Small Company Champion & Lemming Investors Research and Newsletter Updates

Sunday, 28 March 2021

Lemming and SCC Updates WE 26 the March 2021

It has been a busy week for both sites, with updates; AVA, DDDD, OPTI SPSY, SBTX and ORPH.

I have incorporated the links for those of you less familiar with the sites. 

Synairgen (SNG) and 4D Pharma (DDDD) are letting us down at the moment. Optibiotix Health  (OPTI), well, it seems normal to be frustrated even in the face of a huge boost in the NAV via SkinBiTherapeutics (SBTX) runaway leading multi-baggers, which is challenging ASX listed AVA for the title.

Those of you who prefer less risk should keep an eye on Spectra Systems (SPSY), Ramsdens (RFX) and Warehouse Reit (WHR), which is also waking up after an acquisition spree to boost growth and take advantage of the growing warehouse and storage needs. 

Remember the search facility on both sites. You can change the date thereafter for new or archives. 

AVA Risk Group is primed to go again. Trust me on this. It is just a matter of time.  The clues are there!

Likewise, ORPH will surprise some of the covid rainbow chasing investors and wonder how this let this gem pass them by.

Finally, it has been pointed out to me I should be wary of suggesting £9 million in sales for SBTX because investors may blame me for misleading them. 

Allow me to be clear; the £9.125m sales figure anyone able to navigate their finger around a calculator accurately and punch in £25,000 per day (psoriasis subscriptions) x 365 = £9.125 million would surely arrive at the same. The subscription figure as is the dose are Stuart Ashman's numbers, and they are not mine. Moreover, I have asked Stuart if he is happy to quote these and the maths; he said I put those figures out there. Another £25 million figure = 10% of the £250m to £300 million is the target for the Croda/Sederma Matrixl market share. 

With respect to the psoriasis probiotic launch, this will be a B2c model, so people thinking this will be a slow process as they have experienced with OptiBiotix's LP-LDL probiotic which via a B2B model. Moreover, as a friend says, people with cardiovascular issues still walk in the McD's and feast on a big mac. Someone suffering from psoriasis is more publicly aware of their image. But let us not forget, the consumer study is no longer about treating the horrible condition: Psoriasis; the company announced on Monday they were expanding the study to enabled the inclusion of an additional cohort of participants with non-psoriatic conditions, e.g. AcneEczema, and RosaceaThere even reports of dandruff clearing up!

I'll say this. Stuart Ashman has discussed talks with several psoriasis associations he is in discussions with. The USA association has more than 8 million registered sufferers. 
My default position is to trust what a CEO tells me unless they give cause not to. 

Thursday, 25 March 2021

AVA Risk Group - $1.8+ million Multi-Site Rail Contract Award



My Australian multi-bagger; Ava Risk Group Limited (ASX: AVA), is pleased to announce that its world-leading Aura Ai sensing solution has been selected to be deployed for a multi-site program to upgrade security at certain major rail facilities in South America:

  • Security upgrade program with a total award value of more than US$1.40 million (A$1.84 million).
  • Multiple Aura Ai-2 systems will be fully integrated with the customer’s existing video management software and CCTV system.
  • The first purchase order received exceeding US$0.47million (A$0.61 million).
  • Initial deployment at first sites in early Q4 FY2021 with the balance of sites expected for deployment before the end of Q4 FY2021.

Ava Group CEO Rob Broomfield said, “FFT Aura Ai-2 was the solution selected, to protect the rail sites, due to our exceptional event classification capability, extended sensing distance and cut resilience capability. A further key factor in the contract win was FFT’s previous success in protecting railway infrastructure and the company’s strong reputation across the broader transportation sector."

What is FFT Aura Ai-2?

