I Read The News Today Oh Boy! 25-Feb-2019

25th Feb '19 by matylda

5 comments 2351 reads

Morning all!

Quartix Holdings ( Quartix Holdings (LON:QTX) ) – 243p – £116m – PER 21

Final Results For The 12 Months To End December 2018 – Revenue up 5%, PBT up 22%, Diluted EPS up 16% (14.19p), Net Cash down by about 10% and, strangely, the Dividend is down about the same amount.

I still don’t see value here or the reason for such a high rating – I still feel I am perhaps missing something, hopefully not!

Tristel ( Tristel (LON:TSTL) ) – 302p – £134m – PER 26.6

Interim Results For The 6 Months To End December 2018 – Revenue up 12%, PBT up 20%, Interim Dividend up 28%, Net Cash level down slightly. Sales growth has been in the middle of the target range in H1, no real view on H2 or FY.

I still don't see how this is so highly rated.

As always, all comment most welcome!

Unlock with Email

Unlock with Google

Already have an account?
Login here

MrContrarian

25th Feb '19

My morning smallcap tweet: FAB not fab, no clap for TAP.

Fusion Antibodies (LON:FAB), Taptica International (LON:TAP), Tristel (LON:TSTL)

Fusion Antibodies (FAB) warns FY rev expected to be materially below current market expectations but at least £2.1m.
Taptica (TAP) current trading 'varied', performance-based advertising continuing to be weak. Tremor robust. I hold.
Tristel (TSTL) H1 pretax (before share-based payments) beats Dec guidance of £2.2m by £0.2m. Rev up 12%.

Asagi

my understanding is that Quartix Holdings (LON:QTX) accounting policies are very conservative, meaning that profit is understated versus other companies. Check valuation against free cash flow. The company trades at around 18 times free cash flow - nearly all the reported EPS is matched by cash. Company also has a strong balance sheet. I'm still of the opinion that it looks expensive but not as expensive as appears on first glance.

Asagi (no position)

William K

Taptica International (LON:TAP) reports:

The business remains highly cash generative and with a strong balance sheet. As at 31 December 2018, Taptica had net cash of $54.4 million, which was following a $2.7 million dividend paid to shareholders on 20 November 2018.

The Company confirms that it closed 2018 in-line with management expectations and will publish its final results for the year ended 31 December 2018 on 26 March 2019.

This doesn't sound too bad. The share price has fallen to 170 pence from its recent high of 225 on 5th February (down 6.5% today so far). I don't hold any of these shares yet, but if they fell to 134 where they were on 22nd January they would certainly become attractive.

Nick Ray

I think Tristel (LON:TSTL) is highly rated because it is very consistent. About 90% of its quality and momentum metrics are above the median value. In probability terms it might not have the highest returns but it has a very high probability of a good return.

Gray Woods

3rd Mar '19

I'd imagine it's more to do with the anticipation around American regulatory approval for its disinfectant to be used on medical devices which they've been chasing for years, if they get it the US market is obviously a lot bigger than the UK's and others so potentially a lot of growth potential.

I Read The News Today Oh Boy! 25-Feb-2019

Unlock the rest of this article with a 14 day trial

About the Author

Matylda

5 comments

Unlock the metrics for all these stocks and more...

Unlock the metrics for all these stocks and more...