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Building the case for transformed Alumasc Get in quick before the market ‘renews’ its enthusiasm for the small cap firm The market valuation attached to building products business Alumasc (ALU) does not reflect its earnings potential or inherent qualities. The market doesn’t appear to have picked up on the Kettering-based company’s transformation from an engineering conglomerate to a pure play on premium building products. The stock trades on 8.2 times forecast earnings for the year to June 2018 which looks far too low, in our opinion. The last of Alumasc’s engineering-related businesses was sold in July 2016 with the £4m disposal of Dyson Diecastings. The focus is now on ‘fast flowing streams’ in the building products space. This encompasses a focus on sustainable products which help conserve energy and water and solutions which help constructors meet building regulations. The investment in these areas and an increase in marketing spend was rewarded by a 17% increase in first half revenue to £50.7m. Unfortunately, the impressive top-line growth was not replicated at the bottom-line. Adjusted pre-tax profit only nudged ahead 2% to £4.1m as rising input costs hit margins. The increase in costs can be attributed to sterling weakness and rising steel prices and although these have now largely been passed through, there was a lag which hit profitability. BUMPER ORDER BOOK A near-record £27.6m order book and the timing of completion on several large contracts underpins boss Paul Hooper’s confidence that margins can be rebuilt in the remainder of its current financial year. This could act as a positive catalyst for the share price. The company’s operations coalesce in four key areas: solar shading and screening; roofing and walling; water management; and housebuilding and ancillary products. The Levolux solar shading business and Gatic drainage systems arm are successfully winning orders overseas. Mainly driven by Levolux sales in the US, export revenue almost doubled to £7.5m in the six months to 31 December 2016. The niche focus and international expansion should help the company outperform the modest growth expected in UK construction in the coming months. Keep a close eye on the £33m pension deficit. Annual cash contributions of £3.2m didn’t prevent Alumasc from hiking its first half dividend by 5.6% to 2.85p.

Jaywing has attractive levels of recurring revenue, low debt and a very low equity valuation. It trades on a mere 8.4 times forecast earnings for the year to March 2018

Completely agree, looking for a reversal which has yet to happen! Fair enough pi's don't seem interested, most follow the resource plays and its little wonder when explorers yield better results than well established companies funding organic growth and acquisitions like Peter Brotherhood. At this stage, I'm assuming the market is expecting missed earning, possibly even an overall loss for the year. I hope for our sake, they have vastly underestimated management here. If we were headed towards missed earnings, then management should have made that clear in the last update. Perhaps the bigger fear and causing investors to dump at whatever price is the financing issue. I can only hazard a guess, once the company address this short term issue sometime in the next 6 weeks and brokers come out from beneath their shells, we will see money placed back on the table. Like you say, small caps are renowned for volatile shifts. I've taken 2,022 shares for my ISA at 53p thereabouts. We wait and see

Having to pay more than I bargained for when I was selling last month but this will probably look cheap given the margins being made this quarter. Looking for 15-16p

Thoughts Interesting yet another AIM vehicle going after a Lithium play (it's the smart thing to do) What is the current cash position, BNR which recently raised £750k cash is moving upwards despite not actually owing a slice of a lithium play (yet) PJ is great at flicking from one thing to the next but does he have the know how in this sector? KENV have appointed a new CEO who has exactly that and is pushing through immediate changes, market has confidence in him

Really interesting development with VW. http://www.msn.com/en-gb/cars/news/volkswagen-to-abandon-small-diesels-in-favour-of-mild-hybrids/ar-AAmIK36?li=AA8sb7&ocid=spartanntp

https://www.investing.com/news/stock-market-news/brexit,-france,-netherlands-and-italy-on-european-political-risk-radar-458396

Taken down on 10k trades, lack of buyers around. Could get cheaper Quick summary of what's at play http://htg.global/wp-content/uploads/2016/07/GCI_Dec-16_OPT-17.pdf useful page of links here http://htg.global/investor-relations

Top up opportunity at 57.4 today. Seems an awful lot of bad news has been priced in recently, now a little more than £32m today. Concerns are there. Order intake and the order book have been boosted to new records although one quarter still to trade but fingers crossed should be a stellar year. Possible concern about missed earnings yes. This fall takes the biscuit mind! Some positive news regarding finances soon would help steady the ship, trading update in April and we will be back in mid 70s

A huge boost for shareholders here :) Volume is way up! larger than normal considering it's only February. 4.47 paid today

Randgold Resources increased production for the sixth successive year in 2016 while reducing total cash cost per ounce. With profit of $294.2 million up 38% on the previous year, the board has proposed a 52% increase in the dividend to $1.00 per share. Flagship Loulo-Gounkoto in Mali set a blistering pace to exceed its annual guidance by 37 000 ounces at its lowest ever total cash cost per ounce, and solid performances from the other mines contributed to the record group production of 1 252 957 ounces (2015: 1 211 288 ounces). The group's total cash cost per ounce of $639 was down 6% on the previous year. Chief executive Mark Bristow said in a year of significant achievements, it was also notable that Randgold had passed its net cash target of $500 million, with $516.3 million in the bank at the end of 2016, and no debt.

3.69 paid

Read over the weekend about the US sanctions and Trump's 'message' to Iran on you guessed it, Twitter. "Iran is playing with fire - they don't appreciate how "kind" President Obama was to them. Not me!" Analysts believe this is the cause of last weeks surge in precious metal prices and today in early morning trade gold touched $1226/oz The economic data out of the US was also mixed with the ISM's non-manufacturing purchasing managers’ index down to 56.5 in January from 56.6 the previous month. Analysts had expected the index to rise to 57.0 last month. U.S. unemployment ticked up to 4.8% last month from 4.7% in December. Analysts had expected for an unchanged reading in January. Data also showed that U.S. average hourly earnings rose 0.1% in January, disappointing expectations for an increase of 0.3%.

