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Real-Time news about Arc Intl. (London Stock Exchange): 0 recent articles
|chavitravi: One wonders if a change of leadership is going to make any difference to the fortunes of the Co, and the share price.|
|imabastard: Puffin .... but they have aquired multiple business's affecting costs and now have the complete set .... they have superior royalty agreements due to a new Board with more commercial savvy .... they are in a growing market and will have a major market share .... and more importantly .... since when has a current share price, or even the general indexes been based on NOW .... it's always based on what will be .... whether good or bad .... and on this basis .... this is massively undervalued ....
On your basis for investment, you would only buy after the event when it is all priced in to the share price .... I'd rather buy when it's discounted PRIOR to the event ....|
|imabastard: Chavi .... what I particularly like is the forecast that ARK will have 30% of a £ 10 billion ($19 billion) market .... £ 3 billion turnover (or royalties from) .... also, that royalties have jumped 54% .... a rapidly growing income with zero cost attached to it .... having spoken to Panmure, the historical issues on profitability have been the poor licence negotiations by the previous Board .... all has now changed and the percentages on negotiated royalties have improved five fold .... with Intel in the customer camp, this is excellent news. Their latest aquisition will also prove beneficial in profitabilitly terms as 20% margin is the norm. .... other positive news is that their aquisition trail has now ceased .... there will be no more.
1% margin on £ 3 billion .... £ 30 million .... lowly P/E of 5 .... £ 150 mill Market Cap .... Share Price £ 1 .... up to .....
5% margin on £ 3 billion .... £ 150 million .... lowly P/E of 5 ....£ 750 mill Market Cap .... Share Price £ 5 ....
...either way, this is massively undervalued .... with multi bag potential ....|
Using the share price in this way, as some kind of intelligent indicator of worth is IMHO not reality for a company like ARC.
Since you have obviously done some historical research, try comparing ARC 2003 with ARC 2008 in terms of market cap, cash burn, licenses and products. There is no comparison. The ARC of today is a very well run company with excellent products and low cash burn, yet it had a higher market CAP in 2003, prior to its nose dive to about 13.5p as I remember.
I may have the dates slightly wrong but you get my drift. The share price of these low market cap companies is an almost totally irrational thing. It seems to follow some kind of chaos theory, but quality will find a way and in my view this is a quality company.
Be patient and the share price may well err in the other direction.
All IMHO of course.
Every investor has a stock that haunts them. For Richard Farleigh, the Australian investment banker now known as a judge on BBC Two's Dragons' Den, that stock is Arc International. Having put £3 million into the semiconductor designer, Mr Farleigh saw his stake valued at £40 million at its 2001 float. But selling restrictions and a too rosy view of its short-term prospects meant he cashed out two years later with just £3.5 million.
To judge by yesterday's full-year results, he would have been well advised to have hung on. After three years of restructuring, during which it has sold peripheral businesses, renegotiated unfavourable royalty deals, and returned £50 million cash to investors, the £69 million company - whose share price has nearly doubled in that period - is finally within sight of breaking even.
Although Arc's technology - a chip design whose reconfigurability helps to lower production costs and time to market - has always impressed, its marketing used to be lacklustre, meaning licensees were slow to move its way. But a more aggressive stance and increasing demand for semiconductors that can exploit Arc's multimedia capabilities have seen its roster of licensees steadily swell. Last year's additions included Toshiba, Motorola and Honeywell, as well as an $11 million deal with an unnamed US chipmaker.
So while yesterday's above-forecast figures showed a 30 per cent rise in royalties, the lag effect of the semiconductor industry's long lead times means that any surge in profits from these newcomers will only be felt in two to three years. In the interim, Arc has a £31.6 million war chest, giving scope for bolt-on acquisitions, and negligible cash burn. At 44½p, Arc trades at 9.1 times 2009 forecasts. Buy.|
|deep powder: anybody post on this thread who genuinely knows the company. to me share price move seems linked with Loeb and Mosaid recquisition, Arc Ceo nominated to go on the board. Otherwise I will go and find another tree to bark up..|
|sventhefish: It would be nice if the share price mounted also.|
|triplexxx: Hi Cat
In your opinion what can we expect with regards to share price by this time next year with todays news.Many thanks.|
|sventhefish: Why the sudden signs of life in the share price? Did something happen that I missed?|
|jhoebloggs: Imagine what would happen to the share price if someone actually bought some shares...|
Arc share price data is direct from the London Stock Exchange