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The OMG newsletter recommends at least 15 companies each month, using the writers’ experience of small caps to give you a winning edge. Last week they wrote about LoopUp and Calnex Solutions. Read about these Opportunities 4 Material Gains!
Mid-week Tip
Ringing the Bottom
LoopUp (LSE: LOOP) operate a cloud business communications platform and recently acquired SyncRTC Inc. for £3.25m paid partly with vendor shares and a placing at 25p. SyncRTC, is a hybrid collaboration software-as-a-service (SaaS) technology company and makes a highly synergistic fit. After a strategic ‘reset’ Loop relies less and less on the systematic decline in income from ‘premium’ calls and more on service provision. After this deal Loop comprises three strategic rings: Cloud Telephony, Collaboration SaaS, and Managed Events. This combination gives a distinct value proposition for relatively large international enterprises and new attractive business is starting to be won. he highly scalable platform capabilities comprise cloud telephony via Direct Routing for remote meetings, and managed events. Its over 5,000 customers benefit from a global fully managed service, and an emphasis on security, reliability, and simplicity. We like the business communications sector and the new strategy seems to be successfully emerging a speculative buy at 21.5p and mkt cap of £21m
Results Preview
CLX – 134.5p – Testing Valuation
Calnex Solutions (AIM: CLX), Mkt Cap £118m Its Trading report stated a return to pre-Covid customer levels of activity in all regions, other than China. It is being helped by global structural growth drivers in the telecoms market including the mass roll-out of 5G networks, Internet of Things and cloud services creating rapid and long-term changes, smart cities etc. CLX Solutions are essential for network synchronization and network emulation (cloning / replication), enabling its customers to validate the performance of the critical infrastructure associated with telecoms networks. Its strongly cash generation and at the finals net cash was around £12.0m which seems sufficient to pursue an acquisition strategy if anything appropriate can be found. The expectation of future growth in this profitable, cash generative, with repeat revenues makes the high rating just about worth it. Medium term buy.
Reviews
TLY – 34.5p – Increasing dividend
MWE – 82.5p – Antennas growth
VANL – 43.5p – Better than pre-Covid
AUTG – 22p – Financially strong
EYE – 597.5p – First quarter rise
BILN – 245p – Delayed contracts
OPTI – 47p – Stake sale
DNL – 61.5p – US salesforce expansion
PMP – 685p – Better revenues
Finally: The UK will continue to ignore the Continents Covid problems , but several economic speeches will give an indication of the timing for the UK Interest Rate raise.
OMG! Opportunity for Massive Gains is a Premium Newsletter on ADVFN with two reports each week written by experienced small cap specialists. To get trips like this every week, sign up here.
