I Read The News Today Oh Boy! 20-Nov-2018

20th Nov '18 by matylda

5 comments 2943 reads

Morning all!

Focusrite ( Focusrite (LON:TUNE) ) – 421.5p – £244.9m – PER 24.5

Results For The 12 Months To End August 2018 – Revenue up 13.7% (CC) to £75.1m, Adjusted Operating Profit up 22.6% with Adjusted Diluted EPS up 22.3% - The Total FY Dividend is up 22.2% and Net Cash stands at £22.8m (£14.2m last time).

Priced about right perhaps? I remain Neutral – Loads of Cash!

Accsys Technologies ( Accsys Technologies (LON:AXS) ) – 104.5p – £123.2m – PER n/a

Interim Results For The 6 Months To End September 2018 – Revenue up 10% or so and still making a loss.

Still continues to grow Revenue but the Profit is still lagging (or lacking, whichever you want). Seems to have enough Cash to see it through to profitability – But even the 2019 (Profit) forecast (on Revenue of £74.1m) is forecast as just £2m. Still not for me.

Bonmarche Holdings ( Bonmarche Holdings (LON:BON) ) – 81.4p – £40.7m – PER 8.27

Interim Results For The 6 Months To The 29^th September 2018 – Revenue in-line with last year, LFL sales down -1%, on-line up 28.9% (12% of total sales (9% last year)). Profit and Net Cash are both down – The Interim Dividend is unchanged. FY to be in-line IF Black Friday and Christmas go well.

Still a mixed bag here but still a decent yield. Still a tough call to get involved especially if Black Friday and Christmas do not deliver - I remain Neutral.

CML Microsystems ( CML Microsystems (LON:CML) ) – 461p – £79.0m – PER 17.6

Results For The 6 Months To End September 2018 – Revenue down -6%, PBT up 2%, Basic EPS up 8%, Net Cash of £13.54m, the Interim Dividend will be 2p (same). Warns FY Revenue may miss but Profit should not.

I still don’t see the value here at present, I remain Neutral.

Eckoh ( Eckoh (LON:ECK) ) – 37.25p – £94.1m – PER 40.5

Unaudited Results For The 6 Months To End September 2018 – Revenue down -2% and…

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MrContrarian

20th Nov '18

My morning smallcap tweet:

ClearStar Inc (LON:CLSU), SRT Marine Systems (LON:SRT), Bonmarche Holdings (LON:BON), Ilika (LON:IKA)

ClearStar (CLSU) wins contracts worth $1m PA from 2019.
SRT Marine Systems (SRT) H1 broadly in line with rev up 10%, pretax -£1.3 million (-£1.8m [pre-exceptional]). That's slightly better than the H1 trading RNS in Oct. Jam tomorrow: "expect the second half to see significant systems deliverables from multiple contracts and associated revenues as well as a solid contribution from our transceivers business."
Bonmarche (BON) H1 in line. Outlook iffy: online good but "store LFLs have remained weak, and traditional autumn/winter categories have had a slow start to the season. Providing that sales during the key Black Friday through to Christmas trading period meet expectations, the Board maintains the [FY] guidance."
Ilika (IKA) finds supplier that can make its Stereax thin film solid-state cells. In PR-flannel, it's a "manufacturing partnership".

Effortless Cool

21st Nov '18

Matylda - Why did you sell your £MACF?

I though yesterday's update was great and have added.

matylda

This is my note...

Macfarlane ( Macfarlane (LON:MACF) ) – I estimated a 100p 2 year price target here applying my usual analysis approach for Growth and Value at the time of the last update. I should have sold then but kept it on my potential Sell in a market downturn list – So, it was sold (late).

I have EPS growth at 2018E 15% and 2019E 9% and on a PER of 12 or so I just thought 100p was a fair price (based on a 2.5% yield) - I decided to sell at about 93p.

As a note - Much of my valuation analysis is based around the PEG (a la Peter Lynch).

Fair enough, and thanks for replying - it's always interesting to get insight into other people's motivations for trading shares you own. FWIW, my valuation model suggests a fair price around 115p. I expect the pension deficit to be cleared by the first half of next year and net debt to eliminated (assuming no more acquisitions) during 2020.

With on-line retail continuing to steamroll bricks and mortar, Macfarlane (LON:MACF) remains a long-term hold for me, adding on weakness.

Grand - For what it's worth, seems a fair enough view to me, wishing you well with your holding.

I Read The News Today Oh Boy! 20-Nov-2018

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Matylda

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