Synectics Share Discussion Threads

[spooky] 21/2/2022 15:47

Nice move ahead of tomorrow. Are these leaky? Its so long since anything happened that i can't remember.

[jswift10] 21/2/2022 15:45

OK- what have i missed?

[ohisay] 17/2/2022 02:18

Be interesting to see the presentation next week at results time.
Based on past history more than likely Directors buying especially at current levels.

Am overweight of course ..

[ohisay] 31/1/2022 12:09

So I got 5k at 88p !

[ohisay] 28/1/2022 03:53

Nope !

Its 92p to buy .I might want a bit better.

[spooky] 27/1/2022 08:30

It looks as though even you have stopped buying.

[ohisay] 19/1/2022 13:36

I'm still buying in 5k lots

[she-ra] 14/1/2022 12:52

But couldn't Macau's days be numbered?

[robin_lemer] 14/1/2022 10:02

Am a shareholder topped up my holding yesterday, see no reason for the fall except for it being a thinly traded stock.

They have picked up a number of orders in diverse sectors and existing customers have given them additional business. Only thing holding them back is the temporary closure of casinos in the Far East due to the virus. Interestingly they picked up a good order in this sector from casino group in North America

Additionally the company is debt free, has a good board of directors, one a holder of over 9% and have a number of institutional holders, one Whitehall SA holding 29.99%.

Do not usually buy at a low point on a share chart but on this occasion I do feel that the company is terribly undervalued

[ohisay] 12/1/2022 13:52

Keep buying these every time it drops 5p/share .This am 5k at 96p.I remember buying 40k in November '20 at 90p ..sold most between 130/140p .
Good company below the radar..

[simon gordon] 10/12/2021 13:59

There have been big ructions in the Macau gaming market after the arrest of a promoter in China as Xi cracks down on the "immoral".

Fortune - 30/11/21

Arrest of gambling CEO suggests Macau’s days as a casino hub are numbered

[red ninja] 10/12/2021 13:51

downing-strategic-micro-cap I. T. November factsheet :-

"Other news flow came from Synectics (+2.3%) who reported winning two new major casino projects in North America where they will provide the Synergy software platform followed by a five year support contract. Gaming reopening in the US and Asia post Covid will be a significant catalyst for Synectics’ earnings. We see a pathway to over 20% free cash flow yield upon widespread reopening, thus
Synectics remains amongst the deepest value opportunities in the portfolio."

[simon gordon] 03/11/2021 12:47

ohisay,

I got in ahead of you but accidentally bought £5,000 worth rather than 5,000 shares.

Hopefully, this is the 1st true sign that the business is gearing up to return to growth, the Synergy platform may turn into the golden goose.

[ohisay] 03/11/2021 07:44

Paul Webb, Chief Executive, Synectics plc added: " These are some of the first new major projects awarded in the sector since the start of the pandemic and, as footfall and revenues in North American casinos have recovered strongly in recent months, should indicate a relatively straightforward recovery in the gaming surveillance market in North America going forward.

Still cheap as chips ..I took another 5k today at 114p - surprised to get that tbh

[ohisay] 02/11/2021 08:56

SG I do so agree ..got myself another 5k @ 111p to take me to 40k.Happy to see how this sleeper plays out over the next year .

[simon gordon] 02/11/2021 06:31

Cheers Ohisay!

This seems to be the hidden gem and potential share price catalyst, be that order flow or prize asset in a take over:

'A critical strategic focus, addressing a new and growing market, these new Synergy systems are almost wholly software-based. They underpin the Group's objective of increasing earnings quality through a higher gross margin business mix and an increasing proportion of recurring and repeat revenue.'

-Interims: 13/7/21

Also got gaming sector to come back. All in all, the odds favour a higher share price in 12 months time.

[ohisay] 02/11/2021 02:00

What do you reckon it's worth in a takeover?


Would need to be pitched at 180p plus to get the BOD interested .

EV of £30m in a better Covid environment doesn't seem a stretch .



Potentially highly cash generative on these forecasts .

[spooky] 01/11/2021 13:34

Hmmmmm, interesting comments from Downing when you consider the fact that they have been, and i believe still are, the major sellers in the marketplace.

[simon gordon] 01/11/2021 13:16

Hi Ohisay,

What do you reckon it's worth in a takeover?

[ohisay] 01/11/2021 13:04

Good find RN.
Also ..
Update to the investment case

Continued disruption to casino/gaming sector due to Covid impacted sales
Success for latest technology and new contract wins
Strong balance sheet with net cash and no bank debt
Cost reduction actions delivering expected savings
Company expects to trade profitably in H2
Directors buying shares

With the Far East opening up now (other than China) its perfectly possible the Gaming/Casino sector should generate some contracts too.

But I do agree at the current market cap/EV it's ripe for a takeover ..the main reason I have a large position here.

[red ninja] 01/11/2021 09:47

downing-strategic-micro-cap half year report comment :-

Synectics recorded an unrealised loss of £0.77 million for the half-year period. This holding sits at an unrealised loss position of £1.96 million and we view it as one of the Covid laggards, where the market has not yet caught up with the positive initiatives taken through Covid. We expect the share price to reflect these initiatives and contract wins. If not, the M&A activity in the sector, where earnings multiples paid are way in excess of the 4x EBITDA that this company trades on, will surely be reflected in the valuation soon. Some of the highlights are below:

Over £2.4 million p.a. of cost savings;
3 multi-million pound project wins in the interim period; and
Significant improvement in prospects and cash generation.

[ohisay] 05/10/2021 15:27

Quite apart from anything else with Brent over 80$ they are guaranteed extra Oil and Gas contracts .There are short memories here.

[ohisay] 30/9/2021 15:27

It beggars belief that any half thinking person would sell these under 100p..but somebody just did for 98p.

Quite bizzare.