Has SAG been tipped this week? If so I missed it. There are plenty of volatile stocks, I'd rather be invested in stocks like this one, a nice steady climber.
Very much off the radar, but it has been in a nice rising trend for the last year. A promising growth story IMO. I picked this up from the local business news in one of the Cambridge news papers. I have mentioned it on a couple of bb's, but it seems no interest has been taken.
Happy to hold as long as the trend stays positive.
The extract below was posted by Biofarmer on another board, but I would expect it to have relevance to SAG.
The chancellor said he would publish further consultation on the introduction of a 'patent box' in May 2011. This would provide a 10% corporate tax rate for profits from patents and royalties. He expected this to encourage UK businesses to retain high-value jobs associated with commercialisation of patents and to invest further in innovation. He promised draft legislation in autumn 2011.
Number of voting rights
Percentage of voting rights
2,025,000 of these shares are held for unit trusts operated by Marlborough Fund Managers Ltd for which Hargreave Hale Ltd manages the investments on a discretionary basis. The remaining balance is held on behalf of other discretionary clients.
My earlier post stated:
The FDEPS appears to include the adverse impact of some exceptionals -
"Based on the average number of shares in issue during the year, diluted earnings per share were 6.9 pence (2009: Loss of 13.5 pence). The above profit figures for 2010 include exceptional or one-off items related to the net costs of the relocation of the US operations into a single facility in Boston, a UK property rate rebate and gains/losses on legacy investments"
The words in quotes were from the company's own statement.
On closer inspection although the company statement refers to net costs - that refers to the first item on their list only. The other items are positive and overall the exceptionals appear to be a net positive of £0.2m. SO the underlying FDEPS appears to be around 6.2to 6.3p.
any information on the very large trades would be welcome
the cash amount total was £2,542,336 the graph shows a spike up around the same time.
although they are marked as sells here i am not sure, could they be buys,
i do not know, any info welcome
The results were better than projected by about 10%.
A significant investor must think that his/her money is better off elsewhere now. Perhaps they were in for the turnaround - now achieved - and have decided to bail out now, or perhaps the caution noted by the management gave the seller some concerns. I haven't looked to see the size of the deals that went through after the results - have you? But if they are large, the only way a big investor can come out successfully in a small free mkt cap stock is on good news. I will be waiting to see what forecasts the house broker is going to come up with.
The net cash on the balance sheet equals 20.6p per share although some of this will be paid out in staff bonuses in March.
The company is proposing to pass a resolution enabling a share buy back.
The FDEPS appears to include the adverse impact of some exceptionals - "Based on the average number of shares in issue during the year, diluted earnings per share were 6.9 pence (2009: Loss of 13.5 pence). The above profit figures for 2010 include exceptional or one-off items related to the net costs of the relocation of the US operations into a single facility in Boston, a UK property rate rebate and gains/losses on legacy investments"
Intertek Acquires Sagentia Catella AB; Strengthens Battery And Energy Storage Testing Capabilities For Energy Services Markets
Intertek (LSE: ITRK), a leading provider of quality and safety solutions serving a range of industries worldwide, today announced that it has acquired from Sagentia the assets of Sagentia Catella AB, a globally renowned laboratory and consultancy for the energy storage industry, including batteries, super capacitors and fuel cells for the wind, solar, automotive and, among others, telecommunications markets.
The new acquisition will be integrated into the Intertek Commercial & Electrical Division and will be managed by Intertek's Swedish operations located in Kista, Sweden. Sagentia Catella brings to Intertek more than 50 years of experience in the energy storage industry. Originally established as part of the National Defense Research Institute of Sweden (FOA), the business later became known as Sagentia Catella as part of the British technology-consulting group Sagentia, serving global customers who were developing more efficient energy storage technologies, and more reliable and environmentally friendly products.
They have just come out with a full year trading statement stating they expect PBT of in excess of £2m - ahead of market expectations for the year just ended. They made £0.96m at the interim stage which gave them 3.96p of EPS.
A recent share trading announcement suggests to me that there are now about 41.7m shares in issue, which if they had been in issue since the begining of the 2H (conservative assumption) would give an estimated 2H EPS of 2.49p on a 2H pbt of £1.04m assuming no tax or tax credit in the 2H. So total for the year of around 6.3p assuming £2m pbt only.
The shares have risen to 74p today so my guess is that they are on around 11.8 times or less for the year just ended. The company seems to have had net cash of around £6.5m at the interim stage and a net deferred tax credit of £600k.
Expecting more interesting news in coming months; lots of cash, cashflow positive, access to debt. Mgmt options don't activate until price above 80p for 20 days, strong buys from the FD at around 50p and 60p
OK, sorry, enough ramping - DYOR - bought three tranches so far this year and tempted to keep adding -more good news to come here I hope.
SAG trading update today ... surprised no one seems to have picked this up
Market Cap £16m ... freehold property net of loan valued at £7.5 in last accounts, net cash (as below) of £6.6m and profits this year of £500k (the previous figure for the whole year) plus whatever the company can make in the second half. Also note the company raised funds a month or two back at a 40 pence which was a small premium to the price at that time. All looks way too cheap
The Group's profit for the period ended 30 June 2010 is anticipated to be
substantially ahead of market expectations with PBT for the 6 month period ahead of the current market forecast for the year as a whole. This significant
turnaround in performance, compared to the loss reported in the first half of
2009, is due to the restructuring undertaken in the second half of last year and strong trading in the first half of 2010.
