I have mentioned Avanti Communications several times on my blog. It's a speculative investment that I have made and, as such, I certainly wouldn't "bet the farm" on it. However, I am encouraged by the progress that they are now making and the contracts that they are winning. This morning they have announced a new contract with BT:-
http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/12611890.html
This contract is highly significant since it provides a ringing endorsement of Avanti's technology from BT and the British Government.
Avanti has been a popular target for the shorters. Who knows what the future holds, but I would suggest that there are better targets to short than Avanti, particularly after today's news.
Avanti also boasts Facebook as a client and all of the national carriers in its core African markets.
My gut feeling is that they may be reaching a tipping point in their favour and that growth will accelerate from here. We shall see. There also remains the possibility that one of their larger clients may eventually fancy acquiring the whole group.
As speculative investments go, I am relatively happy with a long term hold here. Given this mornings news, I certainly wouldn't be comfortable holding a short position. Each to their own I suppose.
Sunday, 6 December 2015
Monday, 30 November 2015
Is this a FCUKing recovery or not?
French Connection is an interesting company. Once a darling of the high street, it has lost it's sparkle in recent years and, as a consequence, investors have suffered a torrid time. However, the stock is certainly a potential turnaround and recovery situation.
Investors will no doubt be heartened by this mornings trading statement which is encouraging. Sales of their Winter collection have been strong and all other areas of the business are also trading in line with expectations. Importantly, as they continue to close non-profitable stores they will also vacate their Regent Street, London store at the end of March 2016, at which time they will receive a compensation payment of £2.4million, while also removing the on-going trading losses of the store.
Certainly all of this sounds encouraging and they sound pretty confident of meeting market expectations, despite still having the all important Christmas period to come.
The attraction of French Connection as a recovery play has always been the strength of it's balance sheet and whether or not it can achieve a turnaround in it's fortunes before significantly depleting it's cash pile.
In the half-yearly report net tangible assets were around £47.5m with no debt against a market cap., after this mornings sharp rise in the share price, of around £36m.
I'm not a holder or potential investor, but it does look interesting, although what the FCUK do I know?
By the way, I do hope that they have dropped the FCUK branding since it will stop me posting puerile jokes?
Actually, I'd guess they did this some time ago.
AEOREMA
http://cheerfultwentyfirst.exposecms.com/news/global-reach
Sounds encouraging. I am a holder of Aeorema. The company is a profitable, cash generative, dividend paying micro-cap. The company is growing and has a very solid balance sheet with no debt.
Investors will no doubt be heartened by this mornings trading statement which is encouraging. Sales of their Winter collection have been strong and all other areas of the business are also trading in line with expectations. Importantly, as they continue to close non-profitable stores they will also vacate their Regent Street, London store at the end of March 2016, at which time they will receive a compensation payment of £2.4million, while also removing the on-going trading losses of the store.
Certainly all of this sounds encouraging and they sound pretty confident of meeting market expectations, despite still having the all important Christmas period to come.
The attraction of French Connection as a recovery play has always been the strength of it's balance sheet and whether or not it can achieve a turnaround in it's fortunes before significantly depleting it's cash pile.
In the half-yearly report net tangible assets were around £47.5m with no debt against a market cap., after this mornings sharp rise in the share price, of around £36m.
I'm not a holder or potential investor, but it does look interesting, although what the FCUK do I know?
By the way, I do hope that they have dropped the FCUK branding since it will stop me posting puerile jokes?
Actually, I'd guess they did this some time ago.
AEOREMA
http://cheerfultwentyfirst.exposecms.com/news/global-reach
Sounds encouraging. I am a holder of Aeorema. The company is a profitable, cash generative, dividend paying micro-cap. The company is growing and has a very solid balance sheet with no debt.
Friday, 27 November 2015
Give 'em that old Razzall Dazzle?
Boxhill Technologies is a micro-cap company that has been on my monitor for a short while, although I haven't purchased any shares in the company. Investors who bought shares in April this year will be sitting on excellent profits since the share price has already multi-bagged during that short period.
The company appears to be making a dramatic turnaround in it's fortunes and reported an operating profit for the six months to 31 January 2015 of £296,000 which compared favourably to an operating loss of £49,000, before discontinued operations and exceptional items, for the six months ended 31 January 2014.
The company appears to be an eclectic mix of businesses and describes itself as a lottery, software, gaming and leisure company.
The balance sheet is ok, although tangible net assets are just over £200,000 against a market cap. of around £6m. At the interim stage the company was cash generative to the tune of £431,000.
The attraction of Boxhill is undoubtedly the sudden growth surge. From the most recent trading update, operating profits are likely to come in around £600,000 to £650,000. My rough calculations estimate that the shares are trading on a very modest p/e ratio of less than 10.
The most recent trading statement also suggests that the current financial year is likely to be even stronger :- "Operating profits continue to increase, not just compared with the year to 31 July 2014, but also comparing the second and first halves of the year to 31 July 2015." Good news indeed.
On the face of it, this looks like a promising micro-cap and despite it already multi-bagging, there does appear to be more to come.
One small niggle might be that Lord Timothy Razzall, the Chairman of the Company, has been a recent seller, although he says that this was to meet personal obligations. He still retains 4.33% of the company.
As I stated earlier, I am not holder and my interests lie elsewhere at the moment, but it's certainly one that merits further investigation. Of course the question is, whilst it's certainly got that old Razzall Dazzle, will it ultimately Razzle Dazzle 'em?
The company appears to be making a dramatic turnaround in it's fortunes and reported an operating profit for the six months to 31 January 2015 of £296,000 which compared favourably to an operating loss of £49,000, before discontinued operations and exceptional items, for the six months ended 31 January 2014.
The company appears to be an eclectic mix of businesses and describes itself as a lottery, software, gaming and leisure company.
The balance sheet is ok, although tangible net assets are just over £200,000 against a market cap. of around £6m. At the interim stage the company was cash generative to the tune of £431,000.
The attraction of Boxhill is undoubtedly the sudden growth surge. From the most recent trading update, operating profits are likely to come in around £600,000 to £650,000. My rough calculations estimate that the shares are trading on a very modest p/e ratio of less than 10.
The most recent trading statement also suggests that the current financial year is likely to be even stronger :- "Operating profits continue to increase, not just compared with the year to 31 July 2014, but also comparing the second and first halves of the year to 31 July 2015." Good news indeed.
On the face of it, this looks like a promising micro-cap and despite it already multi-bagging, there does appear to be more to come.
One small niggle might be that Lord Timothy Razzall, the Chairman of the Company, has been a recent seller, although he says that this was to meet personal obligations. He still retains 4.33% of the company.
As I stated earlier, I am not holder and my interests lie elsewhere at the moment, but it's certainly one that merits further investigation. Of course the question is, whilst it's certainly got that old Razzall Dazzle, will it ultimately Razzle Dazzle 'em?
Subscribe to:
Posts (Atom)