Telit Communications Share Discussion Threads

[mfhmfh] 17/8/2016 09:43

good top-up opportunity with share price at around 251 IMHO

[seans66] 13/8/2016 22:13

No I personally don't think so, but it has gone up 30% in the last 3 months, so can see why others might. However it's all about time frames. Shorters care about next few days, weeks & months. I care about next +5 years at least. How big will the industrial IoT market be in 5 years?

[dogwalker] 13/8/2016 11:13

Seans66 , Just to clarify, do you think that Telit is currently overbought as an explanation for the recent increase in short interest?

[seans66] 13/8/2016 09:04

Ops sorry butter fingers. I think successful tech companies can get overbought now & then, so shorting can make sense. Long term though value & quality will shine through, look at Arm.

[seans66] 13/8/2016 09:00

Agreed just because a investment has a short does mean they are right. Certainly not right long term. Fast growing tech companies generally suffering from volatility, maybe there looking to

[justfactual] 13/8/2016 08:13

Ennismore have clearly misjudged Telit and got themselves underwater. By increasing at these levels they are averaging down their position in the desperate home that the big H2 Telit are expecting won't materialise.

Their tactic is always to sell into good news to try to keep a lid on the price and create doubt. Their gamble gets bigger as time goes on and as the Telit offering gets more mature. The contracts coming online in 2017/2018 and reduction in R&D as a % of turnover will propel Telit to the next level.

The takeover of ARM, the interest in IMG by the Chinese and others sould send a big warning out to the likes of Ennismore. If the bidding starts on Telit, we will be pushing 400p in no time. There are very few 'complete' IoT offerings on the market so Telit stands out as a prime target.

[beergut] 12/8/2016 15:23

Many reasons for directors to sell only one reason for them to buy shares.

[eagle eye] 12/8/2016 14:35

seans66
You are probably right, but Ennismore have further increased their short position from 1.91% to 2.17% over recent days.
What do you think they see that we don't?

[bared_bones] 12/8/2016 14:06

House purchases. What are you smoking!!! You think a director can't get a mortgage at 1%. No, director believes better to have cash and reinvest elsewhere.

[seans66] 12/8/2016 13:47

This is a fantastic, rapidly growing company in a super hot niche sector and it pays dividends. What is there not to like? Wish there more companies like this.Where will they be in 5 years? Taken out at a large premium or at multiples of current share price

[ghaon] 12/8/2016 10:50

I wouldn't read too much into it. At some point directors need to raise personal funds for things like house purchases etc. After the interims was probably the only window he had to do so before the next closed period. The fact that he and other directors still have significant holdings/options speaks volumes, particularly Oozi who has more than most. The trend is up.

[wins73] 12/8/2016 10:39

That's not good sign then

[bared_bones] 12/8/2016 10:34

Director offloading

[wins73] 12/8/2016 10:19

Buys outnumbering sells but why is share price going down? Is there a big investor offloading?

[timmy11] 09/8/2016 12:32

thanks eagle

[eagle eye] 09/8/2016 11:47

A couple of interesting points from the interims/webcast.

H1 revenue $166m was only up 6.3% on last year, but with mid-point revenue guidance for the full-yr of $380m, this suggests target revenue is circa $214m for H2. This would be a big step change vs the two recent reporting periods.

Telit's slowdown was down to a single problem (read customer) otherwise revenue would have been significantly higher e.g. a few 10's of $m higher.

This maybe explains the short interest held by several institutions. I often wonder what they see that we don't. Looking at the recent Sierra Wireless (SW) statement would have given shorts confidence.

There was an interesting question about a particular competitor. SW wasn't mentioned by name but clearly this was the company referred to. SW revenue for current yr is forecast approx flat whereas Telit is looking at min revenue growth of 11% this year. Oozi Cats wouldn't detail why the competitor wasn't performing other than to suggest that TCM was executing better.

I agree it would be good to see account receivables down from $76.6m, yet is only 6.2% higher than $72.1m at FY 15 which is much in line with turnover growth.

Overall expectations for H2 appear strong, as flagged up at the AGM. If Telit deliver mid-point turnover expectations of £380m this year, then revenue growth of 14% for the year as a whole would be solid rather than spectacular. 2017 is expected to be much stronger and it looks like we will need more patience to see evidence of that.
Cheers
Eagle Eye

[muffster] 08/8/2016 22:57

Trade receivables extremely high and worrying

[timmy11] 08/8/2016 20:25

eagle any news from todays conference?

[mfhmfh] 08/8/2016 15:38

Peel Hunt has raised its price target to 320p (from 260p).

[this_is_me] 08/8/2016 11:46

As of 30 June 2016, the Group had net debt of $29.1 million (31 December 2015: net cash $1.1 million). The main reasons for the increase are acquisitions ($14 million), the payment of the 2015 dividend (approximately $7 million) and increase in working capital.

So acquisitions + dividend make up $21 million of the increase in debt and working capital about $9 million. That means that if no dividend had been paid and no acquisitions made cash would have gone up in the weaker half of the year by a fair amount.

[bared_bones] 08/8/2016 10:29

will be watching the shortracker with interest after those results...

[sphere25] 08/8/2016 10:22

This company doesn't generate free cash.

All good well and harping on about INTERNET OF THINGS, but where is the real cash flow? Increased borrowings in this period.

Be wary.

All imo.

[eagle eye] 08/8/2016 09:03

Telit webcast today at 2pm UK time:

Oozi Cats, CEO and Yosi Fait, Finance Director & President, will also be hosting an investor conference call at 2:00pm UK time / 9:00am ET. A live slide presentation will be available online at and an audio webcast at



United Kingdom 0 800 756 3429

[eagle eye] 08/8/2016 08:53

Must have read past the headline H1 revenue which was disappointing.
Outlook positive, though H2 weighted.
At 260p, PER for current year x13. Further evidence of accelerating business momentum required for a PER re-rating here.