Latest Content


Obtala - Interims and Q3 update

Obtala Limited is an Africa focussed forestry and agriculture company with a goal of becoming one of Sub-Saharan Africa’s largest sustainable food and timber producers. Interims show period of investment & Woodbois value made apparent Obtala posted an operating loss of $3.8 million for the six months to 30th June 2017 but a statutory profit of $22.7 million following a gain on the acquisition of Woodbois. An independent valuation of the forestry and timber trading firm added $53.3 million to Obtala’s biological asset value. This compares to a revised purchase price for Woodbois of $12.2 million. Q3 update shows further progress and additional funds raised The three months to September 2017 saw the end of the forestry close cutting season in Mozambique, the first significant harvests from the agriculture division and the first contribution from the Woodbois acquisition. An additional $2 million has also been raised to support growth via a further preference share in the forestry subsidiary Argento Limited. Corporate structure re-organised with new Boards appointed Obtala will now report to the markets via the three divisions of Timber Trading, Timber Production (together the Forestry division) and Agriculture Production. To support this, new boards have been appointed to the Argento (forestry) and Montara (agriculture) subsidiaries. DCF derived target price of 38.18p suggests 117% upside Obtala is now seeing a step change in revenue and profit growth across the three divisions of the business. Nevertheless, the shares trade at a substantial discount to net assets, with the market cap c.90% covered by Obtala’s stake in Argento alone. Our DCF analysis suggests a target price of 38.18p, therefore we retain our stance of Conviction Buy.

  • 12 Oct 17
  • -
  • -

Gaming Realms

Gaming Realms Initiation of Coverage - Conviction Buy

Gaming Realms is a developer, publisher and licensor of mobile and web based real money and social games. The business was set up by the team behind Cashcade Limited, creator of bingo brand Foxy Bingo, which was sold to PartyGaming for just under £96 million in 2009. Gaming Realms has developed and acquired a host of popular games, including the flagship “Slingo” brand. The focus is upon exploiting this IP across its real money, social gaming and licensing divisions, with the strategy being to allocate capital towards the more profitable real money gaming and content licensing operations. Following a 60% rise in revenues in the 2016 financial year, followed by positive trading in the first half of 2017, the business is on the cusp of profitability. Management expect the business to be significantly EBITDA positive for FY2017 and we expect an acceleration in profits after that. A recent £1.13 million subscription has provided funds for growth, with several directors taking part. Crucially, a deferred consideration payment of $4 million previously due in August this year has been deferred to December, with the company currently organising debt facilities to pay the now $4.5 million liability. Should Gaming Realms successfully meet our forecasts for 2018 and 2019 the shares would trade on very low multiples of EBITDA and, more importantly, cashflow. We set an end 2019 target price of 17.8p for the shares and initiate coverage with a Conviction Buy stance.

  • 19 Sep 17
  • -
  • -

Mayan Energy

Mayan Energy - Initiation of Coverage. Speculative Buy

Dallas based Mayan Energy listed on AIM in 2013 under the name Northcote Energy. In September 2016, successful US business man Eddie Gonzalez became CEO and introduced a new management team adopting a sensible new strategy. Initial target to grow oil production to 1,000 bopd in 2018 Mayan is re-focusing on the mature oilfields of Texas and Oklahoma. Developing shallow, low-risk projects with low levels of capex and infrastructure already in place. From this sound base, the company is seeking to grow production to 1,000 bopd within 12 months, adding 1,000 bopd annually thereafter. The Board & Management team has just invested £330,000, aligning interest with investors Eddie Gonzalez has started building an impressive team of oil industry heavy hitters. One of them, Dr. David Kahn, who has been behind a number of 10,000+ bopd companies, has invested £250,000. This level of investment speaks volumes for the directors’ desire to see Mayan become a successful growth stock. Using powerful technologies to increase returns New technologies will be used to improve downhole information and recoveries. These include the nanosurfactant ERA-3, which has been shown to improve recovery as much as 5-fold. This is a proprietary technology developed and owned by Mayan’s new Chief Technical Officer, Dr. David Kahn. DCF analysis reveals potential upside of in excess of 1,300% Discounting our forecast cash flows (at a conservative rate) following the well workovers & new wells at the company’s growing list of projects & also adjusting for a further modest capital raise provides upside towards 1.6p. With the shares currently at 0.28p, and reflecting the risks involved, we initiate coverage of Mayan Energy with a Speculative buy stance.

  • 07 Sep 17
  • -
  • -

Align Research Research and Daily Commentaries

Research Tree offers Align Research research, providing ongoing coverage of 11 shares. We offer 16 reports from Align Research on Research Tree.

  • Research reports provided by Align Research

  • Companies covered by Align Research

  • Sectors covered by Align Research