Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on EVR. We currently have 19 research reports from 3 professional analysts.
CBS and Viacom have agreed to merge, ending years of on-and-off talks. The merger highlights a long effort to unite CBS and Viacom as the media companies seek to compete with giants like Disney and Netflix. Viacom CEO Bob Bakish will run the combined company, which will be named ViacomCBS.
Companies: EVRH ZOO AMO IMMO MIRA VRE
Walt Disney announced on Tuesday that it would offer a $13-per-month bundle of its three streaming services starting in November, a move to attract audiences who have embraced digital services such as Netflix. Disney's bundle includes family-friendly digital offering Disney+, sports service ESPN+, and Hulu, which will cater to adults, for a $5-per-month discount. Speculation in reputable trade publication The Information, mirrored in Reuters and 9to5Mac indicated the next iteration of Apple’s mobile operating system, iOS13, will move to limit apps’ access to data while running in the background. The press notes that this will have repercussions to Messenger and WhatsApp, both owned by Facebook Inc, given both depend on the specific features of iOS that allow internet calls – which may force them to redesign their apps. Snap on Tuesday said it will raise $1 billion in short-term debt and plans to invest in more media content, augmented reality features and may also buy other companies. The parent company of the popular disappearing messaging app Snapchat has revived its user growth and stock price after a rough 2018.
Companies: KAPE ZOO AMO EYE EVRH IMO MIRA VRE
Alumasc Group plc, the prem ium building products, system s and solutions group, has announced its intention to m ove from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019 Expected market cap of £36.5m Argentex a UK-based forex service provider founded in 2011 by its current management team which operates as a Riskless Principal for nonspeculative and forward foreign exchange as structured financial derivatives is looking to join AIM. Offer TBC, expected 25 June
Companies: SFOR AMS EDL EVRH PURE PTR AUG CASP IQG ADL
Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m. Diaceutics, a data analytics and implementation services company which services the global pharmaceutical industry, is looking to join AIM late March, offer TBC.
Companies: FRAN EVRH WALG CRU EMAN EKF STAF CTR ALS HDD
Litigation Capital Management—provider of litigation financing and ancillary services, moving from ASX (ASX:LCA) to AIM. Offer TBC. Due 18 Dec. Mkt Cap A$64m. Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is due to start trading on AIM 14 December. Raising £2m at 290p. Mkt cap at issue price £13.6m. Manolete Partners—leading UK insolvency litigation financing business looking to join AIM raising £16.3m as a placing and £13.1 realised by the selling shareholder at 175p. Market cap £76.3m, expected 14 December Titon holdings—international manufacturer and supplier of ventilation systems and window and door hardware. No capital raise. Due 10 Dec. Mkt cap c.£22m. Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected early December.
Companies: INSE QFI SOU ZIN IME EVRH APC TM17 IHC CIP
Kropz, an emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa, a phosphate project in the Republic of Congo and exploration assets in Ghana, is looking to join AIM. Offer TBC, expected late Nov Titon holdings—international manufacturer and supplier of ventilation systems and window and door hardware. No capital raise. Due 10 Dec. Mkt cap c.£22m. Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD Finncap—proposed acquisition of M&A adviser Cavendish Corporate Finance and AIM admission. Offer TBA Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is investigating the possibility of AIM admission. The Company is proposing to raise up to £2.25 million before the end of December, conditional on Admission.
Companies: POLX ADL EVRH FEN CHRT OMIP CRU TRX SAR AFHP
RA International is a leading provider of services to remote locations in Africa and the Middle East looking to join AIM raising £18.8m and 56p, market cap of £97.2m. Expected 29 June Cake Box Holdings—franchise retailer of cakes with a growing store base across the UK looking to join AIM, Sell down of £16.5m, Mkt Cap £43.2m. Mar18 FY rev £12.8m, underlying earnings £3.7m. Due 27 June. Mind Gym. Behavioural science business that uses scalable proprietary products to deliver human capital and business improvement solutions to large corporations. Offer secondary offering of £50.8m at 146p, market cap of £145.1m. Due 28 June Yellow Cake will use its expertise to generate value through the ownership of physical U3O8 (Uranium) together with a range of activities and opportunities connected with owning physical U3O8. Acquiring supply contract for up to $170m. Due Early July. Knights Group— UK regional legal and professional services businesses. FYApr18 rev £34.9m and adjusted operating profit was £6.8m excluding Turner Parkinson (acquiring on IPO). Offer raising £30m primary and £20m secondary at 145p with market cap of £103.5m, expected 29 June. TransGlobe Energy Corporation—an independent international upstream oil and gas company with headquarters in Calgary, Canada is looking to join AIM. No Capital to be raised, market cap of £131m. Expected 29 June Strongbow Exploration (TSX:SBW) intends to dual list on AIM. Holds rights to the South Crofty underground tin mine, a former producing tin mine located in the towns of Pool and Camborne, Cornwall . The project is estimated to require the Company to raise £25 million over the next 18 months to progress to a production decision. Offer TBS. Due June.
