Batm Advanced Communicat... Share Discussion Threads

[deeker] 28/6/2021 08:36

If it goes to current form it will trickle back down during the session

[wizzkid211] 28/6/2021 08:25

2p div would cost BATM 8.8m not a strain on the cash pile...

[picsous] 28/6/2021 08:22

Is it ST? When was the IC note released on Friday? And why did TASE not react yesterday? And why is XAR down?

[rawdeal1] 28/6/2021 08:13

400,000 shares in 10 mins and up 5.... fill yer boots.

[paulisi] 28/6/2021 08:08

ST has influenced the markets again. Nice jump, high volumes.I suspect it cannot be sustained though.

[sev22] 26/6/2021 19:12

wizzkid211 - there were three further paragraphs to the article further down the page.


After adjusting for BATM’s net funds of $47m (7.7p a share) and the recent receipt of $28m (4.6p) from a non-core business disposal, the company has an enterprise valuation of £298m, or 17.8 times house broker Shore Capital’s cash profit estimate of $23.2m (£16.7m), up from $19.7m in 2020. That’s hardly an excessive multiple for a company that is creating a highly valuable high-margin revenue stream from its NFV technology, and one that has a growing revenue stream from its diagnostics business.

Furthermore, after deducting depreciation, amortisation and finance charges, Shore expects BATM to increase current-year adjusted pre-tax profit by more than a quarter to $17.3m and boost earnings per share (EPS) by a third to 3.04c. On this basis, the shares are rated on a cash-adjusted price/earnings (PE) ratio of 31, a multiple that could drop sharply over the coming years as BATM’s high-margin income streams scale up.

So, with the fundamental investment case strong as the forthcoming interim results will highlight, and a technical share price rally on the cards at the very least, I feel that BATM ticks all the boxes at this juncture. The holding is showing a 345 per cent return since I included the shares in my 2017 Bargain Shares portfolio and if you have been following my commentary I feel there is a good chance to double your money at the current entry point. STRONG BUY.

[wizzkid211] 26/6/2021 18:48

BATM Advanced Communications (BVC:80.4p), a provider of medical laboratory systems, diagnostic kits, cyber security and network solutions, has issued a raft of positive announcements since I covered the annual results even though the share price has continued its retracement since hitting a 19-year high of 150p in July 2020 (‘Running bull market winners’, 24 February 2021).

BATM’s share price is now at an important juncture, testing last autumn’s 78p low point and I strongly feel that the odds favour a rally from what is an oversold position (14-day RSI of 34) ahead of interim results later in the summer. I have good reason to think this way.

Last year, BATM doubled cash profit to $19.7m on 48 per cent higher revenue of $183.6m, a performance that massively exceeded analyst expectations and one driven by high demand for the group’s Covid-19 antigen and antibody tests. BATM is clearly building on this stellar performance. In the first half, BATM launched a non-invasive no-swab saliva-based Covid-19 test that uses the RT-PCR technique and has 100 per cent accuracy for both sensitivity and specificity, thus negating the false negative readings that can arise with lateral flow tests in the market. The test is being produced at the group’s Adaltis manufacturing facility in Rome and BATM commenced deliveries to schools and care homes last month. It has also been endorsed by the Italian Olympic Committee which will use BATM’s testing kits at next month’s Olympic Games.

In addition, Adaltis has jointly developed and launched an easy-to-use rapid lateral flow test that gives results in 8 to 15 minutes and has demonstrated sensitivity above 95 per cent in validation testing. It is being sold under a revenue share agreement with Gamidor Diagnotistics, which I understand is looking to establish another production line in Europe.

It’s worth noting, too, that BATM’s cyber security division has just landed a $4.1m (£3m) contract with a longstanding government defence department customer, highlighting the ongoing strong recurring revenue stream from this activity.

The group is also integrating its cyber solution into its cutting-edge network function virtualisation (NFV) technology that has been developed for the telecom’s industry. In layman’s terms, NFV decouples the network functions, such as network address translation, firewalling, intrusion detection, domain name service (DNS) and caching from proprietary hardware appliances so they can run in software. It’s designed to consolidate and deliver the networking components needed to support a fully virtualised infrastructure – including virtual servers, storage and even other networks. The importance of NFV should not be underestimated as it’s going to play a critical role in supporting the services 5G network operators will be able to offer their customers as they roll out their infrastructure.

In addition, BATM’s NFVTime technology has been integrated into albis-elcon's new service delivery platform, uSphir. albis-elcon is the premier brand of UET United Electronic Technology AG (XETRA: UET), a publicly listed German technology group that delivers products and services to help international communication network providers (Deutsche Telekom, Orange, Telecom Italia, and Telefonica are customers) operate networks more efficiently and reduce energy requirements.

albis-elcon developed uSphir to enable telecom operators to create virtual software-based networks (using BATM's operating system) and offer virtualised business services to their end customers. albis-elcon has a strong position amongst tier 1 telecom operators in Europe and Latin America, so the partnership will enable BATM to extend its global reach into those end markets. In accordance with its business model, BATM will receive a monthly license fee for each end point deployed by a customer.

Importantly, BATM has revealed that it has started generating revenue from its licensing NFVTime strategic partnership agreement with Hong-Kong-based PCCW Global. The Asia-based Tier1 is present in more than 160 countries and in 3,000 cities in the Americas and EMEA, thus giving BATM access to potentially thousands of possible customers.

