By Steve Moore | Tuesday 10 January 2017
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Having previously concluded that shares in ‘smart’ buildings and workspaces-focused RedstoneConnect (REDS) remained on the watchlist at 1.60p, I now note a “Business Update” announcement from the company.
This includes that “we have secured a number of new business mandates within our infrastructure and managed IT services division and continue to deliver high quality contracts through our software solutions for smart buildings. The board is confident that this will, in time, transform the future earnings potential of the company”.
In the meantime, “the board now expects adjusted EBITDA for the year ending 31 January 2017 to be at the upper end of market expectations” and “looks forward to the future with great confidence”.
Of course adjusted EBITDA is bullshit earnings, so it will be a case of reviewing the full-year numbers closely when announced. However, there does look to be continuing encouraging trading momentum here – and the shares have slipped slightly (to a current 1.425p) since my previous review.
I’ll continue to monitor progress and suggest this currently remains one for watchlists.
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