Not much to report regarding my holdings this morning, although I note that some profit taking has taken place in Audioboom in the last two trading days. This was to be expected with no news from the company, and it's a healthy pull back. Nothing goes up in a straight line.
Having said that, note what's happened with a company called Plethora Solutions today. The share price has risen by well over 100% this morning. As far as I can make out the offer is around 12.5p. The shares stood at 2.75p yesterday. Plethora, whilst making good progress in their field, are yet to make any meaningful revenues and they carry net liabilities. The offer values the company at around £123m. Clearly, the acquirer sees huge potential here. Well done if you're a shareholder that has picked these up at recent lows.
Why do I mention Plethora? Well, they are an example of how a knock-out take-over offer can suddenly appear out of the blue. Nothing wrong with taking profits, but watch this space on Audioboom. I'm certainly holding tight.
Wednesday, 4 November 2015
Monday, 2 November 2015
Just two quick updates to start the day. Firstly, I mentioned Avanti Communications yesterday and today they have announced a significant contract win with Telkom SA.
http://uk.advfn.com/news/UKREG/2015/article/69131621
Two hugely important bits for me are:-
"This multi-year commitment is expected to make a significant contribution to filling HYLAS 2 and HYLAS 4 South African capacity in a market that is developing well for Avanti."
"Avanti has now won contracts with the incumbent national telecoms companies in all of its core African markets, in-line with its announced strategy."
Avanti has been a target of shorting campaigns in the past, but most recently they have shown significant progress and appear to be answering their critics. This contract provides further confirmation that the business is now gaining momentum. I am becoming more confident that they have turned the corner towards achieving their stated goals.
News indirectly from another of my holdings this morning. Direct Line Insurance have released their third quarter trading update this morning and it reads well for Trakm8's supply of telematics devices:-
"The Group continues to build on its current strong market positions by identifying and investing in market developments that it believes can contribute to future growth. In particular, Motor has continued to grow its telematics-based insurance, with a 76% increase during 2015 to 67,000 in-force policies."
I'll update the blog later in the day.
Bought back into Biome Technologies today, not a huge stake, but enough to keep me interested. Biome is a company I held shares in earlier this year when I bought at prices around the 80p mark. Within a few months the SP had improved significantly. The half-year results however didn't impress, and I took a 75% profit.
The trading statement today has tempted back in though. It looks encouraging, and they look set to beat market expectations for the full year. Total group revenues in the third quarter were up 169% at £1.3m and group revenues for the nine month period are 18% ahead of last year at £3.3m.
Both the bioplastics and radio frequency technology
businesses are doing well. Order visibility for both divisions is looking good for the rest of this year and into 2016. Significantly the group reported a small EBITDA profit in the third quarter, and cash balances appear to be stabilising. They have £1.7m in cash on the balance sheet just £0.1m less than 30th June this year. If you strip out intangibles, even after today's share price rise, the market cap. is not far above NTAV. The current market cap. is around £3.4m whilst NTAV is £2.7m. If you include intangibles then the market cap. is below NAV (£4m). At the interims gross margins had improved from 35% to 39%.
Biome has been a serial disappointer in the past and understandably early investors are sceptical. The shares are highly illiquid, and the spread is off-putting. However, Biome may well have reached an inflexion point in their development, management believe so with Paul Mines saying the following:-
"Revenue generation is strong in both divisions and, coupling this with the achievement of a small group EBITDA profit in the quarter, we are increasingly confident that 2015 will become a very significant milestone in Biome's development."
http://uk.advfn.com/news/UKREG/2015/article/69131621
Two hugely important bits for me are:-
"This multi-year commitment is expected to make a significant contribution to filling HYLAS 2 and HYLAS 4 South African capacity in a market that is developing well for Avanti."
"Avanti has now won contracts with the incumbent national telecoms companies in all of its core African markets, in-line with its announced strategy."
Avanti has been a target of shorting campaigns in the past, but most recently they have shown significant progress and appear to be answering their critics. This contract provides further confirmation that the business is now gaining momentum. I am becoming more confident that they have turned the corner towards achieving their stated goals.
