Batm Advanced Communicat... Share Discussion Threads

[car1pet] 04/9/2020 11:55

Tech stocks got hit yesterday in the US so could be suffering from that

[emeraldzebra] 04/9/2020 09:15

read straight line !

[emeraldzebra] 04/9/2020 09:06

The old cliche about nothing going up in straight rings true here. But think we will be back on an upward track very shortly. DocCash so right - like to hear more positive RNS announcements.

[car1pet] 03/9/2020 21:17

Everything fell towards end of day as the market started worrying. I don't think there is anything BATM specific about the fall. Could just as easily bounce up tomorrow if the market mood changes.

[doccash] 03/9/2020 20:35

I think the current news is in the price. This means the shorters feel they have an opportunity to drive the price down. Good luck as I feel BATM have the likelihood of regular RNS announcements which will drive the price up

[paulisi] 03/9/2020 17:32

And the price going the wrong way...

[wizzkid211] 03/9/2020 16:51

5 million shares traded today between Tel Aviv and London

[fse] 02/9/2020 18:18

Heres the August 17th report that was updated just recently from a run profits (hold) to a Buy.....its in the public domain now FWIW
The NFVTime contract with a Tier 1 on an Intel platform is a dedicated win which is why its just so important.....


BATM Advanced Communications (BVC:126p), a provider of medical laboratory systems, diagnostic kits, cyber security and network solutions, has issued bumper first half results, upgraded full-year earnings expectations for the second time in as many months, and issued a bullish trading outlook. Moreover, with a bumper net cash pile of US$39m buoyed by first half operating cash inflow of US$4.4m, the board now expects to reinstate its dividend policy.

First half revenue soared by more than a third to US$77.4m driven by BATM’s bio-medical division, which reported operating profit of US$4.2m on revenue up two-thirds to US$50m. BATM is a major winner from the Covid-19 pandemic, having acted quickly to launch a new diagnostics antigen molecular test kit to detect Covid-19 and a lab serological test kit that diagnoses if a patient has had Covid-19 by detecting antibodies in their blood. BATM has already shipped several hundred thousand test kits, has a backlog of more than 1m orders and is enjoying robust demand for its instrument readers. In partnership with Israeli life sciences company Novamed, BATM is also developing a rapid Covid-19 diagnostics antigen test kit for home use (results within minutes from a sputum sample test) which will be available for sale next month.

In addition, BATM has just launched a new molecular diagnostics test kit that can identify in less than one hour the cause (pathogen) of a respiratory illness, enabling the correct treatment or action to be rapidly implemented. It can detect all prominent respiratory viruses as well as the bacteria that cause serious pulmonary illnesses and a secondary infection of Covid-19, such as pneumonia and Legionnaires' disease. The ability to identify the cause of a disease is important ahead of the coming winter when seasonal colds and flu could appear alongside Covid-19 meaning that patients will present with similar symptoms.

Analysts at house broker Shore Capital upgraded their full year cash profit estimate by 11 per cent to US$14.6m (US$10m in 2019) based on 32 per cent higher revenue of US$162m, a result that will drive up annual operating profit by nearly 90 per cent to US$9.2m. Prospects for 2021 are even brighter when you consider the progress BATM is making in 5G. The group's network and cyber security division is accelerating the network function virtualisation (NFV) ecosystem project in partnership with Softbank-owned chip designer Arm Holdings. Vodafone (VOD) is just one of the tier one telecom operators that has conducted successful proof-of-concept trials of the technology which will enable network carriers to deploy their own virtualised software-based networks. BATM chief executive Dr Zvi Marom says the likely acquisition of Arm by US chip maker Nvidia (NVDA) would be very positive for BATM.

The shares are up almost 600 per cent since I included them in my 2017 Bargain Shares portfolio and now trade on an enterprise value to cash profit multiple of 46 times. I maintain the view (‘Bargain Shares opportunities’, 29 June 2020) that BATM is in the early stages of a strong earnings upgrade cycle and one that could see significant value added to its intellectual property. Run profits.

[car1pet] 02/9/2020 17:26

Decent volume today 1.7m trades

[unctuous] 02/9/2020 10:35

I wonder how the 9m shorts (TASE) are feeling now? Squeeze coming??

[nellyb] 02/9/2020 10:11

Did anyone find simon Thompson's note of the 17th August?

[icemaninvestor] 02/9/2020 07:19

No worries, FSE. TBH, I found the article from the BATM twitter feed. Well worth following if you have an account.

Thanks to deltaham for posting the IC article, makes great reading.

