Batm Advanced Communicat... Share Discussion Threads

[echoridge] 26/8/2022 12:45

Why does everything have to be so fraught with you all the time? Of course they can do meetings with potential investors now that results are out, while still having internal reasons - for now - to continue to delay on the buyback. Any sensitive subjects, like Why are you not buying back shares? could be off-limits, etc. However, there is also the possibility that any relevant issues are resolved before they go on the road, as it were. There is also the possibility that my whole scenario is wrong; I did say it was only a preferred theory.

[kooba] 26/8/2022 12:37

So you think they are restricted still so reason for no buyback..but you say they are going out doing roadshows. I get ya.

[echoridge] 26/8/2022 12:15

1. I didn't say the SOTP is anywhere near those levels. I implied quite the opposite in fact; basically that the SOTP is significantly higher so at that these entry levels, investors have that discount as a material comfort. 2. again: the city fibre deal is not done so, in my view, the now (semi) radio silence (at least as it applies to the buyback) continues, though the Company in multiple places has guided that they are confident a more formal contract will get over the line, hopefully (much) sooner rather than later. I've written several times now that that is my preferred theory why we still have a degree of circumspection from the Company in their PR and of course, the buyback.

[kooba] 26/8/2022 12:08

“The almost distressed sum-of-the-parts valuation should prove an attractive entry point for some fresh eyes, regardless of whether its 27 or 30p or even higher.”

You think sum of the parts 27-30p..i would have thought higher myself.
So we think whatever reason for the apparent six month restricted period is now over, no Cityfibre second part , no acquisition no positive corporate development at all , no gaming to do the buy back low if they are off on a road show to remote the shares.
Equally no privatisation , no d list nothing negative apart from the FX movements and the awful headline numbers..soon to be made good in the second half.
So why the silence , why no but back why no subsid updates.
Was something going on now discontinued or were they just burying their heads as they saw how the first half was panning out.
No questions no answers.

[homeboy] 26/8/2022 12:06

'huge volumes',,,, hardly,,, get a grip and keep it real

[paulisi] 26/8/2022 12:06

https://www.investorschronicle.co.uk/ideas/2022/08/25/on-the-hunt-for-tech-bargains/

[echoridge] 26/8/2022 12:00

The Thompson note and the (semi) break in the radio silence (at Shore Cap as well as the Company) has brought in some decent buying by several investors, paulisi. Knowing the Company is going out to more formally promote the story over the next few weeks to some proper institutions, should keep the market decently well bid for more than just today, but we shall see (starting of course with this Sunday's trade in Israel!). The almost distressed sum-of-the-parts valuation should prove an attractive entry point for some fresh eyes, regardless of whether its 27 or 30p or even higher.

[paulisi] 26/8/2022 11:50

Huge volumes...,

[car1pet] 26/8/2022 09:18

Thats because he hasn't got a clue

[kooba] 26/8/2022 09:18

Zvi always looks happy he has no challenge has never made an overall profit by some margin in over 25 years and takes $1m out a year..what's not to like!

[landskermichael] 26/8/2022 09:04

Just keep topping up and forget about bvc for a few years , this is where you make money buying when its oversold , zvi didn't look worried at all , he knows 😊

[kooba] 26/8/2022 08:56

A year is a long time in financial journalismhttps://www.investorschronicle.co.uk/ideas/2021/08/23/bargain-shares-on-the-earnings-upgrade/

[fse] 25/8/2022 21:40

Thanks.... see if lines up with this

Bio Med Division revenue


FY 2018 62.1M (pre covid)
FY 2019 64.4M (pre covid)
FY 2020 128.7M (est Covid sales 45% of total)
FY 2021 112 M (est Covid Sales 30% of total)
FY 2022 105M (est Covid 10% of total) *assuming shore reduced est. for FY 2022

What I am seeing is that the Bio Med division is close to replacing the Covid sales with extra business from the other molecular kits and thats exactly what they wanted to see happened and thats where the sustained growth is.

