Sabien Technology Share Discussion Threads

[masurenguy] 01/3/2012 10:26

joe - in my view this is just the inevitable volatility that impacts highly illiquid small caps where the prices are often manipulated by the market makers. Whimsical sentiment or small orders to Buy or Sell can result in the Bid , Offer and spread changing without any particular reference to the fundaments.

The spread on Monday was 35 - 38 and there was a Buy of 2700 @38p, just £1026 in value. There were no trades at all yesterday yet the spread was changed overnight to 37 - 41 and a Buyer of 4000 this morning paid 8% more @41p followed by a Seller of 15,459 @38.9p about 15 minutes later. Todays Seller got a higher price on the Bid than Mondays Buyer got on the Offer. No logic to this at all other than it suggests that there is a Buyer in the wings so the MM's are looking for some stock. There has been no press or broker comment that I have seen over the past couple of weeks and as there has been minimal trading volume - less than 50,000 shares traded in that timeframe - I doubt that I have missed anything either.

[joesoap3] 01/3/2012 10:00

MAS,

For me, my boots are quite full already for such a small cap company, but it is tempting I must admit.

I noticed that for the last couple of weeks the spread has shown on here at 35/38ish but suddenly today it has gone up to 38/41 with no announcement or significant trading to show why. Have you any thoughts or have I missed some press/broker comment?

[masurenguy] 01/3/2012 09:33

Fill your boots ! :o)

[joesoap3] 01/3/2012 09:27

currently the spread is 39/40.85 for 5000 shares, so not bad really compared to other days.

[pj 1] 29/2/2012 10:12

Thanks for that, I should have looked on their web site, !!!!

[masurenguy] 29/2/2012 09:42

The rather large spread is primarily due to the very low liquidity of the stock. The top 9 investors are currently holding 84% of the shares and over half of these are also held by insiders. The spread has
been lower but it is rarely much less than 10%. This can also result in considerable price volatility at
times. Often, a small volume of shares traded can have a disproportionate impact on the price.

[pj 1] 29/2/2012 09:28

Prob showing my ignorance, Spread of 12.5%, does this ever reduce or is it standard with this stock?

The main worry for me is the figures and prospects look too good to be true!!! but its now top of my watch list

[exmooroil] 08/2/2012 12:01

Thanks for keeping us up to date, Masurenguy, on this excellent growing company. Very much a bottom drawer share until this week!

[masurenguy] 08/2/2012 10:39

Still heading north on minimal volumes. Currently, the maximum available to buy online is 2000 @44p.

[courant] 07/2/2012 23:26

Schoolboy error! I missed that too, good spot ;-)

[masurenguy] 07/2/2012 21:55

You're right kannerwas, so the market potential is 10 x greater than I previously thought !

[kannerwas] 07/2/2012 21:33

Perhaps just worth pointing out that 6000 is 0.1% of 6m, not 1.0%.

[courant] 07/2/2012 14:47

Masurenguy,

Thanks! All duly noted, the operating economics and "The UK market alone has circa 6m commercial boilers installed and to date M2G has been installed in less than 6000 or circa 1% of the potential addressable domestic market" were my main investment attractions. I'm just very interested in trying to fully understand how % of addressable market vs time might look like, as this will be the key driver of returns. 9.5M pipeline indicates this might be 2% next year, beyond that...? ;-)

Regards,

Courant

[goliard] 07/2/2012 14:20

Yes, a true genius given that they are also looking to start paying dividends!

Great to see these results, I had almost given up on my investment here based purely on the share price decline, but the comany is going the right way and the forward pipeline looks impressive.

[masurenguy] 07/2/2012 13:26

dugganjoe - 107: looks like its running low on cash

What a genius ! How do you come up with such a penetrating analysis when net cash is up 30% at £1.3m ! Clearly just another one line muppet deramper who has nothing better to do with his time but post BS.

"As at 31 December 2011, the Group's cash reserves amounted to £1,343k compared to £1,033k at 30 June 2011 and £912k at 31 December 2011. This increase is a reflection of the increased profitability of the Group in the period under review. The Group's target is to hold at least 6 month's operating cash on current account and short term deposit."

[dugganjoe] 07/2/2012 13:03

looks like its running low on cash

[courant] 07/2/2012 09:42

Agree, very happy with these. Lucky I managed to build a position in these under 30p - these are now virtually impossible to buy! One thing though, maybe longer term holders know the answer, is that I'm very slightly surprised the sales growth isn't a little higher - +35% on H1 2010/11. Which is great, but given the sales pipeline grew from 5.7M to 9.5M (+67%), is there a slippage in sales lead times? Or delayed/cautious purchasing because of recent euro-zone troubles? Or simply it's a lag in the sale pipeline growth vs revenue (which is most likely, in which case *plenty* more revenue growth to come!)? I'm curious, mostly because I'd like to understand exactly if there's a sales limitation here or not - in other words, given the size of the addressable market, which is extremely large, what are the practical limits to their total achievable sales in that market? Thanks and regards,

Courant

[glasshalfull] 07/2/2012 09:09

Concur Mas. Excellent results.

Regards
GHF

[masurenguy] 07/2/2012 08:25

Shares remain tightly held - so far this morning it has been impossible to buy any online.

EDIT 9.09am: Sabien is currently the third highest gainer on AIM this morning.

[kannerwas] 07/2/2012 08:19

Sales pipeline is up from £5.7m at end Dec 10 to £9.5m at end Dec 11. This should underpin continuing growth at the current rate at least. If so, the shares are in for a re-rating sooner or later.

I also like the hint of a future dividend. The company says it wants to keep in hand 6 months of 'operating cash' - not a term I'm familiar with, but I guess it might mean 6 months' worth of costs, in which case they've already got it, with a bit to spare.

[drw1] 07/2/2012 07:11

Might be reasonable to expect some interest in these today.

[masurenguy] 01/2/2012 13:53

Came accross this article on TMF recently. Dr Paul Jourdan, the Amati fund manager for their VCT Trust - they picked up 3.3m of the SE Global stake at the bargain price of 18.75p last November - includes Sabien as one of his top 5 AIM selections for 2012.

1. Sabien Technology
Sabien Technology (LSE: SNT) develops products that help make commercial heating systems more efficient. In particular, Sabien's M2G product addresses the inefficiency that arises when boilers are frequently switched on and off during the day, which is especially wasteful during summer months with boilers that are designed to keep a large building warm in winter. Judging from recent announcements, Sabien is clearly onto something -- the company's latest results showed sales had more than doubled. Furthermore, Sabien's contracts with large corporations and local authorities have recently taken the company into profit for the first time since joining AIM. Sabien has a market cap today of £7m at 23p.

[masurenguy] 31/1/2012 19:35

Interims due next Tuesday. A reminder of their post year end QI highlights (RNS: 3rd Oct) and Outlook:

"Looking ahead, our Company has never been stronger or better positioned to capitalise on the increasing demand for our proven energy efficiency technologies. The Group has made a good start to the new financial year and since 1 July 2011 has received purchase orders totalling £0.8m, an increase of 38% over the same period last year, all of which will be recognised as revenue in the first half of the current financial year. The size of our business pipeline at c.£8.3m is at a record level. We have a high quality customer base which includes many local authorities and blue-chip private and large public companies. These facts plus the level of orders received, which represent to a large extent initial phases of roll-out and which should generate significant future revenues, along with a well-controlled cost base, all enable the Directors to feel very confident about the future."