Inspired Share Discussion Threads

[f3eder] 28/4/2020 11:12

Hi Rivaldo,

The purpose of the meeting was to find energy purchase and management solutions for our customer base. I am a part owner of a UK national FM company.

Current business is largely unaffected according to the person I spoke to. Long term contracts giving INSE income based on the savings achieved. Not much new business as the market has other priorities.

I expect guidance will include a medium term downturn as buildings are not being used with some bullish statement that cost saving measures will drive revenue for 2021.

Our clients are amazed how well their businesses are coping with people working from home. There will be a major shift in working practices. I would not want to be an investor in We Work.

I have a call with a senior person from PTSG later. We are not in competition. Will let you know if there are any market trends that could affect INSE.

Back to watch AVCT going further North.

[rivaldo] 28/4/2020 11:02

Looks like a nice 300,000 buy at 13.875p just reported.

[rivaldo] 28/4/2020 09:25

Cheers Rogers8, that's reassuring to know. Any other details on your meeting with INSE would be appreciated.

And AVCT has done rather well for me too :o))

[f3eder] 27/4/2020 21:41

The fast moving aim opportunity is AVCT. Just noticed your post on LSE. Hopefully winners from PTSG have a similar experience.

[rogers8] 27/4/2020 16:40

Hi Rivaldo,

Apologies, the early morning sell was mine. Identified a fast moving aim opportunity so wanted £30k. I still hold 500k shares and believe that at some point INSE will come good. Had a video meeting with INSE a few weeks ago. Did ask how business was doing. Some staff members furloughed.

As INSE's income is based on the usage and savings from their customer base I expect some impact in the medium term however this is in the warmer months so a reduced issue. As the CEO stated companys like INSE tend to be part of the solution to getting UK business financially healthy as the sector did after the banking crisis.

[rivaldo] 27/4/2020 09:23

230k trade at 13p just reported will be the cause of the early markdown. Time for Greshan House to buy some more :o))

[rivaldo] 26/4/2020 14:22

This Gresham House fund manager says INSE are on a "compelling" valuation and is presumably one of his "unprecedented opportunities to back fantastic businesses at attractive prices":



"LF Gresham House UK Micro Cap fund manager Ken Wotton says his team has lowered exposure to cyclical companies in the portfolio to limit downside risk and maintain liquidity. However, he has also taken advantage by investing in businesses he feels now have compelling valuations, such as Inspired Energy and Dominos Pizza. He believes the market environment will provide “unprecedented opportunities to back fantastic businesses at attractive prices either due to forced sellers in the market or through capital raises"

[wanttowin] 14/4/2020 09:37

Thank you 1gw, I will have a look at them.

[masurenguy] 10/4/2020 11:41

Interesting 1gw - as you're probably aware, both Rivaldo and I are also long term investors in Enteq. Consequently, let's hope that it's a case of "great minds think alike" ! :0)

[1gw] 10/4/2020 11:23

With apologies for the off-topic for anyone not interested, but if you're asking it's Enteq (NTQ). For full disclosure, it is currently my 3rd biggest holding (INSE is my 5th after this sale), I've been in since 2014 and I'm nursing around a 1/3 mark-to-market loss on my average purchase price.

It is oilfield services (Measurement While Drilling equipment) and its main "oversold" argument for me is that I think it has around 12p/share cash plus a management that managed very successfully to preserve cash through a previous downturn. It is however illiquid (can be difficult to buy or sell in quantity), despite the CEO's attempts to broaden the appeal through interviews with Proactive Investors. Its core business is providing equipment to shale oil and gas service companies in the US, hence why it is so beaten up at present, although it is attempting to build an international business as well. More on the NTQ board if you're interested.

[wanttowin] 09/4/2020 19:30

A clue 1gw ?

[1gw] 09/4/2020 15:21

I've taken a very healthy profit on most of the ones I bought on 19th and 20th March to fund purchase of something looking (to me) even more oversold.

[rivaldo] 07/4/2020 13:38

Interesting new article from INSE about how they can help businesses during COVID-19:

[rivaldo] 06/4/2020 14:41

Good to see the bounce continuing as the market sees a few glimmers of light at the end of the tunnel.

[owenski] 02/4/2020 11:24

From CNA TU today -

"In our customer-facing businesses, although we are starting to see increased energy demand from residential customers as more people work from home, we are seeing a more significant reduction in demand from business customers as sites temporarily close. We also expect to see an increase in working capital outflows and customer bad debt, as certain customer segments defer payments due to the reduction of household incomes and business revenues."

[rivaldo] 31/3/2020 11:58

...and buying at the full 14p offer price now.

[rivaldo] 31/3/2020 10:08

Buying today in 15k chunks - good to see the share price responding upwards again.

[tole] 30/3/2020 10:58

Nice someone keen 110k at 13.5 0.5p premium

[masurenguy] 27/3/2020 16:06

Holding steady on a big down day in the market. The shareprice has regained 40% from its post crash closing low of 9.5p last week. However, it is still 38% off its high of 20.5p this year, just 5 weeks ago.

[diesel] 26/3/2020 10:31

Riv, agree with most of your post, but I would completely ignore the Peel Hunt forecast, or any broker forecast for that. As far as debt two years of cash generation would clear it, I doubt that it concerns them, and I would imagine one two distressed businesses will be too tempting following this turmoil.

[masurenguy] 26/3/2020 10:25

Re post #2264: I don't think that should be a real problem at the moment. With cash in hand, plus £46m of headroom on their RCF plus the accordion option, they should not have any cashflow issues unless the lockdown extends for much longer than anticipated !

"In addition to cash and cash equivalents of £10.7m on hand as at 25 March 2020, approximately £14.0m of the Group's £60.0m Revolving Credit Facility is undrawn with an additional £25.0m accordion option available, subject to continued covenant compliance. The Board is actively focused on cash conservation and management, taking prudent and proactive measures to preserve cash."From today's update.

[rivaldo] 26/3/2020 10:23

- INSE are extremely cash-generative
- the EV/EBITDA is very healthy, and the Corporate Order Book has increased further
- INSE have today confirmed that 90% of their business is hardly seeing any impact at all, and the effect on the other 10% is heavily mitigated already by cost reductions

Which presumably explains why Peel Hunt have retained their 25p target price, implying they've retained their 2p EPS forecast.

[winnings1] 26/3/2020 09:36

I must say that in these highly uncertain times the debt could become a worry, as it seems high against turnover, the latter prone to a big fall.

[rivaldo] 26/3/2020 09:33

Peel Hunt have reiterated their Buy and 25p target price.

Which presumably also means they've retained their 2p EPS forecast for this year - that's a current year P/E of just 6.25:

[rivaldo] 26/3/2020 07:18

That's an encouraging update this morning....



- the Corporate Order Book has increased further since the year end
- no material impact on the core Corporate division, whic is 90% of revenues
- the SME division is only 10% of revenues, and demand reduction has been mitigated anyway by large cost reductions

And an optimistic outlook:

"Whilst we undoubtedly are in a period of economic uncertainty, the Board believes that the Group's profitable and cash generative nature coupled with a strong order book and substantial liquidity at its disposal will see it well placed as the economy emerges from the current period of uncertainty."