Intelek Share Discussion Threads

[gingerplant] 07/4/2010 08:55

Agreed Jeff H. They must wonder what they have to do to see a fair valuation!

[jeff h] 07/4/2010 08:53

Excellent, even better than in-line.

Great performance from Paradise with Sales of over £10.0m in H2 compared to £8.2m in H1 with profits getting the benefit of most of them being in US dollars.

The US economy picking up strongly so may well see a stronger commercial market in the new trading year.

CML & Labtech a little disappointing in the year just gone but likely to perform better in the year just started.

[jeff h] 06/4/2010 20:12

A bit about the new composites facility:-



I liked this bit:-

"..CML's strategic goal of achieving £10m turnover in composites within 5 years"

Last year was a record for CML...yet the turnover was only £13.9m for all its activities.

[jeff h] 06/4/2010 08:46

Trading Statement soon...in line would be fine.

Composites at CML an up and coming growth story...will have its own premises soon.

[afrorich] 06/11/2009 08:47

bid at 15.2 and offer at 15.5

[afrorich] 06/11/2009 08:37

lets hope it it breaks through today

[21simthy] 05/11/2009 22:47

Afro.

See what i mean though, a bit like my UBC, been stuck in a tight
trading range for almost a year.

[afrorich] 05/11/2009 22:44

another 25000 at the bell sent it higher

[balcony] 05/11/2009 09:45

A nice 100k buy,Plus a couple of others in for the results in less than a fortnight

[investinggarden] 04/8/2009 09:16

Change from Speculative Buy to Buy rating

[thickasmince] 21/7/2009 18:55

Am I the only person to note ITK did not meet brokers forecast and the final dividend was kept at the same level, not increased. It was the interim divi that increased so the total for the year looks higher. Then again, maybe the old memory getting the better of me, again.

Still, I am confident in the long term myself and continue to hold, with the odd share getting picked up now and again.

[dealit] 18/7/2009 12:55

Well I hope so "balcony".

[balcony] 17/7/2009 09:38

This company just keeps pumping out the good news,Should be in the 20s now and 50p+ when we get out of this bearmarket

[investinggarden] 15/7/2009 09:18

Speculative Buy rating from Growth Company Investor

[dealit] 27/6/2009 15:36

posted this from yahoo financel site:-Solid Value In A Growing Techie
By David Holding


Good value, steadily improving performance and a reasonably healthy dividend stream are rare facets for most companies. This is particularly so in today's difficult economic environment and even more so when applied to tech stocks.



AIM-listed tiddler Intelek (LSE: ITK.L - news) (LSE: ITK) ticks all these boxes. Intelek is a group of companies which designs and manufactures electronic systems for satellite and microwave communication and is a specialist manufacturer for the aerospace market.

A quick glance at the company's final results for the year to the end of March 2009 show sales up 9% to £39.3m, underlying profit before tax up 23% to £4.1m, and earnings per share up 19% at 3.32p though the figures were flattered a little by favourable exchange rate movements. Strangely, though, the market didn't seem to like the results and the shares have fallen slightly to 15p, valuing Intelek at a miserly £13.1m, and placing the shares on a price-to-earnings ratio (PER) of 4.5.

Why the low valuation?

This is clearly too low. Perhaps, then the problem lies in balance sheet weakness? But no, not a bit of it. Intelek has a net asset value of over £18m, net tangible assets of £3.1m, and overall net debt of £3.8m. Cash isn't a problem either; a healthy £3.2m was generated from operations. OK, this isn't deep value territory on the balance sheet, but it's certainly not as weak as the rating suggests either. And £6m of the overall debt figure is for the pension scheme. Exactly how concerned you are about this aspect of the balance sheet will depend on your outlook.

Anyway, the company was feeling confident enough to increase its full year dividend to 0.465p representing a reasonably healthy yield of 3.1%.

Looking forward

Looking forward, Intelek's management expect a resilient year and expect profits to come in somewhere around the same as last year as things will be slightly held back by the aerospace division due to the small business jet market. The company expects the first half to be below last year's but the second to be stronger. Perhaps it was this aspect of the results that depressed the valuation a little, or maybe investors see Intelek as one of those "perma-value" type situations that takes an age to do anything.

Personally, I like to take a longer term view, looking in both directions. Historically, Intelek has an excellent track record of steadily improving profits despite economic woes from time to time. And looking further forward than the current year, the company looks well placed to build on its core strengths in satellite communications.

Two of its companies, CML and Labtech are based in the UK whilst Paradise Datacom has sales, design and manufacturing facilities in both the UK and the USA. It's the latter that accounts for almost half of all sales and the bulk of profits and it's probably in this area that the future excitement will come.

Future growth

Intelek has high hopes for both Labtech and Paradise Datacom, but is realistic about the need for patience before seeing growth in the current economic climate. Commercial contracts will be harder to come by for Paradise Datacom for a while, but the company is optimistic about winning contracts on government programmes where funding is increasing, saying: "We are currently bidding on an extensive range of programmes of considerable value." It already has in place a number of "significant" government product replacement programmes which will benefit the subsidiary for the next two to three years. Intelek will also look to supplement its own growth with acquisitions within its area of expertise.

I think Intelek is a share to keep for the long term once bought. It's certainly one for the more patient investors amongst us as it could take time to come good. But it certainly looks far too lowly rated given its track record and future potential. Any recovery in markets improves that potential still further, but even without it, Intelek still looks too cheap. The chart reveals that the shares were 23p last June. That would seem to be a fairer price and even that isn't too demanding -- but if achieved would reward investors today with a better than 50% return.

[jeff h] 28/5/2009 15:20

Good news for CML as the Indian Air force orders airbus Tankers:-



..it is seemingly the best plane for the job so other airforces may also
follow suit.

The UK Govt recently committed to the Eurofighter which I think CML are
supplying so the order book remains healthy.

[balcony] 07/5/2009 11:50

At last some upward movement in this,In my views well undervalued

[vikcom] 23/4/2009 21:01

This share is a stonking good buy. The company has done everything right in the last few years but, the share rarely responds the way you might expect. Should be 25 to 30p easy.

[ecomk1d] 23/4/2009 14:15

absolutely, have this in my eye. Will buy if it dips to 12-13p region in between. potential upside till 17.5p

[short termism] 23/4/2009 14:13

Results expected at beginning of June if I recall - I think these are undervalued at 14p and think 20p+ is possible.

I expect vastly imcreased revenues particularly from the satelite and microwaves divisions and the pension fund deficit to be significantly reduced due to corporate bond yields.

I'll be back when they astart to rise.

[ecomk1d] 08/4/2009 07:26

Trading update looks broadly +ve wrt current market conditions

[penpont] 06/4/2009 17:56

This is one of the few shares I have which is heading down against the rest of the market. It seems to be on fairly light volume so perhaps nothing much to worry about though annoying nonetheless - trading statement due within a couple of weeks or so....

[jeff h] 30/3/2009 00:49

Hi topvest - well I'm a big fan of ITK as you can tell if you've read the thread.

All 3 divisions seem to be doing well...dollar earnings a plus....probably get
a trading update in April.

As for the pension deficit the defined benefit scheme was closed to new members in Jan 2000 and in 06/07 a chunk of the non-pensioner members transferred their rights out the scheme.

The deficit at 31/3/08 after deferred tax was £3.8m