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in which he talks about ACSO from around 36 minutes in.
He states ACSO are "really cheap" on a "compelling" valuation, with 80% recurring revenues etc. Typical such businesses go for 3-5 times sales, so ACSO could go for 1000p or more as a "fallen angel" with lots of upside:
Https://cube.investments/cube-podcast-21-paul-hill-talks-boeing-bitcoin-more/
Risky
I suspect you are right, what you say certainly sounds logical.
Have a good weekend !
Barchid/Taverham
I was a little unsettled when the CFO resignation came through - I think some poor sole on here dumped out at the bottom which is a shame. It got me thinking about a Buyout I was part of 9 years ago where PE came in with us, brought in a new CFO who was more equipped to deal with the new environment. I am erring on that side of things rather than a huge black hole (Pattiserie Valerie style). Apparently, Steve Brown now owns 514k shares with a further option over 582k, I guess he is going to be more interested in Shareholder value than clipping a big Salary like the last incumbent. Now I would like to see more news of incremental business wins in coming months to build momentum. I feel positive again on this stock.
Risky
Me neither, but $1,000,000 is a staement in anyones view. First decent news we have had in weeks.
Fascinating to know why the CFO went at such short notice, maybe a clash with the new (old) CEO ?
Risky, the cash went on professional advisors imv and the old ceo went because he wasted it. Good riddance and I noticed the new ceo makes much of the future prospects for shareholders . Hooray.
Well, you can't fault a CEO who backs his confidence with £££'s. I thought the volume looked ridiculously high yesterday but I wasn't expecting this.
Barchid
I agree, they appear to be sailing too close to the wind. £20m cash £20m debt. Not too much difference to the previous year, so where have the net earnings gone! Not in divi's, probably wasted professional fees. My thoughts are PE offered to buy the company but at way too low a price and now the BoD are wandering what they wasted all the money on these last 6 months
and now want the share price up to issue equity to stabilise the balance sheet. However more than 3% of the share capital changed hands today so some 'Holding'announcements must be due tomorrow.
Comeon
Do you mean private equity has the cash or Accesso ?
I guess you mean Accesso, in which case my guess is they are in need of some, which raises the question as to how profitable these much vaunted contracts they have really are ?
barchid . Do you think they have the cash though. Net cash must be a concern, 200K .
Uncle
Private equity firms usually drive a hard bargain so we could get left with the rubbish, the only plus factor is that the old CEO is back in position, fingers firmly crossed though.
barchid, this is a really good opportunity for a private equity co to pick up the pieces very cheap, perhaps one of the ones they were talking to. The co. is currently in a very weak position. Do I buy or sell?
In the kitty , think you know whats next.
Taverham
It is never good news when a CFO of 11 years standing leaves with less than 2 months notice given before departure !
Normally there would be a succession plan, clearly not here though, with this over rated & overpaid board seemingly making policy on the hoof.
I suspect the new CFO, whoever he/she is, will draw attention to the bolted on duds I fear this company has which we posted about last month.
Bad vibes - cfo jumping , before pushed? Did he mess up the fsp? or is it numbersproblems?
Taverham
I certainly agree with the logic - I have done the same on this one, expecting the US to buy us out at a premium given the heat in the NASDAQ. Clearly the previous leadership were hopeless, I would welcome a few more Director deals at this level and a resumption of the newsflow regarding business wins to move the sentiment needle the other way. My comment yesterday really was on available stock - I had bought a chunk at 342p on the morning of the fall and the market were practically falling over themselves to fill it, yesterday I topped up and struggled to get stock and had to pay above the offer - clearly there was a big buy order in the background which I was not aware - filled our partly filled just before the close. Looks like fewer sellers around for now, although these AIM stocks can behave like straws in the wind !
Risky, I always thought there was value here [ buying at around £20] on account of the multi year multi site contracts and opportunities from broader relationship management e.g healthcare. I alo thought a large tech company might swallow them because the contracts with the leisure companies offered a platform for further expansion. Then along came a new ceo and he never had a clue about the bigger opportunities or how to nuture potential offerors. Hopefully we are now back in with a chance of spectacular growth/takeover .,
Taverham
After being negative on this stock for some time I feel your sentiments look fair.
Today the market struggled to fill a large buy, and a few minutes before close popped 100,000 through but my feeling is , that is just part of a bigger order. Ennismore have 781k to buy back at a sizeable profit. I wouldn't be surprised to see them closing out. Some director buying coming through. The market is definitely fearful on this one some could be time to buy !!
Onwards and upwards now that normal service has been resumed!
Thats me out. 200k stinks and i can see no profit here . I might come in again if it drops to a 50 million MC.
Big volume of trades, have the shorter's done with this stock.
No explanation just final warning. I wonder now if the shorts will close.
comeonvog
I can't see that you posted anything controversial on this site, why the tug from admin ?
Just had my last warning from admin so have to be careful what i say.
comeonvog
Agreed, always look at the cash, not the "revenues", I hadn't looked that far through it yet but there must be some reason that cash is so tight ? If the company has as many valuable contracts as it claims, perhaps they have so many because they are too cheap ?
In this sort of business there is always someone dreaming up a way of doing things cheaper and better, perhaps that is the problem.
Fact remains it was offered for sale and no one bid, so there must be a reason for that.
Another point to bear in mind is that some small company funds and in particular Amati VCT hold a fair number of these so at these levels they may be tempted to take their punishment and run, a difficult call, rather like catching knives at present.
But the MC now looks appealing so i have just bought a few .