mudbath - It could indeed be a bullish indicator, although it may be neither a bullish or bearish indicator and simply a practical solution to a company that generates most of it's revenues outside the UK. Just 2% of revenues came from the UK in 2015 whilst 67% were generated from North America and 14% from Asia.
What might be construed as bullish from yesterday's announcement is that they expect to release results for the 6 months ending 30th June on 1st September.
A quick look through the records indicates that this will be their earliest release of results in the last few years. At best they have released in the second week of September and often towards the end.
In all my time investing, I've rarely, if ever, known a company keen to rush out poor results and prospects going forward. Usually the opposite in fact.
Also with a high percentage of revenues in dollars, surely that will provide a further boost to earnings?
I'm not expecting this year's results to "blow the bloody doors off", but I'm optimistic that we will see a decent improvement and with Author Bridge contributing more significantly in future years (from 2017) then things could get exciting. Fingers crossed anyway.
Friday 29 July 2016
Thursday 28 July 2016
Angle - Full year results
Angle plc is a long standing holding of mine:-
http://michae1mouse.blogspot.co.uk/2012/12/a-new-angle.html
I have written several blogs since buying the shares at around 27p in 2012 (see above).
Angle released their full year results this morning, and I am very encouraged with the approach and progress they have made towards commercialisation of their Parsortix liquid biopsy device.
I commented on ADVFN this morning:-
http://uk.advfn.com/cmn/fbb/thread.php3?id=34862319&from=2819
Post 2829
"The report reads very well and I am more than happy to wait patiently as developments continue, particularly now revenues are beginning to build. £361,000 of revenues since first sales in December which is marginally ahead of forecasts.
The strategy that they have pursued is now beginning to pay off in spades, and there are strong signs that they are going to be a market leader in a very large and developing market place. The portability of the Parsortix device is clearly a key differentiator, alongside the ability to harvest the cells and the high specifity and sensitivity.
It's also telling that research centres are finding additional uses for the device at their own cost.
Holding tightly."
Interestingly, even though revenues are in their infancy, it should be noted that gross margins are high. First sales of £361,000 produced gross profits of £254,000. In other words a margin of 70%. Wonderful.
As revenues improve going forward then these large gross margins may see profitability sooner than anticipated. £10m (at the current margin) would produce £7m in gross profit. Operating expenses were around £5.5m which would generate a £1.5m profit.
The research market is estimated to be worth £250m alone. £10m in revenues would be just 4% of this market. The clinical market is far larger of course. £300m just for Ovarian cancer.
Whilst I would anticipate that operating expenses will increase as the current trials take place (Ovarian cancer trials have been initiated in the US and Europe), the percentage rise in sales should outstrip the increases in costs in the not too distant future.
Of course my calculations are very simplistic, but quite frankly that usually gives me enough idea of how future earnings will pan out. Sometimes it takes longer than expected, at other times it's sooner.
The key point is that the device is gaining very favourable reports by key opinion leaders and this will drive sales forward at a pace. Gross margins are and will continue to be excellent.
Angle plc won't even need to gain a large percentage of the research or clinical markets to be a very profitable and cash generative company.
The company is also currently well funded.
As the weeks, months and years pass by I am getting more and more confident of my holding here.
http://michae1mouse.blogspot.co.uk/2012/12/a-new-angle.html
I have written several blogs since buying the shares at around 27p in 2012 (see above).
Angle released their full year results this morning, and I am very encouraged with the approach and progress they have made towards commercialisation of their Parsortix liquid biopsy device.
I commented on ADVFN this morning:-
http://uk.advfn.com/cmn/fbb/thread.php3?id=34862319&from=2819
Post 2829
"The report reads very well and I am more than happy to wait patiently as developments continue, particularly now revenues are beginning to build. £361,000 of revenues since first sales in December which is marginally ahead of forecasts.
The strategy that they have pursued is now beginning to pay off in spades, and there are strong signs that they are going to be a market leader in a very large and developing market place. The portability of the Parsortix device is clearly a key differentiator, alongside the ability to harvest the cells and the high specifity and sensitivity.
It's also telling that research centres are finding additional uses for the device at their own cost.
Holding tightly."
Interestingly, even though revenues are in their infancy, it should be noted that gross margins are high. First sales of £361,000 produced gross profits of £254,000. In other words a margin of 70%. Wonderful.
As revenues improve going forward then these large gross margins may see profitability sooner than anticipated. £10m (at the current margin) would produce £7m in gross profit. Operating expenses were around £5.5m which would generate a £1.5m profit.
The research market is estimated to be worth £250m alone. £10m in revenues would be just 4% of this market. The clinical market is far larger of course. £300m just for Ovarian cancer.
Whilst I would anticipate that operating expenses will increase as the current trials take place (Ovarian cancer trials have been initiated in the US and Europe), the percentage rise in sales should outstrip the increases in costs in the not too distant future.
Of course my calculations are very simplistic, but quite frankly that usually gives me enough idea of how future earnings will pan out. Sometimes it takes longer than expected, at other times it's sooner.
The key point is that the device is gaining very favourable reports by key opinion leaders and this will drive sales forward at a pace. Gross margins are and will continue to be excellent.
Angle plc won't even need to gain a large percentage of the research or clinical markets to be a very profitable and cash generative company.
The company is also currently well funded.
As the weeks, months and years pass by I am getting more and more confident of my holding here.
