Pilat Share Discussion Threads

[lqs] 27/5/2005 08:23

Q1 results out this morning:


Revenues up and pre-tax profit up but less than expected/hoped. There does appear to be a Q4 bias with this stock.

"The increase in sales coupled with a higher gross margin resulted in an
operating profit of £75,000 in the Quarter, compared to £27,000 for the same
period in 2004."


However the best part is the cash flow, over 300 grand positive. Cash now 1.65M, up 0.8M in 2 quarters.

[lqs] 16/5/2005 13:04

Q1 results out in 2-3 weeks. Israel share price creeping up on miniscule volume. Currently 11p. Also US dollar slightly stronger of late. A strengthening US dollar would be very beneficial for UK holders of this stock.

[hugepants] 11/4/2005 15:16

Israel and UK prices match up now.

At least they do at mid-price. The current spread is huge.

[guru11] 06/4/2005 09:15

HugePants - thanks for that -
Things are not quite as rosey as it would first appear,
although they do appear to be on the right track,
although slowly but surely.

[hugepants] 06/4/2005 08:08

Guru

Pre-tax profit was 0.49M (before exceptionals). As you say nearly all of this was in H2 and especially Q4

Q4 revenues were 4.1M compared to 2.9M the previous year. Up until Q4 the revenues more or less matched the previous year. However cost-cutting resulted in modest profitability.

Its easy to get carried away by the Q4 performance and it wouldn't be difficult to make a case for a stonking profit this year but Im looking for something more modest, say around 0.75M pre-tax this year. Q1 results are out in about 7 weeks and should give a clearer picture.

[guru11] 05/4/2005 21:51

HugePants - agree with you. Same with EVS as well, a lot of red.
I am surprised that the MM held the price as well as they did and it did not go even lower, although the 900k looked like a buy towards the end.

PIA taking a 6 to 12 months view does look very promising.
I thought at the nine month stage they made 90k and at the 12 months stage profits were 336k although someone on this board said without exceptions profits would have been 390k. If PIA has turned the corner - if I am not wrong -and I welcome comment good or bad - I like honest non-ramping comments - the turnaround appears to be very strong - but has almost gone un-noticed. I would welcome any comments on what the next years profits is expected and prospective eps / pe ratio. Remember this could be mentioned in Share Mag. and / or IC Thursday / Friday time, but one need to be ahead of the game, not buying with the crowd and a rising price.

[hugepants] 05/4/2005 18:08

People selling out and using their capital gains allowance for the tax year? Im not selling at this price.

[guru11] 04/4/2005 21:36

Surprised no comment today. At least 2:1 for sells today.
The fundamentals and turnaround does interest me a lot though.
Another good set of results could see another re-rating.
Punters probably taking profits at present.

[simonparker5] 03/4/2005 00:12

From Britishbulls.com 2 April

Pilat Technologies International
Daily Commentary


Our system posted a BUY CONFIRMED today. The previous SELL recommendation that was confirmed was made on 01.02.2005 (60) days ago, when the stock price was 6.7500. Since then PIA has gained 85.19% .

Were you eager to go long? Well, without doubt, it was the right time to do so. The BUY signal was finally confirmed, and most probably you have called your broker and placed your long orders with no hesitation.

Don't worry if you have missed this buying opportunity. The market may now give you a second chance. You may still find good prices for buying in the next session

[topvest] 01/4/2005 20:47

Yes,I agree with you all that these could have a lot further to run. They seem to have turned their business model around very well.

[simonparker5] 01/4/2005 20:42

guru : the 10K sell at 12.25p was mine. Bought 5ok of these a month ago at 7p at the time I thought these were cheap. Just taken alittle profit as they rise but will hold the rest for 20p.

[guru11] 01/4/2005 12:08

HugePants - you are right - not only cant I deal online, but when I ring iDealing.com they have said it is certificate only, and will not deal in them.
I am not very liquid outside my account, so may find it difficult to buy.

I see we have a sell of 10k and another one just recently of 25k.
Are these people just taking a profit? I would definate hold these if I had them. The outlook is incredible promising. I really cant understand the fundamentals here.

