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So what is it with the "unknow" on two 100,000 deals? I'm sure nobody would get 1.9 for a sale, so must be buys. IMO
Got a good feeling here. If they can show growth n the main business and that the IDE acquisition is coming under control towards break even, then the investment case will be massively derisked and the upside potential substantial
Out of interest Thumbsupuk- you said just less than a month before we should get year end results, what makes you think they’ll be mid-Feb? Looking back they typically announce first week in March. Not that I’m bothered either way by a couple of weeks - just wondering if the date had been announced?
My comment ref buyers relates to yesterday's trades. People are starting to understand the opportunity. Between the lines are comments about the number of customers etc. They are clearly in growth mode. Buy more now or wait for the next full update and buy at a premium. Everyone has that choice. I don't see stock being available under 2p for much longer
Justfacts agreed it seems like a good appointment but what is between the lines? There aren't any buyers, not a single one, there hasn't been a trade today as of 1140 and the spread to by £5k is 1.57/1.83
A great RNS this morning. Read between the lines of the RNS carefully. Exciting. Buyers seeing the potential.
Just to add that a lot of the staff (90% of the original Cloudcoco workforce according to the RNS at the time) were also included in options so they are also fully aligned to generating upside.
The sole criteria is a share price above 2p, shares vest at 1p, so this is a decent upside for everyone to really push.
We get diluted but better to have everyone wanting the same outcome.
Vesting period is Nov 2022 to 2030.
I agree - once there is any sign that IDE Connect is under control and not sinking the ship, then the 3.5-4p (perhaps 5p on sentiment) range looks fair enough to me.
I'd say they could get to 3.5-4p this year. My rationale is that 1x £30m sales gives a Mcap of 30m, or 2.5x the current MCap. I think this is reasonable if they can show they are getting costs under control in the same way as Adept4 and there is a view of break even cash flow
Yes good point you've raised although I think the strategy of buying up companies that have well sized existing customer bases is pretty good as they have a ready to go system of leads to start selling into.
Agree with everything you said here. Key thing for this year will how quickly they can get IDE acquisition under control / stop the loss on that business. I think they’ve done a fantastic job of the last 2 years and it’s well positioned to do very well this year.
End of 2022 - 5p (hoping for more but this SP takes a lot of shifting with very low volumes
Just less than a month now before we should hear the end of year results. Alot of positives over this last year and when you scroll through the RNS's the communication has got so much better as well. I believe Cloudcoco is definitely going in the right direction, the directors hold the majority of shares so are fully incentivised to see the SP going in the right direction. So, all looking pretty good to me! It's been a long journey so far, but there's so much upside potential. I'd love to see a snapshot of where the SP will be at the end of this year. any guesses? DYOR IMHO
Watch this space as they say !
I was going to post saying the same thing. Thats certainly above-normal volume and value for this share. Although, it doesn't take much to shift the SP up or down by 0.3p with this. But I'm hopeful of some positive trading news in the next month or two. I think last FY full results should show good progress again.
Interesting trade there early doors............................
A liberal use of the word 'approaching' by me...the contract is for £1m per annum which wouldn't quite get to £30m, but a bit of growth and another contract or 2 and it could be. However I think the IDE contribution will fall, there must be alot of unprofitable business in there which will get ripped out as soon as possible
I was wondering if there was any brokerage coverage, saw that Allenby is the nomad. Nothing post IDE
http://www.allenbycapital.com/research/research-clco.html
Thanks for that.
T/O from the IDE Group businesses was £13m + £8m existing business + £6m Systems Assurance = £27m. The add on the £3m from todays announcement = £30m.
So it was the IDE turnover/acquisition you missed.
All in all - positive move and to win a £3m contract shows a big business which you would thought would have a decent procurement procedure trusts them to deliver - all very encouraging.
Pretty confident more to come from this one. 5p end of 2022 is still my prediction
I don't understand how you extrapolate their income to £M30 next year. Trading update recently said slightly in excess of £M8 for FY 2021 and Sytems Assurance 2020 revenue was £M6. From what I understand of the company they are only a reseller of Cloud services, not a Microsoft Azure competitor in the making. Have I missed something.
I'm surprised by the size of this deal. Assuming the other areas of the business don't fall next year's revenue should be approaching £30m. I wonder if they need to recruit new staff to service to service this contract and how scalable their tech really is . The 'further upside potential' is exciting, particularly when considering the recent growth in digital transformation services. Silver Bullet listed recently with a market cap of £35m or so, and only $4m in sales. Probably too small to be this customer but could be TPX Impact, which has been experiencing pretty phenomenal growth
https://investors.tpximpact.com/
2.1 to buy at the open - did you manage to get some?
I think that there is legs in this still so not selling
Brilliant news this morning.
The IT market is super buoyant at the moment. Just look at the recent results of Softcat and Computacenter. The opportunity here is huge in what is a very fragmented market.
News here http://www.vapourcloud.com/yorkshire-cloud-disruptors-join-forces-to-shake-up-industry/
From the biggest to the smallest, it is clear that new business is simply not there at the moment, so all that can be done is to hunker down and be ready with the best offering when it does start.
I imagine all businesses are currently looking hard at sorting out exactly what return to work v work at home finishes up at, what premises they have and how work is done before committing to IT spend - they surely need to be clear on that before investing in major CAPEX.
Once done, and let's imagine CFO's and CEO's are doing budgets for next year right now, whilst waiting for evidence of no more disruption this Winter, you can visualise when spending on the essential areas of communications and IT will start to flow.
Patience is needed and the ability for a company like CLCO or SYS or RCN or whoever to trade through this period of famine.
Their catch up spending moment is coming later, than say retail or hospitality but when it comes trading will markedly improve. Hopefully!
A badly received trading update from another sub scale peer today. £14m MCap, £15m revenue, £3m EBITDA. After a period of very strong growth the pandemic looks to have knocked the wind out of their sails. Doesn't look to be a bad business, seems a bit of a harsh reaction
https://www.investegate.co.uk/sysgroup-plc--sys-/rns/trading-update-and-notice-of-results/202110290700056419Q/