Star Energy Share Discussion Threads

[nick2412] 01/11/2021 11:12

Not overly surprising to see the uplift given that last announcement flagged up the prospect of some chunky contracts this year and a rebranding. I don't think the placing participants would have paid a 35% premium unless these potential contracts flagged up for this year were as good as nailed on. We will see reasonably soon.

[smithie6] 01/11/2021 11:07

whooshhhhhh !

[davethechef] 29/10/2021 13:31

Looking perkier once again!
MM's looking happy to let-it-go!!!

Contracts to be announced soon, one suspects

[hedgehog 100] 22/10/2021 17:53

Hedgehog 100 28 Jul '21 - 15:37 - 1500 of 1549 Edit 0 0 0
"There was a significant related new issue last week: on 22nd. July Microlise (SAAS) IPOed at 135p, market cap. £156.5M.
The company provides transport management software that helps companies more efficiently manage their commercial vehicle fleets. ..."

Hedgehog 100 28 Jul '21 - 16:03 - 1501 of 1549 Edit 0 1 0
"The Microlise (SAAS) float looks positive for STAR in multiple ways:
• Illustration of business success, and green credentials.
• Healthy investor support and rating.
• Potential acquirer of STAR.
The float certainly highlights how undervalued STAR is in comparison.
And I'm not aware of a more appropriate acquisition target for SAAS listed in the UK. ..."


I flagged up the SAAS new issue three months ago, in the above posts, and it's interesting to revisit it, to see how well its share price has performed since.

And indeed it's been one of the year's big successes: currently 200p, market cap. £231.89M., up nearly 50% on its IPO price.

Microlise (SAAS):

[hedgehog 100] 22/10/2021 15:36

GB904150 22 Oct '21 - 15:03 - 1548 of 1548 0 0
" ... the RNS says that costs are increasing ..."

No it doesn't: it says that they have increased already, which is very different.
They've been higher since last year, and are not increasing now.

These higher costs are reflected in STAR's H1 figures, and the situation is now improving, not worsening, as you are falsely suggesting.

From today's RNS:
"... Trading in the second half of the year is still expected to show an improvement on the first half ..."

And the losses are comparatively small for a small AIM tech company, and compared to its revenues.

Net cash was generated in operating activities in H1 of US$0.2M., and if the company wins a couple of big contracts it could easily become profitable.

[gb904150] 22/10/2021 15:03

Regardless of what we call it.....the RNS says that costs are increasing (freight and component costs). Those will come straight out of gross margins.

So even if revenue is unchanged gross margins will be eaten into by higher costs.

We can both agree that STAR doesn't make any profits at the moment it makes losses.

So could we agree to call this a hint of 'potential increased losses' rather than a profit/earnings warning?

I'm sure we can review in 6 months with some hard figures.

[hedgehog 100] 22/10/2021 13:55

GB,

STAR wasn't forecasting earnings or profits, whatever you call it, so the point is unchanged: it can't have issued a warning re. either of them - not that there's any real difference between them.
So changing the word from profit to earnings is irrelevant.

Neither does it have an existing profit or earnings forecast in place, so how can it be preparing for warning on one?

And the positive material is the very antithesis of fluff: there is specific info. about contract negotiations, rebranding, and global marketing.

The negative part meanwhile is less negative than in the first half, i.e. a recovering situation, and should improve further as the pandemic subsides.
That's what investors should look for in a recovery situation: a TEMPORARY market challenge that will abate.

Add in STAR's growth prospects, and STAR is a recovery-growth-value-takeover play all rolled into one.

[gb904150] 22/10/2021 12:26

I agree Hedgehog that raising funds at a 35% premium to yesterday's share price is very bullish. Based on that I can understand today's move.

They won't have convinced several large investors to part with £450k at a large premium to the current price without there being a very positive message to go with it.

That said....the positive part of the trading update is mostly fluff but the negative part is more real and seems to soften up investors for a profit warning in the future.

As for the term 'profit warning'....call it an 'earnings' warning if you prefer. I think that part is just splitting hairs.

[hedgehog 100] 22/10/2021 11:50

STAR closed yesterday at 0.925p, so the placing at 1.25p is at a premium of 35.1%.

This speaks for itself about the value here.

For small AIM tech companies, the norm is to raise money at a discount, sometimes a very significant one.

STAR has been profitable in the past, and was on course to return to profitability before the pandemic hit, so there's no reason to think that profits aren't achievable.

And from this low market cap., that should have quite an impact.


22/10/2021 07:24 UKREG Starcom PLC Issue of equity raises GBP450,000

"Starcom (AIM: STAR), which specialises in the development of wireless solutions for the remote tracking, monitoring and protection of a variety of assets, is pleased to announce that the Company has raised GBP450,000 before expenses through a subscription to 36,000,000 new Ordinary Shares of no par value in the Company (the "Subscription Shares") at a price of 1.25 pence per Subscription Share (the "Subscription"). The Subscription is being undertaken utilising the Company's existing share authorities and has been subscribed by several new investors.