News indirectly from another of my holdings this morning. Direct Line Insurance have released their third quarter trading update this morning and it reads well for Trakm8's supply of telematics devices:-
"The Group continues to build on its current strong market positions by identifying and investing in market developments that it believes can contribute to future growth. In particular, Motor has continued to grow its telematics-based insurance, with a 76% increase during 2015 to 67,000 in-force policies."
I'll update the blog later in the day.
Bought back into Biome Technologies today, not a huge stake, but enough to keep me interested. Biome is a company I held shares in earlier this year when I bought at prices around the 80p mark. Within a few months the SP had improved significantly. The half-year results however didn't impress, and I took a 75% profit.
The trading statement today has tempted back in though. It looks encouraging, and they look set to beat market expectations for the full year. Total group revenues in the third quarter were up 169% at £1.3m and group revenues for the nine month period are 18% ahead of last year at £3.3m.
Both the bioplastics and radio frequency technology
businesses are doing well. Order visibility for both divisions is looking good for the rest of this year and into 2016. Significantly the group reported a small EBITDA profit in the third quarter, and cash balances appear to be stabilising. They have £1.7m in cash on the balance sheet just £0.1m less than 30th June this year. If you strip out intangibles, even after today's share price rise, the market cap. is not far above NTAV. The current market cap. is around £3.4m whilst NTAV is £2.7m. If you include intangibles then the market cap. is below NAV (£4m). At the interims gross margins had improved from 35% to 39%.Biome has been a serial disappointer in the past and understandably early investors are sceptical. The shares are highly illiquid, and the spread is off-putting. However, Biome may well have reached an inflexion point in their development, management believe so with Paul Mines saying the following:-
"Revenue generation is strong in both divisions and, coupling this with the achievement of a small group EBITDA profit in the quarter, we are increasingly confident that 2015 will become a very significant milestone in Biome's development."
For the early risers, LPA Group has got out the blocks quite quickly this morning with an encouraging sounding trading update. I don't really know much about this company apart from the cursory glance I had this morning. It appears they had warned on profits at the half year but have since turned things around and will now be ahead of revised expectations. Medium term prospects look good. The shares don't look particularly cheap to me based on a p/e basis, but the TNAV looks ok. Cash at the half way stage was minimal. Might be one to research further? Shares are up around 20% as I type.
Aeorema which is one of my holdings that I mentioned yesterday has ticked up a little this morning. Goes ex-dividend on Thursday. Very healthy yield.
Avanti Communications which is also one of my investments, albeit speculative has also ticked up a little this morning. It's not been a great investment yet (share price wise), but I am encouraged by their progress and the shares have recently seen good upward momentum.
I shall update the diary as the day progresses with anything of note or that catches my eye.
Had a better look at LPA Group's half-yearly report. It looks plausible that the cash outflow at the half-way stage was a temporary blip. Given the trading statement this morning, and their confidence in maintaining the interim dividend, I suspect that they will return to cash flow positive by year end. Shares are up 30% now and it's certainly an interesting micro-cap. EPS for end of September was predicted to be 1.1p rising to 4.2p next year. Next year's p/e ratio stands at 20 after this mornings rise and the company pays a modest dividend. Could turn out to be a GARP stock, but the price would have to retreat from here to capture my interest.
Aeorema which is one of my holdings that I mentioned yesterday has ticked up a little this morning. Goes ex-dividend on Thursday. Very healthy yield.
Avanti Communications which is also one of my investments, albeit speculative has also ticked up a little this morning. It's not been a great investment yet (share price wise), but I am encouraged by their progress and the shares have recently seen good upward momentum.
I shall update the diary as the day progresses with anything of note or that catches my eye.
Had a better look at LPA Group's half-yearly report. It looks plausible that the cash outflow at the half-way stage was a temporary blip. Given the trading statement this morning, and their confidence in maintaining the interim dividend, I suspect that they will return to cash flow positive by year end. Shares are up 30% now and it's certainly an interesting micro-cap. EPS for end of September was predicted to be 1.1p rising to 4.2p next year. Next year's p/e ratio stands at 20 after this mornings rise and the company pays a modest dividend. Could turn out to be a GARP stock, but the price would have to retreat from here to capture my interest.
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