Dr David Paul, MD of VectorVest discusses Sopheon (SPE), Triad Group (TRD), Defenx (DFX) & Morgan Sindall (MGNS) on TipTV
Dr. David Paul, MD at Vector Vest talks about VectorVest Edge Strategy, which involves screening shares for favourable technical and fundamental factors and buying them when the overall market is rising. Stocks discussed today include Sopheon (SPE), Triad Group (TRD), Defenx (DFX), Morgan Sindall (MGNS).
Reckitt Benckiser Gp. RB. If you have a copy of RB’s jargon handbook then you might be able to glean some understanding of what they are trying to say in todays trading update which is an insult to to the intelligence of its shareholders. Generally RB is performing as it expected and quite strongly. Like for like growth rates throughout the year are are on track to reach the target of 3%. As for the rest I am still trying to guess what ENA and DvM are. Scholl was impacted by a headwind but we are not enlightened as to whether that was down to the incompetence of management or some little local difficulties. There were other “flagged” headwinds about which we are similarly left in the dark and these are going to persist . Turkey and Korea suffered from HS issues whilst LATAM performance was in line with expectations. One product suffered significantly as a result of lapping a strong sell – in of a wet and dry initiative. Enough said.
Strategic Minerals SML claims it is set to perform strongly this year after achieving record domestic sales in the quarter to 31st March from its Cobre magnetite tailings operation, where profit margins rose above 50%. A significant new client has been obtained which it is expected will lead to a doubling of Cobre sales and to profitability in 2017. SML has been the subject of its first brokers research note.
Brand CEO Alan Green talks Cadence Minerals (KDNC), Crawshaw Group (CRAW) & Acacia Mining (ACA) on Vox Markets podcast
Brand CEO Alan Green discusses Cadence Minerals (KDNC), Crawshaw Group (CRAW) & Acacia Mining (ACA) with Justin Waite on the Vox Markets podcast. The interview is 38 minutes in.
Debenhams DEB Where shall we take the kids today, darling ? What about Debenhams for a fun social time? Daddy. daddy yes, pleeease ! There used to be only one reason to go to Debenhams and management appears to have completely forgotten what that was. It was to shop and buy things, you dunderheads. If Debenhams customers are going for and having, a fun social time they are not buying and Debenhams is not selling. No wonder UK EBITDA is down by 6% No wonder its online performance has been strong and it is trying to make progress in non clothing categories and no wonder that for the half year to the 14th March group profit before tax fell by 6.4%.
Unilever plc ULVR is raising its quarterly dividend by 12% as first quarter turnover rose by 6.1% after a positive currency impact of 2.4%. Underlying sales growth for 2017 is now expected to rise by between 3% and 5%. Market conditions remained challenging with negative volume growth in Europe and North America. India did show some recovery from the effects of removal of currency notes but Brazil was adversely impacted by its economic crisis.
MAN Group EMG The first quarter of 2017 was a strong one for Man with funds under management rising by 10%, with growth in each of its investment engines. MAN now looks forward to the” alpha” opportunities being created by the global environment – Nothing like jargon when you are stuck for words – alpha opportunities indeed !
Paragon Entertainment Ltd PEL claims to have succeeded in doing what it set out to do in 2016, with revenue up by 70% to £14.4m and gross profit up by 91% to £3.76m. Projects completed included Coronation street, Fountains Abbey and Rolling Stones. With new projects in the pipeline, the company claims it is excited about its future
Amerisur Resources AMER Platanillo – 22 well has now been tested at 613 barrels of oil per day which is materially ahead of pre test expectations of between 300 and 400 bopd. The well has been placed on commercial production.
Buy Acacia Mining (ACA) says VectorVest – Plenty of fundamental and technical positives for a growth stock portfolio.
Acacia Mining (ACA.L) is a UK-based gold producer in Tanzania. Formerly African Barrick Gold Plc, the company’s operations range from exploration and development to mine construction and operation. It has reserves and resources of approximately 30m ounces of gold, with three producing mines, all located in northwest Tanzania. ACA also has a portfolio of exploration projects in Tanzania, Kenya and Burkina Faso. Bulyanhulu is an underground gold mine with shaft and ramp access. Buzwagi is a low-grade bulk deposit with a single large open pit. North Mara is a combined open pit and underground operation from two deposits, Gokona (underground) and Nyabirama (open pit).
