Calnex Solutions Share Discussion Threads

[redartbmud] 25/5/2021 19:21

Not surprised. The propspect of a flat 2022 is unappealing to the short term holders expext immediate fireworks. Life isn't often like that.

[masurenguy] 25/5/2021 18:05

Today saw the second biggest daily trading volume this year.

[middlesboroughfc] 25/5/2021 09:33

flat as a witches tit

[dr biotech] 25/5/2021 09:24

Great year on year results, but are they saying it’s going to be flat this year?

I’ve sold a few this morning. I feel the next good news won’t be another 6 months and think it made trade sideways until then. Decent company though and I’m surprised it was given such a lowly valuation on IPO

[redartbmud] 25/5/2021 08:45

Agreed long term hold.
I can understand sellers taking profits, but the sector is growing on the back of 5G roll out.
The company comment on FY '22 may prove very conservative.

[lsoc85] 25/5/2021 08:33

Hopefully the sellers clear out quickly.

For those with patience, this has got multibagger written all over it.

Market cap of >£500m within three years. IMHO

[masurenguy] 25/5/2021 08:07

Clearly there is some profit taking this morning with over 500,000 shares traded in the first hour compared to a daily average of circa 160,000. However, the shareprice is holding up due to buyers taking a positive longer term view based upon the accelerating 5G rollout.

[masurenguy] 25/5/2021 06:32

Good results and a positive forward outlook from an understating CEO but we may see a pullback this morning on projected PER for the current year.

"We are confident that our breadth of product offering, depth of customer relationships and the strong underlying market drivers mean Calnex is well positioned and we anticipate that results in FY22 will be consistent with FY21, representing further growth when taking into account the impact of COVID-19 on FY21 through accelerated revenues and travel savings. We see a significant opportunity for both organic and acquisitive growth in the medium term and look to the future with confidence."
Tommy Cook.

[hastings] 25/5/2021 06:22

Yes, also very happy with the results and content to be holding. Unable to catch up with management today, but I'm pencilled in for later in the week, so will add some comment again.

[rivaldo] 25/5/2021 06:19

Very good results, ahead of expectations in terms of revenues and particularly the 5.83p adjusted EPS (compared to the 4.6p forecast).

The £12.7m cash pile is way ahead of the £10.5m forecast.

I calculate the historic ex-cash P/E to be just 17.3, which is pretty low for this sector and with such prospects going forward.

It's good to see the increased emphasis in the narrative on earnings-enhancing acquisitions as well as organic growth from 5G, cloud computing etc.

The outlook is rosy in general, if conservative in the short term as usual in terms of this year being consistent with 2021, from this very prudent CEO. With some of the COVID-related gains being continued into this year, and with 5G etc accelerating, I suspect we may find that as per last year CLX are giving themselves a base from which to underpromise and overdeliver.

[zingerburger] 25/5/2021 06:17

lacklustre statement, can see it sell down on that

[masurenguy] 24/5/2021 22:17

Riv - if their results match the Cenkos forecast then they'll be on a trailing PER of circa 25 for the year just ended and, subject to a new broker forecast, a PER that is probably in the teens going forward. Currently one of my largest holdings, I'll be interested to see both the results and forward projections.

[rivaldo] 24/5/2021 21:36

For the record, Cenkos' forecasts to March'21 for tomorrow are for £17.3m revenues, £8.1m adjusted EBITDA, £5.5m underlying EBITDA, £5.1m adjusted PBT and 4.6p adjusted EPS.

[rivaldo] 24/5/2021 08:52

A reminder that results are tomorrow - and this was the year end trading statement:

"As a result of the continued strong performance in the second half of FY21, the Board anticipates revenues for FY21 will be ahead of market expectations. In addition, as a result of lower travel and event costs due to COVID-19 restrictions, higher margins are expected to be achieved in FY21 than would have been anticipated, which will result in the Company's profitability also being ahead of market expectations in FY21.

With the long-term underlying growth drivers continuing, as the market transitions to 5G and the widescale adoption of cloud computing progresses, the Board is confident that while industry spending patterns may normalise in FY22, Calnex is well positioned to deliver its historical growth rates over the long-term.

The Group expects to commence FY22 with a healthy order book and intends to provide an update on the outlook for FY22 when it announces its preliminary results for FY21 in late May."

[middlesboroughfc] 17/5/2021 14:15

But the selling shareholders of JAR on the register at IPO sold c.2.6m shares worth £1.24m[9]


they didn't think it worth staying lol

[lsoc85] 17/5/2021 14:06

That article is well written but without any real substance. I tend to agree with Rivaldo's analysis given a couple of weeks' since.

The Interims gave adjusted diluted EPS of 2.42. They reiterated the guidance given in Nov in Feb. We can therefore, I believe safely, assume the FY EPS will be c.5p.

The PLC is currently worth £100m.

The current price of 115p puts your P/E ratio at c.23 when the results are published.

So given your limit of 15 (the last of the big spenders, eh?) it may be time for you to get off the pot, whether it's a long or short pot.

I'm pretty sure that those of us going long are happy with the above figures and look forward to this becoming a £500m PLC in the next c.2 years.

[middlesboroughfc] 17/5/2021 13:43

Ciphersense has put forward a bear case with apparently no position long or short:

[middlesboroughfc] 17/5/2021 13:43

they said contracts had pulled forward into last year and it wasn't even adjusted for the float shares , add that in and PE is even worse

[rivaldo] 17/5/2021 13:12

The current year P/E is quite different from the historic figures quoted by mfc, but then that wouldn't fit his agenda :o))

Add in possible upgrades given the outlook in the trading statement, and then looking forward to next year's forecast after these results, and a rather different picture emerges.

[middlesboroughfc] 17/5/2021 11:33

PE of 50 quite rich now markets are pulling back


id pay a PE of 15 so 40-50p as trading is in-line now

[rivaldo] 17/5/2021 10:58

CLX have stated:

- revenues ahead of expectations
- profits ahead of expectations
- healthy order book and well-positioned for the long-term

I'm not sure I'd let a single share sale of just over £100k by a VP of Engineering outweigh all of that, but everyone's different....

[zingerburger] 17/5/2021 07:05

Director dumped recently

dint expect fireworks

[masurenguy] 17/5/2021 06:23

LOL - ditto Riv !

[rivaldo] 17/5/2021 06:23

RNS - the results will be in eight days' time on 25th May. Good to see there'll be an InvestorMeet presentation too the next day.

As Mas has posted above, CLX have already stated they'll be ahead of expectations.

[masurenguy] 14/5/2021 07:02

Just a reminder of the key points from their last trading update on 16 February.

"As a result of the continued strong performance in the second half of FY21, the Board anticipates revenues for FY21 will be ahead of market expectations. In addition, as a result of lower travel and event costs due to COVID-19 restrictions, higher margins are expected to be achieved in FY21 than would have been anticipated, which will result in the Company's profitability also being ahead of market expectations in FY21.

With the long-term underlying growth drivers continuing, as the market transitions to 5G and the widescale adoption of cloud computing progresses, the Board is confident that while industry spending patterns may normalise in FY22, Calnex is well positioned to deliver its historical growth rates over the long-term. The Group expects to commence FY22 with a healthy order book and intends to provide an update on the outlook for FY22 when it announces its preliminary results for FY21 in late May."