Altitude Share Discussion Threads

[northwards] 18/2/2019 08:10

I'll be keeping an eye out for after lunch trading activity to see if my crazy US theory has any substance!

[robbnw] 17/2/2019 22:47

Totally agree

[billster2018] 17/2/2019 22:29

Hi all, was this pre, during or post market?

[fardistanthills] 17/2/2019 22:07

Reading through my notes on ALT one thing strikes me that I don’t think has had enough attention. In the 11th Jan RNS announcing the £7m placing it was stated that £3.4m was for the AI Mastermind acquisition, £3.2m to increase the amount of working capital available to their US operations, with the balance going on placing expenses.

In fact they raised £9m! So rather than the £3.2m they now have £5.2m available to accelerate the US expansion. Which is surely rather nice!

[john09] 17/2/2019 21:11

A good couple of weeks coming perhaps

[robbnw] 17/2/2019 19:38

Yes and hopefully lot more The 300p comment is so true and just what we need

[john09] 17/2/2019 19:35

I guess that’s what caused the +2p on Friday

[robbnw] 17/2/2019 19:27

Brilliant John Thank you Great write up and esp from something like IC

[john09] 17/2/2019 19:26

Oh wait I see it now. Unhelpfully they hadn’t used bold print for the name of the company and they normally do... all the other companies Named are in bold. Hey ho

Quite a busy month on the dealing front, with 13 trades in total. I introduced three new positions and sold two completely. The two that were left were Faroe Petroleum (FPM), where DNO succeeded in its acquisition, and Royal Dutch Shell (RDSB). Nothing wrong with Royal Dutch Shell and the dividend is certainly most attractive, but I felt that I could do better elsewhere. The sale of those two oil stocks left me with just Serica Energy and Diversified Gas and Oil (DGOC) in the sector. I have covered both in previous columns and think they have much further to go. I added Rockrose Energy, another North Sea producer. Like Serica, the market seems to be severely undervaluing the cash generation of the company and its ability to do further value-enhancing deals. I bought Rockrose on three occasions during the month at prices between 623p and 630p. Another new holding was Altitude. Altitude provides tailored services to companies in the promotional products industry; pens with company logos on and that sort of thing. A presentation by the chief executive, Nichole Stella, at the Mello Investor event in November, piqued my interest. Further work suggested that the risk/reward ratio looked interesting. Following its successful placing of new shares at 68p mid-month, to fund the purchase of AI Mastermind, I took the plunge, paying 73.8p on 15 January. AI Mastermind is the largest promotional product distributor in the US and the logic for Altitude acquiring it looks compelling. Broker FinnCap increased its target price from 105p to 140p on the back of the deal, but believes that should management deliver to expectations, 300p is achievable on a 12-month view. With forecast earnings per share of 7.4p in 2019 and 15.5p next year, a PE ratio of 20 times looks reasonable to me for that kind of growth. We are waiting for 2018 results, with earnings per share forecast at a loss of 2.5p, so the stock is not without risk. I added further to the position on 22 January at 78.3p.

[john09] 17/2/2019 19:24

Although to clarify my online version is the iPad app but it should be exactly the same as the desktop version.

[john09] 17/2/2019 19:23

Lol yes I’ve seen the article on line but it’s not got that detail! Like I said there’s a mention but it doesn’t say anything like what was cut and pasted!!

The be all and end all of the online one says ...

“Two stocks added in January, Altitude (ALT) and Rockrose Energy (RRE), were up +21.1 per cent and +17.9 per cent, respectively, although in Rockrose’s case I only captured +5.3 per cent of the gain. ”

That’s it!

[penpont] 17/2/2019 19:20

@John09 - It's in the online IC:

[robbnw] 17/2/2019 19:15

No it is mateI've just been told it is in the online one as well Anyway all good !!!

[john09] 17/2/2019 19:04

“£3 is achievable on a 12 month view” yes that is superb

[john09] 17/2/2019 19:01

That’s not in the online version of the magazine which I checked so must have been an email to subscribers ? The magazine comes out on Friday (15th not 14th)

[robbnw] 17/2/2019 18:55

Thanks penpointAppreciated!!John that's superb! Surely

[penpont] 17/2/2019 18:48

From IC on 14 Feb, 'Private Investor Diary' by John Rosier:

Another new holding was Altitude. Altitude provides tailored services to companies in the promotional products industry; pens with company logos on and that sort of thing. A presentation by the chief executive, Nichole Stella, at the Mello Investor event in November, piqued my interest. Further work suggested that the risk/reward ratio looked interesting. Following its successful placing of new shares at 68p mid-month, to fund the purchase of AI Mastermind, I took the plunge, paying 73.8p on 15 January. AI Mastermind is the largest promotional product distributor in the US and the logic for Altitude acquiring it looks compelling. Broker FinnCap increased its target price from 105p to 140p on the back of the deal, but believes that should management deliver to expectations, 300p is achievable on a 12-month view. With forecast earnings per share of 7.4p in 2019 and 15.5p next year, a PE ratio of 20 times looks reasonable to me for that kind of growth. We are waiting for 2018 results, with earnings per share forecast at a loss of 2.5p, so the stock is not without risk. I added further to the position on 22 January at 78.3p.

[robbnw] 17/2/2019 18:46

Ahh I thought it was a good Paragraph on why the investor rated ALT and had bought self this weekSame one ?Either way first time mentioned ?

[john09] 17/2/2019 18:42

There’s a fleeting mention in Investors Chronicle. It’s in one of their portfolios. Blink and you’ll miss it type mention. Zero worth mentioning I’m afraid

[robbnw] 17/2/2019 18:09

Anyone come across weekly investor mag Investor news or chronicle or something I've not seen it but believe in their 15 Feb edition v good buy write up on ALT

[thebigshortfella] 16/2/2019 10:51

Northwards - that is one helluva stretch of imagination! The more specific a hypothesis is, the less likely it is to be true. But I am with you. I reckon it was conversations between the conversion team and John from facilities...㊂0;😀 Have a great weekend fella! 👍

[john09] 16/2/2019 10:39

I don’t think the next RNS is the one really. I think it’ll be more of the same in terms of the funnel