The net proceeds of the Subscription will provide the Company with additional working capital and in particular, help convert its pipeline of new business opportunities and provide capex for potential new contracts, as announced earlier today.

Application will be made for the Subscription Shares, which will rank pari passu with the Company's existing Ordinary Shares, to be admitted to trading on AIM ("Admission"). It is anticipated that Admission will become effective at 8.00 a.m. on or around 27 October 2021. The Subscription Shares will represent approximately 9 per cent. of the Company's issued share capital on Admission.

Total voting rights

On Admission, the Company's enlarged issued share capital will comprise 420,214,576 Ordinary Shares. The Company does not hold any shares in treasury. Therefore, the total number of Ordinary Shares with voting rights in the Company will be 420,214,576. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the voting rights of the Company under the FCA's Disclosure Guidance and Transparency Rules."

[hedgehog 100] 22/10/2021 11:37

Some utter nonsense being posted here.

STAR wasn't forecasting a profit, so how can it have issued a profit warning.

The reality is, expectations have already been set very low, and the fact that STAR is facing market challenges isn't news, it was already well known.

What the market is more interested in is the future outlook, and it's looking pretty exciting:

22/10/2021 07:00 UKREG Starcom PLC Trading Update

"The Board of Starcom (AIM: STAR), which specialises in the development of wireless, Internet-of-Things (IoT) based solutions for the remote tracking, monitoring and protection of a variety of assets, is pleased to provide an update on trading.

As stated in the interim results announced on 27 August 2021, there are strong signals that business is starting to revive and the Company has a strong pipeline of potential new business. In this regard, the Board of Starcom can report that negotiations for potential new contracts are progressing and the Company is in advanced stage discussions for a number of potentially substantial projects concerning the supply of Starcom's various devices for the tracking and monitoring of containers and related items. Should these be successfully concluded they could provide significant revenues over the next few years, including SaaS revenues. There can be no certainty that these negotiations will lead to final contracts or if they do, what the final terms and value will be. However, certain potential clients have indicated their desire to reach an agreement with Starcom for its technology and the Board is hopeful to conclude one or more contracts before the end of this year. This includes discussions with potential customers in South America and the USA, including one that the Board considers to be one of the major companies in the field of tracking and monitoring containers. The timing for completion of any of these negotiations cannot be certain at this stage and the Company will provide further updates as soon as appropriate.

Separately, the Board has been undertaking a strategic review of the Company's position in its markets together with professional advisers. As a result, it is now intended to commence a rebranding of Starcom's products and, now that Covid restrictions on travel are less onerous, the Company will focus on increasing its global marketing plans and seek to take advantage of the major increases in the costs to companies of shipping with containers that, the Director's believe, should improve the demand for Starcom's product range. The Board is also giving consideration to a possible change of name of the Company to reflect the new branding image which is being developed.

Trading in the second half of the year is still expected to show an improvement on the first half, but much depends on the finalisation and timing of signature of the contracts referred to above. T he Company has maintained a key focus on cash in light of the challenges faced in managing inventory levels and dealing with the global shortage of components needed to make products. The worsening supply chain issues facing multiple sectors and businesses of all sizes have been well publicised and, unfortunately, Starcom has not been immune to these challenges. These issues include material increases in freight costs and shipping timeframes, as well as increasing component costs and reduced availability. Some orders for customers, existing and prospective, have been delayed as a result, particularly as suppliers now often require full payment in advance. This inevitably impacts cash flow projections and the Company is working hard to mitigate this as best as possible, including ensuring a sufficient working capital buffer, and the Company is proposing to raise up to GBP450,000 in an equity subscription which it expects to be able to conclude shortly."

[hedgehog 100] 22/10/2021 11:23

"LSE % Gainers Top Lists
EPIC Name %
IRON Ironveld +35%
STAR Starcom +24%"


A lovely day for me today: two of my largest holdings at numbers one and two on the top risers list.

In contrast, I think we can work out who missed out on today's STAR rise!

Enjoy your sours grapes, LOL, I will be enjoying something much nicer tonight.

[gb904150] 22/10/2021 09:57

Interesting stigologist. That's how I read it too.

A couple of paragraphs of hope, optimism and potential for the future, followed by teh current reality, which was an admission of cost pressures and delays and suppliers wanting payment in advance, impacting cashflows.

STAR weren't profitable beforehand so if margins are squeezed further it doesn't look promising.

That said, somehow they got away a fundraise at a huge premium (around 30%!) to the current share price I'm not quite sure how they did that. I think the shares will be cheaper in 6 months time when those cost pressures turn up in results.

