Member Info for Multibagger13

Hi Kums :) I agree that there is no point trying to be extra smart....just do the research, buy and keep adding till the market wakes up ! O/T : I have added to my ARC today....it is the probable divis in the next few months that make it particularly attractive. Very very undervalued IMHO.

I feel that we cannot stay at this ridiculously low level for long....once divis are announced (as the legal process is under way to cancel the share premium account to allow payment of dividends) we should make good upward progress. Latest Fincapp target is 0.3p and still much to play for just to that stage... I have taken another 3.394293m :)

Hi Kums :) I am holding tight as well....the underlying investments are solid and will generate huge revenues in the years to come. Patience is key ! Good luck :)

Good morning all :) Strong set of results from RCN....MXCP is behind the curve in share price lagging growth and developments of underlying investments and probably a reflection of huge share base. However, this will rectify in due course.....

The long term growth story and business model is solid - no doubt about that. CMBN is now trying to regain its footing in the market, but yesterday's fall has demonstrated short term weakness to me. It will come back to pre-result levels in due course, but this is likely to be volatile over the next few months and a boon for traders. There may be more senior changes - the manner of the abrupt departure of the CFO indicates that some "scapegoating" may be going on. GI may put in one of their people in this key role as an interim measure. I get the sense that there may be lower entry points for long term investors and I will be looking to add as and when. Someone has indicated a possible fund raising, but I am unable to see a reason for that ( I do not know if there are any share price related financial covenants that may make it necessary) - the business has strong ongoing revenues and remains profitable. The increased capacity being developed at a lower capex lays the foundation for more profitable revenue in the future.

Courtesy of Taffy100 from the other thread 36.36 % to Target, finnCap Reiterates “Corporate” Rating for Arcontech Group PLC (LON:ARC) Stock hTTp://www.octafinance.com/36-36-to-target-finncap-reiterates-corporate-rating-for-arcontech-group-plc-lonarc-stock/

The CFO Andrew Griffiths seems to have fallen on his sword / pushed for the profit warning and the subsequent decimation of the share price. I imagine GI Partners, the private equity firm pulling the strings were certainly not happy and they are looking for a successor - says it all really. The next few days will show whether the retrace back to normal price range is going to happen - I got the sense that there may be a short period of pause at this level, before the next leg up. Slight weakness towards close yesterday.

"Greedy when others are fearful...." .....this is an unexpected gift for those with an eye for a bargain IMHO ! A solid recurrent profit generating business, customers are price agnostic as there is little alternative provision,a durable economic moat.....I could go on.... The share price has grossly over reacted to a profit warning though many have not digested the increased capacity at a lowered capex....what's not to like ? I am really bullish on CMBN his at this price range (anything below £2) :)

Friday trading showed a lot of strength and maybe piqued interest in Shares Mag readers looking for a bargain. I won't be entirely surprised to see a few more of 5-10p+ rises in a day, over the next few weeks to take us to the psychological £2 mark (for starters). Of course, there will be profit taking along the way, but this drop has been overdone. The business has a very strong model and the strategy is a sound one (the company website with its investor presentation gives a helpful overview). The Looked After Child (LAC) sector is a big underserved market that CMBN are strongly positioning with an end to end offer and this will propel us towards a market dominating position, if not already. I do not think that there is any meaningful or corporate competition in this sector really. If there are some smaller players at a regional level, then they are likely to be acquisition targets (like By the Bridge which was taken over fairly recently). Good luck all :)

It is on the BBC news website that Learning Disability beds are being cut in hospitals and people with learning disabilities are going to be cared for in their own homes. This may suit some, but a proportion of people have challenging behaviours and pose risks that cannot be contained in a home setting. There is no change in the demand, it is just how the capacity issue is going to be addressed. IMHO, Cambian is not operating in the area that is going to be affected by NHS bed cuts - this is based on the information available on their website. The placements that CMBN provide often cost in the region of a few to several thousand per week, so there is clear revenue visibility and the need for capacity does not change. Barriers to entry are high and CMBN own or have long leases on 81% of their property and just 0.5% is rented. So it does not face the Southern Cross risks of rent increases and impact. However, national living wage would put some pressure on staffing costs, this can be easily passed on to their customers (Local Auhtorities and NHS) due to the lack of suitable alternative provision. I would imagine that growth in real estate values is another reason why some people would invest. CMBN is a compelling value proposition at this share price - a Non Exec Director took 10k shares at 2.81 in June...we are virtually at half that ! I am of the view that this will regain £2 in short order, so a 20% return by the end of Dec 15 is possible.