Being harder to trade in may limit the price, but it has had two good days running.

[stewjames] 01/4/2005 11:45

So do sharepeople. I know because I tried to buy them a few months ago much lower (think it was sub 5p) but baulked at the premium to the spread I was being asked to pay. :-(

[allstar4eva] 01/4/2005 11:39

Barclays online trade these.

[hugepants] 01/4/2005 11:19

Some brokers dont trade these becasue they are a residual stock. In fact probably none of the common brokers do, and certainly no online brokers.

As regards results I was also very surprised to see a pre-tax profit (before exceptionals) of 0.5M for the full year. At Q3 they had 185K pre-tax and at H1 it was only 90K. Q4 must have been very strong. In fact Q4 cash flow was positive by about 0.5M. The bull case is that Q1 this year is similar to Q4 last year in which case the current market cap will look seriously cheap. Ive had a look at the last few years results and I cant find anything that indicates seasonality. The fact that Pilat Media demerged and the tech boom happened means its pretty difficult finding a seasonal trend from previous results.

PS. Israeli markets closed today for the Sabbath therefore no guidance from there today.

[allstar4eva] 01/4/2005 11:18

Hi Guru,

I can't pretend that I have a detailed understanding of balance sheets etc and there are always risks but these look like a stunning bargain even after recent rises. As I mentioned before the expansion of sales operations for the PULSE web based software appears to be driving growth here. What if they are able to do £600K pretax in Q1 next year? Nothing is guaranteed but these do look a potential multi-bagger. I remember EVS after their recent trading updates. No one was interested even though the price at that time was clearly too low.

I can't find much of a downside at these levels especially when they have £1.3m cash! I'd also welcome any negative input.

[guru11] 01/4/2005 10:32

Cant seem to buy online though.
Does appear to have exceptional potential,
and not on too many people's radar screen at present.
Up again today.
Stock appears to be not too liquid.
However would have thought that this could go much further if the results trend continues.

4th quarter profits does look amazing.
If we get 4 x 4th quarter profits next year for full year results then what pe ratio is this stock on? £390 x 4 = £1.56m with a cap of yesterday of 2.9m, now what would we call that - very cheap.

Am I missing something here?

[topvest] 31/3/2005 22:02

This company seems to be turning things around very rapidly. It's a bargain at this price. I think the Israeli format of reporting results put some investors off. Should continue to see a re-rating to 25p and beyond imo.

[allstar4eva] 31/3/2005 20:36

Looking through the results it would apppear that the HR PULSE(R); their Web based software is driving growth here.
Without the exceptional costs it looks like we have a company that recorded a profit of £390k in the final qurter of the year with £1.3m cash for a market cap of £2.9m.

This could treble from here and still be worth a punt based on the strength of PULSE software revenue growth. European sales operations are expanding - this could turn out to be quite a story.

[cbeadle] 31/3/2005 20:07

Having bought recently I'll take this re-rating of PIA quite happily, although the UK price has increased far more than the Israeli quoted price today(76% vs 12%), which does surprise me except Pilat may be less illiquid on Tel Aviv?

[guru11] 31/3/2005 18:24

One thing checking back at 9 months stage the company made £90k, and finally full year results came in at £336k. So correct me if I am wrong that makes a 4th quarter profit of £246k with a market cap. of £2.9m. Now what pe ratio are we looking at for next year? This looks like a reasonable prospective investment to me, if the final quarters figures was not a one off.

I dont know whether the trades are right but it shows 25k buys and 123k sells,
even though the price rose.

So any estimates for the next full year?

[sharegod] 31/3/2005 16:00

almost certainly worth 25p

[excalibar] 31/3/2005 15:53

there is no logic in this when there is no buys

[hugepants] 31/3/2005 15:52

Why is it pump and dump, because the price is up? The market cap is only 2.9M and the compnay has just posted pre-tax, pre-exceptional profit of 0.5M. Nearly 12M in revenues and 1.3M in cash. If theres another listed tech company with that kind of valuation please point it out.

[jen2000] 31/3/2005 15:36

Is this another EKM, pump and dump

maybe