Today is a pretty quiet day in terms of news that interests me, although I can't help mentioning the pile of absolute rubbish that is the Aim listed DCD Media. Today's trading update says it all really:-
http://uk.advfn.com/news/UKREG/2015/article/69299053
The company should delist immediately since no sane investor is going to put money into this tripe. I won't waste any more time commenting on DCD's history, but amongst other articles that I've written you may find the following blog rather prophetic:-
http://michae1mouse.blogspot.co.uk/2015/04/fool-me-once-shame-on-you-fool-me-twice.html
Good riddance to DCD media hopefully. The shares are down 30% today, although in reality they are worthless.
Moving on. It's probably just coincidence, but I notice that two of my holdings have moved in opposite directions today. Avesco is down 3.5% whilst a fairly recent purchase Aeorema is up just over 7%. It briefly crossed my mind that Avesco is a potential suitor for Aeorema which would be quite a bargain at it's current market cap. Anyway, this is just idle musing on my part. Both companies are long term holds for me. Avesco and Aeorema provide a useful income stream. Avesco's share price is backed by quality assets, Aeorema is debt free. I am hopeful that trading at both organisations will go from strength to strength.
Anybody who missed yesterday's RNS from Trakm8 should note that results will be released on Monday 23rd November. This is a week ahead of last year. In general companies don't rush to put out poor results, and so I am hopeful that Trakm8's results won't disappoint.
Audioboom appears to have reversed it's recent downward trend, and I expect they will issue a trading update in December as they did last year. The shares bounced back by 10% last night and are up a further 3% this morning.
Angle shares are up slightly this morning after a brief dip in price yesterday. The long term price chart from 2011-present looks strong with an uptrend clearly in tact.
Friday, 13 November 2015
Thursday, 12 November 2015
Avanti Communications
I can't quite get my head around Avanti's trading statement for Q1 2016 this morning. Is it encouraging or disappointing? As I have mentioned before Avanti is one of my speculative investments which hasn't really gone anywhere since I purchased shares in 2012 when they were around £2.60.
Something for bears and bulls I would suggest.
http://uk.advfn.com/news/UKREG/2015/article/69277463
On the positive side, they report sequential growth of 23.4% over the previous quarter, and that top-20 Customer Bandwidth Revenue Growth increased 57.5% a constant currency basis. Average Fleet Utilisation also appears to have improved to around 25%.
However, for the bears, revenues are flat at $13.7m when compared to the same period last year, and they have recorded an EBITDA loss of $2.9m. They explain this as follows:- "This was lower than Avanti's prevailing run rate of growth, due to a larger amount of equipment and government revenue in the previous year, which, although recurring, tends to be recognised on a non-linear basis."
Back to the positives. They state that strong growth is expected to continue throughout the remainder of 2016 and the period end cash balance was $219.3m. They believe that cash balances will comfortably meet all of the company's medium-term financial commitments.
Rather surprisingly they mention that Facebook are one of their customers in Africa. I'd assumed that any tie-up with Facebook had long since disappeared.
From previous reports there is the potential for the company to generate EBITDA of $500m. That seems a long way off at the moment.
This is a speculative investment for me, and I have held for quite a while now. Whilst the trading statement doesn't blow me away, I'll stick with the shares and see how things develop from here.
XLMedia
I was about to conduct a critique of this company following a very positive trading statement this morning where they state that they will exceed current market expectations. The fundamentals look very strong. The shares are up by over 9% this morning. Sadly, I then noticed that they are based in Cyprus. I'm afraid that it's not for me. It's incredible the damage that 'bad eggs' have done to investor confidence in these overseas AIM listings. Good luck if you are invested, it looks great value on paper.
Triad
Triad is an interesting little micro-cap. The shares are up just over 7% this morning following interim results. Revenues and profits are up significantly at the half-way stage at 21% and 71%(albeit from a low base) respectively. Revenue stands at £12.74m whilst profit after tax came in at £220,000.
The narrative in today's report reads well and in particular they appear to have an excellent client base. Encouragingly they say that their results are underpinned by long term client engagements.
The balance sheet looks ok, although cash looks tight at just £180,000 with a reported cash outflow at the half year of £183,000. The company doesn't pay a dividend, and their outlook statement is non-committal.
The shares have had an excellent run since the start of the year. At a current market cap. of around £5.5m some investors may wish to do some further research. I do not hold shares.
Something for bears and bulls I would suggest.
http://uk.advfn.com/news/UKREG/2015/article/69277463
On the positive side, they report sequential growth of 23.4% over the previous quarter, and that top-20 Customer Bandwidth Revenue Growth increased 57.5% a constant currency basis. Average Fleet Utilisation also appears to have improved to around 25%.
However, for the bears, revenues are flat at $13.7m when compared to the same period last year, and they have recorded an EBITDA loss of $2.9m. They explain this as follows:- "This was lower than Avanti's prevailing run rate of growth, due to a larger amount of equipment and government revenue in the previous year, which, although recurring, tends to be recognised on a non-linear basis."
