Bull Points, Chairman & Medium Term5 Nov 2015 10:37
There is no doubt that Stilo International has been profitable for something like 8 of the last 9 years or something.
During this time they have launched new products throughout but annoyingly Stilo have also continued to discontinue some of there own world leading products due to a lack of demand.
The share price also hit similar levels as it is now but dropped back down to the normal 2 to 3 pence mark. The share price has been up and down for quite some time within the 1.5 to 3.5 pence levels for around the last 15 years or so. There has always been very encouraging technical signals from the share price over the years, allied by solid fundamentals, at a time when stilo launched world leading products and upgrades, Migrate among others.
The share price has always told a story. That we know.
Stilo Internation has been associated in many ways with IBM during the last 20 years or so with many of their products, Migrate and others etc, etc, etc. I have no doubt that in some shape or form Stilo will continue to be associated with iBM for many years to come.
For many, many, many years Stilo International has launched world leading products, continuing to propriety software that has always enhance revenue growth. No matter how hard management has tried to do this, even with having gigantic world leading customers like IBM on board, revenues have always continued to be within the 1.5 million and 3 million mark for the last 20 years or so. Revenues have never changed in the last 20
The Chairman has has always been loyal to the company by purchasing its shares for the last 15 years or so and continues to do so.
Again, I will now state what is going to happen to this very good company Stilo going forward.
Unless a takeover happens,if it does, it will be around the 10 pence mark, the company will continue to make good solid progress for a company of its size.
No matter when the new products in Authorbridge come out, no matter how Migrate performs, I agree that shareholder benefits will be met in the medium term, like I have been saying for some time now (medium term obviously being 3 to 5 years).
If one gets the opportunity to sit down with the chairman and ask him directly if he expects the share price of a company that only has 15 employees to be a multi bagger during the medium term, his response would be: If we can increase our EBITDA to 5 million quid then yes.
Mark my words, the only way this can be a multi bagger is if revenues go up to about 30 million quid or something silly like that;but, especially in relation to the EBITDA, this has to be around the 5 million quid mark for the share price to move to the levels mentioned within these bulletins.
In closing, Stilo will definitely generate shareholder value going forward from her, which is well, well, well overdue, but this value will only be on a smaller scale unless Stilo is able to miraculously achieve some amazing miracle.