Frontier Smart Technolog... Share Discussion Threads

[nod] 31/12/2017 01:58

Monty, I don't know if IQE is a good comparison. IQE is much larger, has a breadth of products, very strong sales growth, and, importantly, makes consistently good profits.FST struggles to make a profit. If this changes then a revaluation is possible.With quite high overheads, high margins are available once a tipping point in sales is passed. We've just never surpassed the tipping point.

[bamboo2] 30/12/2017 12:19

The current dominant chart pattern is a Cup/Bowl with Handle and rising rim line [as a continuation pattern]. The pattern can also be seen as a Rising Wedge.

Target price for the Cup is min. 181, RW is 188.

The apex based turn on this mid price based chart occurs between 17-18/1/2018. The last market based chart has this apex on the 18/1/2018.

[bamboo2] 30/12/2017 11:45

Hi doubleorquits, The HTF question is a good one. I am, however, unsure of the rules on this one, both timewise, and in terms of the subsequent retrace. I guess the title of the chart pattern suggests it is no longer valid. ie the pattern is no longer high in the chart, and the flag is not tight.

My thinking on this is that the retrace was so deep, that even using the most optimistic target price, the rebound was unlikely to overcome the height of the original 'flagpole'. Does that make sense?

On the positive side, price did rebound, and there are a number of other positive chart patterns. I will update the chart in another post.

[doubleorquits] 30/12/2017 09:45

Happy New Year Bamboo,

Are you still looking at TP of 185p indicated by the EOD price of 163p being achieved?

Also how does a fall affect the HTF - is it still intact if the timeframe of two months is still relevant. Is the same appropriate to a stock like VRS which has given back quite of its 90%+ gain?

Keep posting your thoughts - they continue to give an interesting and additional view to the simple fundamentals that I can manage with.

Seemingly promising fundamentals here as Monty and Drewster both indicate. Now a nice New Year tip would help propel us to towards the next update.

[bamboo2] 29/12/2017 14:52

fwiw, My last market price based FST chart shows a potential turn 18/1/2018.

Could possibly indicate a news based, or expectation of news, turn in price.
Will be interesting to see how it pans out. gla.

...and a happy New Year

[doubleorquits] 29/12/2017 13:41

Yep - based on last year I have pencilled in 25th Jan

[the drewster] 29/12/2017 12:32

If EBITDA hits £2m for 2017, and the N+1 target of £10m in 2018 ... well, the share price ought to react by similarly stellar gains you'd like to think.

End of Jan trading update anyone???

[the drewster] 29/12/2017 12:29

The options shall vest in equal proportions over two, three and four years at an exercise price of 78.5 pence, being the average mid-market closing price for the 30 days prior to 6 February. The options become exercisable either on the date of vesting providing the mid-market closing share price has been greater than 160 pence for 30 consecutive days ("the Hurdle") during the vesting period, or during the period from vesting up to ten years from date of grant ...

[monty panesar] 28/12/2017 22:26

Happly New Year as well.

IQE has sales of £150M and market cap of £1bn. 6.7x sales

FST has sales of £40m and market cap of £67m. 1.7x sales.

Ok it's a very basic metric but shows the potential for quite a lot of upside especially as we know they are now increasingly cash generative.

[the drewster] 28/12/2017 22:12

Happy New Year everyone

[monty panesar] 28/12/2017 21:07

The £44m for 2018 looks like it could be upgraded quite a bit with the recent news out of France, Germany, Italy and South East Asia regarding the digital radio rollout.

[doubleorquits] 28/12/2017 20:16

Another reminder from earlier when H1 results were posted at end of September:

Frontier Smart Technologies (LON: FST) has released its Interims for H1 17 this morning, with the positive numbers raising Management's Full-Year forecasts.

The Group reported strong revenue growth of 44% to £19.7m, up from the £13.7m in H1 16. This is an 27% increase on a constant currency basis.

