Mti Wireless Edge Share Discussion Threads

[sig1978] 09/10/2018 19:49

Anyone know why the share price keeps going down when theres nothing but good news?!

[cjohn] 04/9/2018 06:26

Yes, stil a strong buy.

[spaceparallax] 28/8/2018 12:44

The results are solid and the Company sounds very bullish about the future.

[spaceparallax] 24/8/2018 16:48

Fair comment.

[dangersimpson2] 24/8/2018 16:37

I think the recent share price weakness has been in response to the merger. The risk of course was that it was being used to hide poor trading or force a combination on terms that disadvantaged existing minority MTI Wireless holders. Always still a possibility but I didn't find anything in the merger documents that seemed unreasonable. If we get interim results for the combined group in the next month or so that look ok we should be back to more reasonable trading levels.

[spaceparallax] 24/8/2018 11:37

Interesting to see an almost 50K share purchase

[spaceparallax] 14/8/2018 17:20

Indeed John, as with many penny shares our share price is highly sensitive to mkt manipulation or even modest selling. MWE has perhaps a 50% upside on asset value alone without accounting taken for the solid commercial progress of recent years.

[cjohn] 14/8/2018 08:55

Yes, well said.

Still, the shares are on offer again; really very cheap on asset grounds. And cheapish on trading grounds.

[spaceparallax] 14/8/2018 08:27

But they now need to move on quickly to report real progress within the Business.

[cjohn] 14/8/2018 07:36

Fianl court approval for the merger.

[danieldanj] 05/8/2018 13:43

MTI Wireless (MWE) Earnings-Reaction to Keep an Eye

[cjohn] 20/7/2018 12:33

Merger approved by shareholders.

[sladdjo] 30/5/2018 09:42

Interesting to see subsidiary forecasts for years out to 2022 - looking to make a combined ~ $28.5m revs in '18 with op prof ~ $2.9m followed by $45m and 4m in '19.

hxxp://www.mtiwe.com/_Uploads/dbsAttachedFiles/ValuationReportofMTIandMTIC.PDF

[cjohn] 26/5/2018 10:33

Yes, thank you, John, for your continuing attendance and notes. it's much appreciated.

[spaceparallax] 25/5/2018 09:07

Thanks Sladdjo your representation on our behalf is appreciated.

[sladdjo] 24/5/2018 15:30

Below are my notes from MWE AGM. I was the only PI there.


Mottech doing well - 2nd contract in China confirms scale of opportunity over there (mainly municipalities focussed on green areas, tho also signifcant agricultural as well.) Also seeing ops in North America and places like Germany/Chile. Recently anounced increase in sales was Mottech based in China and North America. Looking at partnering with Israeli comp to provide desalination plants for small scale users in South Africa.


Within antennas the mrkt is movinng from 80GHz to dual 80 GHz/50GHZ & others as 80GHz is quite tempremantl and sometimes struggles with weather, etc. so offering dual antennas means that the antenna automatically switches to lower frequency if any problems. MWE is one of the 1st comps to offer dual antennas and has several prototypes out now. focus is Tier 2 providers but in discussions with Tier 1 at present as well. RFID continuing to grow at 15-20% yoy, and now 20% of antenna business.


Wrt the merger with MTIC, comp wants to simplify its structure and feels that each comp is quite small to be separately listed, combined their size is more suited to AIM. Also feels that Israeli shareholders ar emore comfortable holding AIM listed stocks than UK shareholders holding Israeli listed stocks. MITIC has two divisions:

RF & Microwave solutions (where they are a distributor in Israel and have a capital light BS due to ordering inventories and then flying over to customers in Israel rather than keeping ahigh level of stock and selling when customers need.) RF & Microwave had ~$7m revs last yr with op prof ~$500k.

The 2nd division is large scale military balloons that are involved in electronic warfare. This is a JV with 2 other comps. Last yr revs were ~$1.5m with ~$300k op profs. Curr in negotiations for a long term contract that would add ~$2m to revs each yr. Hopefully in a week or two they'll be able to publish MTICs numbers in UK. Will need to get 75% approval to do merger (inc their own shares) & 50% of voting public to do so.


Overall aim is to have a $50m rev business in 2 - 3 yrs time.

[cjohn] 23/5/2018 12:42

Yes, $1m irrigation control contract to be installed over the next 12 months.

A rapid return then on the declared increased spend on future sale capacity mentioned in the Q1 results?

[spaceparallax] 22/5/2018 17:59

Good news.

[cjohn] 14/5/2018 14:59

You're right, Spaceparallax. They are fine in context.

With net tangible assets of around 27p, this is not going to fall too far.

[cjohn] 14/5/2018 12:07

So if we take what they say about Q1 at face value: margins were reduced because of increased R+D and sales development. And increased revenue will occur later in the year.

My feeling is that reporting on a quarterly basis simply makes the shareprice more volatile. The market over-reacts to fluctuations in trading which are entirely to be expected on a three-monthly basis. we wouldn't even need to be told about the extra devlopment spend, if they reported on a six-monthly basis.

There is a marked increase in eps for the three months to 0.91 us cents. But this reflects the fact of a tax credit in the 90 day period. Likewise, I can't see the impressive operational cash flow - receivables and inventory reduced - being repeated in the second quarter.

Overall, steady as she goes with no surprises.

[zipstuck] 14/5/2018 10:14

There are a number of positives here
Orderbook, pipeline, cost savings, ability to expand through each companies offices. cash generation and dividend is good.
Not one to be selling imho

[my retirement fund] 14/5/2018 10:03

Suddenly looking overpriced

[cjohn] 03/5/2018 11:39

The controlling shareholders will have around 45.5% of the merged company. Before they had 53% of MWE.

This is another slight positive in my view; though 45% still gives complete dominance.

[cjohn] 03/5/2018 11:36

So MWE pay around $9.5m - 31,600,426 MWE shares at around 30p - for MTIC's business. MTIC had a turnover of around $10m last year and profits before tax of $1.1m.

(From MTIC's turnover and profitability, I'm subtracting the MWE results which were consolidated into MTIC's results as MTIC holds 53% of MWE.)


In view of the obvious savings in management time and reductions in complexity - only the London listing will remain - I think this is an OK deal. A mild positive.

It's noticeable that MTIC (non-MWE consolidated) has had better operating margins than MWE. Stripping out duplicated costs should allow some further margin improvement.