Thinking Beyond the Nokia Box: Alternative European Mobile and Communications Stocks (SYNC, SRT & VLK)
A quick glance at European mobile and communications stocks Synchronica Plc (LON:SYNC), Software Radio Technology Plc (LON: SRT) and Vislink plc (LON: VLK).
Synchronica Plc (LON: SYNC)
Synchronica Plc is engaged in the development and provision of mobile device management and synchronisation solutions – specifically email and messaging software for low-end smartphones. On Monday, Synchronica Plc rose 1.22% to £12.40 (SYNC has a 52 week trading range of £11.78 to £32.00 a share) for a market cap of GBX1.79 billion. Synchronica Plc is also up over 71% since the start of the year as the company battles to avoid being taken over by rival and Swiss listed Myriad Group which placed an undisclosed bid to acquire the company. For its part, the Myriad Group is expected to raise its offer price (it has until the end of the month to do so) but Synchronica Plc has strengthened its position by announcing that it anticipates better than expected revenues of $23 million for the 2011 financial year plus it has announced a new $1.5 million contract with a Chinese handset manufacturer. Hence, traders might want to keep a close eye on Synchronica Plc.
Software Radio Technology Plc (LON: SRT)
Software Radio Technology Plc develops and provides automatic identification system (AIS) technology and product solutions for the maritime industry and more specifically, researches and developments wireless radio communication technologies and products for the identification and tracking of land or maritime assets. On Monday, Software Radio Technology Plc rose 2.36% to £32.50 (SRT has a 52 week trading range of up to £43 a share) for a market cap of GBX3.44 billion. Its also up about 25% since the start of the year but down about 3% over the past year. Software Radio Technology Plc also went profitable for the first time late in 2010, five years after being listed and for 2011, revenues grew 157.29% year-over-year from £3.56 million to £9.15million while bottom line results went from a loss of £220.52k to net income of £2.17 million. However and back in June, Software Radio Technology Plc did announce that its Board would not be recommending the payment of a final dividend. Nevertheless and so far this year, Software Radio Technology has produced a healthy return for investors.
Vislink plc (LON: VLK)
Vislink plc designs and manufactures microwave radio, satellite transmission, wireless camera and marine closed circuit television (CCTV) systems. On Monday, Vislink plc surged 16.99% to £27.35 (VLK has a 52 week trading range of £24.50 to £28.85 a share) for a market cap of GBX3.10 billion. Its also up about 32% since the start of the year and 29% over the past year. Nevertheless, its worth noting that Vislink plc’s year-over-year revenues fell 19.66% from £53.68 million to £43.12 million but the company did reverse bottom line results from a loss of £827k to net income of £3.99 million. Vislink plc also has plenty of cash on hand and virtually no debt. plus it has recently announced that Vislink PLC UK Employee Benefit Trust has purchased 13,426 ordinary shares in the company.
The Bottom Line. When it comes to European mobile stock and relate plays, its time to think beyond just Nokia Corporation (NOK), Telefonaktiebolaget LM Ericsson (ERIC) or Alcatel-Lucent (ALU) as small cap stocks like Synchronica Plc (SYNC), Software Radio Technology Plc (SRT) and Vislink plc (VLK) could offer more value.
John Udovich is a paid contributor of the SmallCap Network. John Udovich's personal holdings should be disclosed above. You can also view SmallCap Network's complete disclaimer and disclosure.
Do NOT buy or sell ERIC, SYNC.L, VLK.L, SRT.L, NOK or ALU until you have read everything.
SmallCap Network provides comprehensive research and opinions on ERIC, SYNC.L, VLK.L, SRT.L, NOK and ALU. |
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| Date: | June 20, 2013 | |
| Price: | Free | |
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