Holders Technology Share Discussion Threads

[sunshine today] 26/8/2021 11:54

Could be , or just gearing up a sales force.

I can see £500,000 profit this year and double next.

Director and general overhead is low.

The market cap is reflecting history.

Those who get in early, without being constantly tapped for cash, tend to make serious profits.

The business is in for a tad over Free, that’s pure value.

[value hound] 26/8/2021 11:49

Well, we'll know a lot more tomorrow with the interims. I wonder what plans they have for the cash?

They say it's to ..."further develop and expand its lighting and control solutions business. The disposal proceeds will be used to invest in these activities and for general working capital purposes" so I presume they see the potential for growth here - and/or via acquisition?

[sunshine today] 26/8/2021 10:45

So far this week.

New 3% investor

Sale of loss making slice of the business

Yet to be reflected in the share price.

[russman] 25/8/2021 17:45

Ideal for reverse takeover now. W should be contemplating his retirement.

[sunshine today] 25/8/2021 15:54

Welcome MR DAVID LOUGHRAN.

Not sure if you have been building your holding for months, or if we will see another holders seller RNS over the next few days.

Value has been spotted, in any event.

[sunshine today] 25/8/2021 12:19

Understood :

My point being, if a stock like here, is undervalued by a massive magnitude, it’s far more beneficial for a shareholder to buy stock, ( than not own it ), even if the spread is outrageous.

[donemyhomework2] 25/8/2021 11:59

I am not worried about the spread. Just stating a fact.

[sunshine today] 25/8/2021 11:17

Never worry about the spread or MM tricks.

It’s what this company could be worth in 18 months.

Right now it’s £3.1M

Cash in 5 weeks time will be C £2.8M

[donemyhomework2] 25/8/2021 11:10

The spread has gone from 3p to 8p

[sunshine today] 25/8/2021 11:03

Watch the MM drop the price on buys.!!

Not many shares in issue, so it only works for them if it halts the buying.

[sunshine today] 25/8/2021 10:33

Not sure why results were not out at 7.00 this morning.

Must be a 10% chance a buyer of HDT is about to be announced.

At what age does one retire..?

[value hound] 25/8/2021 10:28

I believe £1.20P is very far off the mark

FWIW, I agree Sunshine, but would like to get there first! :-)

[sunshine today] 25/8/2021 10:15

Lighting has 35% margins, get revenues up in a buoyant market, and it’s job done.

U.K. PCB margins are also HIGHER than stated in last years results , as German PCB made a loss.

This was not broken down in the accounts and only came to light on yesterday’s news.

[sunshine today] 25/8/2021 10:10

I believe £1.20P is very far off the mark.

The cash is must be £2.8M by Sep 30th

The listing value must be at least £800,000

That gives a value of the ongoing business of C£1.4M

I believe they can make £500,000 this year, and twice that amount next year.

Since a bidder would pay next years profits this year, one is looking for £10M minimum in my view.

Don’t rule out some other kind of corporate action to boot.

That said

I would be more than happy with growth rather than a quick buck.

[value hound] 25/8/2021 09:58

I may as well join you all on this tread as there seems no point having two.

The things that held HDT back in the past were lack of profitability and the fear that it was a value trap due to the 45% equity holding of Mr Weinreich. He's now 75 so may want to retire and sell - but it's AIM, of course, so he may not want to for IHT reasons / family inheritance (but I've no idea).

It's still easily worth >£5m / 120pps as it stands IMO (i.e. with his majority holding), but could be a lot more via a sale or via upping the divi given what should be greater profitability going forward. But if he was to agree to sell, I'm sure he'd want a lot more than 120p.

[sunshine today] 25/8/2021 09:47

Spot on, how refreshing its not begging for cash like most AIM stocks.

Cash = safety

Higher margins = profits

[the queen of shares] 25/8/2021 09:40

Wow, I believe we are seeing the beginning of something great with Holders. Finally, the company has a strong strategic direction and the capital to make it happen. Having sold off the side of their business that doesn't support this growth, they are able to pump the time, effort and money into the growth and succesful implementation of their new strategy. What great leadership within the company. Let's hold tight and ride this wave of success with Holders.

[sunshine today] 25/8/2021 09:32

Talk on the other thread of the boss possibly selling up.

No idea on that, but today’s share price is valuing the remaining two parts of the business at about £200,000.

To put this into prospective, an clean AIM listing, ( shell), is worth over twice that for starters.

Thus the two part business is in for free.

[value hound] 25/8/2021 09:09

The debate seems to have moved on to a new thread. Still - yesterday's announcement of the disposal, plus a tiny multiple of profits for the remainder make this worth easily £5m / 120pps imo. I wonder what Mr Weinreich's big plan is here (see post 830)? You can be sure he'd want a deal more than 120p if the plan is to sell.

[sunshine today] 25/8/2021 08:43

The U.K. arm of the PCB business was profitable last year, only pulled down by the ( now sold ), German division.

[sunshine today] 24/8/2021 20:32

I calculate the cash just about = the share price.

Also of note is the U.K. PCB Business, if sold today, would also yield way above book value.

[sunshine today] 24/8/2021 20:23

Look for a very large rise in the share price over the next few months.

Reasons include

Loss making division sold, handing real cash back to the business, stock appears to have gone to new buyer without a nasty markdown. ( rare ).

It has also produced a cool £500,000 which itself is way more than the last few years return for shareholders.!

Look at the large margins being obtained from the non PCB business and growth potential.

Unlike so many tiny AIM stocks this one is now ( 30th Sep ) going to be loaded with cash for expansion.

[boystown] 24/8/2021 19:42

Absolutely crazy price - but so small and illiquid obviously

[donemyhomework2] 24/8/2021 16:47

Trading results by the end of the week?

[donemyhomework2] 24/8/2021 16:46

Net assets will increase given they are selling at £1.6m with nbv of less than £1.1m and the loss disappears also.