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It's reassuring to see that whilst construction companies generally have had a knife taken to their sp as a result of BREXIT, ELCO's price has jogged along virtually unchanged. And so it should seeing as two-thirds of their revenue is earned abroad and a weak Sterling can only enhance their profits from such. With the possibility of a divi this year as well (according to chairman's AGM statement), one to tuck away in the bottom drawer for a couple of years.
MMs playing their usual game in a panicky market by dropping the sp sharply ... achieved simply by widening their bid/offer spread; needless to say only the bid price was lowered! Just 11.7k shares traded was sufficient to warrant a 3.5p drop. Ridiculous.
As was pointed out elsewhere earlier this week, CAR's annual results announcement included a sparking contribution from their LED subsidiary Wipac; that makes LPA's forthcoming announcement look even more appealing. I just hope the company's directors realise any news announced late this month will probably be smothered by THAT vote!
Well would you believe it, a 50k 'buy' marked two minutes after the market closed so couldn't make any impact on the sp today . . . I'm sure it must have been an oversight by the MMs tho' suspicious old me did notice that a 7k 'sale' yesterday immediately knocked the price back 0.25p! The buy prompted by the AGM yesterday perhaps? It'll be interesting to see what the price will be at Tuesday's opening. A new and much improved website looks to have been installed sometime earlier this week. Very impressed.
Still sounding confident: http://ir.digitallook.com/ir/security.cgi?csi=11718&action=news&story_id=24463642&rns=1 An interesting statistic given by the chairman during the meeting apparently. When Oracle swallowed Textura recently, they paid six times Textura's annual turnover. Pro rate applied to Elecosoft, the company would be valued at £91.5m or £1.22 per share. Food for thought!
Having now retired, I've trimmed my portfolio back hard and tend to choose just three or four companies at the start of each year which I'll investigate with a view to back. ELCO have been an exception and, as I've found management very approachable in the past [unlike some small cap companies], rightly or wrongly have plunged on them as one of my rare major gambles. Time will tell. The only other company I have bought this year is LPA although they're very difficult to trade other than on news being published when the share-price can move violently. I like LED lighting anyway and LPA's management are sounding unusually bullish. Another slow burner 'tho.
Unable to address your disparaging comments in respect of Elecosoft's approach myself, have been in touch with the company and the following is from the horse's mouth: 'A number of the Elecosoft products are already provided as SaaS in order to keep the product set competitive with new emerging applications and market take up of this business offering. The product sets can be hosted and provided on a subscription based model so deployment to end uses are structured and controlled. Though the recent acquisitions by Oracle highlight the importance to keep a clear focus on future application use within industries where client base installations have been the clear winner, there are still many factors that need to be considered before committing a complete change to a SaaS model. Factors that need to be considered include the complexity and size of data, security of data and applications, connectivity speed, assurances services will be provided 24/7 etc etc. Businesses are at risk if they rely solely on SaaS services and therefore the is a need for applications to work in multiple environments, an area that Elecosoft’s products quite comfortably sit within based on customer feedback. The delivery of 5D BIM from Elecosoft shows that they have a clear focus on developing their product set to meet the needs of the industries they operate in and with emerging mobile apps to complement its core products, Elecosoft are evolving with an eye on the future.' With so many apparent concerns, are you sure this investment has been made in a suitable company? Wouldn't you be better off by selling up and looking for a safer option?
A net 23k shares bought yesterday instigated a 5.5p rise and this at a time (probably six weeks before the interim figures) when there is seemingly scant interest in the company. Bodes well for the outlook as we get closer to the announcement when interest should intensify and 'traders' get involved hoping for a quick 5-10% profit. And what if (as some of us anticipate) the announcement is bullish? Happy to have nipped in yesterday before 'the crowd' arrives!
Announcement made on 25th June last year so decided to top-up [5k] this morning to beat the expected rush nearer the time..... forced to pay the full ask of 123p unfortunately but confident that that price should be left well behind in the not-too-distant future. How much will the divi be increased by?