On February 24 2017, ACA published FY results. CEO Brad Gordon said 2016 had been “another successful year for Acacia”. The company delivered record production, reduced all-in sustaining costs by 14% and more than doubled the net cash position. Group EBITDA more than doubled to US$415m, on revenues 21% higher at US$1.054m, on the back of which a full year dividend of 10.4 cents was proposed (final dividend of 8.4 cents) which is at the top end of ACA policy and more than twice the total dividend announced for 2015 (4.2 cents). ACA said it continued to invest into its exploration portfolio and is poised to announce a maiden resource on the West Kenya project. 2017. Driven by the mine life extension at Buzwagi, this is expected to result in further production growth and cost reductions, with production expected to be between 850,000-900,000 ounces at an AISC of between US$880-920 per ounce.
Toward the end of 2016, when trading around 350p, ACA appeared across a number of key VectorVest metrics, indicating it was a stock with upside potential. It is worth noting that this potential does not come without risk, indeed ACA only records 0.98 on the RS (Relative Safety) metric, which is fair on a scale of 0.00 to 2.00. However the GRT (Earnings Growth Rate) metric, (which reflects a company’s one to three year forecasted earnings growth rate in percentage per year), records ACA at 35.00%, which VectorVest considers to be excellent. Added to this, in plain Value terms, ACA has a current Value of 681.53p per share. Despite recovering to 490p, the stock is still undervalued.
The chart of ACA.L is shown above with the inverted “head and shoulders”pattern nearing completion. The share is on a Buy recomendation by VectorVest and once the “neckline” of the head and shoulders is exceeded the first technical target is above 700.
Summary: As with Centamin (CEY), another gold producer recently highlighted by VectorVest, the global geo-political climate offers plenty of reasons to own gold stocks at present. ACA also ticks all the boxes in this regard, and while not without risk, its GRT metric, progressive dividend policy and the bullish outlook expressed by CEO Brad Gordon provides plenty of fundamental and technical positives to warrant inclusion into a portfolio of growth stocks. Buy.
Dr David Paul
April 19 2017
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The Prime Minister was either a liar when she claimed only a few months ago that there was no need for an election before 2020, or she was so completely out of touch with the political realities of Westminster that she is completely unfit to govern the country. In those months since the referendum, nothing has changed except that the prime minister has woken up to the fact that the groupings of our elected MP’s, especially in her own party, are going to make it very difficult if not impossible to get approval for even the main features of the Brexit deal. How is it that she has only discovered this over the last few days, when the evidence has been staring her in the face for months.
Had she been CEO or Chairman of a public company, yesterdays announcement that the country (i.e. the PM ) suddenly needs an election in June would have been evidence of such utter incompetence that she would have to either resign or be removed. But this being politics, anything goes and she will get away with it but she has now shown herself to be and to have been, completely out of touch with feelings both in Westminster and in the Tory party. And she is so brazen about it, no hint of an apology, no sign of embarrassment as she admits that she got it completely wrong after the referendum, indeed the complete opposite. She wears her incompetence as a badge of pride, a clear sign of strong leadership, which will enable her, she hopes, to have such a large majority that every tiny clause in the Brexit deal will be able to be steamrollered through a tame House of Commons.
BUNZL BNZL provides an excellent illustration as to how meaningless trading figures are becoming and how headline figures can easily be selected to give a misleading impression and make things look better than they really are. Not that Bunzl has done anything wrong or misled in any way. It is just the way things now have to be done.
Thus group revenue in quarter 1 rose by 18%. Great, fantastic, but that is at actual exchange rates i.e. in real money. At constant exchange rates the 18% falls to a lowly 4% and of that, underlying growth comes out at a not very impressive 2%. Acquisitions produced growth of 3% and a further five acquisitions have been announced so far this year.
Aveva Group AVEVA expects that results for the year to the end of March will show a return to growth in both revenue and profits but only because of “positive currency translation effects”. Pity the board and the management could not have claimed a bigger hand in the success.
