Spectra Systems Share Discussion Threads

[ntv] 30/3/2017 17:55

For the second year running, Spectra has generated significant EBITDA, up over 100% relative to 2015 (before stock compensation expense and exceptional items). This steep growth was driven by increased use of our in-house manufacturing for a contracted G7 central bank customer, as well as a new central bank end customer for our high margin phosphour materials. In-house manufacturing was in effect for the last quarter of 2016 and will continue for the duration of the contract to beyond 2026. Both of these revenue streams are sales of consumables to large central bank end customers, as opposed to more intermittent hardware revenue, and are therefore expected to continue to fuel profitability in the long term.

[ntv] 30/3/2017 17:51

gross yield here is over 8.75%
not sure of US tax position but assuming unlike Mr Trump we will have to pay tax of say 30% leaving a nett yield of just over 6% for current year
nice , happy with the Brucie Bonus of a dividend which i wasn't expecting
way undervalued but will have to wait for market to work it out
meanwhile just keep topping up in the dips

[fozzie] 30/3/2017 17:08

Mmm i am glad i held on here but not so glad i held on at ACHL, you win some you lose some ;o)

[ntv] 30/3/2017 09:11

no idea to be honest, best to check with your brokers accounts department

[tilly99] 30/3/2017 08:55

NtvUsual uk tax on divis applies?

[ntv] 30/3/2017 08:49

Yep, it is the one i see most often, certainly over the longer term

[pj 1] 30/3/2017 08:46

NTV- How many successful ones are there? You are only looking at one side of the coin.

[ntv] 30/3/2017 08:46

weaker pound means higher dividend but depends on your broker charges i guess

[tilly99] 30/3/2017 08:45

Do we want a lower pound so we get more from our dividend?Or is this not good when we translate our results?Not sure!! Anyone else know whatever should want the currency to do?Also what tax do we pay on a dollar dividend?Good to have stock in ISA?

[ntv] 30/3/2017 08:44

PJ1
just look at the AIM markets and see how many failed acquisitions there are after a couple of years. either original businees or the acquired business

[spob] 30/3/2017 08:44

Well done to those who have stuck with Spectra

Unfortunately I pulled out at around 20p :(

[ntv] 30/3/2017 08:41

yes agreed t, not aimed at this company
i am just generalising

[tilly99] 30/3/2017 08:37

Our last two acquisitions have been great so your comment is a very general one

[pj 1] 30/3/2017 08:34

NTV30 Mar '17 - 08:31 - 1019 of 1019 0 0

'most acquisitions end up ruining the companies that buy them'

Can you support that statement?

[ntv] 30/3/2017 08:31

the directors would rather pay large salaries to themselves. they haven't worked out yet that if you pay large dividends the the market more highly values your company. therefore your stock options more than make up your loss in earning. only really applies to smaller companies.
most acquisitions end up ruining the companies that buy them. mostly better to grow organically unless they are small bolt on ones IMHO

[hastings] 30/3/2017 08:30

5c dividend does indeed make for a chunky yield and that's pencilled in for the next two years with the added sweetener of further upside potential according to the broker.

[tilly99] 30/3/2017 08:25

Why don't more companies do this?No acquisitions around?

[ntv] 30/3/2017 08:18

going to beat your banks rates whatever!!

[tilly99] 30/3/2017 08:17

Not many companies pay out all their earnings in dividendsWhat sort of yield should we be on?I think 7pct as obviously riskier doing this70p easily achievable What's the tax on dividends from states or is it treated like a UK divi?

[ntv] 30/3/2017 08:06

seems a good yield on a small company
happy to hold and see what unfolds at the half year results

[tilly99] 30/3/2017 08:05

So at 40p we yield 10pctSo if one thinks(as I do) that earnings are on the up then buying here at 40p should give a nice 10pct yield for a while to come Onwards and upwardsI'm upgrading my price target from 50p to 70p

[tilly99] 30/3/2017 07:53

Thats how I read itSo we should be trading at 45pOdd as Nabil has options so why would he pay out 11pct in divis?Surely as divis are taxed it would be better to make acquisitions?

[ir35] 30/3/2017 07:49

The divi is 4p not 0.4p.
They intend to pay all of the profits out in divis until cash is down to 5M USD and then reduce the divi to half of annual profits.

[tilly99] 30/3/2017 07:32

What's the dividend 0.4p?Why pay a divi when there must be acquisitions out there?

[fozzie] 30/3/2017 07:16

Maiden divi