Nexteq Share Discussion Threads

[fillipe] 17/9/2024 10:28

I read of 7 NEDS and 2 Exec Dirs.
Seems to be quite a lot ... a total of 9 Dirs.
Ok if the results are also "quite a lot".

f.

[someuwin] 29/7/2024 06:28

...The Board therefore intends to utilise up to its full authority to purchase up to 10% of the Group's Issued Share Capital, equating to the purchase of up to a further 6,475,634 ordinary shares of 0.1 pence each in the capital of the Group, taking into account the 178,272 Ordinary Shares purchased to date. The Extended Buy Back will return up to £6.5 million to shareholders (the "Maximum Amount").

[arthur_lame_stocks] 26/7/2024 19:27

A you sure Evri are one of their biggest customers? I thought Nexteq mostly sold into the casino market.

[a day in the life] 26/7/2024 14:00

Everi, one of their biggest customers has just received a bid today in the US.

[arthur_lame_stocks] 24/7/2024 12:11

I bought a few today (fortunately not yesterday). The figures are arguably more compelling if you think of things as a sort of reverse gearing.

My major concern is basically the whole of the senior Board members resigning at once.

[the codger] 24/7/2024 11:34

Just added a few to the portfolio.

[value hound] 24/7/2024 10:51

I bought a few just above and just below 80p FWIW - for the obvious reasons of balance sheet strength and recovery potential. Fortunately, I hadn't bought previously.

I notice Simon T has just reiterated his stance saying there are "Four reasons to hold Nexteq despite its profit warning....

"First, each of the directors will continue in their current roles until their successors have been identified to facilitate, so there will be an orderly handover of responsibility.

Second, the collapse in the share price means that the group is an obvious bid target. Net cash of $36.9mn accounts for more than half its market capitalisation of £54mn ($67.5mn), so effectively Nexteq is now being valued on less than three times downgraded cash profit estimates of $11mn to enterprise valuation of $30.6mn. Forecast free cash flow (FCF) of $13mn (2024) and $7.5mn (2025) underpin FCF yields of 19.3 per cent and 11.1 per cent, respectively.

Third, with cash building and last year’s dividend per share of 3.3p covered 2.6 times by analysts’ downgraded EPS estimates of 11c (8.5p) for both the 2024 and 2025 financial years, then shareholders can realistically expect the progressive dividend policy to continue. The shares offer prospective dividend yields of 4.6 per cent (2024) and 4.9 per cent (2025).

Fourth, there is scope for new management to deploy the cash pile on earnings accretive acquisitions to mitigate some of the shortfall in profits next year.

So, although today’s bombshell is unwelcome, once the dust settles the shares have recovery potential. Hold."

[kemche] 24/7/2024 10:25

So most of the BODs just up and leave and that elicits no comments here??? Has everyone sold out at the highs?

[indiestu] 31/5/2024 11:30

There is not really any value in the share buyback for investors. They will be held in treasury for directors awards. So the share buyback is for selfish reasons and this should be a reflection on the management. No effect on price as no less shares in issue. This company only intends to reward itself. A special dividend would have give all shareholders a fair part of the distribution. The shine is off it for me. Selling into the next rally. If there is one.

[nchanning] 23/5/2024 14:32

Well done to the board for starting the buyback , the shares are still far too cheap . However it would be a lot quicker to just do a tender offer at 160p and repurchase a good chunk of the shares outstanding

[gdjs100] 16/4/2024 07:26

Would prefer a tender offer to a dividend, given the low share price.

[indiestu] 16/4/2024 06:26

Time to return a big chunk of that cash to shareholders. A special dividend seems in order. A buyback may be tricky considering liquidity. Likely it's on the agenda for the AGM.

[topvest] 04/4/2024 10:51

I've taken a small opening position. Looks an interesting company. It's not valued as a growth company. The prospect of an acquisition of something like Densitron to add a third leg to the group would be interesting. Anyway, looks high quality and management have lots of skin in the game. Found it on my trend 2 template screen.

[indiestu] 28/3/2024 10:57

Welcome to AIM.

[nchanning] 28/3/2024 10:45

Sorry this is rubbish and would be illegal without disclosing shareholding

[indiestu] 28/3/2024 09:09

That would explain the big fall at the end of last year. Their chosen broker likely has 10% in stock purchased at knock down prices to sell back to the company at a nice profit. Thought the steep fall and rapid recovery was odd but now all is clear. Anyhow good news for those who weathered it and hopefully the price can rise after this buyback is complete.

[nchanning] 28/3/2024 08:03

Well done to management for changing their mind on buybacks . It's not an admission of defeat or lack of ambition to buy back your own shares , sometimes it's just the best return available on your capital

[mirfield] 11/3/2024 12:45

One of my better holdings. Results on Wednesday 13th March.

[davebowler] 21/2/2024 15:13

SCSW summary -Finncap forecasts US$14m pretax profit and eps of 15.9 cents). Net cash has increased to US$27.9m from US$18.5m.

I suspect an acquisition will be coming down the pipe before long as Jayal has previously intimated. Buy.

[dunns_river_falls] 09/2/2024 09:29

One of Simon Thompson's Bargain Shares for 2024 - hence the jump this morning

[nchanning] 08/2/2024 09:43

Todays move prompted by some broker notes making positive comments about Quixant at gaming convention. If we get some revenue growth here the shares really ought to go ballistic . Hope Crucible clarity fund impressing on management that you don't go and acquire smaller businesses at 10 x earnings while your own diversified business trades on cash adjusted PE of less than 6, you buy back your own shares .