|Marie Claire just tweeted: Not just a good laugh she's down with the kids :-)
|hard to argue with that analysis, CJohn.|
|These are scarcely on a distress rating and there's been significant destruction of shareholder value in the last half as well as an impressive burn of cash. These are not a buy on asset grounds. And I personally wouldn't buy them on a potential upturn in trading alone.|
|Knowing Marie Claire is a "good laugh" is certainly a major positive.|
|I think the posting above reflects badly on the current management and the rate of cash burn is surely unsustainable. Let's hope the BOD take action in a prompt manner.VGLTA|
|Just popped into my local CVR store which is in the process of having a Post Office counter fitted (proper post Office closed 2 shops down) and took the opportunity to chat to the Safetell engineer who was fitted the new kit. I'm not sure who was the most surprised me bumping into a Safetell engineer the day after Interims or him being accosted by a shareholder!
He put the blame for the current results squarely on the sales team under performance siting a salesman(now departed) on £60k who didn't do a stroke, suggesting the whole sales team waited for work to come to them rather than proactively chasing it. The sales team has been gutted so it looks like the problem may be being addressed. He also said there'd been 4 voluntary redundancies this week and an announcement about compulsory redundancies on Friday. He certainly wanted to keep his job which he enjoyed and thought it was a good company to work for.
I asked him about Marie Claire and he thought she was alright and 'a good laugh'. He also suggested the company had been through similar lulls before and not to get too concerned as it had bounced back in the past.|
|Pretty downbeat interim report.A lot is now riding on take up of new products and offerings.It would be great if we could get some info on the progress of new contracts rather than have to wait another six months for the next report.|
|Wexboy is right in that the CEO needs to get her act together in relation to taking action on the long failing part of the business. It's taken her far too long to address the problems in the business. Let's hope for some real activity in the near future as the current share price reflects her failure.VGLTA|
|NWT needs to deliver.Wexboy is right.|
|Newmark Security (NWT:LN) (2.4% of current portfolio):
Share Price: GBP 1.45p
Market Cap: GBP 6.8 Million
A special situation…which actually obscures an underlying growth story. While these trading updates (here & here) have crucified the share price, Newmark’s electronic division still looks like the real problem here. For almost a decade now, revenue’s unchanged, while divisional margins declined relentlessly – from 20-23%, to a £(0.5) million loss today. Poor return on capital was bad enough, but losses kill any argument for keeping the division. And after 4 years as CEO, shareholders presumably have little confidence Marie-Claire Dwek can still deliver a turnaround – and her hands are now full dealing with the larger asset protection division. Noting Chairman Maurice Dwek always ran a tight ship here, the situation appears untenable – something’s gotta give…
Presuming an eventual sale, a larger competitor could easily wring 10-15%+ margins from this division – achieving a 0.5 Price/Sales multiple (i.e. £3.8 million) seems reasonable. [And noting net assets of £5.1 million, it also looks salvageable in a wind-down/piece-meal sale]. Who knows what the FY-2017 result will be, but let’s assume 50% of said consideration ends up incinerated, in terms of a once-off net loss (in reality, I suspect a working capital reversal will mitigate cash losses).
Such a scenario would imply £6.2 million of cash, close to the current market cap…tagging NWT as a possible target. It also implies a negligible 0.04 Price/Sales multiple for an asset protection division that’s averaged £13.3 million revenue pa in the past 4 years & boasts average (pre-impairment) margins of 22%+ (nearer 14%, inc. un-allocated corporate expense). It also grew revenue 17% pa & 10% pa in the last 5 & 10 years, presenting a ridiculously cheap growth opportunity. [Plus, I believe this growth trajectory confirms management’s assertion a poor FY-2017 result will prove nothing more than a timing issue, in terms of an eventual sales payoff]. As for Newmark’s cash, using it to fund share buybacks & bolt-on acquisitions would also add substantial shareholder value. [It also justifies maintaining the dividend – a 6.9% yield offers compelling support]. Meanwhile, my marked-down position size looks about right…’til we finally see some kind of sensible/decisive capital allocation here from the CEO/board.
For this & other top picks, check/Google my latest 'Top Trumps For 2017...' post on the Wexboy investment blog.|
|Has anyone seen this recent article, apparently they have an order for a new solution for several hundred thousand pounds:http://www.professionalsecurity.co.uk/products/workforce-management-systems/steel-partner/Positive news if you ask me....|
|My guess would be that it is a tad oversold, that trading in H1 may have been damage-limited v expectations, although far from acceptable, and that the H2 outlook is still fairly mixed, with sales prospects picking up but sales timing uncertain, and that they won't mention dividend at this interim stage, just a pure guess....|
|Interims at the end of the Month should give the market an indication of whether it is oversold or not. Would be nice if they mention they expect to maintain the final dividend on improved trading etc.|
|Apols, must have got confused with my links :-)
Some comment this morning by the Wexboy blog regarding 2016 performance and MCD
'Having already identified the electronic division as a millstone, with a decade-long history of stagnant revenue & declining profits, I presumed management would be forced to aggressively rationalise, liquidate, or otherwise dispose of this business. This would have freed up more surplus cash, and just as importantly, re-focused management’s attention on the more valuable (but more volatile) asset protection division. But so far, management’s dug its heels in, continuing to allocate disproportionate time & assets to the electronic division, despite the fact it’s now loss-making (to the tune of £0.5 million). Which I suspect took management’s eye off the ball elsewhere – as a result, NWT now expects a loss this financial year, due to a revenue/profit shortfall in the asset protection division (which hopefully proves a timing/sales pipeline issue ultimately). Despite a cheap market valuation, the share price reaction was exacerbated by the CEO, who’s (laudably) sales-driven, but perhaps not yet experienced enough to actually under-promise & over-deliver…'|
|This is the IG May 2016 one.
A slightly more recent Interview here (July 2016).
1.53p paid earlier, hence the sales needed on the mark up.|
|There has been a few: Here's the IG ones
Feb 15 - hTTps://www.youtube.com/watch?v=6KQSWcRklFQ
Nov 15 - hTTps://www.youtube.com/watch?v=fFyMnEmLArA
May 16 - hTTps://www.youtube.com/watch?v=6KQSWcRklFQ|
In many years that I have been trying to invest in shares,rather than gamble as this participation has become,NWT has been of late the only share to give me a dividend...so good luck in this new year,I feel confident.
Lets hope so,it would be so nice...gla
The chart is still recovering,looking good,|
|Do you have a link to that IG interview ?|
|Interesting David, after seeing her present on the IGG channel it'll be fascinating to see if she can handle the Mello questioning.|
|The interim results are out at the end of this month and then I hope to have Marie-Claire presenting at our Mello in Feb or March|
|It's on the up. A gap to 2p to fill and hopefully an improved trading/cost cutting update and/or dividend held will give us that.|
I bought in on Friday.
Hope to hold for a couple of years (depends on news flow). See how it goes.|
|Had a top up last week,the charts looking a lot better now..gla lth's|
|First quick look re unikey - "Odess (the unikey man) is also excited about applications on the commercial side, as the company is making a strong push in that marketplace to build on its already strong footprint on the residential side with products in 65 countries."
Extracted the above from your link, big thanks! Bprofit, could be literally seismic? given the massive 'residential market' and '65 countries' - will keep studying. ex|