Companies: MCL EVRH GHE VEL SEN ADA TSG HMLH UNG BKS
MelodyVR, the leading creator of virtual reality content focused on the music industry and subsidiary of EVR Holdings, this morning announces that it has entered into a multi-year agreement to license the VR distribution of Warner/Chappell songwriters’ music. The agreement significantly enhances MelodyVR’s capabilities with respect to the exploitation of Warner/Chappell’s extensive library of original content, throughout numerous European territories.
Bacanora Lithium—Readmission. No new money. Mkt cap £140m. Due 21 March. the new holding company for Bacanora Minerals Ltd | Stirling Industries—Acquisition vehicle focusing on industrials. Offer TBA. Due 5 March | GRC International Group— holding company for a group of companies providing a range of products and services to address the IT governance, risk management and compliance requirements of organisations. Offer TBC, expected 5 March 2018 | Core Industrial REIT—established to invest in Irish-based industrial properties, predominantly located in the Greater Dublin Area . Vendor placing and new funds to a total of €225m, Target gross proceeds €207m. expected 21 Feb | Polarean - Medical drug-device combination company operating in the high resolution medical imaging market. Offer TBC. Due 22 Feb | Block Energy—a NEX Listed UK based oil exploration and production company whose main country of operation is the Republic of Georgia, looks to join AIM end of February 2018. Offer TBC
Companies: RRL TMT CNC GHH EVRH IHC BILB EUSP VRS SBTX
AfriTin Mining—Demerger from Bushveld Minerals (BMN.L). Offer TBA. Due 6 Nov. The Uis Tin project (Namibia) is considered the flagship tin asset within the portfolio, as this was once the largest open cast tine mine of its kind in the world | Novacyt S.A.—Sch1 from the international diagnostics group, generating revenues from the sale of clinical products used in oncology, microbiology, haematology and serology testing. Offer to raise £8.8m at 59.38p with a value of £22.4m. Expected 01 Nov | Footasylum Ltd—UK-based fashion retailer focusing on the branded footwear and apparel markets announced its intention to seek admission to AIM. Expected value between £130m and £150m. Due Nov 2017 | Central Asia Metals (CAML) -RTO of Lynx Resources. Anticipated market capitalisation at Admission: £404.8m. Raising £113m at 230p. Acquiring the SASA zinc-lead mine in Macedonia from Solway Industries. Due 15 Dec | OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the | OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m. Orogen plc, to be renamed Sosandar plc on Admission. Sosandar is an online womenswear brand specifically targeted at a generation of women who have graduated from younger online and high street brands, and are looking for affordable clothing with a premium, trend-led aesthetic. Offer to raise £5.3m with market cap of £16.1m, expected 2 November 2017 | OG Graphite, brownfield development-stage graphite company focused on the reactivation of its wholly-owned Kearney natural flake graphite mine and mill located 280 km north of Toronto, Canada. Offer TBA, expected late October | Arqiva Group— UK's pre-eminent national provider of television and radio broadcast infrastructure and a leading independent provider of communications infrastructure services. Revenue was £943.8 million for the year ended 30 June 2017 . Adj EBITDA £467m. V Raising c. £1.5bn primarily to deleverage. Due in November | Cabot Credit Management -one of the largest credit management services providers in Europe and the market leader in the UK and Ireland with total 120-Month ERC of £2.2 billion. Raising c.£195m. Offer TBA. Due November | ContourGlobal LP— contracted wholesale power generation businesses, with 69 thermal and renewable power generation assets in Europe, Latin America and Africa. In the year ended 31 December 2016 it generated $905.2 million of combined revenue and $440.4 million of Adjusted EBITDA. Raising c.$400m. Expected November | M7 Multi-Let REIT—Intends to raise up to £300m at 100p. Aims to acquire and hold a portfolio of UK regional light industrial and regional office assets diversified by geography, asset type and tenants that is expected to generate stable income returns and, where appropriate, offer the potential to leverage and enhance returns through active asset management initiatives. Due 13 Nov | Bakkavor Group - Provider of fresh prepared food intends to float in November. FY 16 Revenue: £1,763.6 million FY 16 Adjusted EBITDA: £146.4 million (13.7% CAGR FY 14-FY 16). Part vendor sale and primary raise of c. £100m. Price TBA | Russia’s En+, owned by Russian aluminium tycoon Oleg Deripaska, has assets in metals and energy, including hydropower. reported to be seeking dual London and Moscow listing raising $1.5bn | TMF Group, which provides tax, admin and legal support services, reported to be seeking London IPO to raise c. £200m.
