Software Radio Technology is a company that has fascinated me for some time. It appears to have a large following and always claims to have huge potential going forward for it's AIS technology. As yet, it has failed to impress. Success always appears to be just around the corner.
Today SRT released their interim results, and yet again they are less than impressive. Revenues are down nearly £2m on the same time last year, and they've made a loss of £750,000. Cash is ok at £2.4m on the balance sheet, but the valuation at nearly £30m is staggering.
However, hats off to the ever ebullient Chairman Simon Rogers. Never mind that the current order book stands at just £3.6m, get this, apparently they have "a validated sales opportunity pipeline worth approximately £200 million." Well that's me in then!!!!
"A validated sales opportunity pipeline." Today's phrase of the day surely?
Good luck to current investors, and hopefully your patience will eventually be rewarded, but it may be a long time coming yet.
BOOM
cgod - "We have a big seller pushing the price down, what do you make of this MM?"
Hello cgod. Not quite sure if you are addressing me or Market Master?
Here's a reply anyway whether requested or not.
When I buy shares in a company I do so at a price where I believe there is multi-bagger potential. I'm not interested in short term trading and taking a quick scalp. There have been occasions where this would have been more profitable, but overall I believe my buy and hold strategy gives me considerably greater returns in the long run. In short, I don't really care about short term price fluctuations.
In my opinion, Audioboom is highly speculative, but I have bought at prices I consider leaves multi-bagger potential should BOOM successfully execute on their strategy.
Their December update is all I'm interested in short term. If they report revenues around £500,000 then it suggests the latent potential remains firmly in tact.
Overall, once I have bought shares at what I consider to be reasonable prices, I have found the perfect strategy that works for my personality. Sit back and do nothing, and let the share price take care of itself.
Monday, 9 November 2015
Grafenia
Just one micro-cap to your draw attention to today which is a company called Grafenia. Essentially the company is involved in the graphic design and printing industry.
Grafenia released their interim results today which are a bit of a mixed bag. As far as I can make out, they appear to be in the process of re-positioning the business following structural changes in this particular industry? Certainly, they recently sold their Dutch subsidiary for 2.35m euros, and as a consequence, the business has been scaled down significantly. For investors, I suppose it's a question of whether they can build the new model into a profitable and viable concern going forward. Today's report does give some encouragement.
In the first instance, the company does boast a healthy balance sheet. At the interim stage the company had £5.5m in Net Assets, although nearly £3m is made up of intangibles. Cash reported is £121,000, but this does not include £1.8m to be added to the coffers from the sale of it's Dutch subsidiary. The business is cash generative, but cash used in investing activities was up significantly at over £1m.
Grafenia have declared an interim dividend of 0.25p which is half it's previous dividend to reflect the reduced scale of the business. Last year's total dividend was 1.5p. If the final dividend is also halved then the yield will be around 5%.
In the narrative about the dividend they state that this "reflects the Board's cautious optimism for new initiatives."
Interestingly, later today both the acting CEO and the Finance Director bought shares worth around £60,000 between them. Perhaps they're a little bit more optimistic than they're letting on?
I haven't bought shares yet, but I will watch with interest.
N.B. I should mention that the current market cap. stands at around £7.1m.
Grafenia released their interim results today which are a bit of a mixed bag. As far as I can make out, they appear to be in the process of re-positioning the business following structural changes in this particular industry? Certainly, they recently sold their Dutch subsidiary for 2.35m euros, and as a consequence, the business has been scaled down significantly. For investors, I suppose it's a question of whether they can build the new model into a profitable and viable concern going forward. Today's report does give some encouragement.
In the first instance, the company does boast a healthy balance sheet. At the interim stage the company had £5.5m in Net Assets, although nearly £3m is made up of intangibles. Cash reported is £121,000, but this does not include £1.8m to be added to the coffers from the sale of it's Dutch subsidiary. The business is cash generative, but cash used in investing activities was up significantly at over £1m.
