Good morning!

Various things I have spotted today, with your help from the comments:


Trackwise (TWD)

Admission to AIM - This is a small IPO, raising £5.5 million for the company and £1.5 million for selling shareholders. Trackwise makes specialist circuit boards with applications in telecoms, aviation, etc.

It's topical because I was only yesterday talking about the results at Arden Partners (LON:ARDN), who it turns out will be Nomad and Broker to Trackwise. Arden is earning commission of up to £900k from this transaction.

A quick look at the admission document tells me that Trackwise made an adjusted operating profit of £270k last year, after adding back some non-recurring expenses, from revenues of £2.8 million.

Its largest two customers accounted for 46% of revenues. That gives the appearance of a very high degree of customer concentration risk, at least for now.

And the market cap at the IPO price is £15.5 million. So we don't have much of a cushion in terms of the historic earnings multiple.

So it's not for me, but perhaps you will be able to build a more bullish perspective. It has a patent for a new method of manufacturing  flexible circuit boards, which it thinks opens a huge opportunity for future growth. It might be worth looking into in more detail.



Water Intelligence (LON:WATR)

  • Share price: 413p (+6%)
  • No. of shares: 15 million
  • Market cap: £63 million

First Half Trading Update

This US-based leak detection business is another example of a High Flyer (aren't these categorisations very useful?)

For the uninitiated, that means high quality and high momentum, but little value, at least as value is traditionally understood.

Paul last covered it with the share price at 200p, in February. So congratulations to anyone who has earned a 100% return so quickly, by holding it since then. Some of you have probably been holding it for a lot longer than that, and have a much…

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