Here's an interesting link for Avesco shareholders:-
http://www.tpimagazine.com/company-profile/1893448/creative_technology_in_profile.html
A very worthwhile an informative read regarding Creative Technology's development in recent years and their current operations.
As a shareholder, I found the whole article very interesting, but a couple of highlights going forward might be :-
"Dimension (also Avesco) has grown steadily over the years. 2012, however, saw a huge increase in both inventory and staff on the back of the company’s involvement in Sports Technology - the joint venture business between CT and Delta, which supplied the majority of the audio and wired comms for the Olympics. “This puts us in a really good place going forward. We have a great team, up to date inventory and you’ll hear more from Dimension going forward,” said Crump.
“Similarly, CT has seen a huge shot in the arm on the back of the Olympics. Our contracts to deliver the video systems for all of the sports venues alongside Ceremonies and several pavilions have allowed us to upgrade and replace much of our inventory at a time when many competitors are struggling for cash and making do with ageing equipment.”
The long forward visibility of the Olympics also allowed the company to focus development of its people resource, adding around 30 full-time positions in the UK, most of which are on-site technical people that have been developed and trained in-house. “Legacy is a massively overused word when applied to Olympics, but I really believe in our case we are a much better equipped and stronger business as a result of the investments we have been able to make on the back of our Olympic contracts,” he continued.""
"Following an impressive run of major ceremonies over the last few years - Doha, Beijing, Delhi and London, Creative Technology’s music and live event work is currently on the increase."
"Further afield, the businesses in Asia and the US are structured in much the same way. In Asia the main operation is in Shanghai and Creative Technology has been active there for around six years and is one of the only Western players to have a real operation on the ground. “It’s been very tough, but we are now really starting to see the fruits of our endeavours. We are well established and are finally seeing a positive financial contribution coming from the region,” said Crump."
“I believe, however, that the real legacy that companies like ours can get from London 2012 is to take what we did and show the world that we really do this well in England. The Australians built an entertainment business on the back of their Olympics and they have given many of us a run for our money over the years. Now is our chance to go out and do the same, not just in Sochi and Rio but also at major events throughout Europe and the rest of the world.”
Avesco should release their interim results in two to three weeks which I am hoping will paint a positive picture going forward. If so, I expect they will further increase the interim dividend. Of course we may get news regarding the Disney settlement. If Avesco get anything near the £1.50 per share payout they are expecting then the current share price is effectively around 70p. At that price a full year dividend around 5p is a yield of 7%, the p/e ratio falls to single digits and the shares will be trading at less than half NTAV(around £1.50).
A growing company with major events in 2014 suggests that Avesco remains considerably undervalued in my opinion.
As ever no advice is intended or given.
As mentioned yesterday given that I can no longer post links on ADVFN, readers will be informed of blog updates via my twitter account:-
https://twitter.com/michae1mouse
Sunday, 26 May 2013
Saturday, 25 May 2013
FT Weekend - bring back My Portfolio
As I've mentioned in the past, on most weekends I like to pick up a copy of the FT. One of the highlights used to be the My Portfolio section. In particular I liked to read John Lee's column where he talked about the shares he currently held, had bought or sold.
However, not only has John Lee finished, but the whole My Portfolio page now appears to have been axed. What a pity. Whilst I don't ever recall buying any shares mentioned in their columns, it is interesting to read the thoughts of other private investors and hear their investing strategies.
We appear to be left with David Schwartz, a trader. Whilst it's interesting to hear him writing about some of the shares he is trading, over the past few weeks he has simply written a series of uninteresting articles pontificating on the next direction the markets will take. In summary, he's concluded that the markets will go up if they don't go down or if neither of these eventualties take place then the markets will go sideways. Brilliant! Well done, but perhaps instead of all that research into historical data about previous bull and bear markets, their durations etc, he might be better off admitting, just like everybody else, that guessing the future direction of stock markets is not worth the effort, because it nearly always takes you by surprise.