Grafenia have declared an interim dividend of 0.25p which is half it's previous dividend to reflect the reduced scale of the business. Last year's total dividend was 1.5p. If the final dividend is also halved then the yield will be around 5%.
In the narrative about the dividend they state that this "reflects the Board's cautious optimism for new initiatives."
Interestingly, later today both the acting CEO and the Finance Director bought shares worth around £60,000 between them. Perhaps they're a little bit more optimistic than they're letting on?
I haven't bought shares yet, but I will watch with interest.
N.B. I should mention that the current market cap. stands at around £7.1m.
Thursday, 5 November 2015
Croma Security Systems are a company that I have commented on before, they have progressed well in recent years and the increasing share price has reflected this. Croma released their full year results this morning where they have reported record figures. Turnover was up to nearly £16m with net profits of £358,000 giving an EPS figure of 2.4p. This puts the group on a p/e ratio of just over 20. The group boasts a solid balance sheet with NTAV of £2.3m which leaps to £9.1m if you include goodwill and intangibles. This is against a market cap. of £7.3m. The company is cash generative.
Overall, the tenor of the report reads positively. However, the outlook statement is cautious:-
"The Board views the coming year with optimism tinged with caution."
Croma have maintained a small dividend payment of 0.3p which equates to 0.6%.
All in all whilst Croma have made excellent progress in recent years, there isn't enough in today's report to tempt me in yet. I shall continue to monitor their progress and reconsider if there is sufficient price weakness.
Another company I have looked at before is Snoozebox. In essence, it is a company that supplies substantial temporary accommodation at events. Snoozebox released a trading statement today.
When you cut through the waffle then the company is going to make a £5m EBITDA loss. I would anticipate that operating costs at the company will continue to be high for some time to come.
Yes, Snoozebox are expanding with increasing revenues, but with a market cap. of £20m and possibly with further fundraisings to come, it's not a company that would interest me.
A quick visit to Avesco. Their website has been updated again today, and it appears that they continue to win more recognition for their excellence and are increasingly being called upon to implement complex projections. This is a new client:-
http://www.ct-group.com/na/en/posts/ct-s-av-inflates-la-dance-party
A glance at facebook is also interesting. Are they gaining more traction in Asia? The last three posts are projects in Malaysia, Macau and Tokyo.
https://www.facebook.com/creativetechnologygroup
Update - Love the prompt dividend payment from AEO. Ex-dividend today with payment on the 27th of the same month (November). Other companies should take note. Also notice on twitter that they were working with Vodafone yesterday:-
https://twitter.com/cheerful21st
Overall, the tenor of the report reads positively. However, the outlook statement is cautious:-
"The Board views the coming year with optimism tinged with caution."
Croma have maintained a small dividend payment of 0.3p which equates to 0.6%.
All in all whilst Croma have made excellent progress in recent years, there isn't enough in today's report to tempt me in yet. I shall continue to monitor their progress and reconsider if there is sufficient price weakness.
Another company I have looked at before is Snoozebox. In essence, it is a company that supplies substantial temporary accommodation at events. Snoozebox released a trading statement today.
When you cut through the waffle then the company is going to make a £5m EBITDA loss. I would anticipate that operating costs at the company will continue to be high for some time to come.
Yes, Snoozebox are expanding with increasing revenues, but with a market cap. of £20m and possibly with further fundraisings to come, it's not a company that would interest me.
A quick visit to Avesco. Their website has been updated again today, and it appears that they continue to win more recognition for their excellence and are increasingly being called upon to implement complex projections. This is a new client:-
http://www.ct-group.com/na/en/posts/ct-s-av-inflates-la-dance-party
A glance at facebook is also interesting. Are they gaining more traction in Asia? The last three posts are projects in Malaysia, Macau and Tokyo.
https://www.facebook.com/creativetechnologygroup
Update - Love the prompt dividend payment from AEO. Ex-dividend today with payment on the 27th of the same month (November). Other companies should take note. Also notice on twitter that they were working with Vodafone yesterday:-
https://twitter.com/cheerful21st
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