Nth.Mid.Cons Share Discussion Threads

[qs99] 27/4/2017 21:18

great, look forward to smashing through £3 then!

[cc2014] 27/4/2017 20:45

Banging it's head harder at 300. Trades going through at 299.x with spread now closed to 295-300 the tightest it's been for a long time

[cc2014] 25/4/2017 21:51

Can't quite make it through 300 yet. 297.5 to buy in the real world.

[cc2014] 24/4/2017 20:05

Some decent buys today - tipped somewhere perhaps. Or maybe one investor picking up several lots during the day.

I think 300 on the offer won't last tomorrow looking at those volumes.

[qs99] 24/4/2017 17:33

Yup, nice to see the tick up. Lots more to come IMO

[battlebus2] 24/4/2017 17:26

Well we got that £3 today even if it's only on the buy side for now. Really like this co, excellently run imv.

[cc2014] 19/4/2017 23:20

I don't really have a scooby what a cyclotron is but it sounds great and hopefully involves a premium margin

[qs99] 07/4/2017 14:07

Looking good

[cc2014] 07/4/2017 13:08

Might get there today!

[battlebus2] 07/4/2017 12:13

Closing in on £3...

[battlebus2] 06/4/2017 15:39

A long long way to go imv...dyor etc

[qs99] 06/4/2017 14:39

Still moving

[battlebus2] 04/4/2017 18:29

Yes I can see nothing but upside, that cash will be put to use I'm sure. I'm guessing we will see another significant jump soon , I hope to add before then.

[cc2014] 04/4/2017 18:16

I don't want to get ahead of myself but £8.5m looks do-able and £6.5m would look like the worst possible outcome?

Anyways as far as I can ascertain the all time high for this stock is just over 500 and at that time the profit was £3.1m although had been higher the year before at £5.5m. Dividend at that time was 8.5p

I can be patient and happy to hold for a few years. Anything between £6.5m and £8.5m would see a significant improvement in the cash position as dividends are only £450k a year at the moment and we have brought forward tax losses to mitigate the corporation tax bill. No pension issues so effectively most of that cash will flow directly onto the balance sheet or get paid in dividends.

A couple of years running a profit of that size is going to make this look a very different company. I expect the directors to be cautious over dividend payouts and I applaud that - happy for them to build up a buffer just in case there are troubles ahead.

[eezymunny] 04/4/2017 17:28

Yes the big legacy problem last year was construction. Telecoms was just useless but they seem to be in gear to improve. If they get it back to break-even then with about 12% bigger order book etc your £8.5m looks possible. It is all pretty woolly but maybe very very cheap here as you say (P/E=4?). Too cheap by miles IMO but low margin contract work so always danger of bits not performing well.

[nw1234] 04/4/2017 14:38

CC,

The wording in the narrative on legacy contracts refers specifically to construction contracts and not to telecommunications, so I go towards the top end of your estimate.

[cc2014] 04/4/2017 14:28

So, I've been trying to unravel the results and it suggests the following:

Profit before legacy contract £5.9m and after £2.1m. Contract has been completed so no further costs to complete. Directors suggest the income in books is based on their best estimate of recoverable costs - who knows? Maybe we will have a few more costs or maybe they have kitchen-sinked it.

what I can't entirely figure out is which area of the business the legacy contract is in. The telecomms unit shows a large loss of £2.6m so on the fact of it you'd assume that's were the legacy contract is but the the first half results refer to only £0.036m of legacy contracts in telecomms at the half year. The loss hasn't increased enough in the second half to allow for £3.85m of legacy costs.

So, either NMD can turn £5.9m plus a bit more as things improve = say £6.5m or they can turn £5.9m plus a bit plus start eliminating loss on telecomms

Gives a profit range for next year of say £6.5m- £8.5m

With a market cap of £27m, no pension deficits, cash in the banks plus owning loads of assets in preference to leasing it remains crazy cheap to me.

[qs99] 03/4/2017 08:24

A little blue start!

[qs99] 31/3/2017 15:57

indeed, and with no debt!

[battlebus2] 31/3/2017 13:28

Yes the legacy issues are technically finished but once they are wiped it leaves a very healthy clean co... you know what I mean...

[cc2014] 31/3/2017 13:15

Very interesting day. I wish I could find more stocks like this. It's more than double my entry point and I see no reason to sell at all. Grins

[qs99] 31/3/2017 12:56

haha, indeed EM, not thinking we should lose money after those results and that pipeline of business for this year, but yes, the rating will be key, but a EV/EBITDA of around 6-7 is not IMO unreasonable.....let's see. Often it takes a roadshow by management to drum up support and patience from the PIs like you and I!

cheers and good weekend

[eezymunny] 31/3/2017 12:20

Not very likely QS but if Mr Market can put similar co's on P/E's of 13 then you never know. You could just as easily lose a fair bit here!

[rogerbridge] 31/3/2017 12:19

This looks very interesting, Brexit is a short term concern, but infrastructure should increse no matter what, according to Mrs May.
Possibly going to buy here, are all uncertanties over with the legacy project, no more black holes?

[qs99] 31/3/2017 11:55

personally I agree, legacy issues appear to have been dealt with....£10 would be nice EM!