Small Cap Value Report (6 Jun 2014) - FBT, RHL, MPOW

Friday, Jun 06 2014 by
22

Good morning! It's extremely quiet for news this morning. I use an iPhone App called Fingo, which costs £25 p.a., and pushes RNSs to your phone very quickly (usually ahead of email alerts from conventional websites). You can select your own stocks to watch closely, and/or set up filters to only ping you when specific (e.g. price sensitive) announcements come through for all stocks. This is incredibly useful when out & about, as it means you don't have to constantly check your email. You can just respond to alerts from Fingo instead, which rarely happens, leaving you free to forget about the markets occasionally and do other things, but remain in touch. There's even a hot key to ring your broker instantly, which can save a few vital seconds if a profit warning comes out.

So normally my phone is buzzing away first thing, and I have a quick review of the announcements whilst still in bed, mainly to see whether it's going to be a euphoric or a damage-limitation day, if any of my stocks have delivered good or bad news.

However this morning I did wonder if it was Saturday, because the phone didn't buzz at all!

 

 

 

Forbidden Technologies (LON:FBT)

This company seems to be offering cloud based video editing software for the broadcast sector. It's valued at £31.6m at 24.9p per share (there being 131.8m shares in issue). I've never understood how the market could value such a tiny business at such a high rating, as its turnover is still sub-£1m, and it's loss-making.

That's fine if growth is very rapid, and hence a path to profitability can be clearly seen. However I can't see that here, from the historic figures anyway. Turnover in calendar 2013 actually fell to just £772k, and the operating loss ballooned from £276k in 2012 to £824k in 2013. Although to be fair that was because they did a big fundraising in 2013, so no doubt planned to ramp up costs. There's plenty of cash in the bank, with £7.8m reported at 31 Dec 2013. So no insolvency or further dilution risk at the moment.

Today's AGM statement is full of gushing narrative about wonderful things in the pipeline, but the only hard fact is this;

 

First half 2014 revenue is likely to…

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Blackbird Plc, formerly Forbidden Technologies Plc, is a United Kingdom-based company engaged in the development and commercial exploitation of cloud-based video technology. The Company is engaged in developing cloud video platform used for its Forscene professional editing suite, its video social network, eva, and its online video editor, Captevate. The Company's products are delivered through an integrated Web-based platform. The Company's cloud-based technology and products enable news and sports broadcasters to get their Web and mobile highlights to markets; help post-production and broadcast clients; allow brands, influencers and celebrities to access audiences and their authentic content, and allow consumers to edit and share video in a new way. Forbidden Technologies Inc is the subsidiary of the Company. more »

LSE Price
6.9p
Change
1.5%
Mkt Cap (£m)
20.1
P/E (fwd)
n/a
Yield (fwd)
n/a

Redhall Group plc is engaged in providing manufacturing and specialist services. The Company's segments include Manufacturing and Specialist Services. Its Manufacturing segment encompasses the design, manufacture and installation of bespoke specialist plant and equipment typically in the nuclear defense, nuclear decommissioning, oil and gas, petrochemical, chemical, pharmaceutical and food sectors. It is also involved in the design and manufacture of integrity fire and blast resistant doors, window and wall systems. It serves the nuclear, oil and gas, defense, marine, industrial, pharmaceutical, architectural and water industries. Its Specialist Services segment comprises activities in installation and maintenance of the telecommunications network infrastructure, design, manufacture and installation of process lines in food and pharmaceutical markets and specialist surface finishings to Astute class submarines. Its marine business provides surface finishing. more »

LSE Price
1.6p
Change
 
Mkt Cap (£m)
5.3
P/E (fwd)
5.7
Yield (fwd)
n/a

mporium Group plc is a holding company for mporium Limited and Fast Web Media Limited. The Company is a mobile first technology firm that monetizes the transformation that smartphones have had on consumer behavior. The Company provides Software-as-a-Service (SaaS) and supporting services. The Company is in the process of developing two products: impact and insights. The mporium impact is an advanced digital advertising platform. The mporium impact works for digital advertisers and their agencies. The mporium impact uses the stimuli that television content provides and generates the associated synchronized consumer digital activity. The mporium insights product provides enterprise level technology to the small and medium sized enterprise (SME) market. The mporium insights offers e-commerce analytics, customer segmentation, and real-time customer data, which include trend-based Web traffic reporting. more »

LSE Price
0.881p
Change
0.1%
Mkt Cap (£m)
9.1
P/E (fwd)
n/a
Yield (fwd)
n/a



  Is LON:BIRD fundamentally strong or weak? Find out More »


3 Comments on this Article show/hide all

MrContrarian 6th Jun '14 1 of 3
1

How fast is Fingo? I use investegate and gmail in push mode. I get the RNS within 30s typically.

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janebolacha 6th Jun '14 2 of 3
2

Hi Paul,

I had a small holding in FBT about a year ago.
Then they raised an enormous amount of money,
to finance future developments,
and the shares gained over 50% (and I sold!).
No sign of these future developments so why they
raised all that money, no idea.
Much of it seems still to be sitting in the bank.
The CEO was, I believe, the man behind Eidos
so he does have success credentials.
Their major competitor is AVID in the US,
which was trailing but now seems to be getting its act together.
FBT ought to have by now been building on their role in the 2012 London Olympics.
It all seems lacklustre and disappointing.

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laurie89 6th Jun '14 3 of 3
1

On MoPowered a meeting with management would be a very good idea

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About Paul Scott

Paul Scott

I trained as an accountant with a Top 5 firm, but that was so boring that I spent too much time in the 1990s being a disco bunny, and busting moves on the dancefloor, and chilling out with mates back at either my house or theirs, and having a lot of fun!Then spent 8 years as FD for a ladieswear retail chain called "Pilot", leaving on great terms in 2002 - having been a key player in growing the business 10 fold. If the truth be told, I partied pretty hard at the weekends too, so bank reconciliations on Monday mornings were more luck than judgement!! But they were always correct.I got bored with that and decided to become a professional small caps investor in 2002. I made millions, but got too cocky, and lost the lot in 2008, due to excessive gearing. A miserable, wilderness period occurred from 2008-2012.Since then, the sun has begun to shine again! I am now utterly briliant again, and immerse myself in small caps, and am a walking encyclopedia on the subject. I love writing a daily report for Stockopedia.com on most weekday mornings, constantly researching daily results & trading updates for small caps. Cheese! more »

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