Back to the positives. They state that strong growth is expected to continue throughout the remainder of 2016 and the period end cash balance was $219.3m. They believe that cash balances will comfortably meet all of the company's medium-term financial commitments.
Rather surprisingly they mention that Facebook are one of their customers in Africa. I'd assumed that any tie-up with Facebook had long since disappeared.
From previous reports there is the potential for the company to generate EBITDA of $500m. That seems a long way off at the moment.
This is a speculative investment for me, and I have held for quite a while now. Whilst the trading statement doesn't blow me away, I'll stick with the shares and see how things develop from here.
XLMedia
I was about to conduct a critique of this company following a very positive trading statement this morning where they state that they will exceed current market expectations. The fundamentals look very strong. The shares are up by over 9% this morning. Sadly, I then noticed that they are based in Cyprus. I'm afraid that it's not for me. It's incredible the damage that 'bad eggs' have done to investor confidence in these overseas AIM listings. Good luck if you are invested, it looks great value on paper.
Triad
Triad is an interesting little micro-cap. The shares are up just over 7% this morning following interim results. Revenues and profits are up significantly at the half-way stage at 21% and 71%(albeit from a low base) respectively. Revenue stands at £12.74m whilst profit after tax came in at £220,000.
The narrative in today's report reads well and in particular they appear to have an excellent client base. Encouragingly they say that their results are underpinned by long term client engagements.
The balance sheet looks ok, although cash looks tight at just £180,000 with a reported cash outflow at the half year of £183,000. The company doesn't pay a dividend, and their outlook statement is non-committal.
The shares have had an excellent run since the start of the year. At a current market cap. of around £5.5m some investors may wish to do some further research. I do not hold shares.
Tuesday, 10 November 2015
I keep hearing about this company.......
An interesting contract win by a company called Eckoh Technology this morning:-
http://uk.advfn.com/news/UKREG/2015/article/69258952
The company has secured
a significant new three-year contract to provide secure payment services to one of the world's largest multi-media retailers (the "Client"), broadcasting to over 200 million homes worldwide.
Nik Philpot, CEO of Eckoh, commented:
"I am delighted to announce this major new contract for our Haloh payment solution. Our payment clients' key goal is to protect their customer data without compromising customer experience. With recent high-profile data breaches highlighting the significant risks organisations take if they do not secure data effectively, we would expect to see demand for our technology only increase. To this end, we continue to evolve our products by developing the latest security systems and to make them flexible enough to accommodate the most challenging IT environments. Our latest tokenisation solution meets these needs exactly and we are excited that this household brand is the latest company to adopt it."
It would appear to me that Eckoh are in the right place at the right time. It's a company that I mentioned only recently:-
http://michae1mouse.blogspot.co.uk/2015/09/eckohs-of-my-own-investing-strategy.html
What's the current investment case for Eckoh though?
Clearly the company looks like it will continue to grow for some time to come, and for momentum traders there is a good chance that the share price will break out this morning and reach new highs? We shall see.
On fundamentals, the valuation looks a little rich for me with the forward p/e ratios for 2016 and 2017 at 36 and 27 respectively. However, further contract wins and broker upgrades may bring these figures down considerably of course.
The balance sheet is sound with modest debt, and the company pays a small dividend. The company is cash generative.
Interesting company to research further, but I won't be investing at the current price.
http://uk.advfn.com/news/UKREG/2015/article/69258952
The company has secured
a significant new three-year contract to provide secure payment services to one of the world's largest multi-media retailers (the "Client"), broadcasting to over 200 million homes worldwide. Nik Philpot, CEO of Eckoh, commented:
"I am delighted to announce this major new contract for our Haloh payment solution. Our payment clients' key goal is to protect their customer data without compromising customer experience. With recent high-profile data breaches highlighting the significant risks organisations take if they do not secure data
effectively, we would expect to see demand for our technology only increase. To this end, we continue to evolve our products by developing the latest security systems and to make them flexible enough to accommodate the most challenging IT environments. Our latest tokenisation solution meets these needs exactly and we are excited that this household brand is the latest company to adopt it." It would appear to me that Eckoh are in the right place at the right time. It's a company that I mentioned only recently:-
http://michae1mouse.blogspot.co.uk/2015/09/eckohs-of-my-own-investing-strategy.html
What's the current investment case for Eckoh though?
Clearly the company looks like it will continue to grow for some time to come, and for momentum traders there is a good chance that the share price will break out this morning and reach new highs? We shall see.
On fundamentals, the valuation looks a little rich for me with the forward p/e ratios for 2016 and 2017 at 36 and 27 respectively. However, further contract wins and broker upgrades may bring these figures down considerably of course.
The balance sheet is sound with modest debt, and the company pays a small dividend. The company is cash generative.
Interesting company to research further, but I won't be investing at the current price.
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