Good morning. Three more interesting companies to add to the memory bank from last night, after an enjoyable investor forum courtesy of Equity Development. I took copious notes, but unfortunately an over-zealous tidier-upper had whipped them away from my seat by the time I returned to collect them. Never mind. I liked Matchtech (LON:MTEC), but as with most things, how can I possibly buy now, when the share has already re-rated substantially? If you put a dot on the chart to indiicate when you bought, you wouldn't win any prizes for shrewdness by having a blue dot on today's date.
I also liked the sound of NATURE (LON:NGR), although it didn't jump out at me as great value. Probably priced about right, but a good niche business. The explosion at their Gibraltar facility does however remind investors that handling hazardous materials carries considerable risk. I don't understand how the hapless welder was allowed to do his unauthorised work on Nature's highly explosive facility? When I drew the short straw at Price Waterhouse c.1991, and had to do a stock count on New Year's Eve at Esso Fawley, they didn't let me go anywhere near any tanks until they had put the fear of God into me over the risks. The bottom line was that birds would be eating little pieces of my remains about 30 miles away if I forgot to connect myself to the earthing wire. That was the most miserable New Year's Eve ever. Well, NYE in 1992 was a close run thing, when I had to count oil spill booms on the Isle of Wight, but I'll save that story for another time. Being stuck on the Isle of Wight at any time is enough to induce depression, what a dump!
The third company that we heard from last night was Global Energy Development (LON:GED). It's an American company, producing oil in Colombia, yet (bizarrely) has been Listed on AIM for the past 10 years. I kept getting flashes of JR Ewing in my head, inappropriately. The story sounded pretty good though - they make money from current production, but don't pay a dividend. There is big exploration upside from new oil fields, which they believe coud be worth up to £7 a share, so risk/reward looks interesting with the shares currently about £1. Their lady Finance Director gave a polished performance, with a touch of "vocal fry", randomly at the end of the the occasional sentence, which scientists at the Institute for Studies say is a technique predominantly used to sound more authoritative and sexy, apparently.
Scottish CCTV company Indigovision (LON:IND) reports prelims for the year ended 31 Jul 2013 today. The figures are as expected, with £2m operating profit, slightly down on last year. I was hoping for a more upbeat outlook statement, but instead they say that a sales uplift from increased sales personnel is now not expected to deliver results until the "latter part of 2014".
I've talked myself virtually into a coma with this share over the last 10 years, so there's not a lot to add today really. It always seems to be on the verge of great things happening, but never quite gets there. Frustrating is not a word that comes anywhere close to expressing how I feel about this company.
I can feel an attack of righteous indignation coming on, so let's have a look at interim results from WANdisco (LON:WAND). The shares are down 30p to 999p today, which seems appropriate as I would be calling the emergency services after reading these figures. Bear in mind that this thing had a market cap of £242m last night, although it's 3% lower today.
Turnover was only $3.5m for the six months to 30 Jun 2013, and they made a thumping loss of $6.2m before exceptionals, and $7.5m after. With only $5.4m in net cash remaining, they are running flat out straight into a brick wall. So more cash will be needed shortly. I just checked investegate to see if they had done a Placing recently, and sure enough there is another announcement today giving details of a £19m Placing.
I can only describe the narrative to their figures as delusional.
I'm just popping over the road for an all day Brunch and a coffee, so will continue writing this slightly shambolic review of the morning news when I get back.
Sorry for the abrupt end to this report, I conked out on the sofa after my Full English!