Pelatro Share Discussion Threads

[cordwainer] 09/11/2020 08:40

Actually seems to be slightly beating the Cenkos revenue forecast in terms of the old revenue model comparative, if I'm not mistaken. I picked up a few more just below 35p, but not really expecting any catalyst til Spring '21

[rivaldo] 09/11/2020 07:31

Agreed overall cordwainer. Good to see the new Asian telco win for $1m-$1.8m, but it's a balancing act for PTRO in getting that recurring revenue up and forgoing immediate licence fee bumps. And the employees contracting COVID-19 hasn't helped.

There will probably be an initial MM markdown, but the m/cap is already down to £14.5m, so this may lead to an interesting opportunity.

[cordwainer] 09/11/2020 07:23

Trading Update just arrived.
Figures for 2020 a bit underwhelming but more than priced in with improving outlook and visibility. Could be as good a time as any to get in on the cusp of a transformed business (SaaS instead of one-off sales) before the benefits start to be reaped.

[paleje] 26/10/2020 11:43

We're about 5-6 weeks from a trading update going by last year, a contract win to go with it would be nice, show us how some of that cash raise is producing results:)

[mfhmfh] 26/10/2020 09:02

57.63k (125,000 shares) bought late on Friday.

[sl71] 22/10/2020 10:33

silly question - does anyone know if pelatro is an EIS qualifying share ?

[gleach23] 20/10/2020 20:56

Yes it was looking promising when the last buy price shifted up to 46.96. I checked the limits just afterwards but it looked like there were still 55k available although this reduced to 25k by the close.

Hopefully more of the same in the coming days will result in further break upwards.

[mfhmfh] 20/10/2020 11:05

continuous buying today.

[gleach23] 19/10/2020 08:25

Nice to see the wall to wall buying so far this morning along with a promising looking chart, although still plenty of shares (55k) available to buy at present to suggest seller not quite done yet?

[rivaldo] 19/10/2020 07:20

You were correct gleach23 - nice start to the week.

Only around £7k of buying has pushed the price up 1.25p, so hopefully that 250k buy has cleared out the available stock.

[gleach23] 16/10/2020 16:43

Lovely. Yes 250k shares, or £115k, just before the bell. Hopefully sets us up nicely for Monday morning.

[mfhmfh] 16/10/2020 16:09

115k buy at 46p?

[gleach23] 16/10/2020 14:06

Might well have seen close to 50p if we hadn't had our pesky seller still sniffing about. Another 60k offloaded so far today in the face of almost twice as many buys.

[paleje] 16/10/2020 10:53

..and he's still underwater.

But I'd say he knew that might happen, not for much longer hopefully. Should be able to override the gloom of a lockdown winter too, as they get news of sales increases out the poor sentiment caused by the placing should dilute.

[mfhmfh] 16/10/2020 08:40

exactly - print edition coming out today. IC subscribers reading right now and more will read over the weekend so hopefully another rise on Monday.

Subash Menon's brother bought 1m shares at 47p in the placing in August.

[rivaldo] 16/10/2020 07:26

Why's that mfhmfh? Certainly a bit of buying this morning. Another tip, or does ST's buy rec get repeated in today's IC print edition?

[mfhmfh] 15/10/2020 17:20

Past 50p tomorrow?

[gleach23] 14/10/2020 15:14

Good to have seemingly got a foothold at the next rung up in the 44-46 area after the ST tip.

After those 2x21.7k buys just now there is just 1k available to buy again. Hopefully readying for the next rung.

[rivaldo] 12/10/2020 12:36

Thanks for copying ST's tip here speny. Perhaps now back to 55p-60p for starters, then re-rating further assuming news flow is as hoped.

[speny] 12/10/2020 12:12

ST actually tipped it back at the end of June, and just provided an update today. His comments are available to online subscribers on a Monday at 12pm and then on a Friday to those that subscribe to the printed version.

Personally I had this on my watchlist since his first highlight at the end of June, and bought in a few days before the Half Year Report at the 35p mark.