Bonmarche Holdings BON had a tough time with its stores in the year to the 1st April but trading in quarter 4 improved somewhat and helped the annual figures look a bit less gloomy. In the 14 weeks to 1st April online sales rose by 15.2%, store sales were down by only 0.5% and total sales actually rose by 2.7%. Despite this full year figures were still less than impressive, with store like for like sales down by 4.3%, online up by only 2.2% and total sales still showing a loss of 0.5%. Trading since Christmas has been challenging despite an improvement over the last two months.
Advanced Oncotherapy (AIM: AVO), the developer of next-generation proton therapy systems for cancer treatment, announces thatBracknor Investment Group has advised the Company that they will convert a portion of the first tranche of the Convertible Loan Notes issued to them on 22 February 2017 into new ordinary shares of 25p each in the share capital of the Company. Further details of the conversion are set out below.
|Number of CLN converted: 20|
|Total nominal value of the CLN converted: £200,000|
|Conversion price: £0.2674|
|Number of shares issued from the conversion: 747,943|
|Shares issued for the satisfaction of the conversion fees: 22,438|
Application will be made for admission to trading on AIM of the 770,381 new Ordinary Shares deriving from the conversion of the CLN and in satisfaction of the conversion fees and it is expected that Admission will occur on or around 21 April 2017.
Total voting rights
Following Admission, the Company’s enlarged issued share capital will comprise 74,156,188 Ordinary Shares, with voting rights. The Company does not hold any Ordinary Shares in treasury. Therefore the total number of Ordinary Shares in the Company with voting rights will be 74,156,188. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure Guidance and Transparency Rules.
|Advanced Oncotherapy Plc||www.avoplc.com|
|Dr. Michael Sinclair, Executive Chairman||Tel: +44 20 3617 8728|
|Nicolas Serandour, CEO|
|Stockdale Securities (Nomad & Joint Broker)|
|Antonio Bossi / David Coaten||Tel: +44 20 7601 6100|
|Stifel Nicolaus Europe (Joint Broker)|
|Jonathan Senior / Ben Maddison||Tel: +44 20 7710 7600|
|Walbrook PR (Financial PR & IR)||Tel: +44 20 7933 8780 or email@example.com|
|Paul McManus / Anna Dunphy||Mob: +44 7980 541 893 / Mob: +44 7876 741 001|
Capital for Colleagues (CFCP) is raising £2.02m via a one-for-two open offer to existing shareholders at 42p a share and there are already commitments for 57% of this investment. The closing date is 27 April. The NAV was 43.5p a share at the end of February, which was hit by a write-off of a major investment. There are new investors will to take up shares worth £819,000 of they are not taken up in the open offer, or if there are not enough shares available additional shares will be issued.
Coinsilium Group Ltd (COIN) is joining forces with Oraclise to develop a smart contract system that can be used for the next generation of blockchain applications. The system will manage token issuance. There are already funds that trade in these tokens, which can be swapped for ownership rights in assets. Specific markets have been identified. The full details will be announced on Thursday.
Goldcrest Resources (GCRP) is acquiring a 100% interest in the Norio onshore production sharing agreement and has an option for a farm-in agreement to acquire 70% of Block VIII, which includes the East Khavtiskhevi onshore field. These assets are in Georgia and the current production at Norio is 25 barrels of oil per day. There are plans to increase production at Norio to 250 barrels of oil per day, which will enable Goldcrest to start generating cash during this year. Goldcrest has paid $380,000 and will issue $300,000 of shares at 0.5p each for 38% of Norio and then has the option to pay $620,000 plus $250,000 for the other 62%. Money will be raised by selling the existing gold exploration assets in Ghana.
Gunsynd (GUN) has received £3,000 in cash and 300,000 shares in Integumen in final consideration for the original skin treatment assets that Gunsynd, then known as Evocutis, sold in 2015.
Valiant Investments (VALP) has raised £47,750 at 0.1p a share.
Carpets manufacturer Victoria (VCP) says trading is ahead of expectations for the year to 1 April 2017. The performance has been helped by the integration of acquisitions in the UK and Australia. The new chief executive arrived too late in the financial year to have an impact.
