Market's view on Calnex Solutio.
Published on April 2024
- One stock watcher switched investment from Calnex to ITV due to a more attractive dividend.
- Criticism was directed at Calnex management, the house broker, and the PR company for inadequately communicating an 18% cut to FY24 adjusted EBITDA.
- Concerns were raised about high costs and a decrease in cash by £2m since November at Calnex.
- The phrase “broadly in line” was debated with suggestions that it was being stretched to cover actual financial shortfalls, including a revenue miss by £0.7m and a cash shortfall of £2m against forecasts.
- Calnex’s FY24 trading update indicated expectations in line with market forecasts, with a focus on the defence and cloud computing sectors for future growth.
- Calnex’s market position in testing for cloud computing and data centre markets was highlighted as a growing opportunity.
- An ongoing relationship with Spirent was noted, with Calnex managing brand presence and distribution effectively despite previous changes in channel partners.
- A significant fall in Calnex’s share price led to a buying opportunity as perceived by Sanford DeLand’s Burns, describing the situation as “panic selling.”
- Negative speculation about Calnex’s performance was contested with reference to positive market sentiment and share price recovery.
- A suggestion was made that Spirent should acquire Calnex, highlighting a strategic fit and available funds.