focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Sadly, my chart analysis suggests that the sp is on its way to under 40p. I hope for an announcement that makes the the sp break its trend and shoot to new highs.
Research
16 December 2021 Company Note
Buy
Eckoh (ECK LN)
Technology | Corporate Client Mkt cap: £156.7m | CP: 61.5p | TP: 92p
Significantly accretive strategic acquisition
Eckoh is acquiring Syntec for £31m, a provider of Secure Payments solutions that bolsters its leading position in US Secure Payments whilst complementing its UK operations. Syntec has a long track record of growth, profitability and FCF generation. It generated revenues of £5.8m in the 12 months to June 2021, up 26% organic yoy, driven especially by strong progress in the US, and an operating profit of £1m. We model synergies of £0.8m in FY23, leading us to upgrade earnings by 15%. We upgrade our price target from 80p to 92p. Buy.
Singer Capital Markets Equity Research
Email: EquityResearch@singercm.com
Head Office: One Bartholomew Lane London EC2N 2AX
Twitter | LinkedIn | Latest News
Hi Bootsox,
Sort of agree. The main reason I look at it as a dilution, is the purchase of Syntec is not yet proven, although I don't think it will be long before it is proven to be a good move on Eckoh's part, that is why I topped up.
My buy showed as a sell and yet the price was slightly lower than the 4 that showed as Unknown, when the Bid/Ask prices quoted were the same as when my buy was made, making it more likely that they were buys.
16:14:49 54.50 1,265,000 Unknown* 54.00 55.00 689.43k
16:14:39 54.50 965,678 Unknown* 54.00 55.00 526.29k
16:14:27 54.50 253,243 Unknown* 54.00 55.00 138.02k
16:14:21 54.50 47,058 Unknown* 54.00 55.00 25.65k
I don't see this as a dilution. Ok, there's more shares in circulation but you end up with a bigger company.
This is just the usual lame response of the dysfunctional AIM platform .
This is one of the few shares that I hold that has always stayed above my buy price (first bought 2017), so with 11% down today and considering the purchase of Syntec Holdings at a placing price of 54p, I have bought a few more at 54.3p.
Shame that PI's won't get a look in, so some dilution here that effects current holders, but looking at the timetable it will be all settled before Xmas, quick moving indeed.
Once this year ends, the acquisition which looks on first examination, a very good fit for Eckoh, the sp should quickly rise to cover the loss from dilution.
Would still liked a chance to have been included.
Perhaps one should read through to CloudCall Group ? - a similar business - taken out by US Private Equity last night at 72% premium….
Just to point out that technical analysis of the chart has worked very well on this stock.
That falling wedge breakout was a perfect example of that pattern and then we saw the recent jump as a flagpole and after a tiny flag, it is on the up again.
I'm just offering a tip to those who might not have faith in chart patterns that they can be very useful, but it don't act too soon. Wait until the pattern is well-formed and clearly in effect.
Interesting formation on the price chart.
Could that little zigzag at the top of the spike be a flag forming - a flag to go on the flag ploe?
It is still too soon to say for certain, but if it is, then we can expect another jump like the one we've just seen.
Ignore last post. Interim update was on 2 November.
Nd
According to the IC we should have had some interims today.
Nd
You should see AUY for dodgy trades. Every day, dozens of trades go through with zero shares and having zero value. Today - one valid trade in this lot -
19-Nov-21 14:55:09 329.27173 0 Sell* 324.00 340.00 0.00 O
19-Nov-21 14:51:13 330.01334 0 Sell* 324.00 340.00 0.00 O
19-Nov-21 14:47:30 330.01334 0 Sell* 324.00 340.00 0.00 O
19-Nov-21 14:44:11 328.53013 0 Sell* 324.00 340.00 0.00 O
19-Nov-21 14:37:18 328.52271 100 Sell* 324.00 340.00 328.52 O
19-Nov-21 14:30:13 329.27173 0 Sell* 324.00 342.00 0.00 O
19-Nov-21 14:30:14 329.27173 0 Sell* 324.00 342.00 0.00 O
19-Nov-21 14:30:15 329.27173 0 Sell* 324.00 342.00 0.00 O
19-Nov-21 14:30:16 329.27173 0 Sell* 324.00 342.00 0.00 O
19-Nov-21 14:30:12 329.27173 0 Sell* 324.00 342.00 0.00 O
19-Nov-21 14:30:23 329.27173 0 Sell* 324.00 342.00 0.00 O
19-Nov-21 14:30:39 328.53013 0 Sell* 324.00 342.00 0.00 O
19-Nov-21 14:30:34 329.27173 0 Sell* 324.00 342.00 0.00 O
19-Nov-21 14:30:24 329.27173 0 Sell* 324.00 342.00 0.00 O
19-Nov-21 14:30:06 329.27173 0 Sell* 324.00 342.00 0.00 O
A trade just gone through for 100 shares (a measly £57, even before dealing costs). Surely that can be nothing more than an attempt to tick down the price and encourage selling?
I missed that one, but at 59p I suspect it was a buy.
Any hunch on the later monster one 500k volume
tradeTime price volume tradeValue
2021-11-17T14:07:48.020 59 500000 295000
It's my hunch that that "Unknown" was a buy -
17-Nov-21 08:59:30 59.40 75,000 Buy* 58.00 60.00 44.55k O
17-Nov-21 09:00:11 59.00 75,000 Unknown* 58.00 60.00 44.25k O
This is a "Must buy" stock.
I would agree Noel based on todays price action and it certainly has had a rocket up it !
This breakout looks convincing to me.
That tutorial on falling wedges says "While volume is not particularly important on rising wedges, it is an essential ingredient to confirm a falling wedge breakout. Without an expansion of volume, the breakout will lack conviction and be vulnerable to failure."
Along with the jump in the sp, the volume in ECK has leapt, making me think this is a good time to buy.
I am not an expert, so please DYOR. Worth reading -
https://school.stockcharts.com/doku.php?id=chart_analysis:chart_patterns:falling_wedge_reversal
Noel looks like it's still wait and see but evidence of life...
https://lse.swingtradebot.com/equities/ECK:LSE
Thanks Rooky, and your point taken too.
As I say, I am not an expert, it is just when the pattern is really obvious that I trade it. Sorry if I've just pushed this too much now.
NoelShempsky,
Point taken
Drat - that should have been - I'm not going to totally disagree with you.
and I'd like to add - as per your point, yes, when it comes to AIM stocks we rarely get clear patterns, so I can see your point .
Regarding "I do feel they are very little help when it comes to AIM shares" - you have a point Rooky. I'm not to to totally disagree with you, but I made a really good profit on ECK a couple of years ago when I spotted the double bottom reversal. The pattern was crystal clear and that is the key point. Don't trade uncertainty, only try to trade when the pattern is shouting out
This a point I'm trying to make about this falling wedge. Don't try to trade it until it is properly formed and certain.