Thursday 7 July 2016
Avanti Communications - "The triumph of hope over experience"
When I started this blog, I did say that it would be a warts and all blog. DCD media was one such blemish, and I can now safely add Avanti Communications to my ignominious pile.
I bought shares in Avanti Communications in 2012 for £2.60. Thankfully not too many, as I explained below:-
http://michae1mouse.blogspot.co.uk/2012/10/speculate-to-accumulate.html
Reading that blog again today did bring a wry smile to my face, particularly this bit :-
However, on the flip side there are probably a thousand and one things that could still upset the applecart, hence until there are visible significant revenues, cash flow and profits it remains highly speculative. Brokers quote anything from £6-£20 a share as possible in the medium term (which probably tells you everything you need to know i.e. just pick any number out the air?).
Since 2012 the share price has pretty much been in terminal decline, although remarkably there were two occasions where I was briefly in profit, although coming back to my purchase and blog post, my speculation probably serves to illustrate
"The triumph of hope over experience"
Note to self. Don't deviate away from sensible investment criteria. I usually stick to micro-caps which generate revenues, profits, carry little if any debt and have solid balance sheets. What was I thinking?
Avanti could boast growing revenues, but that was about it. It wasn't even a micro-cap, aaargh!
Anyway, today's trading statement and funding requirement was the final straw, and I have cut my losses. I did get a bit of luck in selling for just over 39p, given that as we speak the share price is currently 23.5p to sell. Nevertheless, a substantial loss on my original investment.
On a more positive note, the losers often teach you far more than the winners (as with DCD Media). I always review my other holdings following bad news and I am more than comfortable with all of them at present, chiefly because they adhere to my strict criteria. Furthermore, since I recognised that Avanti was a speculation, my original outlay and hence subsequent losses were negligible when set against my overall portfolio.
Finally, I feel that I ought to mention a company called Optibiotix. I set up a thread on Advfn which expresses my negative views re: the investment case for the company. I don't really have a vested interest one way or another in the company, but I have allowed myself to get drawn in to trading insults with some rather unpleasant individuals who are no doubt currently leaping up and down with joy following Avanti's trading statement. It reflects badly on me as well as them. Would I behave like like outside the virtual world. No. Shame on them and shame on me.
Bad Karma with Avanti? No just a crap investment decision on my part.
I will simply say the following, and then leave it at that. Optibiotix is a speculation, and not a company I could invest in, even more so now. It is already valued at over £60m, but doesn't generate any significant revenues. The balance sheet is ok, but doesn't justify a market cap. anywhere near £60m. Profits will be years away yet, and I expect further fundraisings will follow. That said, sometimes speculations pay off. However, returning to my heading, more often than not, money thrown at companies like Avanti, Opti, Moni, Nano, IOF etc is "The triumph of hope over experience".
Good luck.
I bought shares in Avanti Communications in 2012 for £2.60. Thankfully not too many, as I explained below:-
http://michae1mouse.blogspot.co.uk/2012/10/speculate-to-accumulate.html
Reading that blog again today did bring a wry smile to my face, particularly this bit :-
However, on the flip side there are probably a thousand and one things that could still upset the applecart, hence until there are visible significant revenues, cash flow and profits it remains highly speculative. Brokers quote anything from £6-£20 a share as possible in the medium term (which probably tells you everything you need to know i.e. just pick any number out the air?).
Since 2012 the share price has pretty much been in terminal decline, although remarkably there were two occasions where I was briefly in profit, although coming back to my purchase and blog post, my speculation probably serves to illustrate
"The triumph of hope over experience"
Note to self. Don't deviate away from sensible investment criteria. I usually stick to micro-caps which generate revenues, profits, carry little if any debt and have solid balance sheets. What was I thinking?
Avanti could boast growing revenues, but that was about it. It wasn't even a micro-cap, aaargh!
Anyway, today's trading statement and funding requirement was the final straw, and I have cut my losses. I did get a bit of luck in selling for just over 39p, given that as we speak the share price is currently 23.5p to sell. Nevertheless, a substantial loss on my original investment.
On a more positive note, the losers often teach you far more than the winners (as with DCD Media). I always review my other holdings following bad news and I am more than comfortable with all of them at present, chiefly because they adhere to my strict criteria. Furthermore, since I recognised that Avanti was a speculation, my original outlay and hence subsequent losses were negligible when set against my overall portfolio.
Finally, I feel that I ought to mention a company called Optibiotix. I set up a thread on Advfn which expresses my negative views re: the investment case for the company. I don't really have a vested interest one way or another in the company, but I have allowed myself to get drawn in to trading insults with some rather unpleasant individuals who are no doubt currently leaping up and down with joy following Avanti's trading statement. It reflects badly on me as well as them. Would I behave like like outside the virtual world. No. Shame on them and shame on me.
Bad Karma with Avanti? No just a crap investment decision on my part.
I will simply say the following, and then leave it at that. Optibiotix is a speculation, and not a company I could invest in, even more so now. It is already valued at over £60m, but doesn't generate any significant revenues. The balance sheet is ok, but doesn't justify a market cap. anywhere near £60m. Profits will be years away yet, and I expect further fundraisings will follow. That said, sometimes speculations pay off. However, returning to my heading, more often than not, money thrown at companies like Avanti, Opti, Moni, Nano, IOF etc is "The triumph of hope over experience".
Good luck.
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