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your sale was well timed it seems...
your sale was well timed, it seems...
I sold out today, not comfortable holding into results with the constrained growth picture. The fact I sold out is likely a bullish sign! I will be keeping an eye on it. I just felt with the "long sales cycles" perhaps H2 wouldn't have much unexpected positive news (although probable dividend increase). I still really like the business and think there is a fair change I could buy back in, especially its low capex requirements, but I wasn't comfortable with the valuation I've paid based on earnings and earnings growth.
For me the software offering is opaque as I have no direct experience of their utility. I have seen previously that Arcontech were involved in the auctioning of Bank of England bonds, which suggests the people that matters rate them. I just wish they could expand their offering, using the cash flows to explore other ways to make money, otherwise they will likely tick along with dividend increases each year. Especially with the massive increase in retail investors, it seems a whole generation, there is space for a non-trading app but one based on news flow (and Arcontech could further use this consumer data in its other offerings).
I've added ahead of the RNS, mainly based on business fundamentals (cash position, recurring revenues, cash flow positive, reasonable valuation, dividend growth). I am hoping the dividend will continue to grow, but think the board need to be more adventurous in how they use the cash, e.g. a small investment could lead to a big re-rate, like a retail investor based offering etc.
Many thanks for these. A solid write-up by ST so encouraging. That noted, they're a little old so I'm trying to get a sense of whether to over-subscribe to the name ahead of the trading update. I still have little insight other than the banking sector returning to work (haven't found anyone new with direct client exposure to the software).
me too bobby
cannot decide whether to wait a while here as they say figures inline with expectations , so still out
Don't know if these will help, the first link gives an overview of the software. Would be interested to hear your thoughts, as I have been weighing up this position recently.
https://pdfs.investorschronicle.co.uk/IC_Alpha_Arcontech_Simon_021020.pdf
https://www.investorschronicle.co.uk/ideas/2021/02/28/tap-into-a-prodigious-cash-generator/
I’m having near zero success in doing background checks into the performance of the software—ease of use, popularity, etc. (A couple of people I’ve spoken with have noted that the operations in large banks are showing signs of life—staff returning to work in numbers, etc.)
Have you fellas had any luck tracking down users, etc?
Nope, easy to buy this morning and to sell this afternoon. Made more than the day job pays...
ST has helped some get out. The momentum indicator I use on this were pretty week so lets see how long before it starts to ebb backwards again.
Simon thompson has tipped this as a potential takeover. He believes 220p is fair value even without taking into account any takeover price.
Did anyone have difficulty buying this morning?
Recommended today by ST.
I bought into this before the merger with Arcontec , it shows how difficult it is to get good technology accepted and established.
Some obviously knew in advance of this news release hence this week's. Still a good RNS.
Results look solid to me, not sure what the drop is about.
The cash generation and profit seem very good - dividend growing strongly - the forward view statements are not strong but seem confident
Interims announced (RNS) for Thursday, 5th March 2020.
Nice to see some recovery in the price
I have been watching these for some time and may have missed the best prices but finally I am in. Boros is going to cover ARC in his talk at Mello2019 next week. Should be interesting.
Congratulations to patient LTHs...
RNS: "Matthew Jeffs, Chief Executive of the Company, has today purchased an aggregate of 42,000 Ordinary Shares of �0.125 each ("Ordinary Shares") at an average price of 62.24 pence per Ordinary Share (the "Transaction"). Mr Jeffs' daughter, a person closely associated to him for the purposes of MAR, also today purchased 30,484 shares at 62.4p pence per Ordinary Share. "Following the Transaction, Mr Jeffs' total beneficial holding in Arcontech is 522,484 Ordinary Shares, representing approximately 4.08% of the Company's issued share capital."
New technology, premium client base. Surely they will add to this and build their brand and reputation. I like the story already.
Expecting big things from Arcontech in the future - shares will likely continue to be illiquid and a bit motionless until announcements start to come through but I think the future market cap will be a lot higher than 9m!
Some crafty buying ahead of year end has edged the share price toward 70p. I believe there are several drivers that could see further price appreciation: - Growth in turnover from existing business; - Potential for new products to be taken on by Tier 1 banks; - Marketing efforts in Asia - Continued tight cost control - Continuing positive cash flows - Dividend increase - Possible M&A in the right circumstances I look forward to hearing about progress in the next update.