Mti Wireless Edge Share Discussion Threads

[spaceparallax] 09/8/2022 09:15

They should make encouraging reading.

[rivaldo] 09/8/2022 07:24

The H1 results will be next Monday, with an Investor Meet presentation at 10.00 am:

[rivaldo] 03/8/2022 11:48

Techinvest have published their new issue, so it should be OK to copy their Buy update on MWE from the July issue:

"MTI Wireless Edge 63.5p (MWE; AIM)

MTI’s Mottech Water Solutions division has secured several orders through its Italian resellers, totalling approximately €1.0m, all for delivery during the third quarter of 2022. Italy has been a successful market for Mottech, operating through long-term resellers of the Mottech product range. These recent orders are from both existing and new agricultural and water distribution customers. Although this is a comparatively small order in financial terms, it demonstrates the customers’ satisfaction with Mottech’s solutions and ongoing support. Water management has been described as the most pressing environmental consideration worldwide and that represents a huge market opportunity for operators like Mottech. Continue to buy."

[rivaldo] 25/7/2022 11:28

From Allenby Capital's TMT update this morning:

"MTI Wireless Edge Ltd (MWE.L, 55.5p/£49.1m)
Contract win: Largest contract in Group’s history (18.07.22)

 P.S.K WIND Technologies, part of MTI’s Distribution & Professional Services division, has won a three year contract (with the option to extend for a further four years) with the Israeli Ministry of Defence (MoD).

 Expected to be worth $1.4m p.a. or $10m over the full seven years – representing the largest contract in MTI’s history.

 PSK has worked with the MoD for more than seven years, providing service and maintenance support, and this contract represents a continuation.

 MTI acquired 51% of PSK, with an option to acquire the balance, in January 2022 and PSK’s status as a qualified MoD provider for strategic projects and its relationships with Government and defence industry customers were key to the acquisition decision.

 No changes to forecasts but contract provides good additional revenue visibility."

[rivaldo] 22/7/2022 07:34

Gervais Williams's Miton UK Microcap trust has issued its prelims to 30th April.

It only mentions 2 or 3 companies specifically. MWE are their largest holding, valued at £2.6m, and it has this very interesting snippet:



"Some may think that microcaps are companies of little consequence but many of them are world leaders in their fields and astute leadership can enhance their already dominant positions with sensible infill acquisitions and canny investment.

MTI Wireless, an investment made soon after the Trust's launch, subsequently rising to become one of the largest holdings, is a good example. It is currently being actively engaged by many of the largest 5G equipment manufactures because its 5G aerials have patented commercial advantages over others. It is a fact that well-chosen microcaps can, and often do, rise by multiples of their original price, and this then brings them into the sights of investment managers who, until this point have eschewed the smallest companies, leading to yet further share price appreciation."

[rivaldo] 21/7/2022 10:51

Been on hols and surprised as you all are to see the current stagnation. I'm assuming there's a seller out there, but all sellers run out of stock at some point if news flow continues to be good!

Great $10m contract win securing a decent slug of recurring income over the next 7 years, vindicating the recent PSK deal at a stroke.

Shore Capital have issued a new note, with a 90p target price.

They forecast 4.1c EPS this year, i.e around 3.4p EPS. MWE had $12.5m cash at the last year end, so around 11.8p per share.

MWE are therefore on an ex-cash P/E of only 12.8 for the current year, which seems very good value for a company involved in water management, 5G and tech/defence.

[spaceparallax] 20/7/2022 13:40

Sadly, today's mkt is all about how commission takers can make money from trading transactions, with little regard for a company's fundamentals.

Fortunately, patient investors will ultimately be rewarded provided that we can sit tight without the need for cashing in.

[igoe104] 20/7/2022 12:07

There is no rhyme or reason with this market at the moment, MWE announced there biggest contract ever and the share price has drifted lower. Also announced two decent contracts the pervious month. Crazy folks selling..🤷

[alex_mc] 19/7/2022 18:13

Based on latest annual report, is this sitting on a 10% free cash flow yield? It's got a lovely trending ROCE as well.

[spaceparallax] 18/7/2022 10:18

A good income stream

[johnveals] 18/7/2022 08:04

Significant family ownership.

[solarno lopez] 18/7/2022 07:58

And lets not forget the company pays a dividend !

[igoe104] 18/7/2022 07:50

Yep, Fantastic contract over 7 years.

Normally the city would love this type of contract, but any gains in this type of market unfortunately get sold into, in the small cap space..

[robsy2] 18/7/2022 07:19

More excellent news. The biggest contract in the companies history.

[spaceparallax] 01/7/2022 11:54

Mwe's strong financial position enables them to weather the vagaries of the mkt.

[spaceparallax] 29/6/2022 09:44

Good news and particularly gratifying that it's come from our new interest

[rivaldo] 29/6/2022 07:31

$850,000 to be precise ;o))

That'll help this year's figures along nicely.

[igoe104] 29/6/2022 07:20

Nice $850 contract win...

