Batm Advanced Communicat... Share Discussion Threads

[kooba] 20/9/2022 11:32

A few important public holidays coming up.https://info.tase.co.il/Eng/about_tase/corporate/Pages/2022.aspx

[wizzkid211] 20/9/2022 10:14

Only 4 trading days until the 2nd October on TASE.

[kooba] 20/9/2022 06:56

Today Batm tweet on cyber..obviously big potential overlap with Edgility on networks i guess.https://twitter.com/batmltd/status/1572099529763323905?s=21&t=wXFfonqmcpAq486nC60bRw

[kooba] 16/9/2022 16:59

The market is sceptical on much in emerging tech at the moment some valuations got well ahead of themselves and there will be some serious down rounds to come. BATM is not in that position , they do not have to go cap in hand and in my view the inherent valuations of it various subsids certainly in its current market cap are far from overvalued and are likely highly undervalued. The first half adjustments in revenue and EBITDA are pretty modest for the full year and are really just shaved for the currency impact ( fx still an issue though) it would have been the opportunity to bring things down more if they were not confident of the outcome i reckon..so i think current year should be fine..it is 2023 that needs to fall into place.Some decent contracts before the current year end boosting the order book would underline year out forecast.Look its been an awful year for the company much of which was outside of their control ..but they need to get on the front foot and show inflexion points are indeed here ..and not priced in. They also need to step back engage better with the folks that own the company ,simplify the structure and decide if the combination of businesses offers the best for shareholders or whether some strategic unbundling would offer valuation uplifts.

[fse] 16/9/2022 16:48

Kooba post 21590 .... Yes they are actually in a potentially very strong position, its theirs to F up.
"potentially !"
Good post.

[fse] 16/9/2022 16:39

BATM H1 2022 revenue might be better assessed in this context. Tech stocks share price in general might have started to recover but the earnings tell a different story.
The markets are IMO priced for an apres Covid recovery which is optimistic.
I dont know what the current situation is in the UK with interest rates but you can get typically 4% return on a GIC or equivalent. That coupled with a weak economic outlook could see a run to cash.
As I mentioned earlier I am out of the markets other than a very few specialized plays of which BATM is the largest holding.
My view for that is that BATM have sufficient cash to move their IP development and marketing forward.
I have to side with the FedEx CEO view we are heading for a Global recession.
End to the war might be the wild card to pull us back from the brink.
All IMO

"US stocks fell on Friday morning after FedEx served investors a brutal pre-earnings announcement about the state of the global economy.

The Dow opened 324 points, or 1.1%, lower on Friday. The S&P 500 fell by 1% and the Nasdaq was down 1.3%.
Shares of FedEx dropped 24% after the company withdrew its full-year guidance late Thursday and warned that a slowing economy will cause it to fall $500 million short of its revenue target. The weakening global economy, particularly in Asia and Europe has hurt FedEx (FDX) (FDX)'s express delivery business. The company said demand for packages weakened considerably in the final weeks of the quarter.
During an interview Thursday on CNBC, FedEx CEO Raj Subramaniam was asked if he believes the slowdown in his business is a sign of the start of a global recession.
"I think so," he responded. "These numbers, they don't portend very well."
Transport stocks are thought of as a leading indicator for the market at large, and FedEx in particular is seen as a market bellwether. The announcement could contribute to broader declines in a market that's already heading for a big losing week.
All three major indexes are now on track for their fourth losing week out of the last five."

[car1pet] 16/9/2022 16:36

In my view if the market believed the Shore numbers the price wouldn't be where it is. At the moment, clearly as the price shows, the market does not believe the forecasts and has no confidence in the business plan/strategy. Kooba I disagree with you about a takeover. Lombard must be looking at this investment and thinking that their funds can be invested better elsewhere so if someone offered a breakeven price for their investment, my bet is they would take it. Marom holds 22% ( I think ) so he could not defend a takeover himself. He is the CEO and is obliged to act on the best interests of the shareholders so if over 50% of shareholders vote for a takeover he has to accept it.
Not sure who would want to buy a company which is 80% medical and 20% telco. It could be split with the telco piece being the most understandable business to me, so could be sold separately. The medical business is a dog's breakfast so not sure who would want to buy it but maybe I don't understand it and there maybe a company out there who can see some of the business would fit their existing business

[kooba] 16/9/2022 16:23

One big advantage for BATM at the moment is they are fully funded and from buy back plans in fact must have excess cash it seems. The environment for funding pre revenue businesses has changed a lot and one can imagine much tighter finance available to private equity near term. The fact that BATM has finance to take these businesses through without recourse to shareholders is obviously a positive as trying to raise money from the market at the moment would be a struggle and highly dilutive. Possible Zvi smells blood on the streets and he thinks they could pick up a complimentary bargain with the cash hence no buy back..but as someone pointed out it would have to be a hell of a bargain to be better than buying their own shares if they deliver on what they promise.

[fse] 16/9/2022 15:24

>kooba.... Your post 21586 is right on the mark from what I have understood.
I have a few comments below to give a little further context.
I am not trying to pick it apart as I am in broad agreement with what you say.

