Morning all!
Lots of results and RNS releases this morning, so plenty to keep us busy.
A couple of people have requested I look at some companies, which I struggling to fit in at the moment. However, I will look at these over weekend and include them in Monday’s release.
Asiamet Resources ARS 2.22 +0.02 1.02%
Market Cap: £13.9m
Price: 2.225p
Spread: 4.5%
I hold a position in this company.
Today, Asiamet announced the company’s results for the six months ended June 30, 2016. Early-stage mining company’s results are a bit pointless in my view. You can’t really glean much from them. Obviously, the companyies are required to publish them. However, apart the statement and outlook, these type of companies are simply burning cash in the hope of becoming an asset producer. I only look at the CEO comments, outlook comments and cash position.
The company reflects on the “highlight of the half year”, the publication of the BKM definitive feasibility study. BKM is just one of the assets owned by the company. However, due to size and logistics, it is the asset that Asiamet have earmarked to prioritised.
The company reflects on the large placing undertaken in June. The company issued 48 million new shares at a price of 3.1p, which reflected a premium versus the market price of that day. It still reflects a significant premium based on the current trading price with shares now at 2.225p. The company raised £1.5 million in total.
The company also received a government tax rebate from the Indonesian government for $1,000,000.
This has contributed to the company’s good cash position relatively speaking, £1,961,683.
Vitesse Media VIS 3.99 -0.13 -3.27%
Market Cap: £2.75m
Price: 4.25p
Spread: 6.25%
Vitesse Media, a B2B events and digital media company, announced its unaudited interim results for the six months ended 31 July 2016.
High-level the results look promising. The financial KPIs are heading in the right direction. The company saw an increase in revenues of 12.5%, from £828,000 to £931,000. The company – like many in the digital media sector – boasts a strong gross margin, which has been improved on. Gross margins are now 75.5%, a rise from 71% for the same six month period last year.
The company has reduced its losses by 45% – making a loss of £69,000 across the 6 month period. The company made a loss of £125,000 for this period in 2015.
My opinion – This looks a solid company. The company says it is “on track to report a strong recovery in profitability by our financial year end”, which is promising. Cash position and debt look okay. However, the operational highlights are underwhelming to say the least. The company has done well to tick the relevant financial boxes, but there does not appear to be much growth potential or newsflow coming from this company in the next 12 months. A new website in September 2016 seems as well as hints at possible buy-and-build growth appear to be the best that investors can hope for it.
Coral Products CRU 18.99 +0.24 1.28%
Market Cap: £17.35m
Price: 21p
Spread: 8.1%
Coral Products specialise in design, manufacture and supply of injection moulded plastic products. Today, they announced their final results for the year ended 30 April 2016.
The numbers look good here. The very first thing you see in the RNS is the 5-types of profit you might see reported by a company, all are have increased significantly – a bit excessive to report all 5 though if you ask me. A 7.4% increase in sales from £17.4m to £18.7m. Operating profit is up 150.1%, moving from £375,000 to £938,000. Underlying Operating Profit is up 22.2%. All told, a promising start. It’s always refreshing to be able to review penny stocks are making a profit, rather than burning cash.
We look forward with confidence to further progress in the coming year.
The company has been on a shopping spree of late. Acquiring Neiman, Rotalac Plastics and Global One-Pak Holdings all in the last 12 months. The company say these have all been “successfully integrated into the Group”. The acquisitions are helping the company diversify its offering, which is really supporting the growth achieved by the company.
The company have had some struggles. Trade moulding sales were “below expectations” – revenues fell by over 50% in this category. This was caused largely by tightening of government spend. Also, media sales fell by 66%, so it’s not all rosy for the company. However, the diversification brought about by the acquisitions have allowed the company to stomach these problems. Credit to the management, who have spotted these trends and acted to prioritise the business areas with the best growth prospects. This is supported by the overall growth in sales and profit.
Dividend – Another dividend paying stock here, the company are committed to its long-term progressive dividend policy. For the coming year, the board has recommended the total dividend be increased to 1.0 pence per share. This will be paid on 14 October 2016.
Outlook
My opinion – This company looks good. It has achieved good growth and seems to have a solid, profitable business model. Management have done well to diversify and keep track of high-growth sectors. This is one for the watchlist I think.
Wey Education WEY 3.70 +0.08 2.07%
Market Cap: £3.5m
Price: 3.625p
Spread: 23%
Wey Education, the UK’s only online fee paying secondary school teaching iGCSEs and A-Levels, provided a trading update ahead of their results in 31 August 2016.
Student numbers for the company are up 52% year-on-year, which is promising for the company given that this growth is organic. The company confirm that they are “on track to meet market expectations for the full year”.
The company have plans to launch a second school in August 2016. This will be aimed specifically at students seeking high academic results. Interestingly, the company are also launching a new intensive A-Level retake course in September 2016. Naturally, this is aimed at students who wish to get better grades. These developments sound interesting, I’ll be interesting to see what the traction is.
Elsewhere…
Aurum Mining produced its financial results for the year ended 31 March 2016. I’ve already done one set of mining results today. From a quick scan, I don’t think there is anything new in here. Cash position looks low.
Challenger Acquisitions, which I tweeted about yesterday. A flurry of of buys came in around 4pm, so I thought news maybe afoot. Confirmation that the lawsuit brought by Madison Capital Markets LLP against the company has been dismissed was released today. This case related to a compensation for services dispute. Naturally, the share price has reacted well to this news.
Cyprotex announced today the installation of two AB Sciex TripleTOF® 6600 mass spectrometer systems. One is located at the company’s site in Macclesfield, the other has been housed at our new bioanalytical laboratory at the Alderley Park Biohub.
Bushveld Minerals have announced a placing of 38,666,668 shares at a price of 1.5p per share. This raised a total of £580,000 in cash for the company. The placing was done with Beaufort Securities. The raising was in line with the market trading price.
If there are companies that you want me to cover in coming days or have significant news due imminently then let me know. My aim is to deliver value to readers, so I want to ensure I’m doing this as much as I can.
The post 25th Aug: Trader Tim’s Penny Stock Post – #ARS #CRX #BMN #WEY #VIS #CRU #CHAL appeared first on Trader Tim.
