||EPS - Basic
||Market Cap (m)
|Electronic & Electrical Equipment
Solid State Share Discussion Threads
Showing 226 to 249 of 250 messages
|Seems to have tested 400p level again and bounced off it BUT relativly low volume - Thoughts ?|
|If it closes around this level it will be right at the 200dma - interesting to see if it acts as support|
|I think SOLI made a rod for their own back with the MOD contract. They clearly didn't take on board the warnings when the original winning bidder (Buddi) pulled out with some pretty damning comments about the MOD. The fact they've now no longer developing the technology suggests it's not commercial.|
|Soli has lost a big potential growth arm with the MOD contract.|
|All true, but - if the profit shortfall is due to contracts slipping into the next year, it's hardly a bad reflection on trading.|
|Continuing to fall - Does not look good (imo) MC £35M Profit forecast "Underlying profit before tax for the year is expected to be broadly in line with expectations, being in excess of GBP3.1m
" HOWEVER will be impacted by "by one-off costs arising from the re-organisation of the manufacturing division and the Creasefield acquisition costs of approximately GBP0.2m, and the recent decision to cease development activity in Steatite's SEMS (Steatite Electronic Monitoring Systems) business unit. This unit will be treated as a discontinued activity in the year end accounts and is expected to have attributable losses of approximately GBP0.5m. In addition, there are non-cash amortisation charges of acquisition intangibles of GBP0.2m. Which if I have done my sums corectly add up to some £900K - Reducing FRS3 profit to some £2.2 million - Still a bit rich (imo)
Fallers for 5 days
EPIC Name Price Today Price Then Change Change %
SOLI Solid State 412.5 520 -107.50 -20.67%|
|rhomboid: Well done to get your price then. having got out of my small holding back on 23rd Feb - Knew nothing just felt over bought, am looking for a price to get back in. Just luck - Often sell too early and lose a potential packet - same holding too long on a falling market!!|
|Looking for support around the 200dma. Now oversold too. DYOR|
|Nope was selling early @ 4.53 then backed off and did the rest in drips and drabs up until my post..so I reckon there's a buyer hoovering stock up in the background as I was in multiples of nms|
|rhomboid:> The early bird gets the worm I see - before 9:00 am then !!|
|On reflection I've sold out, still think this a quality player with exceptional long term ROCE but I'm looking to hold stocks with top line growth & this now fails that test. There's definitely a canny buyer or 2 around as I've sold remarkably easily across 11 different trades at an average of 4.45 or so, the bid faded in and out over the morning but liquidity overall was far better than it is normally. Good luck to holders, I'm likely going to be back at some point!|
|I think on a bad day these may be got for under 3 quid come the summer lull for that reason I have them on my watch list again.|
my retirement fund
|PUGUGLY. Lol, our posts crossed.
As you will see, I think these have further to fall.
Yes, Glasshalfempty with SOLI & appreciate that you thought my comments balanced.
Anyway, now totally out. Very pleased to get my remaining holding away at >450p this morning.
As mentioned above, I don't believe SOLI deserves any higher than 10-12 PER so by that reckoning I see current fair value 310p-372p range.
I'm sure I'll reinvest, but for the timebeing, best wishes to holders.
|GHF. Very fair summary - Then you expect a fair value between say 322 - 386 ? Subject to published accounts and forward looking statements?|
|@GHF I fear you should be called GHE ;)
But fair comments & thanks.
SOLI deserves a higher p/e in part due to qualifying for the AIM IHT tax breaks - it's had a number of tips based on that & must be quite a few shareholders who are in it for life (literally!).
Otherwise, I largely agree with you, & continue to hold.|
Disappointing statement today.
Sold some recently when it popped up to 525p but still retain a slug (thanks Richard B for the Moneyweek tip).
Worth noting that WH Ireland previously had £3.3m PBT pencilled in and today's statement indicated that PBT would be broadly in line and, "in excess of £3.1m". So somewhere in the region of 3-7% shortfall I'd envisage.
In summary, closure of the SEMS business (electronic tagging) reduces SOLI's ability to claim R&D tax credits moving forward which consequently raises their tax rate expectations from 10% to 15% for the current year as they can no longer offset. This has the effect of reducing EPS more markedly than the smaller PBT reduction of between £100-£200k as today's statement implies.
WH Ireland have reduced EPS by (-13%) in the current year from 35.6p to 31.1p EPS ... or prospective PER of 14.8 (@460p).
2018 finds them reducing by (-14%) from 37.7p to 32.3p EPS ... or prospective 2018 PER of 14.2 (@460p).
However, in a positive note, WH Ireland indicate that gross margins will rise to 32% from expectations of 29.5%. They've also retained a 12p dividend forecast for the next couple of years.
Overall I think SOLI a decent company. It's been an interesting ride during the last 3 to 4 years. We've had the euphoria that surrounded the MoJ contract win announcement and tripling of the shareprice, to the cancellation & uncertainty that followed (through no fault of SOLI's). Then came the MoJ settlement & acquisition of Creasefield which saw the shares appreciate from lows, and today's statement looks like providing yet another speed-bump on the road.
Notwithstanding a bid materialising for the company, I think the share price will at best stagnate for the next 6 months or so. It's certainly not rated like some on the market, but if WH Irelands forecasts are on the money, then I think it more deserving of a prospective PER 10-12 on negligible growth in the short term. Others may disagree.
My initial thoughts FWIW. Please DYOR.
|I agree CH.|
|Disappointing that the SEMS unit is being closed down at a cost of £0.5m. It's been treated as a discontinued operation but assuming the R&D was planned (and not capitalised) wouldn't that suggest adjusted PBT of £2.6m rather than £3.3m forecast? I don't think this result would have qualified for a 'broadly in line statement'.|
|I'm holding as they're generally conservative and contract based businesses are inherently subject to timing issues, as they grow such lumpiness irons out and the co. re rates to reflect consistency...that's the theory and I'm sticking around to test it out. I'd have bought more on the initial drop but was elsewhere engaged.|
|'Broadly in line'= slightly below imo, if it had been 'slightly ahead' then they would have said so.
I was looking to sell some on the Bell but the mark down prevented that, and have now decided to hold for a while longer, giving them the benefit of doubt that the contracts are delayed and not lost|
|No great dash for the exit here unless MM's are not yet showing the Sell's. A lot more Buy's showing up on LSE. AS profit warnings go this was a nice one. "Broadly in line" and "contract delays" are never good for the share price of a growth stock but this could recover quite quickly IMO.|
|T/s "mixed" at best, if I'm reading it right. "Broadly" in line means "barely" in line but if it's genuinely due to high-margin projects delayed into next period, then they're in-line without them & they will benefit future periods.
If we take the TS on face value, I agree with this assessment. This said, I don't have enough experience of this company to form a firm view.
Edit #2 - bought more, I think the market's wrong. Usually a dangerous position to take, but I don't see a mixed t/s as deserving worth 15% off the shareprice.
I normally sell out on profit warnings (which is how the market has reacted to this news) but "in line" with deferred higher margin business doesn't seem too bad to me. This share is very illiquid and difficult to get out of if they ever deliver really bad news. Also, I struggled to buy over the past few weeks for this reason, so I've had a little nibble but this is only a small holding for me, so prepared to take a little risk on today's news.|
|Happy so far. What will be interesting is to see whether there was genuinely a pre-market sell, reported later, eg 20k at £4 or something. My guess is not - the MMs just marked it down. But the jury's out.|