272 replies to this topic

[Bushmanbob]

Not going down terribly well with the market.

[andi222]

Currently we have a market cap of 150 Million Rands. Which is quite low in my opinion given the following reasons:
-they have cash on hand of 60 Million
-they produced 12 Million in profits
-they increased revenue to close to 600 Million
-Book value per share is close to 50 cents for a profitable and growing company.
-no more profit warranties

It will take time for the share to rise but it will come or a take over will come. Maybe even a move to the JSE main board to increase volumes.

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[andi222]

https://www.google.c...-in-demand/amp/

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[andi222]

Strong Results! Will be back with a deep dive once I get some time.

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[andi222]

I wonder when that little trading statement will be released?

They only have one more week to release full year results.

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[Bushmanbob]

Trading Statement amd Full year results to be released this month.

I'm expecting a double digit growth in Revenue for the year as well as a nice increase in EPS for the full year.

In my opinion everything below 50 cents is a bargain here. So if u can hold or buy some for the ride.

No recommendation to trade this share.

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Thanks Andi

I am hoping for the same - have been slowly but surely adding to holdings over the past few months.  Not a lot of news available on them so no reason at this point to expect any negative surprises.

[andi222]

Trading Statement amd Full year results to be released this month.

I'm expecting a double digit growth in Revenue for the year as well as a nice increase in EPS for the full year.

In my opinion everything below 50 cents is a bargain here. So if u can hold or buy some for the ride.

No recommendation to trade this share.

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[Bushmanbob]

First time it broke the long term downward trend today on a technical perspective.

I expect the results to be good for the year end so I think we might see a nice upswing here in the share price for the year.

But let's wait and see, I still believe they have a strong business model.

I do agree Andi and have been topping up recently. They have a healthy balance sheet and I hold a lot of hope for this little gem. They are certainly gearing themselves up for growth. Fingers crossed the next results are what we hope.

[Sleepwa123]

Kind of gave up on this one after the last financial results announcement in September.

They seemed to be on a solid wicket with headline earnings increasing significantly and then operating profit fell 70-odd %.

 

What do you think has changed for them in these results?

[andi222]

First time it broke the long term downward trend today on a technical perspective.

I expect the results to be good for the year end so I think we might see a nice upswing here in the share price for the year.

But let's wait and see, I still believe they have a strong business model.

[Bushmanbob]

Not a single share traded today.

[Bushmanbob]

Andi- Thanks very much for taking the time and for sharing your information. It doesn't look like management have sold off any of their holdings either, which is positive.

[David-89]

Anyone still invested here? Looks like a good buy between 22 and 25 to me.

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Still here and buying more whenever I can! I also see phenomenal value here. I’m pretty sure the reason for their stellar results last year was the once off like you said and a few accounting adjustments. From here on out the financials should be stable and we should be able to do a better valuation.

[andi222]

I did a deep dive on the results and can summarize them as follows:
They increased revenue by 17%
They increased gross profit by 8%
And normalized EPS was increased by over 100%.

So overall on the top side there is growth and normally they perform better in the second half of the year so I'm expecting an atleast 20% rise in total revenue for the year.

Now looking at the EPS. It looks like they did horribly but I had a second look and they actually managed to increase the normal business significantly. Taking out the once off income from the prior period they actually made a loss of 1 Million in Half year 2020. (Excl Once off deferred vendor liability and ETI programme).

Now this year they actually made a profit of 4 Million. That's a huge increase.

Also I saw that they have increased their staff by more then 40% year over year.

NAV also at above 50 cents and cash on hand of 8 cents per share.

So any Takeover bid should be above 50 cents to be fair and reasonable.

So guys have a second look and you guys will see that there is progress and I still believe in the business model.
Again this is just my personal opinion.

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[Bushmanbob]

Anyone still invested here? Looks like a good buy between 22 and 25 to me.

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Andi - certainly looks like a good buy but despite the temptation to load up I still haven't been able to figure out what the horrible results were attributed to in their most recent results.  

[andi222]

Anyone still invested here? Looks like a good buy between 22 and 25 to me.

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[Sleepwa123]

Really disappointing results. I sold out and moved cash across to Ascendis.

Really poor results and poor communication in terms of what went wrong.

[Bushmanbob]

I honestly think this thing is ripe for delisting. I can't see how they can justify the expense given their current market cap. Also, a downside to retail equity holding such a low percentage of stock is that management have contempt for stock holders. They could do a much better job of explaining what went wrong. The daft they didn't doesn't sit well with me.

[andi222]

Wow the cash flow statement looks horrible.

From a positive 17 Million cash flow from operations in 2020 to a negative 8 Million in 2021. What on earth are they doing?

Also their investments into innovation have basically halfed.

From a positive operating cash flow of

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[andi222]

Yeah only thing we can do.

Really wonder what they did for the significant drop.

I might also offload some if there are buyers. But looks like it's hard to find buyers

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