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Let's hope for a nice surprise in the pre-close trading update in early May 2022.
Yesterday's RNS was in the usual style of ECK - not building up un-realistic expectations and understated optimism in their announcement of a big contract win - my take on their words.
I think they tend to be modest about their achievements, so I'm hoping for the pre-close trading update to be something that exceeds the remarks in yesterday's RNS about being in line with expectations.
Soon be time time to buy - imo. I will anyway. Just a little bit further...
Quite a few buys today, and some are fairly large. I'm hoping that not-very-confident, theory in my last posting is proved to be wrong. As I said, I didn't sell, and so I am hoping we get back above 50p.
Anyone who has read my posts over the years will know that I like this company and that I have made a few forecasts based on the price chart, and those forecasts proved to be correct, for example, a few years ago - a double bottom reversal and more recently a breakout from a falling wedge.
At the moment, I doubt that chart analysis can give a guide to the direction for the sp. The Ukraine situation and the threat of WW3 has the markets in turmoil and that is throwing a spanner in the works as far as technical analysis is concerned.
However, I do wonder if there might be a long term pattern that runs from March 28th, 2021 to the present, and that pattern is a descending channel.
If that is the case, then, speaking as a shareholder, I am sorry to say that it indicates that 20p is on the way.
Please recall my past comment that I have stated several times, that I don't act unless the pattern is crystal clear, and this one isn't - well, to me it isn't, and so I am not selling.
So why am I posting such a useless comment when I can't make a prediction?
It is just for the record. If it does hit 20p. then I have learned a lesson, and I hope that those on here who told me that chart analysis doesn't work come to see that it does.
As I said, I'm not selling, and so I really hope that I am wrong about the descending channel and that the chart soon drops into a pattern that is clear and well defined, and it tells me that the sp will go up.
Showing strength today - up by 3.5p, 8.24%.
Shares marked down 1.5p today (not just on the BB), even though the last trade of the day was 0.8p higher than the first trade this morning/last night (49.8p vs. 49p)
Out of the 20 trades today, 16 were sub £1,000 in value (some maybe not even covering their dealing costs).
Maybe ECK staff selling shares acquired through a company savings plan?
I have just had a glance at the price chart and my interpretation is that it has broken out of a descending channel -
"A more potent signal occurs with a breakout, which is when a security's price breaches an established channel's boundaries, either on the upper or lower side."
https://www.investopedia.com/terms/d/descendingchannel.asp
Also - "When this happens, a security's price can move quickly and sharply in the direction of that breakout."
and - "Trading on channel analysis can also be profitable after a security’s price shows a reversal and breakout, which is usually followed by a series of runaway gaps and an exhaustion gap all in the same direction. "
Please read the whole article to get the full picture.
I think 50p and higher soon.
This is looking like a breakout from the downtrend. I'm not yet 1005 certain, but it looks good.
Very cheap compared to competitors
Buy out a possibility??
Noel, the share price performance has been a puzzle to me and, when you look at the fundamentals of how the company executes its business, a major disappointment.
One factor I believe is the current low trading volumes which, on a daily basis, are typically <0.2% of the market capitalisation (the exception being two spikes on 13 and 19 Jan 2022).
Now, there must be a lot of disenchanted holders who bought in >60p who could well be bailing out into this weakly traded market, depressing the share price.
We really need a positive trading update, unlike last June's lame-effort finals which just seemed to accelerate the fall in share price. At the time, I think ECK were just playing Covid politics and trying to down-play their performance. Eventually, after a tortured "shall we, shan't we" process delivered the dividend as originally promised.
Pretty hefty trades -
11-Feb-22 10:42:35 41.00 1,450,000 Unknown* 40.00 42.00 594.50k O
11-Feb-22 10:42:25 41.00 451,465 Unknown* 40.00 42.00 185.10k O
11-Feb-22 10:43:11 41.20 1,875,854 Unknown* 40.00 42.00 772.85k O
Any ideas on what caused the little spurt of buying today, Fri 11th Feb? It was nice to see and hopefully marks the bottom of the current down trend. A short while ago, when this was 48p, I looked at the chart and I posted my conclusion - a drop to just under 40p. Yesterday it touched 40p. At the moment I can't make anything out of the chart. I make my forecasts only when a pattern is crystal clear, and over the past two years, all of my forecasts based on chart analysis have turned out to be correct. I hope to soon be able to forecast a good rise.
The "special ones" who bought in at the non pre-emptive placing of 54 pence per Placing Share must be feeling pretty cheesed off by now.
Nothing is going to happen here until some news starts to come out.
Most of the sells, are in fact buys. I made a purchase today sub 43, it is recorded as a sell. This company is progressing well, the recent acquisition should be earnings enhancing soon. My only concern is the high PE, but this company has always had a high PE.
Been watching this share for a while and finally dipped my toe in based on director and other buys.
That director buy has triggered some buying - one trade at £43k today - a confident buy.
Hopefully this will break the recent down trend and get us back over 50p.
You are right, I spoke too soon. Drat. I am hoping for an announcement of a new major contract or some other big news that lifts the sp and sends it to new highs. Will such news come? I don't know..
That could be blackrock departing the company
They wont need to RNS already below five percent
GLA
There was some huge sells today
But no panic because the old adage is
Where there is a sell someone is buying !!!
I think you spoke too soon lol
Interesting to see that sp is holding its ground today.
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
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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