MayAir Group (MAYA) improved full year revenues by 3% to $65.6m but pre-tax profit slumped from $7.5m to $5.9m because of a delayed contract. This contract has been completed and there should be a partial recovery in profit this year. The air filtration equipment supplier is on course to open its new facility.
D4T4 Solutions (D4T4) says that its earnings will be slightly ahead of expectations as higher margin software sales more than made up for lower project revenues. The 2016-17 pre-tax profit forecast has been edged up to £4.1m. There was £5.1m in the bank at the end of March 2017. There is still uncertainty about potential demand from a Japanese customer.
Arian Silver Corp (AGQ) has signed an option to acquire three lithium exploration projects in Mexico for up to $200,000 payable over 12 months.
Strategic Minerals (SML) has secured a deal to supply 400,000 tons of magnetite a year at a market based price over several years – depending on Strategic continuing to have access to the Cobre magnetite stockpile. This should double annual sales with a maintained margin.
More good news from software provider Cerillion (CER). Interim revenues have grown from £6.9m to £7.5m and EBITDA moved ahead from £1.1m to £1.5m. The interim figures will be announced in the middle of June.
Full year contributions from all its hostels meant that 2016 revenues generated by Safestay (SSTY) rose from £4m to £7.4m but it remained loss-making. NAV is 58p a share and the company is trading at a small discount to this figure. There has been a subsequent £12.6m sale and leaseback of the Elephant & Castle and Edinburgh hostels and a new £18.4m, five year secured debt facility provided by HSBC. This will reduce the cost of borrowings.
First Property Group (FPO) had funds under management of £475m at the end of March 2017, up from £353m a year earlier. Profit is expected to be in line with expectations before the recently announced sale of a property in Romania. The full year figures will be published on 8 June.
EMIS Group (EMIS) has appointed Andy Thorburn as its new chief executive. In the past four years, Thorburn has been chief operating officer of Caribbean-focused communications group Digicel. Prior to this has worked for a number of software companies and BT.
Dolphin Fund has decided not to proceed with a bid for FIH Group (FIH) because of the uncertainty caused by the attitude of the Falkland Islands government. Dolphin cannot make a bid for six months unless there is a rival bid announced.
Hague and London Oil (HNL) plans to acquire the Netherlands-based assets of Tullow Oil for an initial €9.75m with the potential to pay a further €20m. There are capital spending requirements for these assets which are generating revenues. Operating spending is estimated to be $21/barrel in 2017. The finance for the deal is being negotiated.
Gas and electrical services provider Bilby (BILB) is beginning to win work from the framework contracts it has been appointed to and this will boost the 2017-18 financial year. Northland has been appointed nominated adviser and broker.
Franchised property services provider Hunters Property (HUNT) grew its pre-tax profit from £1.42m to £1.85m in 2016. The dividend was increased from 1.5p a share to 1.9p a share. The subsequent acquisition of Besley Hill takes the group into south west England and the number of outlets has risen past 200. House broker Dowgate Capital forecasts a 2017 underlying pre-tax profit of £1.91m earnings per share may be slightly lower.
A reduction in admin expenses helped APC Technology (APC) to return to profit in the first half. Revenues declined from £9.5m to £8.3m but this was due to a large Morrison contract in the corresponding period. The core electronic components distribution business grew revenues by one-fifth. The underlying pre-tax profit was £200,000.
The second largest shareholder in Hornby (HRN) is requisitioning a general meeting to remove Roger Canham as chairman and from the board and replace him with Ian Anton.
WideCells (WDC) has raised an additional £649,000 at 12p a share in order to accelerate the growth of its three divisions and develop a client relationship management system. Last July’s placing raised £2m at 11p a share. The CellPlan stem cell insurance product is selling better than expected. The stem cell storage facility will be operational in the second quarter and the company has applied for a research licence. The additional funds will help to finance additional appointments for its WideAcademy education and training business.
Brand CEO Alan Green discusses Cadence Minerals (KDNC) with Justin Waite on the Vox Markets podcast. The interview starts at 40 minutes.