[the stigologist] 22/10/2021 08:11

Profit warning

"Company has maintained a key focus on cash in light of the challenges faced in managing inventory levels and dealing with the global shortage of components needed to make products. The worsening supply chain issues facing multiple sectors and businesses of all sizes have been well publicised and, unfortunately, Starcom has not been immune to these challenges. These issues include material increases in freight costs and shipping timeframes, as well as increasing component costs and reduced availability. Some orders for customers, existing and prospective, have been delayed as a result, particularly as suppliers now often require full payment in advance. This inevitably impacts cash flow projections and the Company is working hard to mitigate this as best as possible, including ensuring a sufficient working capital buffer,"

[hedgehog 100] 01/10/2021 14:52

01/10/2021 07:00 UKREG Starcom PLC Conversion of loans and Director shareholdings

"The Board of Starcom (AIM: STAR), which specialises in the development of wireless, Internet-of-Things (IoT) based solutions for the remote tracking, monitoring and protection of a variety of assets, is pleased to announce that all the holders of the convertible loan notes issued in March 2020 and due for repayment or conversion by 30 September 2021, have exercised their options to convert these loans into new ordinary shares of Starcom at the conversion price of 1.25p per share. The loan notes were for GBP223,600 in total and accordingly, a total of 19,488,000 ordinary shares ("New Ordinary Shares") will be issued to the lenders as follows:

Lender No. of New Ordinary
Shares
Montrose Securities Limited, a company controlled
by Michael Rosenberg (Non-Executive Chairman) 8,000,000
--------------------
Avi Engel (Non-Executive Director) 8,000,000
--------------------
Igor Vatenmacher (Chief Financial Officer) 1,744,000
--------------------
Starcom employee 1,744,000
--------------------
The conversion price is at a premium of approximately 39 per cent. to the most recent closing mid-market share price and reflects the confidence of the lenders in the prospects for the Company.

Application will be made for the New Ordinary Shares, which will rank pari passu with the Company's existing Ordinary Shares, to be admitted to trading on AIM ("Admission"). It is anticipated that Admission will become effective on 7 October 2021.

On Admission, the shareholdings in the Company of the directors concerned will be as follows: ..."




It's the equivalent of massive director share buying, and at a large premium.

The loans could have been rolled over, but obviously the directors want these shares now.

Note that there are also warrants from the loan agreement, at 1.5p, which have to be exercised within about six months.


25/03/2020 07:00 UK Regulatory (RNS & others) Starcom PLC Loans from Directors and Grant of Warrants LSE:STAR Starcom Plc
" ... The Warrants
Pursuant to the Loan Agreements, the Company has granted 4,000,000 Warrants to subscribe for Ordinary Shares to the Lenders, as set out in the table above.
The Warrants are exercisable at a price of 1.5p pence per Ordinary Share, being a premium of 50% to the closing mid-market share price on 24 March 2020. The Warrants are exercisable from the date of grant and expire on the second anniversary of the grant. Following the grant of the Warrants, the Company has 53,293,947 options and warrants to subscribe for Ordinary Shares in issue, representing 15.4% of the Company's current issued share capital. ..."

[davethechef] 01/10/2021 10:58

Plenty of buys on the other exchange today too

[tomboyb] 01/10/2021 09:33

Added to portfolio -

Followed directors in -

[davethechef] 01/10/2021 08:33

Great news!!!
Glad I topped up a few recently.
So much potential for a minuscule market capital; still to be realised by the larger P.I field, bur again supported & confidence shown by our management.

[hedgehog 100] 29/9/2021 18:39

"DHL International GmbH (DL)[3] is an international courier, package delivery and express mail service, which is a division of the German logistics firm Deutsche Post. The company delivers over 1.5 billion parcels per year.[4] ...
The DHL Express financial results are published in the Deutsche Post AG annual report.[6] In 2016, this division's revenue increased by 2.7% to €14 billion.[7] The earnings before interest and taxes (EBIT) increased by 11.3% over 2015 to €1.5 billion.[8] ..."

[davethechef] 28/9/2021 11:00

Thanks to TrumptonTown lse

Lokies talk extensively & featured in video on DHL site, very recent
hxxps://www.dhl.com/global-en/home/insights-and-innovation/events/innovation/logistics-and-supply-chain-summit-hub/products-and-solutions-channel/global-transport-solutions.html

[hedgehog 100] 18/9/2021 19:48

Tech recovery-growth stock Accesso Technology (ACSO) approximately 750-bagged to latter 2018, from the middle of the previous decade, to about 3,000p.



ACSO was once a dog, falling from over £1 to about 4p, as investors gave up and threw in the towel at the bottom.

It turned out that was precisely the time to be buying.


And more recently the company has risen from about 150p last year to about 1,000p, as the World has emerged from the COVID-19 pandemic.

[hedgehog 100] 18/9/2021 17:10

Following yesterday's STAR rise to 0.9p, here's some technical analysis for the stock from SwingTradeBot:

"Technical Analysis for STAR - Starcom Plc"

"STAR closed up 2.86 percent on Friday, September 17, 2021, on 1.37 times normal volume. The stock crossed above its 200 day moving average, improving its long-term outlook by crossing above that critical trendline."

"ADX Long Term Intermediate Term Short Term
Strong Up Up Up"

[dennisbergkamp] 17/9/2021 23:58

I'm in next week

D

[davethechef] 14/9/2021 13:44

Executed finally at 0.92p. And up further!

[davethechef] 14/9/2021 13:33

Placed order for another 200k short while ago.
At the time, NT for even 50k now!

Just feel news might not be too far away.

But confident & feel too undervalued at this price.