I am aware of Shore figures which would be gleaned largely from the company itself as to what they both feel are achievable results. The expectations look reasonable to me.

Telco systems and Edgility is a long range development play and I do not expect them to contribute meaningfully to revenue until 2024. Even at this stage the revenue figures may not be that high but the profit on this revenue (margins) will be high and cumulative.
I would not rule out a take over of Telco Systems once the package had had further verification in actual deployment.

The company does have plenty of cash and does make a profit albeit trimmed down for this last year. Its worth mentioning because they dont have to go to the market to continue or further their aspirations.

The sum of the parts is extremely hard to quantify and influenced by them converting technology to revenue. Still its an indicator and if they were valued along the lines of a start up then we would be seeing an share price multiples higher. BATM are an established company so they are looked at differently even though the 2 main disruptive pieces of tech they have are only starting to achieve any revenue.

The first half H1 2022 was certainly not a blinder. As previously noted they did noticeably increase non Covid Molecular testing and that is something I really did want to see otherwise I would not be onboard.

I agree whole heartedly that the company has fallen short in so many general areas as to how to engage shareholders and demonstrate value.

[kooba] 16/9/2022 13:29

I think any outside takeover is highly unlikely and i cant imagine anyone even entertaining anything less that 50p...but there's always the privatisation route that might not be so generous.The company's shareholder base and structure mean anything hostile is a non starter in my view.

[kooba] 16/9/2022 12:31

Probably a bit mean but it’s all about delivery.
Current year on latest research Shore are looking at
‘22 Revenues $147m eps 1.5c
‘23 Revenues $169m eps 2.6c
‘24 Revenues $199m eps 3.7c

So although a drop this year they are expecting a pick up in next few years with mid teens revenue growth , this is not off the clock by any means and one presumes must not be factoring Edgility going from next to nothing to $100m of revenue in the next couple of years that i believe some think it capable of.
So could be conservative if the disruptive technology actually disrupts and gets traction sure.

However if one takes Shore numbers for 2023 eps put it on 15 times gives 39c ,20 times gives 52c we then have cash on top so one could see plenty of upside from here.
Valuing on sum of the parts might provide a higher figure but this is conjecture with a lot of moving parts and it does not appear pre real revenues where we are at with ADOR and Edgility that valuations would be that strong yet especially in current market.
Either one of those businesses could suddenly make a big difference in valuation though.
Back to start its all about delivery and the first half was not a blinder , far from it. If they are now back on track to meet the revised Shore numbers then one should expect a rerate , but the company has to try a bit harder on engagement and realise the share price does matter to many that own the company and is something to address.

[echoridge] 16/9/2022 12:26

you're very wrong...so there's hope!

[car1pet] 16/9/2022 11:38

My thoughts on the valuation of BATM for what its worth.
The cash and financial assets are according to the last report $47m which is around £41m at todays exchange rate (which is very favourable). So with around 440m shares that is worth 10p per share so the big question is what is the trading business worth?
annual profit say £30m so worth another 7.5p and IP say £10m another 2.5p so base value 20p and then whatever the trading entity is worth say another £20m another 5p.
So my crude calculation suggests the shares are worth around 25p for a "fire sale".
A takeover knockout offer is probably somewhere between 30 and 35p.
Quite depressing hopefully I'm very wrong.

[kooba] 16/9/2022 10:58

Think it could signal seller exhaustion ! The sellers have been very busy all year mind you! Rather think the company needs to announce something positive on commercialisation of new product Edgility firm business , ADOR anything , Cyber launch of products to commercial market or how about a buy back of 10% of the company that would kick start any recovery.

[car1pet] 16/9/2022 10:52

Only 5000 shares traded by 10.50 today. could this be the bottom?

[kooba] 15/9/2022 22:06

I think you will find they put up on their twitter account as they said to resistance1 who had already been looking at their twitter account..not sure myself how you are meant to put screen grabs on a BB.
Link for your ease. Not sure who should be embarrassed but try and keep up.

[pockstones] 15/9/2022 21:31

Dear Trade and FSE
Trade has posted fifteen times since February exclusively on Batm FSE over a 115 times since end of July
Both are playing the man not the ball. This company needs to answer the questions asked and the management ongoing refusal to do so suggests that shareholders are being misled
Share price confirms the same conclusion

[fse] 15/9/2022 21:25

Pockstoned another troll 🧌 spreading disinformation

[tradeterminator01] 15/9/2022 21:19

Rat - you have completely embarrassed yourself, what happened to posting these screen grabs? good luck spreading misinformation elsewhere... muppet

[pockstones] 15/9/2022 21:08

Check out corporate governance with Zvi and ask him for a written response to Shifty’s questions
A refusal to reply might be taken as admission of guilt as indeed the current share price should be

[fse] 15/9/2022 19:16

Jolly good let us know when you find something out.

[kooba] 15/9/2022 18:49

Why dont you call BATM CFO and ask all your questions or maybe call Shore CapitalYou've tried before and they ignore you like everybody else..do they know who you are FSE?? Probably do!