Market's view on CML Microcircuits
Published on April 2024
- The company is currently undervalued and has announced a share buyback, suggesting a potential upside for current buyers despite challenges integrating a recent American acquisition.
- There are large trades indicating that the company might be undervalued.
- Concerns are raised regarding the company’s performance with a forecast EPS of 13.4p for 2024, questioning whether it involves manufacturing or merely reselling.
- Financial projections include a cash-adjusted PE of 10 for 2024 and a forecast PE of 17 for the year based on Shore’s estimates.
- The acquisition of Microwave Technology is expected to negatively impact margins, with a forecasted yield of 3.9% and a PE of 10 for 2023.
- The company’s share price is significantly down from the previous year, influenced by negative trading updates.
- Collaboration with Cambridge Consultants to develop solutions for the DRM market has been positively received.
- There was a notable trading halt for small caps on the London Stock Exchange, affecting the company’s stock transactions.
- Recent financial results have been mixed, mentioning market headwinds, which raises concerns.
- The company’s trading volume is low but remains tightly held due to its cash richness and good prospects.
- The company’s actions of buying back shares and reissuing them at a lower price have raised suspicions and concerns about its credibility.