Mti Wireless Edge Share Discussion Threads

[baldrick1] 21/7/2023 08:33

Indian contracts rns would do nicely before trading update

[rimau1] 21/7/2023 07:11

Nice work Igoe, today is the official RNS with the new Indian Sub! Can you let us know in advance when we are going to release an ahead of expectations TU please?!!!

[igoe104] 20/7/2023 14:24

This writeup potentially points to lots of new work. from new Indian subscribery

[robsy2] 14/7/2023 08:38

Thanks Rivaldo
I have bought some more. It looks compelling to me , of course you never know what is happening but in the absence of any bad news , I assume it is business as usual. 5.4% divi, well covered , 3 growth divisions. cash on the B/S , blah blah , the LTH's know the story here. The current valuation seems miserly.

[rivaldo] 14/7/2023 07:31

Good to see MWE buying back another 50,000 shares at these levels - they now hold 275,000 in treasury:



With approaching 8.3p per share in cash, and around 3.3p EPS forecast this year, MWE are now on a miserly ex-cash P/E of only just over 10.

I suppose the pound's rise is causing the P/E to rise in pure translation terms only, though I'd have thought this will be a short-term movement with the pound coming back to earth at some point.

And MWE benefit from when the dollar is strong against the shekel - as it has been this year, with the shekel falling to the current 0.28 against 0.32 at the start of the year.

[zipstuck] 14/7/2023 07:23

Hopefully we will get some more contract news soon

[texas_caddy] 13/7/2023 17:15

Thanks zipstuck. My comment - I should have said - was prompted by Calnex who announced a short term softening of their markets earlier this year so may have been slight read across in 5G space. Not heard anything around MWE. Hopefully just general markets doing their thing.

[zipstuck] 13/7/2023 13:29

Texas.
This was in the last contract win in case you missed it. I topped this morning at 41.74

MTI's CEO, Moni Borovitz, commented:
"We are delighted with this contract win, as it demonstrates this customer's confidence in our technology and the support services we provide. It is also part of the increasing demand that we are currently experiencing in new enquiry levels and new contract negotiations for defence related solutions from throughout Europe as well as other regions."

[texas_caddy] 13/7/2023 10:19

Magpie - I have no idea!

Markets for small caps, it’s an Israeli company so tends to be lower rated, perceived (or real) deterioration in trading, maybe related to 5G rollout?…

If they are doing a fundraise terrible time to do. Can only assume it’s a large acquisition if so.

I hold btw!

[zipstuck] 13/7/2023 10:10

Stop loss selling me thinks. It was not long ago that MWE were buying their own shares.

Divi looks good at these levels

[2magpies] 13/7/2023 09:46

And although usually I find 'charts' to be but light-hearted fortune telling, they are however, at present showing this as extremely 'over-sold'.

[2magpies] 13/7/2023 09:23

Well, what would you offer as a possible explanation for the big, and relentless slide in the sp?

[texas_caddy] 13/7/2023 09:11

Why would they need to fundraise? They have a decent pile of net cash in relation to the size of the business, and as per trading updates everything seems to be going ok in end markets which are growing. Price drift is a strange one.

[2magpies] 13/7/2023 08:46

Makes you wonder if a fundraise is in the wings.

Broker price target ( double market quote ) usually = fundraise.

If they really think this could go to 90p, why on earth would they/their clients not be piling in now?

Very strange.

[brucie5] 07/7/2023 15:57

Testing that bottom again.

[rivaldo] 04/7/2023 08:40

Allenby Capital have also now updated - they too have a 90p valuation:

"MTI Wireless Edge* (MWE.L, 44.5p/£39.4m)

Contract win: Repeat military antenna order (03.07.23)

• Repeat order from a European customer, worth $1.4m, for the manufacture of military antennas. The principal part of the contract relates to the manufacture of an existing product line, with the balance relating to upgrades to the antenna solution.
• The contract is expected to be delivered within 14 months.
• MTI also continues to purchase shares to be held in treasury with 225,000 currently held.
• No change to forecasts or 90p/share fair value.

Allenby Capital comment: Good contract win with an existing European customer for military antennas that covers both the existing product line but also upgrades. The win indicates that the customer is happy with both MTI's products and services.
MTI reports increasing demand for military antennas with high levels of new enquiries and new contract negotiations. No change to forecasts or 90p/share fair value."

[brucie5] 03/7/2023 11:33

Certainly looks like a bottoming formation since October 22.

[rivaldo] 03/7/2023 10:13

Shore Capital retain their 90p valuation here after today's contract win.

They forecast 4.2c EPS this year and a 3.2c dividend, with $9.2m cash at the year end.

That's 8.3p per share of cash, giving rise to an ex-cash P/E of only 11.2 for this year.

They conclude:

"Outlook and valuation:

In the March note we also highlighted that each of the divisions has growth drivers with, in our view, Mottech particularly well placed to potentially see stronger demand than we forecast for its water management and control software. Typically, the software improves the efficiency of irrigation systems, while reducing the cost of operating them. Summit/PSK had a strong FY22A and we would also expect to see continued good demand for its defence-related products and services as demonstrated by today’s contract win. Finally, the Antenna division is likely to benefit from the rollout of 5G across the world as it already supplies seven of the top ten operators with its technologies. The share price has drifted lower since the release of the Q1 results in May.

Ahead of Q2/H1 FY23F results in mid-August, we maintain a 90p fair value on the basis of a DCF analysis, which is corroborated by MTI achieving an FY23F EV/EBITDA multiple of 11.2x (the average of our peer group)."

[baldrick1] 03/7/2023 08:39

Coupled with more shares buybacks to get us to 90p target.

[baldrick1] 03/7/2023 08:06

Expect more contract wins like these this summer

[igoe104] 03/7/2023 07:26

Excellent announcement and supporting comments.

It just how poor of a market it is, when good companies like these share price is in the doldrums..

[rivaldo] 03/7/2023 07:14

Excellent $1.4m contract win announced today for the manufacturing of military antennas.

Plus an encouraging comment that this "is also part of the increasing demand that we are currently experiencing in new enquiry levels and new contract negotiations for defence related solutions from throughout Europe as well as other regions":

[049balt] 27/6/2023 18:17

Someone loosing patience

[baldrick1] 22/6/2023 13:33

Good idea trapping out the non-believers and weak holders..stay in for the rally to 90p