[echoridge] 25/8/2022 21:26

I will try and get u an answer to that soon, fse

[fse] 25/8/2022 21:12

Decent take echo although in BATM case ST really does know the company and has been following them for a long time. I figured he would say something sooner than later as it's a chance to take credit for an opportune entry point.
BATM is at an inflection point at an inopportune time but they do have cash and do generate a profit so they are able to ride it out. As ST commented there is a lot of carnage in the tech sector.
I would like to know in the Bio Med diagnostics section what % of molecular tests were Covid and whats the total for the remainder.

[nellyb] 25/8/2022 20:43

carpet, i hope you do. A profit is a profit.

[kemche] 25/8/2022 20:25

He constantly makes it up as he goes along.
And always wrong.

[echoridge] 25/8/2022 20:20

Thompson is more right than he realises. Just adding in the market value of their research facilities at wholly owned properties in Rome and Boston to the cash and you practically own the operating businesses for free. More important of course is his reminder of what the management said about H2. From the original RNS that announced the CityFibre-Egility pilot program, to the confidence about H2 in yesterday’s interims, to Thompson’s note, to the share buyback that remains open but inactive, in my view the Company has genuinely tried in many ways to reassure that this ‘pilot program’ will soon evolve into a formal contract. Meantime, word on the street is that - finally - Shore Cap will be taking management around to present the evolving growth story at BVC to institutions and HNWs in early September (likely preceded by updates to Israeli investors even sooner) and hopefully that will help clear up some of the remaining loose stock around from the the TA125 ejection. Everyone will make their own investment/divestment choices of course, but for me, selling at these absolutely silly valuation levels at a moment of multiple, significant opportunities for the company, would be severely misguided.

[car1pet] 25/8/2022 19:28

Simon Thompson bounce tomorrow for a few days. Maybe an opportunity to sell

[sev22] 25/8/2022 19:19

On the hunt for tech bargains.

August 25, 2022
By Simon Thompson

BATM’s recovery potential.

*First half operating profit falls from $6.7mn to $1.5mn on lower revenue of $57.5mn.
*Impact of dollar strength leads to small profit downgrade.
*Net cash of $42.7mn (£36.3mn) equates to 31 per cent of market value.

Interim results from BATM Advanced Communications (BVC: 27.5p), a provider of medical laboratory systems, diagnostic kits, cybersecurity and network solutions, reflect the impact of the strength of the US dollar against local currencies, lower Covid-19 diagnostic sales and the disposal of a non-core business.

On an adjusted basis, first half operating profit declined from $6.7mn to $1.5mn on 10 per cent lower revenue of $57.5mn, the profit impact being far greater proportionally than the decline in revenue as Covid-19 products enjoy much higher gross margins. However, there are reasons to believe that the share price de-rating is overdone with BATM priced on 1.2 times book value even though net cash of $42.7mn (8.5p a share) accounts for 30 per cent of its £121mn market capitalisation.

For starters, BATM entered the second half with a significant order backlog to deliver especially in its cyber security unit, which is being buoyed by government agencies increasing licencing of its encryption products. Having landed a series of high value contracts including an $18mn award with a long-standing defence department customer last year, the geopolitical backdrop couldn’t be any more favourable for winning further contracts. BATM’s edge computing and network function virtualisation product suite, Edgility, is gaining traction, too, and is now generating revenue. Post period, CityFibre, the UK's largest independent carrier-neutral full fibre platform, selected Edgility for piloting ahead of an expected national deployment.

Importantly, the directors are guiding shareholders to expect the group’s bio-medical division to return to growth in the second half, and to be the largest contributor to group's revenues for the full year. In the first half, the division’s operating profit declined by 70 per cent to $2.9mn on 20 per cent lower revenue of $44.4mn.

