|Looks like new highs (just!).
And news from yesterday which should bring in more business for BLTG:
"OEM Corporation is a Canadian company based in Mississauga that provides secure and sustainable end-of-life IT management services. We remove, report, repair and repurpose end-of-life IT assets, with the environment always a priority. We work with mid-sized companies through to Fortune 500 corporations, as well as healthcare, educational institutions and all levels of government. To ensure secure data erasure, OEM uses Blancco, the global leader in data erasure"
"MISSISSAUGA, Ontario, Jan. 19, 2017 (GLOBE NEWSWIRE) -- OEM Corporation has partnered with reBOOT Canada to deliver essential technology to underserved Canadians through a unique partnership that will donate up to $750,000 cash over three years, and work towards solving the often-overlooked technology gap....
....OEM will manage transportation, delivery, warehousing and donor account management to reBOOT Canada, which provides refurbished computers, ongoing education and wireless access to some of Canada’s most tech-challenged youth, families and not-for-profit organizations.
|Promotional post - The Growth and Innovation Forum will show you how to take advantage of new investment opportunities in technology stocks and funds. Come and see Terry Hart, CFO – CityFibre and 20 other companies present at the Growth and Innovation Forum on 31st January 2017 at Business Design Centre London. Find the next stock market ‘winner’. Satellite Solutions Worldwide +79%, CyanConnode +43%, Instem + 44%, Summit Therapeutics +32% and XLMedia +46% all attended last year. Click to register to attend for free Https://goo.gl/J9pCpW
The other companies also presenting Jaywing, RedstoneConnect, Blancco Technology Group, CloudCall, Frontier IP Group, CyanConnode, Bango, LoopUp, CityFibre, TP Group, AJ Bell, ANGLE, Legal & General UK Alpha Trust, Defenx, Instem, WANdisco, Collagen Solutions, Avacta, One pm Finance, Cenkos Securities and Mirada. Https://goo.gl/J9pCpW|
|Panmure Gordon expect net debt to reduce, and conclude as follows, saying Buy with a 326p target:
"Blancco technology, a leading provider of data erasure solutions and mobile
device diagnostics, has announced that its underlying profits are ahead of
expectations. Organic sales growth remains strong, the group continues to win
larger ticket orders and the mobile diagnostics is performing ahead of plan.
Consequently, we are raising our FY17 PBT forecast from £8.0m to £8.3m."
"Valuation: Over the last 6 months the shares have been range bound (220p-240p),
despite delivering strong double digit top-line and earnings growth. As a
consequence, the forward earnings multiple has significantly contracted. The 12
month forward EV/EBITDA has reduced from 20.2x (Nov-15) to 13.3x (today). The
forward P/E has reduced from 35x to 22x".|
|Positive update this morning tempered by disclosure of a lower cash position flagged in the final paragraph.
The Equity Development note has clarified the situation & indicated a negative £5m cash swing on their expectations, which may account for the muted response on an ahead statement,
"Moving to the balance sheet, we understand underlying cash generation was strong, albeit offset in H1 by the payment of prior period expenses and one-off M&A costs – thus leaving net debt of £6m as at 31 st Dec’16 (vs £1m net cash Jun’16). On top there is £2.2m of deferred consideration expected in H2, which coupled with other corporate expenses, means net debt is set to close June 2017 at circa £3.5m, vs £1.7m of net cash previously anticipated."
Underlying business doing well but I'd hoped for a stronger b/s truth told.
|Rivaldo, I agree with your views on broker targets, my post 260 was "tongue in cheek" really just pointing out the wide discrepancy between targets. More importantly BLTG seem to be destined for upgrades in due course, growing niche, sound finances and good management all as you refer to in post 262 above.|
|Hi nurdin. I see broker targets being hit on a regular basis. Just this morning BOTB's share price was well ahead of Finncap's target price, and Finncap heavily upgraded to catch up.
More often they're exactly that - targets. Look at the sort of ratings G4M or BOO and the like are on, and some of their target prices are even well ahead of where they are now. In that context Peel Hunt's 340p target here is perfectly realisable.
All I'm saying is that the markets are unpredictable, and if a company find support it's surprising just what share prices can be attained and retained, so to write off a target price completely as "wrong" is just a subjective view at the time which may or may not prove to be completely incorrect. But I completely agree that targets should be reviewed carefully, and some are more realistic than others!
Meanwhile the BLTG price continues to rise.|
|Thanks for the ED report...very thorough with well rationalised and sensible target price.
I know its not a precise science Riv but some analysts have the habit of coming up with outrageous targets without any backing for the forecasts.Also how often do you see companies share price hitting the targets? A recent analysis by Stockopedia showed that most companies fall well short of the targets even on medium term view.I am not saying that will be case here just making the point that brokers targets need to be treated with care.
In the case of Blancco,ED with their analysis and earnings projections have come up with a very believable( perhaps on a 2 year view) 275p target....made more believable by the likely exponential growth in data security market globally.|
|Cheers - ED have lifted their target price to 275p (from 255p). Hopefully this direct link will work:
No-one knows whether Peel Hunt's 325p or anyone else's targets are "correct" or not, and it doesn't really matter as this isn't a precise science.
The overriding point is that BLTG are seemingly on a roll, their products are in demand and should continue to be for the foreseeable future, they have a sound Balance Sheet and they appear to have extremely capable management.
On that basis the market will value them highly and should continue to re-rate them, more or less quickly depending on trading progress, contract RNS's, acquisitions etc.|
|Research out today from Equity development.
|Cantor Fitzgerald have also reiterated their Buy and 270p target today. Who is right?!|
|Peel Hunts target looks miles away from here.What will cause the share price to rerate to that level?|
|always like 'ahead' updates|
|Peel Hunt reiterate their Buy and 326p target today.|
|Trading update - results to be ahead of expectations and H1 trading strongly ahead :o))
Clever of them to say "modestly" ahead at this stage as there's still some time to go to the year end, as this gives them leeway to further upgrade assuming the strong trading continues to 30th June - which they hint that it will given their confidence going forward:
Interesting read if you havent already seen it.|
|trading update next week?|
|Good to see BLTG filing for two more secure data erasure patents:
The IP is what really gives BLTG core value and will contribute to BLTG being acquired in the fullness of time imo.|
|Yes nice to see.He has seen the light ! :o)|
|RNS - very encouraging to see the CFO make his maiden share purchase, buying a whopping £51,000 at 225p:
|Good to see some movement at last....|
|Bought back in here last week.
I think Cantor Fitzgerald's 270p target price is very conservative. I think Peel Hunt (340p) and Panmure Gordon (326p) are more realistic.
|Nice move today. Perhaps some buying following Cantor's initiation - or hopefully a New Year tip!|
More detail on Cantor's initiation:
"Elsewhere, he noted that mobile device diagnostics firm Blancco “has a very sticky client base and a business model that generates exceptional returns”, and set a 270p price target on the stock"|
|cheers riv.Needs a kick up the backside for sure :o)|