OMG! Tuesday 22 February: Summary of last week’s newsletter

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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 Coinsilium and Synectics. Read about these Opportunities 4 Material Gains!

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Mid-week Tip

 

NFT SaaS Play 2 Earn

Coinsilium 4.1p Mkt Cap £7m is traded on the less liquid Aquis market and last year raised over £1.1m at 7.5p with 1 for 1 warrant at 15p. The funds were to accelerate the  growth trajectory of its new improved growth strategy.  From early stage blockchain related investments the strategy has morphed into two main targets. Its NFTs (the Non-Fungible Token) and Open Finance sectors which is longer term. A  report from DappRadar, a global app store for decentralised applications in January stated that NFT Sales volume had rapidly spiralled up  to $24.9 billion compared to just $95 million  the year before. COIN have  developed NFT  an SaaS (Software as a Service)  which can be white-labelled,  a build once with a  sell  often model. The proposition to third party which could be a  brands, bands, artists, or other creatives  through a  licensing agreements can sell NFTs in the NFT Marketplace. This market place is on Testnet release, which is showcasing Coin’s powerful solution  to strategic and commercially interested parties, as it moves to the  commercialisation phase.   Along with the £1.1m placing it sold it treasury share shares at 10p raising£458k and assuming annual cost reman at around £0.9m we estimate there is  £1m  for investment which should see commercial traction on the NTS either their own BlockBots or with a  third party licencing deal. Speculative Buy.

 

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Securing a  future

Synectics (AIM: SNX) 92.5p (92p-93p) December’s trading statement reiterated expectations for a profitable second for its November 2021 y/e. This follows May’s Interims  which reported a substantial reduction in Losses Before Tax to £0.8m (£2m) with revenue moderately lower at £22m from £23m. For over 30 years it has provided integrated electronic surveillance systems and services to specialist high-value international markets, such as Transport& Infrastructure, Public Place Protection and Oil & Gas.  Pre-pandemic, its largest market sector was in  gaming and entertainment mainly in Asia and the States, but revenues fell sharply as casino’s  were closed. Since the interims four contracts have been won including two casino projects in Canada and delivery has started. Net Cash is £4.4m with no bank debt and undrawn bank facilities of £3m which is sufficient working capital. Costs have since been cut and the dividend, put on hold, is being reviewed with a possibility of a full year pay-out. As Covid recedes evidence of the success of the new strategy could accelerate the re-rating.  Buy

 

Reviews

COIN (AQSE) – 4.1p – NFT Reality

LOOP – 8.4p -Wrong number

CNIC – 134p – Beating 2022 forecasts

NBI – 173.5p – Crestchic orders hit new high

SBTX – 50.8p – Key time for AxisBiotix-Ps

FDBK – 0.7p – Pilots set to start

CKT – 46.5p – ARR growth

MWE – 55.5p – On track

BEG – 118.6p – Insolvencies back to pre-pandemic levels

DUKE – 41p – Follow-on investment 

CIZ – 3.15p – AZD1656 economic interest acquired 

EAAS – 12.1p – Debt refinancing

 

Finally: 

There is few UK Reflags; Monday Services PMI is likely to increase to 55.2, Wednesday BOE Monitory Policy Report with clues and signals on the rate of interest rate increases and Consumer Confidence on Friday and is likely to be down. The US report GDP on Thursday and the 7% growth includes Covid recovery.  All of which will be insignificant if heads are ducked for war.

 

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