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19 Oct | Sepura

Besides timing entry and exit points and looking at long term trends I’m not a huge advocate of trading off charts, but every now and then I come across a chart that just screams at me to take action and fundamentals be damned.

So was the case with Sepura and its five year chart below (courtesy of SharePrice.co.uk).

 

 

2008, forget about it, 2009 through 2011, trading in a range and 2012, it’s all sugar –¬†with a nice boost in volume to boot. As a long-term chart it’s difficult to interpret in any other way. All there is to hope for, is that 2012’s run turns into a long-term trend like the previous three years.

But the compelling case for Sepura doesn’t end with a pretty line on a chart. Oh no! Did I mention they make walkie-talkies. Not the kind you had when you were a kid that operated at a premium (okay, operated at all) when you were in the same room as the person (spy) with the second handset. Proper, grown-up adult walkie-talkies. Yesterday I spoke about the Superdry brand and liking the label and how an investment can sit well if you’re happy with a company’s product. Well, walkie-talkies!

Okay, perhaps I’m getting a little carried away with Sepura’s product so back to some more salient (for you) reasons to invest.

But first the Sepura blurb pinched from the footer of one of their releases:

Sepura is a global leader in the design, manufacture and supply of TETRA (TErrestrial Trunked RAdio) digital communications solutions, which are used predominantly by the emergency services around the world and in the transport, utilities and commercial sectors.

Sepura offers one of the broadest ranges of TETRA products available, is often first to market with innovative products and features, and is a market leader in the supply of surveillance and other specialist TETRA radios and accessories. Founded in the UK in 2002, Sepura has expanded rapidly across the world and on 16 May 2012 announced the acquisition of TETRA infrastructure supplier 3T Communications, enabling Sepura to offer a complete TETRA solution. Sepura has a network of regional partners that sell and provide local support for our market-leading products and is the market leader in over 30 countries.

But it’s a fresh key ruling by the Federal Communications Commission in the US endorsing the use of TETRA that should bring a smile to the face of Sepura holders.

In a recent interview Sepura CEO Gordon Watling had this to say on the matter, “The recent positive ruling by the Federal Communications Commission in the US gives further confidence in the potential for TETRA in North America. Sepura is well placed to capitalise on the development of this important longer-term market.”

And as if on que, Sepura was promptly awarded the first significant TETRA digital radio terminals contract in North America. It followed this up with another large contract win with Audi in Germany.

Sepura nailed all 11 of our screening criteria which is why – after a little more digging – we bit the bullet and took up 1,1490 shares in Sepura at 88 pence a share.

Crackle…thanks again for dropping by…crackle…over and out.

Paul
rsvp@investorsoiree.co.uk