r1singson - As I'm sure you're well aware, markets are jittery at the moment and Trakm8 is an illiquid stock, expect volatile moves in the share price.
I'd never offer advice because everyone has their own unique set of circumstances.
Personally, I was a very early buyer of Trakm8 shares and I'm more than happy to keep holding for the foreseeable future. The trading statement was issued at the end of April and made for excellent reading. We know revenues and earnings were in line with expectations for the year end March 2016, and that the outlook for the new financial year is encouraging with strong revenue visibility reflecting the strength of their business model. This confidence is underpinned by a maiden 2p dividend. At today's closing price of 191p the current p/e ratio is around 16, and next year's forecast p/e is 11. Hardly expensive for a high growth stock.
As ever, I'll just ignore the noise and volatility and look forward to my dividend payout which represents an approx. 11% return on my original investment and I'm hoping that they may adopt a progressive dividend policy.
Good luck to short term traders, but it's buy and hold for me every time.
Tuesday 14 June 2016
Monday 13 June 2016
Stilo International
Stilo International is a company that I have bought shares in over the past year or so, buying at prices between 3p-5p. It's a micro-cap which is making excellent progress and describes itself as follows:-
"The Company provides software tools and cloud services that help organisations create and process content in XML format, so that it can be more easily stored, managed, re-used, translated and published to multiple print and digital channels. "
It sounds a bit boring and niche to me, and exactly the sort of company I like.
The company has been listed for several years and hasn't really fulfilled it's promise yet. It appears to have been long forgotten by many investors.
However, all that appears to be changing.
In their last reported results, sales revenues had increased by 20% and operating profit leapt from £89,000 the previous year to £255,000. EPS doubled to 0.28p (on a fully diluted basis) leaving the shares on a p/e ratio of around 19 at the current share price of 5.5p.
This is another rare example of a profitable, cash generative and dividend paying Aim company which is under the radar of many investors.
Gross margins are massive at 99%. The company is growing revenues, profits, and cash generation. The current p/e of around 19 might look high, but given that increased revenues pretty much drop through to the bottom line then the p/e will fall quickly and Stilo will look very cheap. Add to the mix a progressive dividend policy (hiked by 33% last year), no debt and a very solid balance sheet and the company also looks low risk given it's size.
Stilo boasts three core technologies in OmniMark, Migrate and AuthorBridge. OmniMark is used in the development of Migrate, and both Migrate and OmniMark technologies are utilised in AuthorBridge, which results in very efficient integrated development and support activities.
"The Company provides software tools and cloud services that help organisations create and process content in XML format, so that it can be more easily stored, managed, re-used, translated and published to multiple print and digital channels. "
It sounds a bit boring and niche to me, and exactly the sort of company I like.
The company has been listed for several years and hasn't really fulfilled it's promise yet. It appears to have been long forgotten by many investors.
However, all that appears to be changing.
In their last reported results, sales revenues had increased by 20% and operating profit leapt from £89,000 the previous year to £255,000. EPS doubled to 0.28p (on a fully diluted basis) leaving the shares on a p/e ratio of around 19 at the current share price of 5.5p.
This is another rare example of a profitable, cash generative and dividend paying Aim company which is under the radar of many investors.
Gross margins are massive at 99%. The company is growing revenues, profits, and cash generation. The current p/e of around 19 might look high, but given that increased revenues pretty much drop through to the bottom line then the p/e will fall quickly and Stilo will look very cheap. Add to the mix a progressive dividend policy (hiked by 33% last year), no debt and a very solid balance sheet and the company also looks low risk given it's size.
Stilo boasts three core technologies in OmniMark, Migrate and AuthorBridge. OmniMark is used in the development of Migrate, and both Migrate and OmniMark technologies are utilised in AuthorBridge, which results in very efficient integrated development and support activities.
It's the latter two which will drive growth in the company. Migrate sales improved by 61% in the year to December 2015. AuthorBridge is being rolled out this year and will start to make a significant contribution to revenues from 2017 onwards.
Their recent trading statement indicated that trading for 2016 is in line with management expectations, and they had this to say about AuthorBridge:-
"We continue to invest significantly in the ongoing development of AuthorBridge, our new cloud XML authoring tool. Following extensive testing by a very prestigious client, it is now scheduled to be deployed by them in full production in May 2016, representing a significant milestone for the Company."
It's highly likely that the very prestigious client is IBM.
Despite a Director sale on 10 June which I comment upon here:-
http://uk.advfn.com/cmn/fbb/thread.php3?id=25760470 (post 1503)
I believe that the company has excellent growth prospects with a short, medium or long term view, and with a solid balance sheet, no gearing and a progressive dividend policy, the share price should be well supported as investors await news on their progress.
Wednesday 8 June 2016
Avesco - interims
A quick mention re: Avesco's interims this morning.
