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A 20% drop in 2 days, following stellar results??
Another weird AIM stock with bizarre, non-sensical share price movements.
All one can do is ride it out now, but I'll be looking to exit at any reasonable opportunity because when a share makes these big negative moves for no reason, I get nervous.
I am a holder, and have been for some time.
I agree with those who object to the LTIP; it is joke at our expense.
The revenue and TSR hurdles are ludicrously undemanding. In his interview with Paul Hill of Vox Markets yesterday the CEO said that the revenue CAGR in the four-year period since IPO has around 30% (it was about this from 2016 to 2021 if you calculate the number) and “and that there is no reason why we shouldn’t be able to track that sort of metric going forward”. That makes the 15% revenue CAGR risible, especially in view of all the current investment in people, expansion overseas and technology. Similarly, a target TSR of 10% compound for a dividend-paying growth company is hardly a "hurdle" at all.
The NEDS and “certain of the larger institutional shareholders” who nodded the LTIP through must have been asleep at the wheel. It would be interesting to hear who those institutional shareholders were and their rationale for agreeing to it.
And, of course, by paying no further dividend in 2022, the dividend payment in 2023 in respect of the nine months to 31 December 2022 will count towards the TSR target; how convenient. The whole thing leaves a bad taste and is insulting to shareholders.
Profit taking from lots of buying opportunity in the 70s and 80s this year. Decent results but already trailed in TU.
Effectively a 3 month ‘delay’ in the interim dividend so opportunities elsewhere in the short term then maybe a return here in Q1.
There’s also a gap to fill on the chart back to 90 (from 30/9, the dip on 11/10 didn’t make it) but that’s also the covid low so not sure it will get that far as it would also need to break support at 96, so 100 seems about likely IMO.
Or any other analysis/assessment of your own choosing...
The RNS has been poorly drafted. Maximum potential 6.5% dilution over 4.5 years, lets forget the £35m cap. That's a LTIP of £7m for the top 42 employees over the next 4.5 years at current share price. The CEO LTIP at current prices is capped at £840k over 4.5 years.
10% performance fee with a 10% hurdle rate is reasonable, it's just been really badly worded.
I'm really surprised by this SP. Would have been great to slice at 120 and buy back. If it goes anywhere near 100p then I'll top up as I did not expect it to re-drop.
Astonishingly generous. Who reins in these management excesses on behalf of us, the owners? Nobody it seems. Shareholders voting with their feet as the share price drops another 6% this morning.
So, a company with a current market cap of £127m is going to cap its LTIP at £35m. And a revenue growth hurdle of 15% in this field is ludicrous. Once again, (remember the placing at 80p was it?) the pigs have got their snouts in our trough.
No dividend is being paid against this year's interims. Last year 0.75p
Hence investors bailing out for a profit on share value.
Maybe...because these results were already in in the price...Switch to EQLS- results in December
...and the share price drops!
People bailing out on Results day - you couldn't make it up.
Looking good again today.
This share is surprising very liquid, given its size and AIM quote. Looking on LSE page - it is a full SETS stock, hence, the liquidity. It is easy to trade quite large volumes in one go eg 10k, 20k plus shares.
Both EQLS and AFX are only traded SETSqx, even though both have larger market caps! Given the recent trading update, there is now a very significant valuation gap between this and EQLS and even larger still against ALFX. This is also dividend paying (EQLS isn't, ALFX is).
One to ponder, I suppose. Is there a valid reason for the low valuation, is it a quirk of the market and the low valuation will remain regardless, or is a major re-rate due? Interims will confirm level of profits and whether the new revenue is sustainable. If confirmed, perhaps then the market will decide and answer the question for me.
Some serious buying going on this morning, this company is clearly going places. Nice to see one against the grain in such a difficult bear market.
A lot of fear out there.
Mr. Market is showing opportunity!
Totally baffling !
Down 8.5% this morning, on no news. They just delivered an 'exceptional' trading update a week ago, what does a company have to do ffs?
Interviewing now...
A move in the right direction!
Yup, good set of results.
No effect on the depressed share price tho'...
(Sign of the times)
Looks good here but sold up yesterday for 9% gain. Holding more FTSE 100/250 lately, last of my smaller AIM shares sold now. Also holding a lot more cash, in and out for around 10% gains for the foreseeable. Hope all goes to plan here for you all, will keep on my watchlist.
...on Wednesday 6 July, to be followed by analyst briefing and retail presentation on Investor Meet Company .
PER = 8.3
PEG = 0.4
Forecast EPS growth = 25%
Yield = 3%
No debt.
Decent update in April.
If you follow the asterisk you see that they seem to be capitalising the cost of the new offices and presumably some of the new hires - and so flattering profit. I guess the net profit after these and the other costs which they want us to ignore will not be overwhelming
Yes I mis-read the new clients thing.
However I don't see how they are keeping the same margins when they have increased headcount by 40%. Doesn't really make sense. Either they are excluding it in the asterik as one-off costs which is not correct or they have increased their spreads? Not sure.
Anyway the business model isn't good imo. Growing 40% headcount for 20% revenue growth and it takes years to mature sales people. I'll wait and see if they can pivot to tech or not.
Some of these comments are remarkable , “new clients have only grown 5%”, a net increase from 1385 to 1634 is not 5%, it is c18% or take 528 new clients as a % of the 2021 total of 1385 it’s c40%. Is the co growing , yes, does it make net cash inflows, yes, does it make a profit, yes, is the profit margin stable (including additional hires) , yes, is it debt free, yes, does it issue a dividend , yes. So the forecast revenue of c£36m was short by 5% , anyone who has managed a multi million pound business will know business forecasting was made to make weathermen look good. The whole of the underlying financial story is the headline not the accuracy of the revenue forecast. The one point I would note here is that their competitors apparently would seem to have increased revenues by a larger margin, but that is why their PE ratios are presumably much higher. A share worth persevering with imo.