Dollar strength is an issue, accounting for $3.6mn of the first half revenue decline. Analysts at Shore Capital expect an $11mn full-year currency impact, lowering their 2022 revenue estimate to $147mn and clipping their Ebitda (earnings before interest, taxation, depreciation and amortisation) and pre-tax profit forecasts in by $1mn to $17.1mn and $11.7mn, respectively.

This implies BATM is being valued on a modest six times forecast Ebitda to enterprise valuation (market capitalisation less net cash), and on a cash-adjusted price/earnings (PE) ratio of 15. These multiples fail to factor in an anticipated 15 per cent rebound in group revenue to $168mn next year (as cyber, networking and bio-medical contracts scale up) which underpins expectations of a 45 per cent increase in Ebitda to $24.8mn and 63 per cent higher pre-tax profit of $19.1mn. On this basis, the cash-adjusted forward PE ratio is only 8.6 for 2023.

So, although BATM’s shares have been de-rated since the annual results (‘Bargain hunting in the tech carnage’, 21 February 2022), as has been the case with the technology sector on both sides of the Atlantic, I see recovery potential at such a depressed rating. BUY

[fse] 25/8/2022 18:34

I agree despite what you might think that the company are not impressive in the Sales and Marketing department. Now they have developed the product they need to get it out there. Its something I see as a weakness largely as they morph from R&D to actual sales. What they do need is more strategic partnerships the likes of Advantech and Nexcom who if they like the product and adapt it into their offering to their clients.

There has been genuine progress in developing the ideas ready to market but 100% agree the sales need to follow.
Thats the point the seem to phase out at.
The company barring this last period was on a decent growth rate for the last 5 years but this was on undemanding volumes, they say they will make up significant ground in H2 and they ought to be able to get back on track but it is going to take a shake up in the sales approach.

[car1pet] 25/8/2022 17:56

FSE I think you will always believe in this company and of course that is your choice. I attended the webinar and watched the 3 amigos recite their speeches and deliberately take no questions.When you consider how badly the shares have performed the shareholders deserved more honesty.
The telco man used the word "hope" with regard to the city fibre pilot. He gave me no confidence that he was convincing cityfibre to stay with Batm. Its a highly competitive market. Just because the product is technically good does not mean orders will result. It needs constant selling to turn a pilot into an order. I just don't see the sales mentality in this board.. Technically the company may have good products but that is not enough. Successful business results from having a strong sales mentality and I'm afraid Marom and the telco guy are clueless with regard to sales.its a very tough market and without a hard nosed board driving sales batm will drift on. I'm very annoyed wuth myself that I didn't get out 12 months ago. I live in hope that it will be taken over and I'll get 40p oer share. That's it I'm sfraid

[kooba] 25/8/2022 17:39

Or the media put it another way "News BATM Advanced interim profit sharply drops due to Covid decline (Alliance News) - BATM Advanced Communications Ltd on Wednesday reported its half-year profit ...Alliance News24 August, 2022 (Alliance News) - BATM Advanced Communications Ltd on Wednesday reported its half-year profit fell dramatically, as revenue plunged on lower demand for Covid-19 related products.Pretax profit in the six months to June 30 fell to USD611,000 from USD19.8 million a year prior. Revenue contracted by 20% to USD57.5 million from USD71.4 million."Not sure that draws the punters in !Think there needs to be a lot of work in getting contracts for new products demonstrating traction beyond piloting and a lot of work in trying to bring in new investors ..they have had a perfect storm of a first half true but their communications and messaging has been missing in action and their refusal to reply to shareholders and refusal to have any questions at an extremely short notice presentation appears that they are burying their heads in the sand around communications.Churning out the same old lines , zero addressing the share price which any company would comment on after such a disastrous performance. Unfortunately many that hold the name have their own investors or performance to worry about too and holding dogs doesn't help.Seeing Zvi smiling away as his share price collapses talking camels not unicorns does help the picture.