I know I've been critical of the BATM Covid effort in terms of number of tests being manufactured, but credit where it's due with the NFV news.

[fse] 02/9/2020 01:26

The ice man cometh bearing good news. Good spot on the article 👍

[rawdeal1] 01/9/2020 23:28

Brilliant couple of articles ... thanks Guys :)

[icemaninvestor] 01/9/2020 22:41

BATM is one of the top 5 stocks in the UK set to benefit from the rollout of 5G

[deltaham] 01/9/2020 21:46

Here's the impressive article:

Profiting from 5G

BATM Advanced Communications (BVC:135p), a provider of medical laboratory systems, diagnostic kits, cyber security and network solutions, has made an incredibly important announcement since I covered the interim results (‘In search of value opportunities’, 17 August 2020). It’s one that has prompted me to upgrade my run profits stance on the shares to an outright buy recommendation.

That’s because the company has signed up its first tier 1 customer for the group’s NFVTime virtual networking solution. The cutting-edge technology enables network carriers to remotely deploy their own virtualised software-based networks and operates on both Arm-based and Intel-based architectures.

The customer is a leading Asian telecommunications provider that serves enterprise and wholesale customers in more than 160 countries and 3,000 cities across the Americas, Asia, Europe, Middle East and Africa. It has licenced BATM’s NFVTime operating system for a minimum of three years. Analysts at house broker Shore Capital estimate that the market for virtualisation services “stretches into tens of billions of dollars” and revenue from the new tier 1 customer has “potential to scale into a multi-million dollar, recurring base over the next five years.”

It’s incredibly high margin, too, with gross margin “building up from the 80 per cent range”. That’s a significantly higher margin than BATM makes on its traditional carrier Ethernet products. Moreover, expect further contract wins to be announced as other large tier 1 customers adopt the technology, given that NFV is a critical element in leveraging the benefits offered by 5G and Internet of Things. This highlights the potential for BATM’s revenue and cash flow to scale up rapidly.

Not surprisingly, investors have reacted positively to the news. BATM’s share price rallied 15 per cent following the contract win taking the total return on the holding to 650 per cent since I included the shares in my 2017 Bargain Shares portfolio. I now feel that the earnings upgrade cycle I previously highlighted is poised to accelerate. I also feel that BATM is a US$1bn market capitalisation company in the making, implying a new target price of 171p. A cash profit multiple of 50 times to enterprise valuation may not seem a bargain, but given the high margin nature of BATM’s revenue streams, and the way it is monetising its patent protected IP, that multiple could drop like a stone if further NFV contracts are secured.

From a technical perspective, a chart break-out above the 19-year high of 150p would confirm the next up-leg in the share price is underway. On a bid-offer spread of 134.5p to 135p, I rate BATM’s shares a buy.

[1findlaydarr] 01/9/2020 21:27

Thank you.Can you please copy and paste his comment here?

[paulisi] 01/9/2020 16:57

Excellent article - link belowhttps://www.investorschronicle.co.uk/comment/2020/09/01/bull-market-pointers/171p target and very bullish...

[fse] 01/9/2020 15:30

Thanks wynmck that update is well worth reading. ST rates the NFVTime win as the largest driver and I would agree. One observation would be over margins which you would think would be high once the development is paid for.
This brings us back to another key feature that BATM have developed all of this in house
I have to say I am impressed that ST updated his recent Aug 17th comment to reflect this win and as he says this is a $bn company in the making and it might not take as long as we expected. There is what can only be described as a Tech Frenzy going on at the moment largely driven by work at home and anticipated larger scale 5G rollout.

[wynmck] 01/9/2020 15:08

google investorschroniclebullmarketpointers
and scroll down for todays comment

[1findlaydarr] 01/9/2020 14:38

Please do you have a link to ST?

[fse] 01/9/2020 14:32

I understand ST called BATM a hold on August 17th and to run profits. He gave a very positive report highlighting the advanced test kits that differentiate between pathogens for coming flu season. He specifically like Zvi mentions increased sales of instrument readers which I agree is a big deal.
Telco win was mentioned in the context of 5G.

Was not aware of his upgrade to a BUY after this report. FWIW I feel ST has a real handle on this and anyone who followed his tip would have made a substantial profit.
I had a range up to 135p just recently and this is looking like it will be eclipsed.

The principle reason I feel they are still on a charge is due to the large % of late stage tech they have in their possession. So many avenues are coming together at the same time. I also did not expect Telco to be so advanced at this stage. Virus was good for something as it raised awareness for working at Home and accelerated 5G rollout.