Analysts at Stifel Europe estimate that the PCCW contract alone could generate $3m of revenue in 2021, before scaling to $10m in 2022 and $15m in 2023 based on a 5 per cent market share. It is set to be a highly profitable income stream, too, as analysts estimate BATM will earn an 85 per cent gross margin on this new revenue stream. Clearly, if BATM lands more Tier 1 contracts then it could scale up rapidly, a possibility that is simply not in the price. Indeed, if BATM signs one Tier I contract per year alongside some mid-small contracts then Stifel’s bull case scenario points to NFV revenue exploding to $10m in 2021, $26m in 2022 and $50m in 2023.



Simon Thompson's 2017 Bargain shares portfolio performance

[fse] 26/6/2021 15:24

Interesting update from ST....

The testing scenario looks set to be with us for a while and he mentions the latest tests from Adaltis. Its worth stressing that these are approved/certified tests out of R&D and in the market for sale.
This is validated by looking at the various websites that show them for sale.
My take on it all is that the medical division has grown considerably and the whole operation is a much larger entity.

In addition to reminding us what the company have recently announced and the fact they are oversold he does dwell on Telco NFVTime for a while.
He correctly highlights that NFVTime revenue from licensing attracts very high margins >85% and will start contributing to revenue in increasing volume as new technologies need this in place to operate.
Again a lot of what Telco have been developing is now in the market place from drawing board to sales.

I would add that BATM are well funded and these new product/advancements have been developed in house within existing R&D budgets with no dilution to shareholders.

Market sentiment is as we all know impossible to call, hopefully this will change particularly as BATM are operating in high growth areas. The value of their IP is severely understated. IMO.

Not much to add to ST remarks which I am in broad agreement with.

Added link. Israel moving to 5G at warp speed, we will see a lot more 5G rollout intensifying as the pandemic eases and technicians can get out again.

[nellyb] 26/6/2021 09:00

volsung, you will be back.

[volsung] 25/6/2021 20:35

Nah out of bvc for the time being FSE

[wizzkid211] 25/6/2021 20:26

TASE Sunday...

[toptomcat] 25/6/2021 19:47

Hold tight on Monday morning. This stock is going to shift. Double your money from current levels. ST with a STRONG buy tip tonight in the IC.

[fse] 25/6/2021 01:34

R u out or just out and about?

[volsung] 22/6/2021 10:11

Think I should boycott all Israeli shares
They've been nothing but a drain on my portfolio for years
That's me out for now again

[paulisi] 22/6/2021 07:29

Just watched the Avacta presentation.The difference between the two companies is that Avacta have test kits and a potential cancer drug, whereas BATM has multiple sources of revenue in both medical and telecoms.Avacta see test kit demand for next 3-5 years, so this should be reflected in BATM outlook as well.

[icemaninvestor] 22/6/2021 05:11

Thanks for the kind words. I think companies with the best tech like BATM and Avacta will profit from infectious diseases for years to come. Too many low quality tests etc out there got Emergency Use Approval as governments panicked, but soon the wheat will be sorted from the chaff and only the best tech will remain standing.

[fse] 22/6/2021 01:07

Ice man. Glad to hear that. Avacta IMO is a high risk play. Certainly not a rubbish company but they need to get sales. The whole infectious disease mkt is huge because we can’t afford to lock down like this. Hope they both do well but politics has played too large a role. Cheers

[icemaninvestor] 22/6/2021 00:49

Hi FSE, I'll just correct you there. I sold the bulk of my BATM shares last summer at an average price of £1.12 and I bought Avacta at an average of £1.35. I did this because through the summer of 2020 the market thought BATM would be a serious covid player but it became clear to me that it wasn't going in that direction so I switched the majority of my holdings to Avacta. I retained a small holding in BATM to keep it on my watchlist and my target price remains 60p.

Here is my post dated 20th Aug 2020:

icemaninvestor - 20 Aug 2020 - 02:21:54 - 17388 of 18609

Just thought I'd share with everyone some details about another company producing a Covid test similar to the one BATM are developing with Novamed. A company called Avacta (listed on AIM) have produced a saliva based test (no swab required) which gives results in minutes. This will be a game-changer and approval for use is imminent.

The following website lists Covid tests in development and approved. If you search for viral antigen, lateral flow, saliva, self-test you will see that Avacta are the only company in the world that has developed such a test. This website is great for tracking BATM covid test approvals too, you will find one of the Adaltis tests listed here.



I know share tips are annoying, but it's good to get intel on the competition. I am invested in both BATM and Avacta.

[emeraldzebra] 21/6/2021 16:41

homeboy....it already has !

[onjohn] 21/6/2021 16:07

Support at 40

[fse] 21/6/2021 15:50

Amen to the above.

[lsoc85] 20/6/2021 22:10

He definitely seems pleased with the biomed division: "It goes from strength to strength". And this makes up 70% of the PLC's revenue. Marvellous.

But unfortunately the message isn't getting through to investors. News of a progressive dividend and/or an earnings explosion with a sustainable growth outlook is required sharpish.

Just a progressive dividend would do actually, starting around 2.5p, as this would confirm his confidence in sustained earnings growth.

Hopefully it comes soon because it's starting to feel like the Mary Celeste.

[fse] 20/6/2021 21:34

Just no volume on either exchange @100,000 shares traded.
MM's walking this down on low volume to find buyers.
Doldrums for sure at the moment.
As far as a TU goes its worth listening to the latest Marom interview posted a few days ago.