Ab Dynamics Share Discussion Threads

[wylecoyote] 25/10/2013 12:48

Interesting....

[wylecoyote] 23/10/2013 15:19

Thanks Riv,

quite reassuring, also I need to be aware of how brokers behave and why.

[rivaldo] 23/10/2013 14:43

Wyle, only two months ago, on 12th August, ABDP announced a 20% increase in capacity which is ALREADY IN PLACE. Thus ABDP already have sufficient room to cope with all those contracts they've been winning as I outlined in post 112.

The forecast for next year from Charles Stanley is imho a very conservative opening shot - note that it hasn't changed since ABDP's IPO. I believe that this is deliberate. As soon as the maiden results are published, Charles Stanley will then have leg room to upgrade the forecasts and look like a responsible, well behaved broker.

Here's an extract from ABDP expansion RNS as stated:

"AB Dynamics plc (AIM: ABDP), the designer, manufacturer and supplier of advanced testing systems and measurement products to the global automotive industry, is pleased to announce that it has received an order from an existing overseas customer for a high specification Suspension Parameter Measurement Machine ("SPMM"). The Board is also pleased to announce the completion of an annex to its factory in Bradford on Avon, providing the Group with a 20% increase in manufacturing capacity.

The SPMM order, placed by a prominent Japanese car manufacturer is valued at £1.7 million, with delivery expected in March 2015. Most of the value of the contract is expected to be recognised in the Company's financial year commencing 1 September 2014. The contract provides ABD with further future revenue visibility and highlights the motor industry's continued demand for its SPMMs.

The new annex significantly extends capacity and improves the utilisation of space in the existing factory. The annex also provides ABD with an up-to-date facility for the Company's electrical builds and a dedicated assembly area for its latest Guided Soft Crash Test Vehicles. ABD is continuing to progress its development plans for a factory nearby in Bradford on Avon."

[wylecoyote] 23/10/2013 13:42

Ok, I performed a back of cigs calculation and coincidentally came up with the same valuation as qouted on Digital look. I always like to see if my calculations stack up or if I think the broker forcasts are wrong. The valuation seems fair at these levels. It is noted on their forecasts that 2014 will not show any further growth. Is anybody else likely to agree with that, especially when considering that the new facility won't open until 2015? Will they be able to meet any surplus demand for their services in the meantime? It is noted that the new annex will meet a further 20%.

Personally, taking into account the slowly but surely growing economy and positive news in the car sector, growth next year is likely.

[rivaldo] 22/10/2013 12:37

Agreed nickg2. The July business update specified three SPMM contract wins, which must amount to around £5m on their own for this year which started on 1st September, plus a further £400k GSTV contract win. Since then we've had another £1.7m contract win for the year starting September'14, plus the "significant" robot order news from the web site which must be another few hundred thousand for this year.

No wonder ABDP are "choc-a-bloc".

[nickg2] 21/10/2013 20:25

"Current trading for 2013 continues to be in line with the company's expectations and these two contracts add excellent visibility to next year's revenues." - from July statement... Next year will be the year for ABDP so get on board whilst they're cheap.

[wylecoyote] 21/10/2013 17:26

Interesting days... a breakout should logically come but fear that the resistance is strong at this level.

[cfro] 21/10/2013 16:26

A very strong day today and getting closer to breaking out into new highs.

Looking forward to the results on the 7th, no reason why they shouldnt be very good.

[wylecoyote] 21/10/2013 13:25

lets hope it breaks out....

[interceptor2] 21/10/2013 10:41

Sounds strong online rivaldo, could be an attempt on the 135p breakout level during the run up to results.

ic2...

[rivaldo] 21/10/2013 10:28

Looking good - online you can only buy 1,250 maximum at 135p, but you can sell 7,500 at 130p.

[rivaldo] 21/10/2013 07:59

Owenski, the forecast for the year just ended is £2m PBT and 9.89p EPS.

[owenski] 21/10/2013 07:26

Do you know what the expectations are Rivaldo

[rivaldo] 21/10/2013 07:18

RNS out - final results out on 7th November:



The good news imo is that the results will be nicely in line with expectations since there's no mention of any problems, which by this stage would have had to be mentioned.

There's also an analyst meeting which would be interesting to attend.

[aylingd] 18/10/2013 10:13

I decided to buy here last week after doing a bit of research (thanks for the useful posts Rivaldo). I managed to get 3K which is a bit less than I wanted. Guess I may have to top up in 1K increments, which is not ideal.

D.

[cfro] 18/10/2013 10:13

The shares are consolidating nicely ever since they broke out into new highs back in Aug .

[rivaldo] 18/10/2013 08:47

Good to see a tick up. The spread is less than published as you can sell 5k at a premium at 125.5p, and you can now buy a whole 1k maximum at 129.5p.

[wylecoyote] 17/10/2013 10:13

Yeah,

I think somebody wants your stock. Could be wrong, but I am happy to hold.

[rivaldo] 17/10/2013 09:50

Interesting Wyle - yep, you can sell 5k shares at 125p online, but can only buy a laughable maximum 150 shares at 128p online! Rather encouraging....

[wylecoyote] 17/10/2013 09:34

Well, I noticed the small drop and tested the waters to see if I could top up... Nope, but they would gladly take them of my hands at 124.44...naah!!

[owenski] 17/10/2013 08:54

Thanks :-)

[masurenguy] 17/10/2013 08:51

Maybe "competitor" is not quite an accurate description - it would appear that CSA is more of a collateral organisation. The key point here is that their acquisition of mi Technology could also potentially result in them becoming a predator for ABDP at some point in the future.

[owenski] 17/10/2013 08:46

Mas, why do you say CSA is a competitor. ABDP is more of a test rig build company and is not a standards accreditation process org.

[masurenguy] 17/10/2013 08:03

Interesting to checkout this ABDP competitor.

"CSA Group is an independent, not-for-profit member-based association dedicated to advancing safety, sustainability and social good. We are an internationally-accredited standards development and testing & certification organization. We also provide consumer product evaluation and education & training services. Our broad range of knowledge and expertise includes: industrial equipment, plumbing & construction, electro-medical & healthcare, appliances & gas, alternative energy, lighting and sustainability. The CSA mark appears on billions of products around the world."