I Read The News Today Oh Boy! 1-Feb-2019

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1st Feb '19 by matylda

4 comments 1434 reads

Morning all!

CML Microsystems ( CML Microsystems (LON:CML) ) – 433p – £74m – PER 16.5

Trading Update – Expects FY Revenue and PBT to be materially below current market expectations (Revenue -12%) – Lots of reasons given.

I have to remain on the side-lines here for now.

Nasstar ( Nasstar (LON:NASA) ) – 12p – £68m – PER 23.9

Trading Update For The 12 Months To End December 2018 – Revenue slightly ahead, EBITDA and Net Cash in-line. 2020 expectations underpinned by new project due to go live in Q4 2019.

Would like to actuals here (real Profits perhaps) before making any investment decision – That looks like a wait until end April this year!

As always, all comment most welcome!

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About the Author

Matylda

Premium Member

4 comments

MrContrarian

1st Feb '19

My morning smallcap tweet:

Telit Communications (LON:TCM), Avon Rubber (LON:AVON), Nasstar (LON:NASA), CML Microsystems (LON:CML), Gresham Technologies (LON:GHT)

Telit Communications (TCM) delays completion of sale of automotive division again, to 20 Feb. Funding still not ready. Hmm. Sale was announced 6 months ago.
Avon Rubber (AVON) further to the announcement of 7 January, has received first orders for 7,000 mask systems and accessories worth $17.8m from US. It will contribute to expected Military revenues.
Nasstar (NASA) guides FY rev adjusted EBITDA slightly ahead of and in line with management expectations respectively.
CML Microsystems (CML) poor H2, guides FY rev down 12%.
Gresham Technologies (GHT) wins order worth £2.3m over 5 years.

mmarkkj777

2nd Feb '19

Regarding Avon Rubber (LON:AVON)

That order from the US equates to $25,000 per mask (plus accessories)!

No wonder the profit and margin have both been rising steadily for the last 5 years, on increasing revenues.

I don't hold, but with the share price currently close to recent support levels, I see a lot more upside potential than downside. I'm tempted and will have a closer look on Monday.

Rusty2

2nd Feb '19

I think it is $2,500 per mask. Had it on my watchlist for a while but have never pushed the buy button. Relying on large contracts does concern me. Plus the lack of growth recently.

matylda

3rd Feb '19

My high level take on Avon Rubber (LON:AVON) (based on a PER of 15 or so) is that it is overvalued based on current forecasts of 2.7% EPS growth in 2019E and 9.8% EPS growth in 2020E (based on latest Edison note on 31-Jan-19).

Taking into account the potential for more orders, the Net Cash (about 10% of current Mkt Cap) and the Yield of 2% or so - At best, perhaps, fairly priced.

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I Read The News Today Oh Boy! 1-Feb-2019

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Matylda

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