I guess a good part of why this has dropped was due to somewhat unexpected placing, especially as earlier in the year Subash Menon said the company was pretty well funded at that time.

Providing they can continue growing revenues and profits, this could prove to be a good investment at around these levels.

[gleach23] 12/10/2020 11:43

Oh...and there it is posted in full lol. Thanks speny - not sure you should be doing that although the full article does sometimes appear in full to non-subscribers.

[gleach23] 12/10/2020 11:42

Not a subscriber but I have an alert set up every Monday @ 11.55 to look out for any hint of his midday tip but can't find it today.

I'm wondering if it's something to do with the poster who placed the whole Kromek article within minutes of him releasing it last week (which I know you're aware of rivaldo). I was delighted to read it but I can't imagine ST was too impressed!

[speny] 12/10/2020 11:39

Simon Thompson todays update in IC

Time to dial back into Pelatro

The modest rating of Aim-traded Pelatro (PTRO:41.5p), a company that makes its money by providing telecoms operators with precision marketing software, is completely at odds with the guidance given by the directors at the half-year results.

Pelatro uses 'big data' analytics to reveal patterns, trends, associations and behavioural traits of subscribers. In turn, this insight enables telecom operators to monetise their data, boost average revenue per user and increase their share of subscriber spend. Adopting a more customer-centric approach to marketing also reduces churn rates.

In the first half, underlying cash profit would have been flat at $0.8m (£0.6m) excluding an adjustment of $0.15m on deferred consideration liability. Revenue was 16 per cent lower at $2.3m, but this reflected the non-recurrence of $0.25m-worth of consulting work and was a robust result given Covid-19-related delays to new contracts. More importantly, the current order book supports revenue of $5m for the full year, but this excludes a newly signed five-year contract worth $1.5m.

Moreover, managing director Subash Menon points out that $4m of the 2020 pipeline of $8m is from existing telco customers for various new modules and products, such as cross-selling opportunities where Pelatro is the only contender. These projects have a high probability of being signed off. Mr Menon also adds that “their businesses, while impacted to some extent due to Covid-19, are quite resilient due to the higher level of usage of data by their consumers. Most have moved online as have educational institutions and a variety of other activities. This has resulted in considerable increase in data consumption [by both individuals and enterprises], leading to higher revenue from data products offered by telcos”. This dynamic can only be positive for converting Pelatro’s total bid pipeline of $15m over the next 12 months.

At the same time, the board’s strategic move to generate a higher level of recurring licence fee income is improving the quality of Pelatro’s revenue stream. In the first half, about 82 per cent of software and managed service revenue was repeat business. A £2.1m placing over the summer is being used to strengthen the sales team and fund working capital for the managed services operation. In turn, this is enabling the company to tender for larger contracts.

House broker Cenkos is maintaining forecasts that point towards 2020 revenue increasing by 10 per cent to $7.4m to deliver flat cash profit of $3m (£2.3m). Deduct forecast year-end net cash of $3.4m (£2.6m) from Pelatro’s market capitalisation of £15.5m, and its enterprise valuation equates to less than six times cash profit. That’s hardly an exacting rating for a company boasting a bumper bid pipeline and one that now processes data for 19 telecom operator clients around the world with more than 800m subscribers.

After I last suggested buying the shares at 50.5p the price subsequently rallied by almost 50 per cent to 73.75p before succumbing to profit taking (‘Six small-cap buys’, 22 June 2020). I feel that a similar rally could be on the cards, making this a repeat buying opportunity. Buy.

[rivaldo] 12/10/2020 11:34

Love that Simon Thompson :o)) Anyone got the text as subscriber only?

That should more than get rid of any seller. There will always be a few in for a short-term turn (note the 9,696 share buyer who was in and out in 18 minutes!), but hopefully most of those buying will realise that the upside here from these levels could be considerable.

[gleach23] 12/10/2020 11:06

Can only imagine Simon Thompson has just tipped, as it's a flurry of buys at midday on a Monday