5Aug 2016

Share Talk – Steve Shares 5th August 2016

steveshares

Welcome to Share Talk and Steve Shares. This publication is an interactive update on what’s happening over social media and the trending stocks that have made the news this week and why. We look at up and coming news and events in connection to your investments and holdings. I will also provide a round up of Lse share talks activities this week.

If you think that a stock or share or a piece of news will be in the spotlight soon, let us know by contacting me via direct message @slarratt1 or simply by following the new hash tag below and tagging me in. The more readers that interact with this feature, the more news and thoughts can be known about your stocks and holdings and their potential. Could your stock be a potential under the radar company that others could be interested in? Could it be a little unknown gem that you want to shout about or share a key piece of research on?

Share Talk – Steve Shares

Whats hot? Whats not?

It is as easy as a hash tag so if your company’s ticker is (AAA) you would use a hash tag of #lstaaa (Lse Share Talk AAA) and add me @slarratt1 so I can see what you are seeing and I will add it into my feature and share the news, others can interact and we can share the news over social media and not just within your individual discussion groups.

Don’t forget to follow Share Talk and sign up to receive weekly updates on what Share Talk has to offer and the news views and opinions on what matter to you. This publication will also be sent to your email to read at your leisure.

If there are any thoughts and suggestions direct message me @slarratt1 as to further views or ideas as to what this feature can add to you.

Trending this week

Firstly

Thank you for making the launch of ‘Steve Shares’ a successful one. Lots of interaction after Steve Shares issue #2 publication has resulted in a few topics of interest. The first is in regards to what RNS alert service is the best to use, there are many service providers out there but what are your thoughts? I will be releasing a poll in conjunction with this publication to truly see who is used the most and why, please vote and comment on why!

I have had multiple approaches from people on twitter who wanted to discuss shares they hold and give the reasons for their thoughts behind their ‘what’s on next’. After careful consideration there was one company being mentioned more than others and so I asked them to compile their individual thoughts and share information. I have compiled the key components and thoughts from these individuals to produce a comprehensive report of their thoughts. What’s on next will cover the pick of the week at the end of this issue.

Ascent (AST)

Ascent on Monday reporter together with its partners in Slovenia that they have signed the conditional agreements necessary to allow commercial gas production to commence as early next year. The new route to market will utilise an existing production pipeline in Slovenia over the Croatian border where the raw gas will be sold. With no further regulatory approvals required for the gas production to commence the sale to market this represents a milestone move for the company. Additionally, the funding that would have been required to commence production is lower than would be the case if we were required to construct new infrastructure and the licences required to do this.

The Company has also entered an agreement to acquire a Company which owns access to a section of pipeline in Slovenia in return for the issue of shares plus options. A General Meeting has been convened for 22 August 2016 to consider and approve the necessary authorities to allow the agreements to become unconditional if in the best interests of the company and shareholders.

Are you a holder? What are your thoughts on the production coming online ahead of time? With ast now looking like it is going into production is this a good time to invest? What are your concerns with buying a section of pipeline and the subsequent issue of shares and options? Let us know and comment via #lstast (Lse Share Talk ast) and tag me in @slarratt1

Cloud TAG (CTAG)

Covered in last weeks publication Cloudtag’s potential was discussed in depth and I thank you for sharing your thoughts and information. In relation to taking the product into the next phase of the company’s production multiple companies were suggested by multiple people. Big players were mentioned as well as high street retailers.

A question I have though of is in relation to the product with the unique selling point that it is medical grade, is there be a better offer on the table of an exclusive deal? Is there a potential buy out by companies in the market already such as Garmin? Following the recent rises is it a good entry point for new investors? What are your hopes and expectations? What will be the potential outcomes? Let us know and comment via #lstctag (Lse Share Talk ctag) and tag me in @slarratt1.

Sound Energy PLC (SOU)

I have previously covered sound energy on ‘Steve Shares’ and again it has continued to be a hot topic across social media. The share price matched the sentiment in the stock and had hit new highs last week. People are speculating that bigger players are moving into the share as a large number of bigger trades are showing. With results due on their Morocco assets could this make gains from this point? With news so close there is talk about a potential take over or buy out of the field.

If you are invested or interested in SOU please comment via #lstsou tag me in @slarratt1 (Lse Share Talk sou) and let everyone know your thoughts on what your hopes and expectations are in relation to sou? What are your targets and time scales? Is it an investment for you or a trade?

Mining Companies

With twitter buzzing around the mining and minerals sector and the wide and varying minerals that can be produced in this sector, I would like to see how many companies are out there and what their targeted commodities are, please share these thoughts for next weeks interactive poll on what companies have the biggest potential in there sectors.

A special mention

Sad news across social media was the passing of the Hon. Colin Orr-Ewing after a short illness.

