Market's view on Nexteq
Published on April 2024
- Preference expressed for a tender offer over a dividend due to the low share price.
- Suggestion that a significant return of cash to shareholders is likely, possibly through a special dividend, at the forthcoming Annual General Meeting.
- Positive remarks about the potential acquisition of Densitron to diversify the company’s portfolio.
- Opinion shared that the company’s stock management via buybacks shows smart capital deployment, not lack of ambition.
- Forecast of $14 million pre-tax profit and earnings per share of 15.9 cents, with net cash increasing significantly.
- Mention of Quixant being highlighted at a gaming convention, with expectations of share price gains due to projected revenue growth.
- Discussion about a significant fund increasing its stake in the company, indicating potential for stock price appreciation.
- Concerns raised about a potential 30% year-on-year drop in the order book, predicting a possible impact on future revenues.
- Observation that recent trading volumes might indicate a major shareholder liquidating their position.
- Analysis suggesting the company is undervalued even after adjusting for a potential 20% earnings shortfall, with recent activity only including an inline trading update and minor director buying.
- Mention of currency gains significantly contributing to an increase in adjusted profit before tax, as per the latest interim results.