Shearwater Share Discussion Threads

[insideit] 28/11/2024 18:44

The software being provided to the Government contracts are just being resold, it is not clear if SWG is actually the software vendor in these deals.

[northwards] 27/11/2024 16:48

I was impressed with the new FD. The CEO, less so.

[elsa7878] 27/11/2024 15:44

I agree the tone was a lot more confident.
Smallish holding.
Shareholder destruction here is something else.
£60 million of acquisitions, £8 million market cap, £3.3 million in cash.
Companies they paid £60 million for are therefore worth £5 million!
Must be some value somewhere......
I knew the FD when they listed. Idea was to build a £billion cyber security business. Amazing what you can achieve when you have the wrong guy in charge. (not the FD!).

[lammylover] 27/11/2024 14:32

I asked a question about the costs associated with an AIM listing and whether the business would be better off being taken private.

Question didn't get picked up, so have asked a more detailed question on the feedback questionnaire.

Basically asking if business is too niche / small to ever grow significantly and perhaps should be sold to a bigger group to deliver value for shareholders (including Phil!)

[igoe104] 27/11/2024 14:20

Interesting comments about entertaining the USA. Hopefully if they make themselves a nuisance, Microsoft will have to gobble them up at a nice premium...

[bdbd11] 27/11/2024 14:19

Great presentation. Worth a listen if you missed it. I've listen to them for the last few years and they always talk a good game, however this time there seems to be a lot more meat on the bone. IF they can deliver what they envisage we are looking at significant growth in share price given the current derisory valuation. I was already over weight here (and obviously under water) but did have a tiny top up of 2500 at 34p mid meeting. Good luck all.

[northwards] 27/11/2024 14:11

Closing remarks ... 'an exciting H2...'

[northwards] 27/11/2024 14:04

£300k tax rebate hit in early November.

[northwards] 27/11/2024 13:56

Share buy back on the table for end of H2.

[hastings] 27/11/2024 11:39

I wouldn't have thought that it is particularly niche, given the global reach across 50 countries and customers of varying sizes.If it can get to generating the profits achieved in 2021 and 2022 again, then this should seriously rerate.Given the projected closing net cash position, the business is currently valued at around £2m!

[igoe104] 27/11/2024 11:16

The way I'm looking at SWG at the moment, is the software must be good otherwise they wouldn't be installing into Government systems at the moment. But the big issue is, Is the software too niche ? It just seems a handful of big companies etc are the clients, can medium size companies become clients ?

The company needs more contracts of decent size and more government contracts too really kick on. Just look at IGP a cluster of continued contracts and these can kick off big style...

We need continued momentum, not periods of 5 to 6 months before other announcements...

[hastings] 27/11/2024 11:13

Thanks for posting rivaldo.On a personal note, I had my call rearranged for Friday as they overrun yesterday with another call/presentation.

[northwards] 26/11/2024 16:13

This is not worth the price of the listing.

[sidam] 26/11/2024 10:03

Weather and Chris
Margins are expected to increase in h2 so does not look like buying revenue by cutting margins.

But no growth (negative) over last few years That said cyber security background looks really positive for next few years. Unfortunately, no estimates beyond this year. It now needs to grow by 20 - 30% per year and or return £3m to shareholders in my view.

I think I own cheaper shares with discounts to TNAV, also with decent growth prospects but good yields. That said, I intend to continue to hold SWG. I await the presentation with interest.

[lammylover] 26/11/2024 09:49

23.76m shares at 37p values business at £8.79m. No debt, £3.0m cash.
Surely this business will either be taken over or subject to a MBO?

[lammylover] 26/11/2024 09:49

23.76m shares at 37p values business at £8.79m. No debt, £3.0m cash.
Surely this business will either be taken over or subject to a MBO?

[weatherman] 26/11/2024 09:20

If they can become consistently cash generative, then this is very cheap. But over the last 5 years it has only managed to tread water with no growth. Are they now winning contracts at the expense of margins.?

[northwards] 26/11/2024 09:01

But gross margins down, so cash conversion likely to be more challenging in H2.

[hastings] 26/11/2024 08:54

Not really, if you look at how cash historically swings in H2.

[northwards] 26/11/2024 08:43

That's a big ask given cash is broadly £3m as of now.

[chrisdgb] 26/11/2024 08:35

It is clearly a sensible business, can anyone think of another share that is cheaper on the London market at the moment...?

[sidam] 26/11/2024 08:34

Cavendish project £6.8m of cash at ye. However, no estimate beyond this year. Looks very cheap on enterprise value but needs to put some of that cash to work or return it to shareholders.

[lammylover] 26/11/2024 08:31

Agreed. New CFO, who joined in September in a permanent role needs to buy a load here.
I'll ask question tomorrow at presentation, if no RNS tomorrow morning with Director Share buys..

[chrisdgb] 26/11/2024 08:28

Agreed, let's get this overhang sorted, did Miton have any..?