EBITDA also swung from a loss of £0.04m to a profit of £1.1m while R&D expenditure remained relatively flat - £2.9m versus £2.8m for the same period last year.

FST develop technologies in the digital radio and smart audio landscapes.

CEO of FST Anthony Sethill commented on the Group's results, saying:

"The Group has performed well in the first half of the year. In Digital and Advanced Radio, we have benefited from underlying growth in the sector and the impact of the Digital Switchover in Norway. In Smart Audio, we have secured the first material revenues for our Google Chromecast product."

The Cheif Executive went on to comment on the outlook for FY17, commenting:

"In the second half of the year, we expect trading to hold up well and our full year EBITDA performance should be significantly ahead of current market expectations."

Shares in FST were up almost 20% in early morning trading at 152p and have since settled at c. 139p.


Broker N+1 Singer released an in-depth research note today detailing their stance on the stock, commenting:

"Frontier’s H1’17 results continue a trend which has become established since the sale of the healthcare business, with strong performance from the continuing business driving upgrades to consensus forecasts. We are initiating with EBITDA forecasts c.20% ahead of the previous consensus forecast at £1.8m for FY’17."

They also said they felt the Group "is a compelling investment proposition, which has largely gone under the radar to this point."


The Group trades at a market cap of c. £52m, and is on track to reach consensus' Revenue forecast of £40m in FY17, which is predicted to grow further in FY18 to £44m.

[monty panesar] 28/12/2017 19:49

A reminder from last month:

doubleorquits - 13 Nov 2017 - 08:54:36 - 573 of 640N+1 Singer Update Summary:

Frontier has announced that its Smart Audio platform has been chosen by HARMAN to power its new JBL Control Xstream wireless speakers. Frontier and HARMAN have collaborated on Digital Audio products since 2013 and this design win, with the world’s leading provider of wireless home audio devices, follows on from the group’s previous win to power the JBL Playlist speaker. We believe this continued collaboration is strong validation of the quality of Frontierâ̈́4;™s solutions, supporting our view that the group is well placed to secure a significant slice of the attractive Smart Audio market. With the Digital Radio business delivering c.£10m+ EBITDA p.a. and the Smart Audio division expected to hit EBITDA break-even within our forecast period, we continue to believe Frontier is a compelling investment proposition.

[monty panesar] 28/12/2017 18:37

Revenues from DAB should be around £40m and growing at over 20pc pa should be approaching £50m in 2018.

That is the bread and butter business. Smart Audio is the great unknown at the moment. Sales for Google Home and Amazon have only just started. The company have said they expect revenues from that market segment to exceed the DAB ones in years to come.

The market isn't really aware of Smart Audio at the moment and that is why in 2018 there could be a major re-rating of the shares.

Looking forward to the trading update in the New Year for more guidance.

[essential] 28/12/2017 16:57

Opened a position this afternoon. Been watching since scsw mention last month. Chart looking superb.

[nw99] 28/12/2017 15:48

Good chance this will be tipped in 2018

[life of crime] 27/12/2017 22:14

A neat summary of the DAB highlights in 2017:



2018 should be even better.

[brucie5] 27/12/2017 10:45

Fabulous chart. Monty, do you have rolling targets from here?

[monty panesar] 27/12/2017 08:37

Around 25% of all future revenue will fall into the p&l.

The profits will ratchet up quicky from here.

[chillpill] 23/12/2017 21:05

France looking good as is Asia. Market has grown over 20% this year and FST have over 80% market share.

[life of crime] 21/12/2017 19:11

France looks like the next major market to ramp up:



Enjoy the Winter Solstice. Let's hope the share price doubles in 2018 the way it did this year.

[wad collector] 21/12/2017 12:46

Funny mixture of science and pseudo-science on this BB!

[nw99] 19/12/2017 13:18

Thanks looks good for that

[the drewster] 19/12/2017 11:57

180-188 on technical insight (bullish pennant)

[bamboo2] 19/12/2017 10:13

My min target is 165

High and Tight Flag target is 185, although unsure if it still qualifies.