Confirmed with company that both the above are involved with financial aspects management (i.e. documentation) rather than project management (from start to finish) which is Elecosoft's forte. The company's main competition, however, comes from another two substantial companies, namely Microsoft and Oracle; Elecosoft's significant order win [to supply a US Government department] last year caused quite a stir out there by all accounts, making them both sit up and take notice and ridicules your 'Elecosoft SaaS products feel years behind the leading vendors] statement. The company is aiming to triple their number of product re-sellers in the US so they would appear to be doing more than just OK.
[http://www.iii.co.uk/articles/310504/elecosoft-transformation-complete] Lee Wild's ending - "The debt should be paid off during 2017 and a share capital reduction has paved the way for future dividends," says Lorne Daniel, an analyst at house broker finnCap. "The outlook is bright, with significant revenue and profit growth expected, in line with market expectations. Thus our full-year 2016 forecasts remain largely unchanged and we reiterate our 35p target price."
Yesterday's announcement looks very promising particularly when taking into account that the strength of the Pound acted negatively against 2015 company profits whereas Sterling's weakness so far this year will be in Elecosoft's favour. Slightly taken aback by the departure of CEO Nick Caw but I understand that, as he'd completed his job of transforming the company, there was a need for a different managerial set-up and with Jason Ruddle having had great success in establishing the company's USA operation, it was decided he fitted the bill to become COO; for me, the USA holds tremendous potential and is one of the main reasons why I have decided to take a risk and become top-heavy in ELCO shares. I wonder whether the MoS's 'Midas' will do an update this weekend on her buy recommendation last back-end, if so, watch out for fireworks on Monday!
To be released on 18th April much earlier than last year so I'm hoping it's a case of the well known 'good news travels fast' stock exchange maxim. Still confident on the medium - long term outlook so have tucked a few more away in this year's ISA. As always, chairman's outlook statement will be more important to me than the historical figures for 2015.
I'm not that disappointed with their update seeing as it was almost inevitably going to be downbeat with the oil price still near rock bottom. What I did find intriguing 'tho was that there wasn't any mention of the aerospace situation at all in an effort to lift the tone slightly; could there be some good news waiting in the wings?
Recognition being achieved in the vast USA; Norwood [one of the top contracting firms in the USA Mid-Atlantic region] upgrades their systems to Asta Powerproject:. http://www.astapowerproject.com/news/norwood-upgrades-asta-powerproject-uncovers-better-way-manage-project-performance/
As far as I know, nothing has changed so why worry what others are doing provided you're happy to be invested. Sales have been mostly for small amounts and probably done by a few nervous investors being panicked by the general market 'gloom and doom'. Or, as has been suggested elsewhere, some of the 'Midas' tips followers getting out as they've watched their initial profit disappear. At this price (imo), a golden buying opportunity and I managed to grab a few more last week sub-22.0p - someone just beat me to it in the market this morning or I would have taken a few more again sub 22.0p; buying price now 22.4p. I can wait .....
Elecosoft UK wins 'Project Management/Planning Product of 2015' at this year's Construction Computing Awards - "The Hammers". Elecosoft announces that its market leading project management software, Asta Powerproject(R), has won the 'Project Management/Planning Product of 2015' at this year's Construction Computing Awards ceremony, also known as "The Hammers". This is the second year running that Asta Powerproject(R) has won this award. "The Hammers" awards are open to all providers of technology, tools and solutions for the effective design, construction, maintenance and modification of commercial buildings, residential and social housing and civil engineering projects of all sizes in the UK construction industry. Jason Ruddle, Managing Director of Elecosoft UK, commented: "Winning this award against such a strong field of global competitors for a second year in a row reflects our continued commitment to providing market leading solutions to our customers. It is testament to the skill and flair of our team of developers based at Telford and also to the valued support and collaboration which we have received during the year from the many construction companies who use Asta Powerproject."