Amino Technologies Share Discussion Threads

[techno20] 16/7/2016 12:15

IC buy piece replayed in the Weekend FT. All helps! Re-rating still has some way to go yet IMV.

GLA, Techno

[penpont] 14/7/2016 17:08

Simon Thompson in yesterday's IC.

[markie7] 14/7/2016 16:42

Big rise here. Tipped somewhere?

[penpont] 12/7/2016 16:17

IC Update 11/7

'Consumers' insatiable desire to watch television shows on the move has driven pay-TV companies and mobile operators to the door of Amino Technologies (AMO), a specialist in video-streaming technology. Include a boost from two acquisitions in 2015 and exclude £3.5m in one-off takeover and restructuring costs, and operating profit climbed 6 per cent to £3m in the reported period.

Amino's purchases of Booxmedia and Entone - specialists in mobile streaming and delivering both broadcast and online television, respectively - added new products and customers. However, they conspired to shrink the gross margin by 7.2 percentage points to 43.6 per cent. Management didn't break out organic growth as the businesses are inextricable, but it anticipates overall annual sales growth of 8 to 10 per cent.
The enlarged group won work with US telco Cincinatti Bell and renewed its contract with Vodafone Netherlands. Delta, a Dutch utilities company, also rolled out cloud TV services on its platform. And it signed up several operators in Latin America, reflecting market deregulation and a growing appetite for online TV.
Broker finnCap expects adjusted pre-tax profit of £8.7m, giving EPS of 11.4p (from £5.1m and 7.3p in FY2015).

IC VIEW:
Amino's acquisitions have underpinned a rally since its profit warning in October. Moreover, an influx of new orders has improved revenue visibility, while strong cash generation provides scope for further acquisitions. Amino's shares are flat since our buy tip (111p, 29 Oct 2015) and trade at just 10 times forecast earnings, undervaluing its growth prospects. There's also a strong prospective yield of 5.4 per cent. Buy.
Last IC view: Buy, 114p, 15 Feb 2016'

[paleje] 11/7/2016 23:58

Thanks Techno, missed that. There was constant buying today but a small cluster of large sells emerged later. It should re rate just a matter of time, good divi and prospects, a nudge from ST would be welcome.

[techno20] 11/7/2016 20:30

Buy recommendation from IC. Surprised it didn't move up today. Hopefully some comments from Simon Thompson later in the week will start it moving.

[ramridge] 11/7/2016 09:55

The results are very strong.
I believe that approx 50% sales in US and 35% in EU. So they will be benefiting from currency conversions should the $/£ and Euro/£ exchange rates remain the same or below current levels.

[paleje] 11/7/2016 09:40

Finncap reiterated their 175p target this morning.

[paleje] 07/7/2016 10:46

Interims on Monday, this has held steady over the brexit period and there doesn't seem to be much interest now.

But assuming they're right about sales being back on track, with the majority of revenue earned in $ and € there should be some benefit from the sterling collapse and, with Goldman now forecasting the pound to drop as low as $1.20 it could have a considerabe impact with US and South American sales on the up.

[simonsaid1] 15/6/2016 16:19

I've finally bought in. I was resisting as I don't like to invest in companies whose product offering doesn't make much sense to me, and with the likes of Apple TV, Netflix, Android TV, Hulu etc I couldn't really grok what people saw here.

But I can't argue with the financials, solid management style and forward contracts in place. And perhaps the more cable-centric US market is a more natural fit than the UK. Just hoping these sky-high target prices are grounded in reality.

Can anyone explain the reason this companies product offering is so compelling?

[paleje] 09/6/2016 16:13

Cannacord and Finncap have both reiterated their buy targets with 180 and 175 respectively.

[sharw] 07/6/2016 13:21

Looks like a shortage of sellers - last 4 trades at 113, 114, 114.9 and 115p.

ST's fair value of 155 could prove modest - the share price was above that before the warning on sales execution and the following from yesterday's statement suggests the problem has been resolved:

"Amino's new differentiated portfolio, encompassing the twin growth drivers of hybrid TV and cloud services, is now being driven by a unified and expanded sales team with encouraging early market traction and improved pipeline visibility".

So that's well done to Steve McKay - from the December trading statement:

"Amino has restructured its sales team to address the problems in execution experienced in the second half of 2015. The new integrated sales organisation across the Amino and Entone businesses will be led by Steve McKay, who led Entone's international expansion and successfully secured a number of Tier 2 customers, including Cincinnati Bell, in his former role as CEO of Entone Inc."

[tromso1] 07/6/2016 12:06

ST rates a buy and says - "my 155p calculation of fair value implies 50 per cent share price upside."

[cockerhoop] 06/6/2016 23:07

Faster turnaround than I was expecting after the appalling H2 the original part of the business had last year.

[srichardson8] 06/6/2016 15:15

IC says
Amino Technologies (AMO) has reported that trading remains encouraging with record order intake in the first half and an 'encouraging' pipeline for the second half. We retain our buy rating.

Bully for them and roll on July 11th

[pippin6] 06/6/2016 14:35

Thanks Guys, appreciate your time.

[speedsgh] 06/6/2016 14:04

Historical yield is 5.2% (2015 DPS: 5.50p). Forecast DPS for current FY is 6.05p which gives prospective 5.7% yield (based on buys currently going through at c106p).

From today's rns:
"The Board is pleased to confirm that it intends to recommend an interim dividend of 1.391 pence per share (H1 2015: 1.265 pence per share), representing a 10% year-on-year increase. This is in line with the Company's commitment to pursue a progressive dividend policy of no less than 10% growth per annum, up to and including the year ending November 2016. Further details on the interim dividend will be given at the time of the Company's interim results announcement on 11 July 2016."

TOTAL FY 2014/15 - 5.50p
final - 4.235p/share (paid Apr 16)
interim - 1.265p/share (paid Sep 15)

[imranawan] 06/6/2016 13:22

Yep - yield just over 5% at the current share price. Should provide some support at around these levels.

[pippin6] 06/6/2016 13:12

Am I right in thinking about a 5% yield here too ?

[paleje] 06/6/2016 11:38

Brexit, US rates, emerging economies, global stagnation, lots of things keeping investors from investing but it seems a sound company with good products and now they've got sales back on track so it might be slow but it should recover at least some of its lost ground imo. IC were keen on this so might get some coverage this week.

[varies] 06/6/2016 09:10

the 5% rise in the share price seems modest, considering how far it has fallen in the last 12 months