Aeorema Communications plc

07 Apr 2014 | by: James Moore

ValueTheMarkets welcomes a feature article by Riddler

I’m revisiting a great little niche stock which ticks all of the investment boxes, its name is Aeorema Communications. The company is an AIM listed live events and communications agency (LSE:AEO) and over the last 6 months the company has announced two very positive updates. In October 2013 the company moved into profit and again in February where Aeorema consolidated momentum by issuing its profit before tax of £280k solidifying encouraging market reaction. However what is more impressive is that a huge chunk of this market cap is made up of over £1mln in cash.

Technically things look even better with a great little chart set up @ 55-58p where it has found recent support following a very healthy rise from 35p to 71p on the lead up to those February results. As if the run over the last 12 months wasn’t enough we have clear validation of buying appetite and we have seen holdings RNS surfacing during last two months which indicates some behind the scenes buying. Finally the buy signal came from news released after hours on Friday 4th April which stated an additional £2mln contract over 3 years.

“Our agency is progressing well as we strengthen our foothold in this space and we are confident of reporting profits of c. £500,000 for the year ended 30 June 2014.”

Buy @ 58-65p and target new highs in the 80-90p region come results in June.

(The Author of this article holds no financial interest in the company on submission or prior publication of this article.)

Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

    RNS Responses

    Top Tin companies to invest in

    Tin is vital for electronics, so it’s experiencing soaring demand along with repressed supply. Here are some tin-related investment ideas.

    When is Databricks going public?

    Databricks ranks among the highest valued private tech firms and is generating plenty of hype ahead of a likely float, but when will this take place?