Companies: SEE MATD ZIN VOG EVRH HUM REDD RTHM BCN
The agreements with Roc Nation give the music VR company access to artists such as Rihanna and Shakira.
MelodyVR, the leading creator of virtual reality content focused on the music industry and subsidiary of EVR Holdings, this morning announces that it has entered into a VR Content Production and Distribution Agreement and Binding Term Sheet with Roc Nation, the entertainment company owned by Jay-Z. Roc Nation provides a full suite of services for its diverse roster of talent, including artist management, music publishing, touring, production and strategic brand development. The worldwide, multi-year agreements license the creation and distribution of VR content featuring Roc Nation’s artists, covering both record label and publishing rights. As part of the relationship, MelodyVR will receive the right to create and distribute content created with Roc Nation artists for an exclusive period, followed by a period of joint-exploitation by both parties.
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Virtual Reality devices provide consumers with access to fully immersive 3D worlds, as well as the ability to interact within a virtual environment as if they are physically present, creating a new consumer proposition for video games, immersive entertainment, social interaction and virtual teleconferencing. Mark Zuckerberg was recently quoted as saying that “Virtual Reality will be the world’s next major computing platform”. VR devices are currently being produced by leading technology companies such as Facebook, Google, HTC, Microsoft, Samsung and Sony PlayStation, and over the last four years, over $15bn has been invested in the development of VR technology, with a further investment of $50bn expected between now and 2025.
Research Tree provides access to ongoing research coverage, media content and regulatory news on EVR. We currently have 19 research reports from 3 professional analysts.
|12Aug19 10:49||RNS||Exercise of Warrants and Issue of Shares|
|08Aug19 07:00||RNS-R||MelodyVR signs licensing and publishing agreements|
|22Jul19 07:00||RNS||Holding(s) in Company|
|22Jul19 07:00||RNS||Exercise of Warrants and Issue of Shares|
|19Jul19 13:16||RNS||Result of Annual General Meeting|
|09Jul19 11:00||RNS-R||MelodyVR successfully broadcasts Wireless Festival|
|09Jul19 07:00||RNS||Appointment of Nominated Adviser and Sole Broker|
An official at China's central bank has said the institution is nearing the launch of its digital currency. Speaking at an event in China over the weekend, Mu Changchun, deputy director of the payments unit at the People's Bank of China, said its researchers have been hard at work since last year to complete the systems needed to support the digital yuan offering and that it is "Close to being out." The news was reported by Bloomberg on Monday.
Companies: AMO BGO BOKU IQE TECH
In January, we provided a list of 11 stocks for 2019 that we believed would perform strongly with attractive catalysts that could lead to material outperformance. In this Quarterly Research Outlook, we revisit these views, analysing what has happened and how the remaining six months of the year could play out.
Companies: AMS ANX ARS ATYM AVON BLVN PIER BUR CGS CAML CALL CSRT TIDE CYAN DTG DEMG ELM EMR FPO FST GTLY GENL GRI GEEC GKP HMI HAYD HEAD HILS HTG HUR HYR IBPO IOG INDI JHD JOG KAPE KEYS KCT KGH LAM LIT LOK MACF MANO PCA PANR PXC PHC PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG SOM TWD TRAK TSG TRI VNET VTC ZOO ZTF
Warren Buffett once said that as an investor, it is wise to be ‘fearful when others are greedy and greedy when others are fearful’. Fear is not in short supply right now.
