Bloomberg article - 23 June 2023 at 13:30 BST29 Jun 2023 13:52
Premier Miton fund manager Gervais gives his views on a great deal of things, and markets but also includes CyanConnode as an example of a 40m market cap company with a £ billion sales opportunity.
Its a paid view service but managed to get in via a cache search :).
"And another CyanConnode for example. CyanConnode is a business which is involved in, I mean, it's spent the last 10 years developing RF mesh for measuring meters, meter readings, really, but, but not so much for the UK particularly for international particularly. Those with quite uneven internet connections, so of, or, or mobile connections."
"Now, a lot of mobile connections are pretty good in the emerging markets, but they do still have areas which are behind hills and you know, you can put these meters in, they can't send the data back. So there are mesh passes, you know, cause obviously they do a whole district or a whole range of houses. And so they pass the data up from meter to meter and so peer to peer basis until they get to a meter, which does have an internet connection or, or possibly mobile connection again. I mean, what's amazing is, you know, they've spent 10 years developing this. India's rolling out, everyone's going to have a electricity meter."
"Prime Minister Modi has said that, but most particularly, he's putting billions into it. This company appears to have one of the leading market positions, possibly the leading market position against 40 million market cap net cash on the balance sheet tendering currently for a billion of of sales. Now it's not gonna get a billion because they'll never win all attenders".
"But portion here in a proportion there with all of the local utilities, which they all were responded. So again, it, these things are just so overlooked and the upside is so high. The great advantage of investing in Microcaps isn't just that you can make 30 or 50%. We love making 30 or 50%, we get it right, but you have that sort of inbuilt option value that when they move, they can move very, very substantial amounts."
https://webcache.googleusercontent.com/search?q=cache:NlJt6DJVnCEJ:https://www.bloomberg.com/news/articles/2023-06-23/uk-stocks-merryn-somerset-webb-hears-from-premier-miton-s-gervais-williams&cd=35&hl=en&ct=clnk&gl=uk
Two points he discussed that seem relevant where that he sees small cap stocks, at or near the bottom of another cycle, and expects a revival sometime .
Also , he said something along the lines that he loves investing in company's that have products tested and then purchased by their customers, as this takes a great dal of risk out, and saves having to do deep research yourself. This can be directly relatable to Cyan after 10 years or more , especially with government customers.
Just occurred to me , I hope this is not the Miton interview i posted a while ago, apologies if so.
Sign In
Follow the stocks