Colin has spearheaded mining operations and has over 40 years experience within the mining sector. He has worked for many companies during his long and prosperous career. His last major project was the discovery of the Sonora lithium deposit with his company Bacanora Minerals Ltd. Long may his contributions be felt there. I am sure everyone will share condolences to everyone connected to him in a work as well as personal capacity.

My thought of the week

On Thursday the Bank of England decided to drop the interest rates to an all time low. There are two things in connection to this decision.

Savings

The government in recent years has been telling us to save our money to plan for the future and save into pension funds. Where is the incentive for doing this? With interest rates of savings accounts being so low for so long, do you think there should be more pressure for government to instruct banks to offer better products in connection to those that want to invest and save for their futures?

Mortgages

In relation to those with mortgages, figures released several years ago showed that the majority of mortgage uptakes were on fixed rate terms. Will the drop in interest rates actually help put money in the clients pockets or yet again do the financial institutions plan on not passing the savings on to those that can potentially benefit from the rate reduction?

Your thoughts are most welcome in regards to how this might effect you.

Share Talk round up

Conkers interviewing @slarratt1 about ‘Steve Shares’

@conkers3 interviewed me in regards to SHARE TALK blog ‘Steve Shares’. Here is an overview on the concept, ethos and methodology going forward. Listen now to gain a fuller understanding of this blog

This week on Conkers Corner

Monday this week, @conkers3 published his Conkers’ Corner interview with Edmund Shing @TheIdleInvestor. Edmund is anything but idle, his current role is BNP Paribas’ s Head of Equity Derivative Strategy, and currently produces articles for the IBT Times UK, the MindfulMoney website and the Stockopedia financial website. He is also a highly sought after investment expert and is regular guest on programs including Bloomberg Markets, CNBC’s “Closing Bell” and Bloomberg “The Pulse”.

Listen now to gain insights into how Edmund invests and learn from the lessons in his investing journey. He also reveals strategies as to how to beat the professionals.

Have a listen and see if you can change your outlook with regards to your learning journey and your investment\trading strategy…

Listen to the interview with Edmund Shing here.

Interviews and updates

Barbarian Investor Podcast No 9 with Jasper Dykes founder and CEO of ‘Fly Now Pay Later’

This interview is brought to you in association with UK Investor Forums.

Malcom Pallee interviewed Jasper Dykes CEO of ‘Fly Now Pay Later’. This is an innovative Fintech consumer lending business and the Travel Industry’s first ‘Point of Sale’ payment solution that allows consumers to spread the cost of their trip over a flexible duration.

In the podcast, Jasper discusses how FNPL came about and his journey from coming up with the initial idea, through proof of concept, to commercial launch in November 2015.

Listen to the interview here

Coinsilium

Lse Share Talk interviewed Laurent Kssis, the Non-Executive Chairman of Coinsilium. Coinsillium is a pioneering Fintech and Private Equity early stage investing, blockchain technology company.
Laurent talks about the disruptive nature of Bitcoin, Mobile payments, nanopayments and smart contracts all of which Coinsilium and their investee companies are involved in. Laurent also talks about the proof of concept initiative struck by SatoshiPay, a Coinsilium investee company, with the $184Bn global financial behemoth VISA. Whereby VISA plans to explore how SatoshiPay’s technology could be used for machine-to machine payments.

Listen to the interview here

Horizonte Minerals PLC

Lse Share Talk interviewed Jeremy Martin, CEO of Horizonte Minerals PLC. Following Horizonte’s acquisition of Glencores nickel project with regards to the remaining two licences that make up the Araguaia nickel project in north central Brazil. Thus creating one of the largest nickel projects globally. Jeremy provides insights into the underlying high grades and long-term potential of the world class Tier 1 project just as the nickel price seems to be recovering.
Listen to the interview here

Mining Maven, Metal Tiger

LSE Share Talk presents Mining Mavens Podcast. On the podcast are Metal Tigers Chairman, Terry Grammer, CEO Paul Johnson and Competent Person Nick O’Reilly. They discuss the latest set of drill results out of Botswana from MOD Resources.

It was particularly interesting to hear Nick’s take on drilling results and investors will no doubt be encouraged by his confidence in the T3 project and the ongoing resource exploration program.

Listen to the interview here

Savannah Resources

Lse Share Talk released information on Savannah Resources PLC’s drill programme over its highly prospective Block 4 and 5 properties in the Sultanate of Oman. Six drill holes have now been completed and assay results from two holes have been received by the company which are a prospective for copper and gold. Savannah is earning a 65% shareholding in the Omani company, Al Thuraya LLC, the owner of the Block 4 Project and is a 65% shareholder in Al Fairuz Mining, the holder of the Block 5 licence.