Companies: OPM ALU ANCR BLV CONN CRC FDL GATC HAT LEK MMH MCB MWE NXR NTBR NOG PAF PEG RFX SRC TEF TEG TPT VTU WYN XLM
Japan's cabinet approved a plan to remove South Korea from a list of countries that enjoy minimum export controls, a move likely to escalate tensions fuelled by a dispute over compensation for wartime forced laborers. The decision to drop South Korea from the "White list," a step that has been protested fiercely by Seoul, comes a month after Japan tightened curbs on exports to South Korea of three high-tech materials needed to make memory chips and display panels. Apple stock dropped sharply after President Donald Trump said on Thursday that the US will put an additional 10% tariff on $300 billion worth of goods imported from China starting on September 1. The company assembles iPhones and other computers in China, making it vulnerable to price increases if a tariff were to be placed on Chinese exports, although it is unconfirmed which Apple products may be affected by the proposed tariff. The Pentagon has decided to put on hold its decision to award a $10 billion cloud computing contract after President Donald Trump said his administration was examining Amazon's bid following complaints from other tech companies. Oracle lobbied aggressively and expressed concerns about the award process for the contract, including asking about the role of a former Amazon employee who worked on the project at the Defence Department but then recused himself, then later left the Defence Department and returned to Amazon Web Services.
Companies: Amino Technologies IQE
For the last three weeks, BT’s stock price has been waking up. The good news of a sharing deal agreement with Sky and the fact that BT is not now expensive encourages us to recommend buying the stock.
Companies: BT Group
Q3 sales at end December were down by 3% yoy (they were down by 1% in Q2) with still a good performance by EE (+4%) but a continued sharp revenue decrease of 10% in Global Services. With no surprise, Q3 EBITDA was down by 2% yoy (vs -4% in Q2 and -2% in Q1). Note EE’s EBITDA was down 6% (but still up by 10% for the first 9m), due to higher customer investment costs in the quarter, following the launch of new, premium smartphones and watches. The cautious outlook given by the group nine months ago, due to the pressures in the UK public sector and international corporate markets (added to the uncertainty around the the nature of the UK’s future trading relationship with the EU and globally following Brexit), has been reiterated: for 2017/18, the group continues to expect revenues to be broadly flat yoy, while EBITDA is expected to be between £7.5bn and £7.6bn.
Companies: BT Group
Spirent’s results last week showed good traction from the group’s strategic growth areas (Lifecycle Service Assurance and Application Security), which combined with effective cost control, resulted in strong earnings growth and excellent cash generation. The group remains heavily H2 weighted, but we believe it is well placed to deliver a long awaited return to top-line growth going forwards. With gross margins remaining strong and management maintaining a tight grip on costs, we expect the growth to result in continued margin expansion across our forecast period. We make significant upgrades to all forecast years and increase our target price to 139p. Buy.
Companies: Spirent Communications
Q4 sales at end March were down by 3% yoy (like in Q3 but they were flat in H1) with still a good performance by EE (+5%) but a continued sharp revenue decrease of 13% in Global Services. Q4 EBITDA was up by 1% yoy, a correct number compared to the 2% decline recorded in Q3 but the annual EBITDA at £7.5bn was towards the low end of the £7.5/7.6 guidance given by the group for the full year. Note, beyond a good 13% increase on the consumer side, that EE’s EBITDA was again up by 5% this quarter and not down by 6% like in Q3 (this was due to higher customer investment costs following the launch of new, premium smartphones and watches). Management has also given an expected poor outlook for 2018/19. Revenue should be down by 2% yoy mainly as a result of significant regulatory price reductions in Openreach (last March, Ofcom issued its final statement on the Wholesale Local Access Market Review). The group also expects an impact from its decision to de-emphasise lower margin products, particularly in the enterprise businesses. In parallel, EBITDA is expected to be in the range £7.3-7.4bn (we had currently £7.4bn in our model) corresponding to a c.2% decrease. Note also that capex should be higher in 2018/19 than what we expected, at around £3.7bn. It should remain at this level in 2019/20 as the business increases network investment through Openreach’s Fibre First programme and further 4G and 5G mobile network build. So, very logically, the Board has decided to hold the dividend unchanged for this year at 15.4p per share. The Board also expects to hold the dividend unchanged in respect of the next two financial years, given the outlook for earnings and cash flow over this period. Not at all enough to make investors dream, while most European telcos are more likely to increase theirs. Even if the free cash flow in 2017/18 was £2,973m (up by almost £200m yoy due to favourable working capital movements), note that for 2018/19 the group expects a free cash flow of £2.3-2.5bn. So there are no worries in the short term about BT’s no longer “progressive” dividend.
Companies: BT Group
The stock was up by 8% yesterday following its H1 release. We do not believe this release deserves such a positive response. But the stock has been declining for two years from c.500p to c.200p, before stabilising at around 230p during the last five months. Yesterday’s sharp increase is perhaps the sign of the end of purgatory for BT whose EBITDA could grow again in… 2019/20 and which is still offering a solid dividend at 15.4p.
