Telecoms specialist has a healthy dividend

By Graeme Dickson
Updated: 07:20 EDT, 16 June 2011

Keep an eye on Maintel (MAI), a fast expanding telecoms specialist which is not only profitable but pays a healthy dividend:

Maintel is a telecommunications reseller, giving advice and designing solutions tailored to each individual company.

It was established in 1991 before listing on AIM in 2004 at just over 100p and has supplier relationships with Avaya (Nortel), Mitel and Siemens.

The £23 million company has seen its turnover grow steadily from £8.8 million in 2001 to £22 million in 2010, while pre-tax profits have risen from £690,000 to £2.67 million over the same period.

Profits are expected to soar over the next two years following the acquisition of assets from Redstone PLC.

Currently it trades on a price to earnings ratio of 12.78, falling to 7.9 in 2013 if analysts' forecasts are met.

What's more, it pays a dividend, yielding an eye-catching 3.75 per cent and on top of this it has no debt.

Given that it has £2.5 million cash at 31 December year end, the company is likely to acquire another bolt-on business, most likely to be earnings enhancing at some stage.

The momentum suggests this stock has further to go and given all of the aforementioned metrics I would not want to bet against it.

Update

Avon Rubber (AVON) - tipped as a buy at 280p, the shares closed at 288.5p. Sit tight and hopefully enjoy as trackers fight for stock.

Immupharma (IMM) - tipped as a buy at 87p, the stock closed yesterday at 83.5p. Continue to hold as we await trial news about its Lupus treatment, Lupuzor.

Hambledon Mining (HMB) - tipped as a buy at 4.875p, the shares closed yesterday at 5p. Continue to hold, despite the small cap malaise.

Biofutures (BIP) - suggested to buy at 6p, the stock slipped to 5.5p - continue to hold for now.

Geong (GNG) - suggested to buy at 34p, the stock closed at 42p, a 23.5 per cent gain since the tip. The company should have provided a pre-close trading statement by the time you have read this message, which will hopefully attract further investors to the stock.

GTL Resources (GTL) - suggested to buy at 88.5p, the stock closed at 76p yesterday. I cannot explain the fall apart from a bit of profit taking from those who bought lower down. Hold for now.

Avanti (AVN) - suggested buying at 454p, the stock closed at 399p- the directors are buying, against the continual negative comment regarding its rural broadband offering. Continue to hold for now.

Globo (GBO) - suggested as a buy at 17.25p, the stock closed yesterday at 22.75p. Expect newsflow this month that will hopefully enlighten the market about its current product offering. In the meantime use the current weakness to build a position.

Optare (OPE) - tipped as a buy at 3p, the stock closed yesterday at 3p: I met the management last week who informed me that they are embarking on tendering for some highly lucrative contracts in Eastern Europe and South Africa, which could get the shares properly moving at some stage.

Lochard Energy (LHD) - tipped as a buy at 15.13p the stock closed at 11.75p. North Sea oil tax plus disappointments in Encore and Xcite seem to have put the trade idea at strain. Hold for now.

Evolution Group (EVG) - tipped as a buy at 78.5p the stock closed yesterday at 73p. The company seems to be picking up business with assets under management growing by seven per cent to £6.2 billion. Keep the stop based on a close below 70p.

OMG (OMG) - tipped as a buy at 43.75p, the stock closed yesterday at 38.5p. The company will release its interim results tomorrow - continue to hold.

ZincOx (ZOX) - tipped as a buy at 60p, the stock closed at 56.75p. Last week, the directors announced various stock purchases between 53-54p amounting to circa £159,000, which bodes well for its confidence in its prospects. Hold for now.

GB Group (GBG) - suggested to buy at 36.75p, the stock closed yesterday at 40.875p. Continue to hold

SocialGo (SGO) - suggested to buy at 3.55p, the shares closed yesterday at 2.425p. The company is blogging about the imminent launch of Version Two of its social networking enabling software. Sit tight for now.

Active Energy (AEG) - suggested to buy at 6.13p, the stock closed yesterday at 3p. Having suggested to sell half at 6.625p three weeks ago, the company raised £1.8 million at 2.75p to help, initially, fund Red Line Engineering's quest to win lighting management business with the London Underground. Sit tight for the balance and await developments.

Edenville (EDL) - mentioned as a buy at 1.1p, the stock closed yesterday at 1.08p. Having already suggested to sell one's investment stake out at 2.51p, the balance should be in for free. The company will commence drilling at its Rukwa coalfield in July. Continue to hold.

Weatherly International (WTI) - suggested to buy at 8.1p, the shares closed yesterday at 9.875p. The shares are weak along with the copper price, yet the company has hedged about 35 per cent of its production at circa $9,600 per tonne versus $8,800 on the current spot market. Hold or buy on any further weakness.

Toumaz Holdings (TMZ) - tipped as a buy at 8.625p, the stock closed at 7p. Continue to hold as the company addresses some time and cost saving technology as well as making life much easier for patients with wireless nodules contained in the plasters it provides.

Renewable Holdings (REH) - tipped as a buy idea at 15.25p, it closed yesterday at 15.5p. Its Carnegie Wave Energy investment, in which it holds 25.8 per cent of it, is starting to show commercial success in its trials and this could lead to a much larger deployment further down the line as it showcases its wave energy installation.

Bowleven (BLVN) - tipped as a buy at 177.25p, the stock closed at 316.8p yesterday having already suggested to sell half the investment after it doubled several months back. Hold the balance for now.

Tissue Regenix (TRX) - suggested as a buy at 16p, the stock has picked up from its lows and is now trading at 12.125p. Further positive trial studies of its dCELL combined with its £5.9 million in cash suggest we may have seen the bottom on this stock.

The material for this report comes from Sharescope. The writer does not hold any shares or derivatives in the above mentioned companies except Globo, SocialGo and Weatherly International. Some clients of Optiva Securities may hold shares in the above named mentioned companies.