[spaceparallax] 23/6/2022 11:12

Good news - we do seem to get repeat orders

[rivaldo] 23/6/2022 07:12

Nice - €1m of contract wins in Italy for Mottech. Delivery in this Q3 will help towards a strong start to H2:

[igoe104] 15/6/2022 16:38

Currency should be very favourite for MWE as the dollar is now 1.21 compared to around 1.33 when they last reported...

[rivaldo] 31/5/2022 10:54

FYI Techinvest advised to continue buying MWE in their last but one April issue after the prelims.

They concluded:

"Even allowing for adverse foreign exchange translation changes, this was a strong trading performance from MTI. All three divisions grew revenues and profits despite challenges in the supply chain, increasing shipment costs and ongoing pandemic related restrictions. Looking ahead, the business continues to be in a strong financial position with a significant cash cushion and no debt.

Several growth trends favour MTI, not least increasing defence spending on high tech communications equipment and the need to deploy smart tech in addressing the growing global issue of water scarcity. Exiting the small Russian unit looks a sensible move in current circumstances and will have little impact on the wider group. Continue to buy."

[rivaldo] 24/5/2022 12:50

Here's ST's full tip FYI:

"Farming winners from climate change and geopolitical tensions

An Israeli-based technology group is generating strong growth, has a bumper pipeline of tenders,and offers a play on the global food crisis, too

May 23, 2022 By Simon Thompson

First-quarter revenue rises 12 per cent to $11.2mn
Quarterly pre-tax profit up 8 per cent to $0.97mn
Net cash of $6.5mn after $7mn including final dividend, PSK acquisition and exit from Russia

An Israeli-based is generating strong growth, has a bumper pipeline of tenders, and offers a play on the global food crisis, too.The war in Ukraine is not only accentuating the impact of the ongoing energy crisis, but has prompted the governor of the Bank of England to warn of "apocalyptic foodprices", too. Fertiliser prices have more than trebled in the past year, which will feed into sharply higher shop prices, while at the same time the breadbasket of the world is unable to ship 20mn tonnes of grain in storage due to blockades in the Black Sea. To compound matters, global warming is continuing to impact crop yields.

It’s a positive backdrop for Israeli-based technology group MTI Wireless Edge (MWE:65p), which could yield significant sales of its cutting-edge Mottech's real-time irrigation monitoring,control and reporting software. That’s because it now offers Viridix’s RooTense sensor that monitors crop root activity and implements an irrigation protocol in real time. On average, the technology saves over 30 per cent in water usage for farmers while also improving crop quality and yield.

Mottech is the exclusive distributor Africa and Australia, where the business already has hundreds of existing agricultural customers, and will promote the integrated solution in other territories as well including France and China. Given that the savings on water usage are high relative to set-up costs – the sensors cost a few hundred dollars per hectare to install –then Mottech should be able to generate a high-income stream by selling the kit, and create a valuable recurring revenue from annual license sales thereafter.

MTI’s water solutions business accounted for 40 per cent of the group’s $1mn(£0.8mn) operating profit in the first quarter of 2022, so is major profit contributor. Chief executive Moni Borovitz revealed during our results call that MTI has “some big projects in the pipeline”, so expect news on new orders from mid-July onwards.

The other key take for me from the quarterly results was the 88 per centincrease in operating profits to $0.74mn from MTI’s Summit electronics division,which represents 40 international suppliers of radio frequency/microwave components.The division is benefiting from January’s acquisition of a 51 per cent stake for $1.2mn in PSK, an Israeli company which specialises in the development,manufacture and integration of communication systems and advanced monitoring and control systems for the Israeli government defence market.

Strategically, PSK is enabling MTI Summit to step up the value chain by offering not only components, but also turn-key solutions such as fixed and mobile communication, telemetry and signalintelligence systems. Moreover, MTI's strength and size is assisting PSK in boosting its customer base and involvement in the market, while enabling MTI to offer a wider range of higher-value products to customers. In addition, MTI made $0.8mn of loans to PSK to strengthen its balance sheet and enable the company to take advantage of a strengthening market.

True, MTI’s antennae business did post a small quarterly loss as supply chain issues led to slower fulfilment of 5G backhaul orders to support mobile phone operators roll out their 5G networks. However, the sales opportunities are material. Indeed, Borovitz reports further interest from Tier 1 OEM vendors for its new automatic beam steering 5G antenna which adapts to small movements caused by climate conditions to maintain a stable signal. In fact, he expects another four Tier 1 OEM customers to become customers.

MTI’s share price has risen 35 per cent since my last buy call (‘Bargain hunting in the market carnage’, 7 March 2022), and the shares are now rated on a cash-adjusted forward PE ratio of 17 and offer a prospective dividend yield of 2.8 per cent.This is based on Allenby Capital’s forecastof 12 per cent growth in pre-tax profit this year, a sensible prediction. That’s still a modest rating for a well-capitalised group that makes a 13 per cent post-tax return on equity and is addressing three high-growth market segments: climate change, defence,and 5G backhaul. Buy"

[rivaldo] 24/5/2022 09:04

Tipped overnight by Simon Thompson in the IC. Good to see the share price react nicely to relatively small buying - hopefully indicates there's not much stock around.