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No. It looks an error. Repeat of Friday's holdings RNS.
Kestrel still selling but sp still rising shows there is a great demand here for these shares. Really is a share to stick in the bottom draw while watching the sp grow as the company grows.with the dividend coming this year that will be progressive it will attract a lot of funds that are looking for young, growing companies. Next results out, and broker ratings will be increased.
I agree on your thoughts re. growth/dividend. It's hard to see much over 1% yield at this early stage, but that is sort of guessing at it and we shan't get an update on EPS until October with half year results. But it will be progressive and the promised dividend is of itself indicative of foresight of steadily increasing earnings on a cumulative contracted repeat revenue basis, or they would not have given advance notification. Cash required for down payment of debt and growth plans would have been taken into account. So a growth share with a bonus.
Similarly, looking ahead there is another possible financial event in addition to the end of the £600k annual payment to 365 Agile (requiring a potential £300k minimum cessation payment dependent on total sales )
BGF has the option to convert the remaining £2.5m of loan notes regarding Kypera into shares at 85.6. They are in the money, the stock is rising, and predicted to continue. Castleton can redeem the loan notes as of February 2019, and save 5% interest and say 3% stock dilution ( relatively small beer ) At face value it seems in BGFs interest to convert, and Castleton's to buy the notes back. Only they know the ins and outs of that one, and other factors in the equation, but it will all be in the CFO's plan.
The dividend, based on future earnings per share ( a figure less than last reported due to the then accounting credits ) will add attraction. However, I continue to see the investment as first a high growth company, with the secondary benefit of an increasing dividend yield.
That is just my addition to your recent missives, with which I agree, particularly on multiple and full suite product sales, and for which I give thanks.
And something on the dividend.
"Given our confidence in future prospects, the Board intends to implement a progressive dividend policy during the current year."
Looking ahead, anticipating update on multiple/full product suite contracts, repairs and maintenance solution ( it's apparent there's optimism about that from exhibiting at dedicated conference and Wates release ) and take-up of newly released solutions. If not before, then with 6 month results in October.
Kestrel are consistent with their last notification, and are probably correct. It is a sizeable cash sum. They may sell more, as I think we agree for reasons previously mentioned. The share price has been rising since their last notification, so a good time to sell, if desired, perhaps to support new opportunities. As I say often, I like to see these change hands at market price, widening the investor base with new holders at the higher price, so I regard it as positive for shareholders having regard to company progress and the wider Castleton picture.
It's actually at odds with the major shareholder list just updated. They have more now than listed.
Kestrel sold 1%. Looks like they dripped them into the market over time. They do trade a few, but perhaps they're intent on reducing. The day they went through notification CTP went up 3p.
Everything pointing to ctp share price rising to 120p-125p, the broker target which coincides with top of trend lines.
And Castleton now working with major contractors WATES, offering a more efficientcombined repair and maintenance service to housing associations and local authorities.
https://www.castletonplc.com/2018/07/26/enhancing-housing-services-2018/
Castleton roadshows went well, with more to come, and new product releases on the way.
https://www.castletonplc.com/2018/07/26/castleton-roadshows/
It may prove a psychological moment for some, but that is all in time. Company progress ( or highly unlikely, in my view, the opposite ) will not be halted. All available indications are that H1 results will show marked improvement, with a progressive dividend on its way, The recent dividend announcement alone shows the board's confidence in forward visibility on increased earnings, rewarding shareholders whilst retaining sufficient cash to enable growth. As I have mentioned before, the £600,000 365 agile payments will cease soon. Final payments will have to be made, but that will have been taken into account alongside the dividend. The £600k will then drop straight to the bottom line. The CFO has thought the future through.
£1 paid. Mental milestone. See if it'll break £1 share price next.
Hopefully, should they sell more as anticipated, MXCP will sell in bulk at market price as before, Should Kestrel do similar, in whole or part, then good news for shareholders.
The June results outlook stated trading was 'comfortably' in line, with good forwarded visibility, but it is this comment, coupled with Dean Dickinson's statements in presentations of not previously bidding for contracts without referenceability from existing users that reinforces my expectations. Castleton now has that ' proven ' full suite of products.
"We have now developed a fully integrated solution, which is demonstrable and referenceable and which will enable us to bid for more new opportunities."
A list accounting for 70% plus of the share capital, with the possibility of other interested parties from the capital markets day. It is good to get a recent update from Castleton, which is as accurate as we are likely to get - something to which to back - refer should the need be felt. Should progress be made in line with expectations, one can expect most to hold for the two to three year period in respect of which there is some aspirational indication, with senior management striving for a minimum almost doubling of the share price by period end. Exceptions would likely be MXCP, who will have need of cash to further their new ambitions, and just possibly Kestrel, who may wish to follow - but they may use funds from a lesser performer.
Set against that, and with the odds of multiple to full suite product sales increasing with referenceability ( Castleton has not hitherto bid for such contracts ) the FinnCap price target, though from a house broker, seems a reasonable one.
For anybody new, brief recap from proactive investors mid-June. Though not shown on this site, housebroker FinnCap now give £1.25.
http://www.proactiveinvestors.co.uk/companies/news/199116/castleton-technology-swings-to-profit-as-it-acquires-financial-modelling-platform-199116.html
Can be read alongside recent Capital Markets Day,
http://www.piworld.co.uk/2018/07/13/castleton-technology-ctp-capital-markets-day-2018/
and the full year results 2018 video
http://www.piworld.co.uk/2018/06/19/castleton-technology-ctp-full-year-results-2018/
The significant LTIP is also of interest, relating to senior department managers. CEO is already share price incentivised.
http://www.lse.co.uk/share-regulatory-news.asp?shareprice=CTP&ArticleCode=h8tpxxoq&ArticleHeadline=Implementation_of_Long_Term_Incentive_Plan
Nice finish to the day.
Had a look at the charts earlier and looks like CTP has broken back into an old trading range. Good news if it can stay within those trend lines.
http://www.chartupload.com/viewer.php?file=60282459907506941965.png
Castleton has updated it's major shareholders list. Old Mutual has weighed in with 4.67%. I cannot recalł anything on them before.
https://www.castletonplc.com/investors/major-shareholders/
As far as I know he does not own these but my intention was to say it is the type of share he would own. It crosses the correct boxes. My apologies if I misled.
When did Robbie Burns The naked Trader cover CTP, i'm a big fan of both (CTP and Robbie) but I've never seen him comment on CTP
Significant progress is being made here.
This is the type of share many investors like to be in, including The Naked Trader.
Figures increasing, SP in an upward trend.
Forecast in an upward trend.
Progressive dividend to be implemented this year.
Expectations of 40% increase in SP per year.
Break above a major resistance line recently.
"The level of cash generation has continued to be impressive, allowing the Group not only to reduce net debt, but also make a bolt-on acquisition which has bolstered our presence in the Australian market." - Chairman's Statement.
As they say, buy the dips.
Good to see via twitter they have plans to extend their agreements with Castleton beyond those announced in Jan. 2017. Must be pleased with existing products and service.
I am pleased that MXCP shares went to smaller holders. The company continues to make positive effort to widen its professional holder base, and as part of that may have in mind further disposal of MXCP holdings.
In the meantime, mid-June information is that trading is comfortably in line with expectations, with good forward visibility of earnings.
There is every sign that the first half results will be strong.