his consistent message was that they are very busy and moving towards targets and hence payments for achieving them. With the SP fall the question is whether you believe what he has to say or not. I believe so time will tell if my judgement is correct or not.
Not sure if you have an account with iii, but if you do, check your messages. iii posted something recently to say all their AIM figures are likely to be incorrect - something to do with how the figures are sourced. They are working on it, but for the time being you'll have to check other sites for AIM member prices.
Not great, but watched the webcast, and was encouraged. As always it's still Jam tomorrow, but the quantity and variety of potential projects seems to be increasing, so at some stage it still seems this baby will take off,
I think the adverse reaction reflects concern at the risks of the company over-reaching itself. This remains a small company with delicately balanced finances and a great dependency on a couple of crucial contracts. That makes it very vulnerable, as the recent contract delay (we hope just a delay) demonstrated.
To see it getting involved in setting up a satellite operation is bound to cause some to wonder whether another large lump of costs is being taken on before we have a strong reliable revenue stream.
That's not to say I'm selling. I have been a holder for many years and still expect them to deliver; but I fully understand why some would choose to do so.
Whilst the £10m loan facility with LGB will no doubt be useful it looks expensive at 9.5%. It may be that observers are taking the view that such a relatively high rate is a reflection of SRT's financial strength.
Story I've just seen on Bloomberg about (what I believe is) the far eastern country which has just postponed the 90m contract.
" The Economy Grows Less Than Expected on Spending Curbs.
➞ Gross domestic product gains 4% from previous quarter
➞ Construction sector grows 7% on same period last year.
The nation's economy expanded slower than economists estimated in the second quarter of 2017 as public spending fell.
Gross domestic product rose 5.01% from a year earlier, according to data released by the statistics bureau in the capital city on Monday; economists predicted growth of 5.08%.
First-quarter growth was 5.01%, previously reported data show
GDP rose 4% from the previous three months; economists expected 4.07% gain
The President has undertaken a major infrastructure program to bolster an economy thats growing slower than neighbours. But a budget deficit approaching the 3% legal limit has forced the state to curb expenditures.
While the government has revised its 2017 growth forecast up a notch to 5.2%, the economy is still falling short of the 7% the President targeted when he came into office almost three years ago.
The country's central Bank signalled Friday it may return to an easing bias to support economic growth after cutting rates six times last year. The central bank recently loosened rules on the amount of money banks must hold in reserves."
So it sounds like a bit of austerity - hopefully just temporary.
"if the country doesn't have the money this year then why would there be any reason to expect it will have next."
The Bloomberg Ad might work and the world might invest in remarkable ....................
This year's income takes a hit obviously; and effectively the order book gets drastically cut. They still have a large bank of real opportunities, so hopefully some will materialise sooner; and this project will come back some time in the future.
As with most small companies in the early stage of their development the share price of SRT alternates between upward spikes as news/contracts/updates are announced and more lengthy periods of steady decline when the absence of any material news produces a trickle of sellers (often who bought on the exciting update) with little corresponding buying interest.
We saw this pattern takes the shares down to ~20 at the start of 2016 and following a strong run-up they fell back again to ~30 during the following setback. I may be premature in calling the turn, but am hopeful that this time around we have seen the bottom at ~40. A pattern of rising lows like this has to be good news (whether you are a chartist or not) because it indicates the higher levels at which buying interest is returning. It also sets a higher lift-off point for the next upward tick in the price assuming we get more good news in due course.
This goes up & down quite a bit without any news. However it is only around the same price it was immediately before the Finals; and the Finals gave us no surprises, - and markets have been beaten up today.
Nothing to worry about IMHO; and if it does drop further - a good chance to top up.
Well Finncap target is what they think the price will be in time, however looks like in the short term it will fall back until order news arrives. Last fall back it lost about 50% ,lets hope it doesn't drop that far.
Current -sales £11 mill, profit £1.2 mill
with an order book of £70 million over next few years turnover would be appx £26million
£26 million per annum turnover would be an increase of £15 million per annum at 65% gross margin = an extra £9.75 million to the bottom line.
say an extra £1 million for overheads and that would give a total profit of £9.95 million per annum
With a market cap of £66million p/e ratio would be 7
Potential orders £270 million
Just watched it. As Simon explained it is short on detail and numbers, but the reasons are understandable. I found it reassuring; and the underlying message is there is a great future which will ultimately be reflected in the profits and share price.
The inland waterways' mandate now being enforced is great news. I've no idea how much business it will bring in, but there is no point having legislation unless there is a way of enforcing it.
The one figure given was the order book being around $100m. which is a slight increase since the finals last year.
On the question of Brexit. I understand on a wide scale view the "No effect" answer, but I am sure the weak pound should be a help to the company; and I would be more reassured if he'd outline how he sees tariffs changing if the UK has to work under WTO rules for a sustained period.
Excellent update-lots to look forward to-the share price way to low for the potential now in hand.
And more contract news expected-should be a bumper year and those who sold earlier must be
kicking themselves ,but still time to get back in.
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