Pennant Share Discussion Threads

[apfindley] 01/6/2016 10:57

GWMO looking good. Ready to rerate ahead of drilling. £1m mkt cap at 0.38p.Price target 4.8p (£13mill)

[boadicea] 01/6/2016 10:53

After recent weakness, 50p would be a nice target level to hold on to for the present until further contract or progress report causes it to resume an uptrend.

The vagaries of large contracts for small companies, bureaucratic delays etc are always a problem for the likes of PEN but if their technology is really good I am content to sit out the rough times, or better still do a bit of topping and bottoming to keep the total investment within a value band, by which, e.g. I mean sell down to £4K if total value exceeds £5k or invest to £4k if total later falls below £3k. (Figures purely hypothetical.)
SRT is an example of another company with excellent technology but lumpy and/or bureaucratically delayed contracts where this technique has worked well.

[interceptor2] 01/6/2016 10:34

Will add my well done to holders here :0)

I looked closely at PEN after the results and placed them on the watchlist with a view to add later.

Today's news was so significant that I decided even after a 40% increase they still look good value, so I have bought in this morning and hope for a repeat performance from when I held in 2012/13.

The more I researched PEN this morning, the more I liked the valuation and visibility over the next two years.

[battlebus2] 01/6/2016 10:20

Yes well done Hastings et al. Looked several times but took no action :((

[hastings] 01/6/2016 08:59

Thank you Mas and nice to have your company.I'm going to add something later, but for now on the upgrade this year's EPS of 7.1p gives us a PER of 7 at 51p falling to 6.5. 2p div gives a handy 4% yield.

[pj 1] 01/6/2016 08:45

Nice to see! Well done Boys :-)

No position :-(

[masurenguy] 01/6/2016 08:43

Some you win, some you lose! My initial buy here in March @37.2p was well timed for a change !

"Commenting on the previously anticipated contract with a Middle Eastern customer, Snook remains confident that Pennant will secure this deal and in the first half of the year. Bureaucratic obstacles would seem to lay behind the protracted process, but which sounds by all accounts tantalisingly close to being delivered. And if announced, it would no doubt make a welcome difference to current expectations triggering an upgrade to WH Ireland's 2016 forecast, which for now, has revenue pencilled in at £14m with pre-tax profits of £1.5m and EPS of 5.6p. That sees the shares trading on a forward PER under 7 which drops to 6 based on expectations for next year where EPS of 6.1p are envisaged."

Kudos to Hastings whose comment on 7th March was a the final piece of the research jigsaw that prompted me to take an initial position here. If the WHI forecast is achieved it will still leave the PER as a single digit ratio even after this mornings price rise. :0)

[wjccghcc] 01/6/2016 08:38

Glad I held onto mine. Likewise thought about topping up but the chart weakness said no. Just goes to show.

[gengulphus] 01/6/2016 08:24

Drat! Was thinking of topping up only yesterday, but decided to put it off because (a) the double-bottom pattern wasn't quite complete; (b) I needed to think about what to sell to raise the cash...

Gengulphus

[hastings] 01/6/2016 07:53

Very good news this morning, with that long standing contract finally coming through along with a nice addition.First comment from WH Ireland ups target price to 67p equivalent to a rolling fed PE of 9.

[hastings] 07/3/2016 14:14

A few thoughts that may be of interest.

[varies] 07/3/2016 11:52

Today's figures are depressing but not altogether surprising.
I am sorry to see that the final dividend is "suspended", in another word passed.
Much depends on whether the 3rd of the delayed contracts is signed soon. If so, we should see a decent recovery this year.

[arthur_lame_stocks] 05/2/2016 19:52

So we were promised £15m in contracts and got £0.2m.

[boadicea] 05/2/2016 17:11

Perhaps one might prefer to trust a more esoteric pointer to the future - The results are announced to be almost two weeks earlier than last year which could point to some enthusiasm in the company.
On the contract question, the follow-through factor of contract extensions is, I believe, quite good in eventual terms but distinctly iffy on timing.

[topvest] 05/2/2016 09:50

They said that before.

[stevemarkus] 05/2/2016 09:02

I think the point of the RNS is that the contract is with a new global OEM customer and can be extended to £2.2M. Obviously a new and significant customer.

Cheers,
Steve.

[pj 1] 05/2/2016 08:59

I agree with henryatkin, nothing yet to make me want to buy back in. Probably best to wait for March results to assess.

[topvest] 05/2/2016 08:53

Not sure why the price has increased today, as that contract was announced previously. Indeed it looks worse if anything as only £0.2m is definite but should be £2.2m in total. No news on the middle east contract.

[topvest] 16/12/2015 18:39

But they haven't said they will hold it so they are undoubtedly waiting to see. I'm sure they will pay something but it would be a nonsense to pay a big final dividend if the Middle East contract isn't secured.

[henryatkin] 16/12/2015 13:19

I don't hold here but if the end of year cash position is the same as last year (as per the update) and the dividend cover is still x3 I don't see why the dividend would be cut. It would show a big lack of management confidence if they did cut in my opinion.

[topvest] 14/12/2015 11:09

I think it's a bit early to be honest. Will retain my small holding, but will await the contract award as it could slip further on no news.

[hastings] 13/12/2015 17:35

A few more thoughts/observations, which could be of interest to others taking a look.

[topvest] 11/12/2015 17:32

Paul Scott at Stockopedia

"Current year forecasts shown on Stockopedia are clearly pie in the sky, so ignore the forward PER of 5, because that's clearly wrong. I wouldn't rely on the divis being continued at the current level either - it looks to me as if a divi cut is on the cards."

- See more at: hxxp://www.stockopedia.com/content/small-cap-value-report-11-dec-2015-pen-myx-zzz-114549/#sthash.7zmZ22ZJ.dpuf

[topvest] 11/12/2015 17:08

Yes, still expect them to pay a final dividend, but it's not guaranteed. They messed up the last announcement a bit as it was pretty obvious that there wouldn't be enough revenue to move back into profit, so they have lost a bit of credibility. I suspect that if the Middle East contract is secured we get one and if it isn't maybe not.

[hastings] 11/12/2015 15:30

Given that the Broker is presumably basing its revised numbers on Pennant's own guidance, then one can perhaps be forgiven for assuming that the dividend will remain intact as per the note.Overall, a pretty upbeat view from Ireland at this level imo, so will see how things pan out in due course.Each to their own of course and fully respect an alternative view point.