If the Company expectations are right, then the issue of share premium account cancellation should go through the Courts in the next few weeks and I hope we will know by the end of Nov 2015 what divis are going to be received.

We can all hope, but hugely unlikely IMHO ! On announcement of a decent dividend in the not too distant future (I am hoping before Christmas 15) I would expect that this could rerate to 0.3 to 0.4p. The company expects about 8% organic growth in the years to come. That is too conservative in my view and playing very safe given the reasons below.... Debt free £1.07m circa cash as per recent annual accounts Market cap very undervalued High Barriers to entry, scalable business with no major capex New products being developed which will increase scope of addressable market High customer retention, with 3 year rolling contracts, unless cancelled Over 112% of operating costs covered by recurrent revenue Directors hold about 25% of equity One of UK Top Fund Managers Anthony Cross holds about 13.1% equity Legal process underway to cancel share premium account to enable payment of dividends Profit making, recurrent and predictable revenue stream Central Banks, HM Treasury Debt Management, Tier 1 Banks and top global investment banks,financial instis, betting companies as customers Wide geographic footprint Increased required for transparency and audit trail following LIBOR and other financial scandals Fintech - a growing investment area for new funds coming on stream Potential takeover target due to low market cap May use funds for acquisition, organic growth market pretty big

Some decent volumes today and biggish buys....may be we are finally ready to move.....two steps forward, one step back :)

Share buyback and cancellation is a way to reduce capital, particularly when management feel that the share value is attractive or underpriced in the market. It is sometimes used to trigger options as the EPS will go up. ARC is sitting on approx £1.07m, so that needs to be used judiciously. I get the feeling that ARC may be looking to make an acquistion. Either way, if the cancellation of share premium account goes through the legal process, then there would enough funds to cover the dividends comfortably. All the ARC contracts are rolling 3 year contracts unless cancelled, so there is strong revenue visibility and customer stickiness. I feel that the market will soon wake up to the underpriced gem, profit making (albeit small at this time), paying a dividend, having no debt and with Directors holding about 24.5% and sitting on £1m in cash ! Anthony Cross from Lion Trust is holding 13.1% - a very high holding from a fund manager in a single company. His track record is stellar. Let's see what the next few weeks bring, but I am hoping we will be in the early thirties before Christmas, if the share premium cancellation goes through.

If dividends are distributed that would be a massive vote of confidence in the business propects going forward. The Directors have a decent amount of skin in the game (circa 24.75%) and would be wanting a return after all these years. So may be an one off special divi and then a token small dividend for starters :) Here's wishing !!

Very kind of you - many thanks. I have been able to locate the document under the Investors section of the Company website. They talk about reduction of capital (Resolution 6) and cancellation of share premium account. The question for me is whether if the share premium account is cancelled, are the underlying face value shares are also cancelled ? If that is the case, the number of shares will drop significantly and the corollary being the share price should move up to reflect this....any accountants on the board who can help please ?

I have a standing order with them to send me all the AGM papers for every company I hold - hence all the more surprising. Let us see....frustrating. On a brighter note,some upward movement. Could be fund buying or Director buying I would think.

I have been chasing up my broker for the AGM papers. Does anyone know the process (I know that we need to get legal authorisation for ARC to be able to pay dividends) and if there is any indication of what sort of dividends we may get ? The face value of the share is 0.1p, so even a 10% dividend would be 0.01p...not much, but a very good start given our share price is still in the region of 0.22p. Any mention of share consolidation ? TIA

Thanks for the update..I am yet to receive the AGM papers. This may explain the sudden flurry of big trades following the Chairman's buy yesterday. If "dividends on the way", this is going to launch big time by ARC standards :) About time too and maybe we will see early 0.03p range for starters then ?

Thanks Kums :) Both CTP and MXCP are very well positioned for strong growth over the months/years to come, so I used the opportunity to top up some more. Good luck to you as well (and others) :)