As a result of the successful Placing, raising GBP7.7 million net of expenses,
the first half operating performance and the cash flow seasonality, cash at 30
June 2010 was GBP12.5 million, with debt of GBP5.9 million, producing net funds
of GBP6.6 million, compared to net debt at 30 June 2009 of GBP4.8 million.
The Interim Results for Sagentia Group plc are anticipated to be released in
Given his track record I hope we all reject his offer and ensure he joins as new Chairman to transform the company - then we can share in the benefits! 23.8p for him would be a steal.
I have rejected the offer - I hope all other small holders doing likewise.
Well, that was certainly a timely recommendation. What to do about the offer - hold or sell?
For my part, I can't help thinking that an offer for a company that has consolidated and is improving (slowly) has to be valued more than the 60% discount to its assets. I think I'll be holding out for a brighter future.
Hmmm - Looked like I called this one wrong - time will tell.
May I suggest you take a look at GDP - sound fundamamentals and profit growth, plus organic self funded development - well worth researching for those who may be interested - no ramp intended - simply a sincerely held view.
Copied from advfn board:
"More on HD-LED.
Looks as though there is potential here:
Sagentia looks on the bright side 09/05/2008
Sagentia has developed a breakthrough lighting technology which it claims offers performance improvements beyond those of existing technologies.
The company made the discovery whilst working on a medical lighting project with Brandon Medical to solve a number of technical challenges faced when using LEDs.
Brandon had decided the time was right to develop next generation products that exceeded their high intensity and colour rendition requirements for the medical arena, explained Dr Euan Morrison, Sagentias senior consultant. It was by addressing this dual challenge that we established HD LED technology to offer high efficiency and extremely high colour performance.
The lamps for Brandon are the first products to feature HD LED technology and include the benefits of high brightness LED technology, such as infrared free, cold light, long life, shadow control and energy efficiency, whilst solving technical challenges such as colour rendition, thermal management and cost. http://www.newelectronics.co.uk/article/14043/Sagentia-looks-on-the-bright-side.aspx"
Please see below copied from advfn board.
"Sagentia - SPECULATIVE BUY
Currently poised to emigrate from the Full List to AIM, technology consultancy Sagentia looks unfairly unappreciated by the market. At less than £10m, its market value represents only two thirds of its £14.6m of property assets and, if you include its £7.6m investment portfolio, loans and cash, Sagentia's shares trade at a significant discount to its shareholder funds of 8.1p per share.
Understandably there has been a bout of director buying in the past couple of months and new chief executive Dr Alistair Brown, stepping up from sales director, intends to sell off the companys venture portfolio and move to AIM. He says the new focus is on earnings rather than equity.
The previous strategy had been to generate shareholder returns by creating spin-out companies, some of which still sit in the portfolio, such as AIM-listed CMR Fuel Cells. Once the venture capital subsidiary is sold off Sagentia will be left with a consultancy arm that last year generated a £500,000 profit from £17.9m of fee income.
Operations in the UK, the US, Germany, Hong Kong and Sweden engage in business consultancy and product development. Standout projects include a suite of digital products that have helped transform the prospects of toymaker Hornby, the launch of a mobile payment solution for Vodafone and a delivery system for AstraZeneca that generates Sagentia £500,000 of royalties a year.
A move to AIM by the end of June and the appointment of new broker Arbuthnot might help to garner some more attention from small-cap followers. The move might also see 48% shareholder Catella, a sister company of Ikea, reduce its stake. Speculative buy."
Please forgive me if I am posting information of which you are already aware.
The Technology consulting division is profitable and expanding. Large and ongoing contracts are demonstrated by the success it has achieved with Vodafone and the M-Pesa project, which enables micropayments using mobile phones that dispose of the need for customers to open bank accounts. Sagentia is growing its IP exploitation and royalties are coming through this year for its sensor technology. Please take a look at Sagentias website, its full of case studies on the varied technologies it has either/and/or produced the concept for, designed, developed and produced. You can also register for regular newsletters via the website.
The Company is becoming global with subsidiaries in the USA, Sweden, Hong Kong and Germany. Hong Kong is particularly significant, as the Company is building on the increasing IP that is being created and developed in the Far East whilst offering IP protection, thanks to the HK governments more stringent IP protection laws.
Recent clients include Vodafone and AstraZeneca .
In my opinion Sagentia seems very undervalued. The Companys market capitalisation is £9.5m: profit for its technology consulting division for 2007 was £540,000 (revenue £21m); and, from what I understand its property Harston Mill is valued at £14.5m and its investments are worth £7.6m. http://www.harstonmill.net/
Please also see yesterdays RNS re Directors buys. In my opinion this signifies great confidence in the future, and, I am optimistic that this share offers a significant growth opportunity.
However, as always, I could be wrong.
In my own opinion this stock is a nightmare. The core business is faltering and seems to have no real brand; whereas the holdings in the spin-offs just do not perform. With many large-scale investors turning away from equity, nothing in the business model of the company seems to make sense anymore. Obv in my own opinion. Managed to get out at 4p and am still enjoying the relief.
The director buys are encouraging, although they are for relatively small values. I think the stock has a bit more to fall until the light at the end of the tunnel can be seen, but I think the buys signify that management is confident of a turnaround in fortunes sometime soon.
A single seller maybe?
Dumping in 500k lots at a time?
Distressed, or an institution with attitude?
The fact of director buying needs to be added to the positive side of the scales.
Certainly seems to refute the idea that the sales are a sign of something amiss.
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