Atlantic Lithium Share Discussion Threads

[jakleeds] 13/10/2009 22:53

Hi guys, good to see some activity on this board, here's an article from the Chronic in June of this year. The other thing to remember is that they have recently started expanding into foreign markets:

Allocate boosted by downturn
Created:10 June 2009Written by:Malar Velaigam
Workforce optimisation software provider Allocate - formerly known as Manpower Software - continue to demonstrate its counter-cyclical qualities, picking up 12 new contracts in the last quarter of its financial year, to 31 May 2009.

The group won seven new deals in the healthcare sector, taking Allocate's combined healthcare customer base to more than 180 NHS Trusts in the UK, as well as four private healthcare institutions and three overseas health businesses.

Allocate also secured two further deals in the maritime sector, one with oil exploration and production group Maersk Oil Qatar AS, and another with a 'leading family entertainment' company's cruise line. The group's contract with Nato was also extended.


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TIP UPDATE:
Buy

Allocate's rostering software saves time and money, and is in high demand as companies seek out efficiencies during the economic downturn. The shares have gained 20 per cent since we suggested buying them (42p, 27 February 2009), and are still worth buying at 51p.

Last IC view: Buy, 42p, 27 Feb 2009

[essentialinvestor] 13/10/2009 22:04

I dont hold HLO, for that very reason.
Your analysis about the sustainability of the Business model
concurs with mine.

Its a decision that has cost me alot of money btw,
and I would have been out at the first sign of sustained weakness in the SP,
never mind.

[king_roster_iii] 13/10/2009 21:44

Essential Investor,

The comparison with HLO is made with good reason. The HLO business model succeeds because NHS organisations are not capable of sourcing their own temporary staff. Ironically a significant source of this temporary workforce comes from within the NHS itself. It is simply that NHS organisations are isolated from one another and too badly run to organise this temporary workforce themselves. The NHS recognised this 5 years ago when they created NHS Professionals, an in-house centralised agency. But like the agencies they had to rely on nurses to tell them when their availability was. But they were never of the mindset to compete with the agency rates. The agencies know it is in their best interests to entice nurses with high hourly rates to sign on and tell them their availability.

But the advent of rostering systems will fundamentally change the temporary staff business models. Within the next 24 months the majority of nurses working in the NHS will be electonically rostered. It is already nearly 40%. This means that a nurses availability for work will be totally transparent. The locum agencies will lose control over this valuable insight. With regional agreements in place hospitals will be able to fill a shift by searching through all the available staff in a region, making them an offer directly (better than an external agency) and still save on the majority of the commission costs.

This will happen. In the next 24 months the HLO business model will have to change. Its revenues from bank staff that already have substantive posts in the NHS will disappear. Bank nurses from within the NHS will be sourced by NHS organisations from NHS organisations - facilitated by companies that supply rostering software and infrastructure. Allocate Software is not guaranteed by any means to secure this ground (see earlier posts of sharp practice ect) but they are currently best placed to benefit from this new business model.

But I agree, the shares have waned over the last few weeks, although they have picked up in the last few days. Concerns over NHS funding will worry those that don't understand the cost savings that electronic rostering will bring. Restricted budgets will focus the mind of the NHS on where it is wasting money. It will not be long before it realises that HLO along with all other agencies are essentially parasitic and there are other more cost effective options open to them. Allocate will only benefit from these hard times ahead.

[essentialinvestor] 11/10/2009 16:09

Chart beginning to look weak here IMO.
Fair amount of shares sold over the last couple of weeks.


Increases in turnover do Not seem to translate into
an increase in profitability at the pre tax level.

The comparisons to HLO are tenuous, at best imv.
HLO is an agency business suppling temporary staff to the NHS,
it is paid for each hr its staff work.
It has no involvement in software.

[mjcrockett] 02/10/2009 11:44

Allocate are featured in Aimzine this month - see the 'Growth in Recession' article at - registration needed, but it's free.

[littleweed] 01/9/2009 13:56

Perfect timing that IC tip, down it goes

[jakleeds] 10/8/2009 09:08

Excellent stuff, and it was tipped as a buy in last Friday's IC

[king_roster_iii] 10/8/2009 09:06

New cruise line business (entertainment business.....Disney !!!) onboard.




The Allocate name seems to be gaining momentum.

[interceptor2] 06/8/2009 09:30

To give a balanced valuation, it would be fair to include projected pers for both companies. HLO who reported finals in March and stand on current p/e of 16 against ALL who reported on Monday on current p/e of 9.46.

First year forward per for HLO is 9.39 +70%, against 10.79 -12.3% for ALL.
Second year forward per for HLO is 7.58 +24%, against n/a for ALL.

I am a holder of HLO, and after seeing results for ALL on monday I have added them to my watch list and plan to buy in. I think ALL have a very strong product, and to be fair I thought that Numis Add update was on the concervative side.

[king_roster_iii] 05/8/2009 23:04

I understand from Numis that Allocate are currently doing roadshows to institutions to sell the results and drum up a bit of interest.

If a few more institutions bite, the profit takers will regret their early exit. At today's 60p, Allocate's earnings multiple is 10.6 (earnings of 5.36p per share).

Healthcare Locums(HLO), which has a similar monology on NHS Trusts but achieves cost reductions in temporary nurses rather than full time nurses) has a multiple of 17.95. A comparable rating for Allocate would value the shares at 96p, a 60% increase on todays current price.

This is even before the share buy back that Allocate have hinted at.

[kaos3] 04/8/2009 16:54

average vol 20.000, now 1,311,816

[investinggarden] 03/8/2009 08:48

Allocate picks up market share

[spike_1] 30/7/2009 10:36

Thanks King_r, good to get some professional insight.

Best wishes - Mike (trippled my holding on monday)

[ghurah] 29/7/2009 22:33

thanks for sharing that king_roster and jakleeds. Looking forward to keeping this in my portfolio for a while. got in today

[jakleeds] 29/7/2009 15:09

Thanks mrmerkin, I like this bit:

Numis says, in a note, in response to the 'positive' trading update it is making small upgrades to its full year 2010 estimates for Allocate, although it sees scope for considerable further outperformance.

The broker says, to put the full year 2009 performance in context, pretax profit is seen at 40 percent ahead of its forecast of just 18 month ago.

Numis says it does not believe that Allocate's growth potential is adequately reflected in its share price.

[jakleeds] 29/7/2009 14:54

Nice move up, can't believe how quiet this board is.

[jakleeds] 27/7/2009 10:53

Edging up now, results next monday...

[loverat] 26/6/2009 21:25

Looks like it is ready to fall back soon.

[jakleeds] 22/6/2009 08:20

Fantastic update. Loads to go yet. This reminds me of Sage in its early days.

[jakleeds] 09/6/2009 08:37

More 'strong' contract wins!!

[wjccghcc] 02/6/2009 10:46

Thanks jakleeds.

[jakleeds] 02/6/2009 09:41

29/01/2010:

31/01/2011:

11/02/2011