4.9p historic EPS for the year about to end and 5.4p EPS for the new year, a P/E of 7.7 leaves plenty of upside from here.

Cavendish's 71p target price and a P/E at that price of 13.1 would be more appropriate.

Especially as there's potential for TIME to once again beat expectations to 31st May given the positive tone of the Q3 trading statement.

More work for CAPD for WIA Gold, who've announced a new drilling programme at Bouafle, where CAPD were appointed as exploration drilling contractors in Q1'22:

Https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02810780-6A1209099

"An initial 6,000m of drilling is planned, followed by an optional second-phase of 4,000m dependent on results from the different targets tested.

Wia Executive Chairman, Josef El-Raghy, commented:

“We are delighted to launch this RC program at Bouaflé as a logical and systematic follow-up on the exploration work previously completed there. Bouaflé is an exciting exploration project in Côte d’Ivoire, which has already demonstrated a strong mineralised gold footprint at significant scale."

ALT were tipped this weekend as one of five small caps to buy this summer (and they're the only one of the five that appeals to me, although admittedly I'm already a holder!):

Https://ukinvestormagazine.co.uk/wp-content/uploads/2024/05/5-Small-Caps-to-buy-this-summer-June-2024-Report-v1.pdf

"Altitude Group operates as a leading provider of technology solutions and promotional products. They offer a comprehensive range of services, including marketing tools, CRM systems, and e-commerce platforms, catering to the needs of distributors and suppliers in the promotional products industry. With a

focus on innovation and customer support, Altitude Group helps businesses streamline their operations, enhance customer engagement, and drive growth through effective promotional strategies.

Fundamentals

Altitude Group Plc, a leading provider of branded merchandise solutions, continues to demonstrate strong growth and market momentum. The Group expects to meet or exceed consensus expectations for FY24, showcasing significant revenue and adjusted EBITDA growth of around 100% over the past two years.

Current trading remains robust, with strong performances in the Merchanting and Services divisions, and promising new Gear Shop contracts. With increased US credit facilities and solid cash generation, Altitude is well-positioned for continued success and is confident in its outlook for FY25, supported by strategic

foundations and a capable team.

Technical Analysis

Altitude Group's shares have recently completed a bottom pattern after breaking through resistance at 37p. The initial breakout in early May propelled the shares to 40p, followed by a slight retracement to retest the newly formed support at 37p. In recent sessions, there has been increased buying pressure, leading to a strong upward move, reaching the highest price since November 2023. This momentum suggests that we will likely see higher prices in the coming months, with a target of 53p."

Universal Investment GmbH have declared they have a 4.99% stake in SDI, or 5.22m shares:

Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Holdings-in-Company/93913454

They must be a new major shareholder, as they don't appear on SDI's major holder list as at 10th April:

Https://sdigroup.com/investors/shareholder-information/

The reason for their declaration is that they fell below 5% due to the shares issued on 3rd April, but I can't see any RNS noting their initial stake of 5% or above? Maybe someone else can.

Cannacord are buying - now at 12.03% (from 11.01%) and owning 5.02m shares:

Https://uk.advfn.com/stock-market/london/accesso-technology-ACSO/share-news/Accesso-Technology-Group-PLC-Holdings-in-Company/93914562

I also note that Ticketmaster are being sued by the US Department of Justice to enable its break-up to reduce its monololy and competitive position. Which has to be excellent news for ACSO:

Https://www.theguardian.com/business/article/2024/may/23/live-nation-ticketmaster-lawsuit

I was at Mello yesterday, where Rockwood Strategic were presenting via the excellent Richard Stavely.

Reviewing their portfolio, he unveiled a new holding...CAPD....

CAPD now represent 3.2% of their portfolio.

They believe the market has missed the fact that Chrysos could be generating £10m+ profit on its own.

He also noted that CAPD were nicely cash-generating and that its kit/rigs backs up most of the m/cap on its own (there's $209m of PPE on the balance sheet).

Rockwood featured CAPD in their most recent monthly factsheet for the first time, but good to see CAPD highlighted at such a public forum.

Good news today from Alusid - the launch of their first range of recycled floor tiles into Topps Tiles.

Note that Alusid "is now progressing with plans for an initial public offering later this year":

Https://uk.advfn.com/stock-market/london/frontier-ip-FIPP/share-news/Frontier-IP-Group-plc-Topps-Group-s-arm-launches-Alusid-floor-tile-range/93920116

Also:

"Other Alusid customers include Starbucks EMEA, H&M, Pret a Manger and the BBC. The Company is in discussions with potential distributors in Northern Europe to expand into new territories"

Petrencf, with £4.5m net cash including the last Exscientia sale FIPP should have more than enough cash for some time to come imo considering admin expenses were only £1.8m last year, including further investments into the portfolio.

Impressive turnaround today.

And good to see the CEO buying another almost £20k of shares - he now owns 778,765 shares so has quite an incentive:

Https://uk.advfn.com/stock-market/london/braemar-BMS/share-news/Braemar-PLC-Director-PDMR-Shareholding/93915507

In line results as already flagged show 36.62p EPS - a historic P/E of just 8.3 - and a very positive outlook, with order books up a whopping 47% at $82.6m.

Operating profit would have been higher at £20.6m compared to £20.1m, if it hadn't been for acquisition-related costs and an unfavourable foreign exchange swing totalling £4.1m.

The outlook is rather promising:

"The overall market outlook remains positive. Geo-political and natural events, as well as environmental considerations are leading to longer voyage times, and global seaborne trade continues to grow, while the total fleet size remains at similar levels.

We started FY25 with a strong forward order book at $82.6m, and will continue to invest in our people, offices, and technology, whilst taking advantage of a fragmented shipbroking market to hire and make acquisitions. I look forward to another strong performance by the Group."

Nice:

Https://www.tradewindsnews.com/shipbroking/braemar-brokers-first-ever-container-freight-futures-deal-on-sgx-in-volatile-market/2-1-1647579

"Braemar brokers first-ever container freight futures deal on SGX in ‘volatile’ market

Freight forward agreements for containers have never been done before on the Singapore Exchange

22 May 2024

A landmark futures deal is paving the way to make freight-rate risk more manageable in boxship markets, following the closing of the first-ever container derivatives trade on the Singapore Exchange on Tuesday.

The deal was brokered by Braemar Securities, the freight forward agreements (FFA) desk of Braemar Shipping Services group, and was cleared by the Singapore Exchange (SGX).

An unnamed US investment bank sold its June contract for the China/East Asia to northern Europe route at $5,650 per feu, one of the benchmark routes that make up the Freightos Baltic Index (FBX) for container freight.

etc"

Hi Florence. I'll do my own calculations at some stage, but I note that Graham Neary, a respected columnist on Stock-opedia, who's been a large holder of VLE for some years, apparently now values VLE at £20.50 a share. So still substantial upside from here.

This also tallies with a calculation by elsa7878 on another bb as follows:

"Struggle to see how this is worth less than about £20. At that price the market cap would be about £45 million with nearly £24 million in cash and a Foods business, which if you rate it at a very mean 10x is worth at least £20 million for it's 80% share."