I do hope that in the future the My Portfolio section is re-introduced and that Schwartz gets back to talking about individual companies.
For balance, I might add that a good addition is the introduction of the small cap. section in the main paper.
However, not only has John Lee finished, but the whole My Portfolio page now appears to have been axed. What a pity. Whilst I don't ever recall buying any shares mentioned in their columns, it is interesting to read the thoughts of other private investors and hear their investing strategies.
We appear to be left with David Schwartz, a trader. Whilst it's interesting to hear him writing about some of the shares he is trading, over the past few weeks he has simply written a series of uninteresting articles pontificating on the next direction the markets will take. In summary, he's concluded that the markets will go up if they don't go down or if neither of these eventualties take place then the markets will go sideways. Brilliant! Well done, but perhaps instead of all that research into historical data about previous bull and bear markets, their durations etc, he might be better off admitting, just like everybody else, that guessing the future direction of stock markets is not worth the effort, because it nearly always takes you by surprise.
I do hope that in the future the My Portfolio section is re-introduced and that Schwartz gets back to talking about individual companies.
For balance, I might add that a good addition is the introduction of the small cap. section in the main paper.
How to successfully alienate regular users...well done ADVFN!
It appears that I am unable to post website links on the ADVFN threads. From what I can gather, this isn't a temporary glitch, but a management decision to effectively ban non-subscribers from posting any links at all. Strange decision by the company if true.
I have enjoyed using their boards in the past and hopefully I've written some informative posts and added interesting links. I won't be using their boards in future though. I will continue to write my posts here and readers will be notified via my twitter account at the following link https://twitter.com/michae1mouse.
Rather than blanket banning all non-subscribers from posting links, perhaps they would have been better banning the cretins that spam the boards pumping up some worthless oil company in outer-mongolia or the dreadful idiots that are generally abusive and unpleasant.
Actually, whilst on the subject of ADVFN, they are an excellent illustration of a wildly over-valued company. When I last looked they have a market cap. of around £25m having never made a profit and with a pitiful tangible asset backing of around £0.7m. Even if the company had been listed for just a year or two, and had a great growth story to tell, the valuation would be stretched but ADVFN has been going for about 14 years. They don't appear to be able to make any money even during rampant bull markets.
If anybody truly believes that markets are efficient then just compare the valuations of Densitron, a company I mentioned earlier today, and ADVFN. One is profitable with a solid asset backing and pays a dividend, the other is loss making, has negligible tangible assets, doesn't and has never paid dividends. The former has a market cap. around £4m, the latter has a market cap. closer to £25m. Bizarre!
That doesn't suggest Densitron is under-valued, but let's just say I won't be rushing out to buy any shares in ADVFN.
As ever, no advice given or intended.
I have enjoyed using their boards in the past and hopefully I've written some informative posts and added interesting links. I won't be using their boards in future though. I will continue to write my posts here and readers will be notified via my twitter account at the following link https://twitter.com/michae1mouse.
Rather than blanket banning all non-subscribers from posting links, perhaps they would have been better banning the cretins that spam the boards pumping up some worthless oil company in outer-mongolia or the dreadful idiots that are generally abusive and unpleasant.
Actually, whilst on the subject of ADVFN, they are an excellent illustration of a wildly over-valued company. When I last looked they have a market cap. of around £25m having never made a profit and with a pitiful tangible asset backing of around £0.7m. Even if the company had been listed for just a year or two, and had a great growth story to tell, the valuation would be stretched but ADVFN has been going for about 14 years. They don't appear to be able to make any money even during rampant bull markets.
If anybody truly believes that markets are efficient then just compare the valuations of Densitron, a company I mentioned earlier today, and ADVFN. One is profitable with a solid asset backing and pays a dividend, the other is loss making, has negligible tangible assets, doesn't and has never paid dividends. The former has a market cap. around £4m, the latter has a market cap. closer to £25m. Bizarre!
That doesn't suggest Densitron is under-valued, but let's just say I won't be rushing out to buy any shares in ADVFN.
As ever, no advice given or intended.
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