Market's view on Spectra (unres)
Published on April 2024
- Reports of counterfeit barcoded stamps being sold on online platforms have surfaced, leading to discussions about the impact on businesses and postal services.
- Discussions around the effectiveness of security features in stamps, specifically barcodes, which might not prevent counterfeiting but aid in better detection, thus potentially increasing revenue from fines for postal services.
- Spectra Systems’ acquisition of Cartor is highlighted, noting Cartor’s role in printing stamps for Royal Mail using advanced equipment.
- Concerns are raised over recent incidents where customers faced fines due to counterfeit barcoded stamps, questioning the integrity of printing or scanning processes, potentially affecting Spectra Systems’ reputation.
- It’s noted that Royal Mail and the Post Office are separate entities, with Cartor supplying the Post Office directly. Questions arise about the checks performed on stamps and the equipment used by Royal Mail for validation.
- The acquisition of CSP by Spectra Systems is considered transformative, enhancing security printing and expected to lead to record revenues and long-term growth through new capabilities and increased margins.
- Future contracts and earnings optimism for Spectra Systems are discussed, with a focus on the potential impact of new technologies and contracts on stock performance.
- Concerns are expressed about the reliance on ongoing positive news to maintain stock stability and the potential impact of global economic factors on stock prices.