Spectra Systems Share Discussion Threads

[death by donut] 22/6/2022 21:32

Well at least it means my drip by more shares.DbD :-)

[sonofbanjosinger] 22/6/2022 17:09

Dividend payment day on Friday... so perhaps they will get cleared quickly then...

[pj 1] 22/6/2022 16:58

I wasnt thinking nico and showed my hand too soon. I should have asked that but missed the opportunity

[nico115] 22/6/2022 14:59

How many shares ?

[pj 1] 22/6/2022 11:52

WH Irelands are phoning around offering stock. Clearly a large investor wants out and confirms the failure to promote the Co effectively and no one wants the stock.

How low will it go?

[sonofbanjosinger] 15/6/2022 15:45

Like yourself l brought for the opportunity in Aeris and Trubrand.. But luckily when these opportunities did not come to anything.. Other opportunities came along.. What keeps me here is now the yield and the visability of earnings... How many companies can even in these strange times predict with any certainty there earnings for 2025.. this year we have been lucky with an increased dividend of 11 percent with an additional bonus of 15 percent due to the strengthening dollar. I also have most of my holdings in my Sipp which is also free from US withholdal tax.

[nico115] 15/6/2022 12:44

Great post and agree with all you have said.I think the substate opp will have more of a chance of success as it's what we do best,bank notes Btw I never thought anything would come from aeris due to covid India we got to last 2 Nabil has also been unlucky as always has the best product at the right price Agree with all your thoughts You should email Nabil occasionally as he likes corresponding with share holders

[harrogate] 15/6/2022 12:02

Hi
SPSY has been a fantastic investment for me - the dividends received are much more than my average buy price and I have held most for nearly 9 years. But I like to call it as I see it with all my investments and put out what I see as reality not negativity
No one here I am sure bought SPSY for yield - we bought because of the IP, the annuity style earnings the great CEO and because we were told there was a string of opportunities that would transform the size and profitability of the Company.
Outside the G7 reader contract which is of course spectacular in its size, those opportunities have not come through really in any meaningful way, There maybe excuses for this but that is the fact.
For me we are now left with one shot left and it is a big one - the substrate for polymer bank notes. If they break the current duopoly and get on tender lists for supply then this opportunity will dwarf the current business and we will be £5+ without any question.
But will we? - the product looks good but so did Aeris, we were down to the last 2 with the Asian CB and lost, China has not come through etc etc
I am a firm holder - now for yield as we wait and if polymer traction happens amazing.
I have massive admiration for Nabil and his trustworthiness but I think he has had numerous commercial failures over the last few years - I am betting that polymer is not another but it is clearly not a slam dunk on past performance

[nico115] 15/6/2022 11:26

Stop looking for negatives You own a wonderful coKeep the faith

[nico115] 15/6/2022 10:35

We will get more bus from the Fed

[harrogate] 15/6/2022 10:15

The problem with the 2025 ( and 2026) when it comes through is that the increase is all around a one off reader contract that then falls away. It is massive and fantastic but if that uplift in EPS was permanent we would be much higher already. We are relying on a breakthrough in substrate to fill that coming gap. If we get traction in substrate this share price will be long gone .... But if we don't ? Hence the current drift

[vprt] 15/6/2022 10:07

For anyone in need of cheering up in a tough market (multiple contraction) I suggest having a look at the WHI note out this morning and in particular the 2025F column.

[sonofbanjosinger] 15/6/2022 10:03

Absolutely agree... very happy

[nico115] 15/6/2022 09:27

Not sure how anyone can be critical of Nabil What a fabulous co to own shares in

[pj 1] 15/6/2022 09:26

As Harrogate points out the stock does look good value on many metrics.

Even the simple forward p/e ratio is down now to x14, which you could argue is now towards the bottom of its historic range, compares to a usual p/e ratio of 20 to 22 when we had earnings growth.

I suspect once earnings growth becomes closer we will re-rate back to the higher p/e ratio.

It's some wait though.

[harrogate] 15/6/2022 09:21

That is not the case in fact as the upgrades from this news amount to $1m over the 3 years. So 50%

[boonkoh] 15/6/2022 09:16

Plus the £/$ weakness has not been fully reflected yet IMO in the share price.

[boonkoh] 15/6/2022 09:14

With its high gross margin,ost of that $2m falls right to the bottom line. That's substantial.... Worth almost 20% of a year's EPS.

[harrogate] 15/6/2022 08:46

One thing you can't argue with despite my comments is the fantastic relationship they have with the major G7 customer. It is the bed rock of the company. Small upgrades to 2022-2024 on the back of this and must underpin higher dividends as we move forward. While we can moan as we do about the AGM and lack of commercial progress outside currency it is clear that SPSY is cheap on most metrics while we wait for the sensor delivery from 2024

[pj 1] 14/6/2022 10:00

For as far as I can recall this is the first time I am currently seriously doubting that I will be re-investing my dividends back in to SPSY.

On the one hand the last x2 positive ''ahead of expectations'' RNS's have failed to ignite any interest for a CEO who, on the other hand, seems to live in his past success with SPSY, while informing us how much the Co is worth but not delivering on his recent, and longer term transformational projects.

Clearly the Market is informing him that currently the jury is out on his Investor tactics and growth strategy.

For balance I remain a holder for the med to long term, based on market forecasts, and to be fair happily collecting the dividends, which does deserve a lot of credit.

[robsy2] 14/6/2022 08:46

On the subject of reported earnings,interesting to note that GBP has declined 15% or so against USD in the last 12 months. Every little helps.

[harrogate] 14/6/2022 08:24

Good to see we have sorted the CFO tile out. Looks very experienced. Wonder when she starts ?

[sonofbanjosinger] 14/6/2022 01:05

Nico it's not a waste of time you being here.. This is just as you say not a popular share... But every share has its day....

[nico115] 13/6/2022 13:42

Thanks It is what it is Solaris valued at zero Free punt