Equity Development Equity Research & Stock Reports
- Professional research and all the latest forecasts, valuation opinions and multiples from Equity Development's expert analysts.
- Real-time updates from analysts following company announcements and other events.
- Near-live share prices, user-friendly dashboard, charting and company content.
Opening a new chapter
21 Oct 16
A lot can happen in 1 ½ weeks. Firstly on the 12th October, Vislink announced that its broadcast software arm, Pebble Beach Systems (PBS), had traded strongly – reporting H1 order intake up 53% LFL. Then the following day, Finance Director (Ian Davies) resigned with immediate effect due to personal health-related reasons, with the shares hitting an all-time low of 8p. Finally the stock has almost doubled to 15.5p over the past 2 days, on the back of positive news that the Board has conditionally agreed to dispose of its hardware division, Vislink Communication Systems (VCS), to xG Technology Inc (Nasdaq: XGTI) for $16m (or c. £13m gross, representing 0.4x 2016 sales). We think xG Tech is a logical home for VCS, since it is already a leader in providing secure, always-on, wireless communications for many mission critical sectors, such as the armed forces, emergency services, public safety, telemedicine, etc. The transaction is subject to shareholder approval (date to be confirmed), and if authorised as anticipated, should close by the end of 2016. Proceeds (say £12m net) have been ear-marked to pay back the vast majority of the company’s £15m revolving credit facility with Santander - thus leaving the business “substantially debtfree”.
Substantial new military opportunity
19 Oct 16
When is the right time to buy high growth smallcaps? Some investors would advise caution due to the risks, yet this is exactly the type of situation that can produce lucrative returns. For us the trick is to identify undervalued stocks that are not only winning new and repeat business – ie a sure-fire sign that customers like what they see – but also the size of their addressable markets is expanding.
Safe as houses
17 Oct 16
Telford Homes is in as strong a position as it has ever been in the 15 years since flotation. The company has a strong balance sheet, with an expanded equity base and significant headroom on its banking facilities, a large development pipeline and impressive forward sales position, and good levels of demand for its product and geography from a diverse group of buyers.
Walking the talk
17 Oct 16
Two traits that investors love about a company are predictability and execution. The former underpins confidence and lowers the risk premium, while the latter drives valuation. On both counts, we think Tristel scores favourably, with the stock rallying from 20p in April 2013 to 160p today – equivalent to a 700% capital gain, supplemented by 14p of dividend income.
Whiplash reforms parked
13 Oct 16
Press coverage this morning states that a previous source of concern over group earnings may have gone away. This related to changes, proposed by George Osborne in his Autumn statement last year, to reform the UK’s compensation culture around minor motor accident injuries, specifically the operation of whiplash claims.
Excellent H1 progress, confident for H2
11 Oct 16
Ergomed’s recent performance highlights a key attraction of the business: long- term visibility on revenues from its Services. The H1 results show that Ergomed has already contracted enough business to hit FY2016 expectations, and has good visibility into FY2017 too. Ergomed has significant upside potential from its co-development relationships and from its ownership of Haemostatix, too.
Equity Development Research and Daily Commentaries
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