Spectra Systems Corporation provides technology-based security solutions.
Impressive company with double digit growth during COVID *don’t hold but on watch list for a while now
The group’s a world leader in providing security technology materials for use in banknotes, product authentication, and gaming.
- Revenue +11% to $14.675m,
- Adjusted EBITDA +16% to $6.357m,
- Net income +18% to $5.124m,
- Adjusted earnings per share +14% to 11.9c,
- Cash from operations -3.7% to $5.124m,
- Net cash position steady at $14.038m (with $1.099m of restricted cash and investments); no debt,
- Annual dividend of 9.5c per share,
- 645,000 shares bought back in the period.
Company Name: Spectra Systems Corporation
Name: Spectra Systems Unregistered Ord Shs
Leading player in the booming market for authentication technologies (banknote authentication, brand protection technologies and gaming security software)
Highly profitable business, analysts have already pushed through 3 earnings upgrades in the first half of this year. Interim results due in September are likely to be positive.
Current price 160p
Target price 200p
High dividend yield at 7.2%
The data from the London Stock Exchange shows that this AIM stock has very low liquidity.
There has been one trade so far today:
And over the past few months:
You will probably struggle to buy/sell this stock. And its spread at the moment is 12p (around 8%)!
Thanks, I expected this to be an issue!
What is an acceptable spread for FT to consider adding a stock?
I don‘t believe that there is a specific number. I think the team that adds stocks to the Universe balance out various considerations including the ease of buying and selling the stock. I am not sure if @Alex_B would like to add to that or not.