AURA AI-2 PROVIDES TWO CHANNEL LONG RANGE HIGH SENSITIVITY INTRUSION DETECTION FFT Aura Ai-2 applies artificial intelligence to detect and locate skilled stealthy intruders climbing, cutting or lifting perimeter fences with high sensitivity. With two real-time simultaneous detection channels, Aura Ai-2 can be configured to provide cut resilience and redundancy. FFT Aura Ai-2 also provides high sensitivity detection in buried fibre applications such as covert buried or pipeline intrusion detection. FFT Aura Ai-2 is also perfect for monitoring fibre optic communications networks. The system can monitor tapping and tampering by connecting spare (dark) fibres inside each network cable to Aura Ai-2. Network cable disturbances, including removing protective layers, attempted tapping or cable movement, will be instantly detected and generate an alarm indicating the location. Aura Ai-2’s next-generation optoelectronics deliver industry-leading accuracy over an extended detection distance of 80 km (50 miles) on fences or 110km (70 miles) when buried. APPLICATIONS Intelligence Agencies Nuclear Facilities Data Networks Armed Forces Correctional Facilities Power Stations Oil and Gas Perimeters and Pipelines Airports Borders.

Today's news had little impact on the share price or created much attention on the forums; perhaps another A$1m PLUS is not exciting enough for the Australian investment community. Perhaps they are more expectant on another front. I know I am waiting for what I believe will be the game-changer for this company and the mining conveyor belt industry. Tests for the Aura IQ, I expect, will change the way big mining corporations mines manage conveyor belt maintenance. It is much safer, more accurate and more efficient than conventional monitoring methods and could save mining companies millions of dollars. 

The shares closed flat at A$0.51c, which is a multi-bag from my A$0.12c. I expect it to more than double again. I am keeping a tight grip on my shares because this is a fantastic little Australian company that will continue to grow. It has performed brilliantly over the past year; It has increased margins across the board, increased sales and generated record invoices. This company is only going to get better.

Monday, 22 March 2021

Spectra Systems - Phenomenal FY 2020


Spectra Systems Corp (SPSY) shares got a boost in early trading today (Monday) on the back of the positive report of a rise in revenue and profit for 2020 as demand for banknote materials and equipment increased. Not bad, given most companies have nothing but negative reports for 2020.

The Rhode Island-based company generated revenue of $14.7 million, up 11% from $13.2 million the prior year. Pretax profit increased by 20% to $5.4 million from $4.5 million. The firm declared an annual dividend of $0.095 per share and said share buybacks will continue.

Shares were up 4.5% at 170p bid at the close today; Spectra remains 5p lower than the Zulu Growth report on 7th February 2021.

Thursday, 4 March 2021

Spectra Systems - Sees 3.5x Increased Demand for Banknote Authentication Orders


''Just when you thought it was safe to get back into the water''

It appears recently that another Company featured within these pages, OptiBiotix appears to have abandoned the use of Proactive Investors to elaborate on its news flow.

Spectra Systems Corp

Spectra Systems sees 3.5x increased demand for banknote authentication orders from central banks

Hurrah some people say!

However, within days along comes the elusive CEO DR. Nabil Lawandy of secretive Company Spectra Systems with a Proactive interview, which as far as I am aware is a first from him or the Company. In my 6 or so years of being invested, I believe this is the first time I have ever witnessed him speak about the Company.

Is it worth watching and noting? Err. Actually Yes. The few simple questions are answered in detail by the CEO explaining the reason for its covert nature and that the long-predicted death of Banknotes in the media and Press is a figment of their imagination. If my understanding is correct, it also implies to me that Revenue wise 2023 appears transformational for the Company when the bulk of the $50m contracts from a major central bank kicks in. It also sheds a little more light on the Company and staff set up etc.

Of course, for us as investors, the key question is when will the market start to price it in?

Enjoy, but shhhh, don’t tell anyone.

Spectra Systems sees 3.5x increased demand for banknote authentication orders from central banks (

In the meantime, we wait patiently for 2020 Results which should be out later this month, hopefully with forecasts for 2022 and increased earnings forecasts for 2021. There are no guarantees of course.