Falanx Group (FLX) says that its results for the year to 31 March 2016 were in line with expectation. Put another way, they were predictably dire with sales coming in at £1.81 million, down from £1.92 million) and the loss before taxation hitting £2.65 million, up from £2.20 million. However...
We own these shares so clearly we are not impartial in what we say about the most incredibly brilliant and perceptive broker report in history. That was my little joke before Wildes reports me to the FCA again. Anyhow Whitman Howard has published a detailed not on Falanx (FLX) as it initiates coverage. Analyst Christopher Furness says:
The shares were 4.25p offer when we tipped this but they are still cheap. Naturally our paying customers got in at lower levels that you can today. However the thesis stands. Falanx (FLX) has not covered itself in glory since its AIM admission just under three years ago. There have been a couple of profits warnings and, just over a year ago, there was a change of strategy, a shift from profitable but dull traditional security to dealing with cyber security. It sounded sexy but it meant huge losses and the shares have slumped to 4p-4.5p. But they are now a buy. Why?
If you want me to analyse a stock for you just drop me a line at sqmir@hotmail.com - Today I look at shares of Falanx (FLX), Flybe (FLYB), Oilex (OEX) and offer some share price targets.
As can be seen from the daily chart trace of Falanx (FLX) over the bulk of the past year, it has generally not been a happy time for the longs, with a deeply entrenched bear run ruling the roost for much of the period.
For some reason it did actually seem that Falanx Group (FLX) shares had been treated rather unfairly by the market going into this week, although it should be said that the subsequent move to the upside will have surprised the bulls in a pleasant way. There is now an interesting share price target.
Security group Falanx (FLX) is potentially a classic value investment with “cloud” upside. At 47.5p it might be worth a nibble. Here’s why.
Falanx Group (FLX) is a bit of a mystery. From the release of its interim results on November 19th last year through to a generic announcement concerning the exercise of warrants on March 13th this year, the company didn’t provide the market with a single update. Yet this didn’t stop the share price rising from 13.2p to 30p over the same period. In the month since, the stock drifted. Suddenly today, the company announced a deeply discounted placement “without the assistance of corporate brokers”. If you find this a bit odd, it is because it is, but should you write this off as a stock to buy?
Security and risk management consultancy, Falanx Group (FLX) has announced a maiden pre-tax profit (£35k) on revenue of £2.18 million for the six months ended 30th September 2013, with Chairman Karl Barclay stating that, “given the expected expansion of work in the Middle East and North Africa, and the new opportunities offered through consolidation of cyber security services, I am confident that the group has a sound base on which to grow the business over the coming months and beyond”. The following updates on a stock added to the Penny Share portfolio on my Nifty Fifty website at a 12.25p offer price last month. The stock is now 14.5p.
Investment Case: International security and risk management consultancy with clients including blue chip corporates and governments, Falanx Group (LSE:FLX) only listed on AIM in June, raising £0.595 million at 12p per share on admission – the shares are now 12.25p to buy.