Read the full report here

Interactive Hotspot Starcom Systems (STAR)

As previously mentioned I have had several individuals contact me in regards to many companies and STAR was the most mentioned so I have asked them to compile a brief outline of the facts and provide links to the information. I hope you enjoy…

Starcom Systems:

I would like the opportunity to put across my thoughts about Starcom Systems (EPIC: STAR) , which is listed on the London Stock Exchange’s AIM. Their current market capitalisation is £4.58m with there being a total of 135.83 million shares in issue.

Starcom Systems are a security company specialising in customer specific tracking systems across a variety of industry sectors, including but not limited to: transportation, container-ships, construction, utilities and telecommunications. They have over one-hundred distributors across over fifty countries:

Their products include:

Watchlock: These were initially autonomous locking systems and the new Watchlock Pro is a significant improvement on version one thanks to the latest GPS and GSM technologies and a new version of the microprocessor with an extended battery life.

HELIOS: A family of tracking products comprising standard units marketed at under US$100/unit with monthly fees of $1-3 for the monitoring of vehicles, including motorbikes, linked to GPS telecom services.

Last year Starcom Systems developed a new version called the Helios Hybrid with the advantage of being able to utilise cellular and satellite communications for tracking continuity across large and remote areas.

TETIS: These are products to both monitor and safeguard container traffic. These products not only monitor location but also temperature, humidity and light penetration to detect the sudden opening of the container.

KYLOS: The Kylos Compact Device is a sophisticated portable GPS tracker designed to monitor and determine the location of assets and possessions as well as providing a means to keep family members and pets safe. Sales of this unit are slowly building since its launch two years ago.

SAS: All the units are sold with connection to a central user friendly tracking software platform which can be either owned and operated by the user or by a third party. Monthly fees vary according to the product that is connected to the SAS control hub and generate recurring revenues to Starcom Systems.

More recently, the Starcom Systems have launched their new WatchLock Pro, an intelligent, autonomous locking solution intended to provide security to remote places, properties and off site locations. Starcom Systems also provide tracking and monitoring through WatchLock Pro.

Since the year ending results on 31/02/2015, the company has undergone further cost cutting measures, has had seven months of revenue from its $5m Kenyan deal, further revenues from deals made in Ethiopia, sales of the Helios Hybrid and sales of the the new WatchLock. When we factor this in against their last full year revenue of $5.1m these gains in their underlying revenue streams since then set the company up nicely for a strong 2016.

With regards to the current valuation of Starcom Systems I believe that there are a number of reasons why the company is currently undervalued in the market:

-These specialised tracking products are high margin items with future ubiquitousness, which in the context of the rapidly growing GPS industry – expected to reach a value of $3.5bn by 2019 (1) – place Starcom Systems perfectly to capitalise on the sector growth globally.

-The global power of the brands that the company currently works with, suggest that they’re punching significantly above their weight. In particular, the joint projects with SATO (owned by SoftBank – Japan) Porsche Dealers,

-The risk of a share placing/dilution to the company is very low with the directors holding 49.19% of the issued share capital.

-Moreover, the highly positive track records of the board of directors is a further reason to be excited about the company, with them having collective experience in marketing and selling private and listed companies.

-Moreover, there’s a current high level of interest in the GPS tracking sector with regards to M&A activity, with probably the most recent example being the Verizon bid of $2.4bn in cash for Fleetmatics Group.

-On a technical note, as the company reports in dollars there is an additional benefit due to weak sterling.

Company/Director Quotes:

11th March final results:

“The Company is hopeful that it will return to profitability during the year ending 31 December 2016 by converting its strengthening pipeline into growing sales across the product range.  In particular the gradual take up of Tetis and the new Watchlock Pro should contribute to this increase in sales, most of which we anticipate in the second half of the year.”

“In 2015 the Company lowered its cost base significantly which the board does not expect to increase during 2016, unless it believes greater sales will result from an increase in marketing activities.”

“Company’s SAS monthly fees is also expected to grow, and should reach nearly a third of the total revenues. This is a stable and high margin source of income for the Company that is gradually becoming the foundation for covering most of the overheads of the business.”

References:

1. https://www.abiresearch.com/press/gps-tracking-devices-to-break-35-million-in-2019/

2. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=STAR&ArticleCode=h5fx7bud&ArticleHeadline=Final_Results

3. http://uk.reuters.com/article/deals-day-idUKL3N1AI3KK

4. http://www.starcomsystems.com/download/Starcom-Presentation-March-2016.pdf

I thank those who contributed to the report for their efforts.

What are your thoughts on STAR being a ‘star’ performer in the near future? Please ask any questions in regards to this report and those in the know will help out in regards to this…

Whats on next week…

Any news flow due soon in the stocks and shares that you are investing in? Let me know your thoughts and comments #lstwon and tag me in @slarratt1 so I can know what is hot for my following week…

Article written by @slarratt1

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