Companies: BT Group
BT released this morning its Q3 update which was slightly worse than expected in terms of EBITDA. EBITDA was indeed down by 3.5% yoy, while revenue declined as expected by 1%. So quite a poor release reflecting a new decline in EBITDA which offsets the previous solid H1 (EBITDA was up by 2% yoy). Note, however, this poor performance was quite expected as it is due to the regulated price reductions at Openreach on FTTC and Ethernet products. By the way, the outlook for 2018/19 has not been modified and management still expects EBITDA to be in the upper half of its £7.3-7.4bn range.
Companies: BT Group
This quarter we use finnCap’s Slide Rule to provide both top-down and bottom-up analysis of the UK’s Technology and Telecoms sectors. Our findings are very reassuring: the Tech sector scores the best (across all sectors) when considering Growth and Quality – Taptica*, Frontier Developments* and dotDigital* in particular stand out on these metrics. Given these attractive characteristics and growth prospects, the Tech sector is unsurprisingly one of the most expensive – currently trading at 17.2x FY1 EV/EBIT and 23.8x FY1 P/E, versus 15.0x and 18.5x respectively for the wider market. Despite valuations appearing high, we believe there are value opportunities. For example, Proactis* features in finnCap’s QVGM+ portfolio (ranked 17/462) – the company offers attractive organic and inorganic growth, with earnings forecast to grow by 26% CAGR over the next two years, but despite this, only trades on 15x FY1 earnings and offers 8% FCF yield in FY2.
Companies: 7DIG ALT AMO ARTA BOTB BLTG CTP CITY D4T4 DTC DOTD ELCO ESG FDEV GBG IDEA IDOX IGP IOM KBT KCOM KWS LRM MAI MMX NASA NET PHD QTX QXT RCN 932 SEE SIM SPE SRT STR TRMR TAX TEP TPOP TRAK UNG VIP ZOO CYAN ONEV SSY ABAL
Enterprise-focused niche applications of tech illustrate how, while trends appear to be fluctuating away from the current poster children of fintech and the Internet of Things, in fact these developments are refining appropriate application of existing technologies.
Companies: 7DIG AMO ARTA BVC BOTB CTP CITY D4T4 DTC DOTD ELCO ESG FDSA FDEV GBG IDEA IDOX IGP IOM KBT KCOM KWS LRM MAI MMX NASA NET PHD QTX QXT RCN 932 SEE SIM SPE TAX TEP TPOP TRAK UNG VIP ZOO ONEV SSY ABAL
We’re just over three months in to 2019 and we’ve seen a 10% UK market rally, retracing much of the Q4 decline, such is the nature of fickle market sentiment. That said, many of the issues we wrote about three months ago that were impacting markets remain: notably Brexit, trade wars, geopolitics and global monetary policy. The 2019 rally thus far feels somewhat fragile, with competing forces of optimism on a potential trade deal which could underpin the rally, against the deterioration in underlying economic data that could ultimately undermine the recent market gains. In this context, we look at what the lead indicators and the market are telling us about the industrial cycle and the stocks most exposed to various industrial trends. The Q4 derating in short cycle industrials and autos had been vicious and while these sectors have seen a more solid footing in 2019, with earnings downgrades being priced in, it will likely take a trough in lead indicators before short cycle stocks can start to perform again and re-rate relative to the market.
Companies: ARS CYAN HYR LIT SOM ABBY AMS AMER ANX ATYM AVON BLVN PIER BUR CGS CAML CALL CSRT TIDE DTG DEMG EMR FPO FST GTLY GENL GOR GRI GEEC HDY HMI HAYD HEAD HILS HTG HUR IBPO INDI JHD JOG KEYS KCT KGH LAM LOK MACF MNO MANO MOD MKLW OXIG PCA PANR PARK PXC PHC PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG TRAK TRI VNET VTC ZOO ZTF
Huawei was granted a temporary reprieve as part of a broader accord between the Trump administration and the Chinese central government at a much-anticipated meeting between the countries’ leaders. The autonomous vehicle industry has two big challenges it needs to overcome before self-driving cars become widespread - technology and business models that can make money, according to Michelle Avary, head of autonomous mobility at the World Economic Forum. US chip gear maker Applied Materials on Monday agreed to buy Japanese peer Kokusai Electric for $2.2 billion from KKR & Co Inc, as it bets on rising demand for memory chips used in data centres, 5G phones and AI-powered devices.
Companies: AMO IQE TRAK SEE CPX TCM TRCS QTX