Thanks for the clarification flundra, I see your point now. HAYT may have been pushed into a corner regarding the repayment date but that's speculation and given the relaxation of quarterly financial covenants was pushed out to the end of March gives me some confidence the two parties understood the short term difficulties. The company state financial covenants will now be measured from 31 March 2017 onwards "to give the Group the financial flexibility to deliver the expected improvement in trading of the business in 2H2017" With regards the loan note programme I believe it does infer the reason why the additional £3m was necessary, although one might have expected the company to have available funds in the event this might have occurred. Unfortunately they did not raise the £3.0 million it desired to cover the repayment due under the RCF. "HTG established a secured loan note programme of £3.0m in 2015 ("Loan Note Programme") to provide a diversified source of funding. The Company is seeking to increase the Loan Note Programme, initially by £3.0m, in order to maintain a more appropriate maturity profile on the Company's borrowings and repay £3.0m of short-term borrowings due under the RCF by 31 January 2017. The RCF was used to purchase fixed assets for the Centre of Excellence and, accordingly, the new issue under the Loan Note Programme enables the Group to match long-term assets with medium to long-term debt" They paid down £0.6m due end of Dec and had £2.1m of the £3.0m readily available following the raise by mid December but it appears even with 40 days to go, that would have been cutting it short. The bank has once again extended repayment but I don't see this going beyond March 31st. If HAYT are successful raising the additional £0.4m as indicated there is room for a further £0.5m loan notes if the interest is there and the requirement for it. £4m of potential Loan Notes is set aside for 'growth opportunities'. I have no qualms agreeing with you on the point HAYT almost certainly did experience "an embarrassing short term cash-flow problem that could have been handled better". I'm confident they will be able to repay the remaining £3.3m by March 31 which will leave HAYT with £8m RCF repayable by end of November 2018. Further revisions to relax the repayment dates wouldn't surprise me. Once we see hard revenue and EBITDA figures the risk element should subside and value will out but until then it's a waiting game

http://www.iii.co.uk/articles/369391/hayward-tyler-fightback-begins

Flundra - I didn't have a problem with the finance situation, given they came to the agreement in November there must have been months of on going dialogue to get to that point. The company has committed loans that span to 2020 and given weaker H1 performance following the capital intensive developments adding 150 people and a new factory to the group, I'm sure the bank can see HAYT will be capable of delivering repayments further down the line. I'm more inclined to believe this fall is due to the lack of clarity over managements ability to meet FY expectations of £80m revenue and EPS of 8pps. The interims and prior trading updates were particularly bullish on that front. Nevertheless HAYT is an exciting stock to own at this 60p level with plenty to be excited about in the lead up to April and beyond as teething issues are ironed out. I hope we get a little cheaper first mind Gl

Hayward Tyler - Update on Order Intake, Banking Facilities and Loan Notes HAYT Thu, 02 Feb 2017, 07:00am GMT Ewan Lloyd-Baker, CEO, announces that order intake has continued to grow and provides an update on the Group's banking facilities and loan notes programme. https://www.brrmedia.co.uk/broadcasts/589206e5509d1a5e5504a126/hayward-tyler-update-on-order-intake-banking-facilities-and-loan-notes

Cheers for the views guys, DT has been at it again although this was earlier in the week, it points to a weaker USD in the years ahead https://www.investing.com/news/economy-news/weekly-comic:-the-u.s.-joins-the-currency-war-as-trump-seeks-a-weaker-dollar-457455

http://moneyweek.com/money-morning-precious-metal-platinum-gold/

Continued.. Country seen as prime spot to tap regional demand for online payments CK TAN, Nikkei staff writer Sure enough, Sumitomo Mitsui Card, a unit of Japan's Sumitomo Mitsui Financial Group, recently partnered with a Malaysian payment startup called Soft Space to gain a foothold in Southeast Asia. "Malaysia is one of the countries in the region with high internet security compliance," Kazunori Okuyama, Sumitomo Mitsui Card's senior managing director, told reporters recently while explaining the move. Soft Space's strength lies in mobile devices that enable both real-time and semi-online transactions via cards. The company's mobile point-of-sale system is being used for AirAsia's inflight duty-free shopping. Japanese courier company Yamato Transport is also using it for Malaysian customers who prefer to make card payments on delivery. "We will partner with Soft Space and expand into Southeast Asia," Okuyama said, adding that his company will target retailers, hotels and other consumer businesses in the region. Now is the time to prepare for a new regional market order. Based on iPay88's data, Singapore currently leads the way in e-commerce transactions, followed by Malaysia, Indonesia, Thailand, the Philippines and Vietnam. But as the middle class grows over the next five years, the company projects that Indonesia will rise to the top, with Thailand, Malaysia, Singapore, the Philippines and Vietnam following. Chan argues Malaysia is the place to be at this juncture. "Although the Philippines has a fairly large population of about 100 million, it is too bureaucratic to get business licenses," he said. Apart from online payments, Malaysia is also a hotbed for international remittances, with over 4 million low-skilled foreign laborers -- both legal and undocumented. Last year, Norwegian telecommunications company Telenor Group acquired Valyou, a Malaysian remittance provider. Valyou's "mobile wallet," which allows users to send money via their cellphones, is aimed at underbanked migrant workers from seven countries, including Bangladesh and Nepal. Market players see clear growth potential for online transactions across Southeast Asia, where internet penetration and e-commerce lag behind developed markets like Japan. "When Alipay or WeChat Pay come into the market, they will become the new catalysts for mobile payments," Chan said, referring to the online payment services of China's Alibaba Group Holding and Tencent Holdings.