Amino Technologies          AMO 

140p               4th June 2015 

I am already long Amino, but I have topped up further today following what I consider an upbeat (if conservatively worded) interim trading update.


Being a debt free and so far surprise free company, this seems like a "lower risk" share to me. I am comfortable with my shareholding for the following reasons: 


  1. The company has a large net cash position which is growing yoy.  This currently makes up c.25% of market cap
  2. The Forward Yield of 4.3% is growing annually and well covered by free cashflow 
  3. Director speak is encouraging with good progress seemingly being made everywhere and confidence of meeting market expectations
  4. The company generates strong cashflow which exceeds the EPS and dividend.
  5. The Stockrank is 95 
  6. The board has confidence of meeting market expectations. They are reporting good progress in core markets and encouraging momentum in new markets.



PE Ratio (f)                 16.1     (strip out net cash and this becomes 11.4)

ROCE                          15%

EPS Growth (f)              10%

PEG                             1.15

Dividend Yield (f)       4.3%   (rising 10% p.a. until 2016)

Dividend cover + c/f   1.5x  and more than covered by free cashflow       

Net Gearing                 net cash of c£20m = More than 25% of market cap.

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About the Author

Chipspa

Premium Member

1 comment

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TheWatchmaker
5th Jun '15

Re : The Company expects the traditional second half seasonal weighting in revenues to continue and is confident that results for the full year ending 30 November 2015 will be in line with current market expectations.

Looks positive. Just need to be wary that it is conditional on the 'traditional second half seasonal weighting' - if this doesn't appear then maybe results won't be in line?
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