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Londonse, compared to the rest of my holdings that all bar one are deeply in the red now I'm liking the fact Clco is remaining stable and is about 75% up for me.
down was overdone as proven by the mark back up to much mixed trading for real direction
eventually sense will return with new direction& much needed sort out
gman comment please
I wouldn't focus on the spread too much here. There just isn't much of a free float which is one thing which makes this stock attractive. It needs a med term view. 2 potential outcomes:
1. The get well phase on latest acquisitions go well, they get costs under control, add more customers, contracts and new bolt on acquisitions. EBT grows and the current MCAP starts to look very low. Businesses in this sector are going for 15-20 x EBT. Even a v conservative £100k/month EBT lifts the MCAP to £24m - double where it is today, so around 3.5p. The upside potential is much greater than that surely. The ambition of the board will be a driver for them to continue to grow the business.
2. The business continues to grow and gets acquired. I don't expect that will happen in the short term as it will sell shareholders short before the real value creation. These kind of businesses are in very strong demand from PE house, consolidators and other industry players.
Is there another stock with such limited downside and such substantial upside on the market today...?
1.57/1.86 for £2,500, 20% spread yikes
Yes definitely seems to be some momentum building. Lots of consolidation happening in the MSP space right now, so just hope they don't get taken out too cheaply. Plenty of upside here.
Anyone else noticed some new decent buys coming in since Monday? Someone knows something and results due soon. Really hope that we leave 2p behind us soon and find a new trading range. We live in hope!! IMHO DYOR
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.