A little bit of a mixed bag with one or two negatives from the six months ending 31 March 2016, namely gross margins have reduced slightly (2%) due to pricing pressures and overall the trading profit is down from last year to £4.6m (from £5.5m in 2015). Mclcreate has had a disappointing half-year.
However, any negatives should be taken in the context of a group that has still produced an excellent trading profit with the main contribution coming from their CTUS operations. Revenues have increased by 11% to £77m (£66m in 2015) and the group remains highly cash generative.
Net assets now stand at 230p per share, and the sale of Fountain Studios has reduced net debt to just £3.5m. With the current share price at 217p this represents a 6% discount to net assets.
Importantly, as a show of confidence in the full year outcome, the interim dividend has once again been increased by 25% to 2.5p.
The sale of Fountain Studios means that reported profit is £10.3m or 54p per share. The underlying profit is flat on last year at 13p per share.
Avesco's current market cap. is £41m and cash on the balance sheet stood at £23m.
As a permanent Bull on this company, Avesco still looks ridiculously cheap to me.
The outlook statement for the full year looks good with Richard Murray stating:-
"With net debt now at historically low levels and the Rio 2016 Olympic Games to come over the summer, the outlook for the Group remains very positive."
I shall look forward to my interim dividend and the full year results.
The margin of safety remains high here, and as mentioned before, the group is always vulnerable to a opportunistic bid.
A little bit of a mixed bag with one or two negatives from the six months ending 31 March 2016, namely gross margins have reduced slightly (2%) due to pricing pressures and overall the trading profit is down from last year to £4.6m (from £5.5m in 2015). Mclcreate has had a disappointing half-year.
However, any negatives should be taken in the context of a group that has still produced an excellent trading profit with the main contribution coming from their CTUS operations. Revenues have increased by 11% to £77m (£66m in 2015) and the group remains highly cash generative.
Net assets now stand at 230p per share, and the sale of Fountain Studios has reduced net debt to just £3.5m. With the current share price at 217p this represents a 6% discount to net assets.
Importantly, as a show of confidence in the full year outcome, the interim dividend has once again been increased by 25% to 2.5p.
The sale of Fountain Studios means that reported profit is £10.3m or 54p per share. The underlying profit is flat on last year at 13p per share.
Avesco's current market cap. is £41m and cash on the balance sheet stood at £23m.
As a permanent Bull on this company, Avesco still looks ridiculously cheap to me.
The outlook statement for the full year looks good with Richard Murray stating:-
"With net debt now at historically low levels and the Rio 2016 Olympic Games to come over the summer, the outlook for the Group remains very positive."
I shall look forward to my interim dividend and the full year results.
The margin of safety remains high here, and as mentioned before, the group is always vulnerable to a opportunistic bid.
Monday 6 June 2016
The one that didn't get away........
Here's a rule to follow. Always be prepared to break your own investing rules, although not too often perhaps. Some time ago I wrote a blog about why I tend to avoid investing in companies that have recently listed on the stock market. However, a fellow investor whose track record and investment reasoning I have found to be well worth listening to, brought my attention to a fairly new issue - Fishing Republic. With a healthy degree of scepticism, I carried out some research on the company, and liked what I saw.
Subsequently, I bought shares in the company for 17p in October 2015. As ever, I wasn't expecting fireworks in the first few months, particularly since the company is a fishing tackle retailer. Not very sexy really. What attracted me to the company was a solid balance sheet, a modest valuation and a low market cap.
In less than eight months, the shares have rocketed forward and at the end of today, they stood at 41.5p. If you'd have asked me at the time of buying into Fishing Republic which of my holdings is likely to more than double in the next year then this one wouldn't have been listed in my top five. In all the time that I've been investing, I've learnt to accept that this can often be the case though.
I'm certainly not complaining.
You'll notice that the FISH bulletin board is nice and quiet with one or two lone positive voices and probably a few more negative voices. No surprise there either.
Thanks to the poster Norbert Colon for bringing Fishing Republic to my attention.
Subsequently, I bought shares in the company for 17p in October 2015. As ever, I wasn't expecting fireworks in the first few months, particularly since the company is a fishing tackle retailer. Not very sexy really. What attracted me to the company was a solid balance sheet, a modest valuation and a low market cap.
In less than eight months, the shares have rocketed forward and at the end of today, they stood at 41.5p. If you'd have asked me at the time of buying into Fishing Republic which of my holdings is likely to more than double in the next year then this one wouldn't have been listed in my top five. In all the time that I've been investing, I've learnt to accept that this can often be the case though.
I'm certainly not complaining.
You'll notice that the FISH bulletin board is nice and quiet with one or two lone positive voices and probably a few more negative voices. No surprise there either.
Thanks to the poster Norbert Colon for bringing Fishing Republic to my attention.
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