Argentex Share Discussion Threads

[mr roper] 22/5/2024 09:13

Sprung to life

[silverlandfinance] 22/5/2024 09:01

Raymondmoz
I agree with you that the shares are incredibly cheap.
The company is profitable and cash generative having a cash balance at the last count of £18.3million, augmented by the recent fund raise. Yet the market value is languishing. around £40million








































































Raymondmoz
I agree with you that the share price is incredibly cheap. The company is cash generative and debt free. The £18.3m cash balances are augement by the rececent fund raise (appx £3.5m), yet the

[silverlandfinance] 22/5/2024 09:01

Raymondmoz
I agree with you that the shares are incredibly cheap.
The company is profitable and cash generative having a cash balance at the last count of £18.3million, augmented by the recent fund raise. Yet the market value is languishing. around £40million








































































Raymondmoz
I agree with you that the share price is incredibly cheap. The company is cash generative and debt free. The £18.3m cash balances are augement by the rececent fund raise (appx £3.5m), yet the

[dr biotech] 21/5/2024 21:53

Thats correct - but the current management in their wisdom think they may need to sink that into the business. Its a strategy that is somewhat risky imo.

[raymondmoz] 21/5/2024 21:39

Hi, first time posting, I am quite interested in AGFX. It feels incredibly cheap and as its an AIM stock very little coverage and liquidity which presents its own problems. I am trying to work out the investment case right now: Market cap circa: 45M GBP, PE ratio approx 9. The bit I cant understand is the cash. From the full year results "Debt free and cash generative with net cash increasing by £2.1m in FY23 to £18.3m (2)
" and "2 Net cash represents cash and cash equivalents less amounts payable to clients" Am I missing something?? They have 18.3M cash but the but the Market Cap is 45M ?

[silverlandfinance] 20/5/2024 13:22

I just bought 40,000 at 36.23p
There is appx 25% discrepancy between the 45p the institutions have paid(I am assuming that they have more information as to what is happening in the company than the ordinary investor) and what the market is paying.
I hope I am right.

[thaiger] 19/5/2024 23:33

Sir John Beckwith via Pacific Investment, Children Trust, Personal Pension and Charitable Trust; increased holding from 15% to 18.80% on 13/5/24.Very puzzled by share price reactions to fund raised, time will tell, I guess!?!

[thaiger] 14/5/2024 10:02

Five Directors took part in the placing at 45p!Management must have convincing stories to tell Institutions who took part in the placing. We do not know the stories but time will tell.

[dr biotech] 09/5/2024 20:47

Retail offer raised just under £2k. Surprised it raised that much.

[ali47fish] 09/5/2024 19:43

9 May 2024



Argentex Group PLC

(the "Company")

PDMR Dealing



Argentex Group PLC (AIM: AGFX) announces that David Winney, Chief Compliance and Risk Officer, on 7 May 2024 purchased 50,000 ordinary shares of £0.0001 each ("Ordinary Shares") in the Company at a price of 36 pence per Ordinary Share.

Following this transaction, David Winney's total beneficial interest in the Company is 50,000 Ordinary Shares representing approximately 0.04% of the Company's issued share capital.


any significance in this

[toffeeman] 09/5/2024 15:33

Not that bright having bought a lot higher

[phillis] 09/5/2024 14:38

Some bright investors on this bb

[toffeeman] 09/5/2024 13:20

Why on earth would we when we can buy at a 25% discount!

[thaiger] 09/5/2024 11:23

Placing already done at 45p, don't think anybody will take up retail offer!

[adamb1978] 06/5/2024 16:11

Thanks Dorian. I agree with your comments on the forecasts - if you look at CSFS in H2 2023, the forecasts for 2024 are utterly nonsensical, unless after rapid growth the company hit a wall at the end of the year.

I'm surprised that they didnt try to make more of the differentiation which you mention in the prospectus, then again I guess they were so much smaller at the time that just associating themselves with company's several times bigger was viewed enough.

As I said, I only have a small position in CSFS however given the apparent more challenging trading seen by AGFX, I was interested in people's views on the difference given I invest almost solely by numbers.

Looking forward to CSFS' results on Wed, and will leave this board in peace now (though I think discussing peers' performance is relevant to any company...)

[ali47fish] 06/5/2024 14:54

please dont overuse acronyms -what is csfs- and how does this relate to the process for the open offer/ placing etc.....

[dorian12] 06/5/2024 14:38

Another thing to note on CSFS is that they separately report interest on client deposits and do not include it in revenue (or EBITDA). I think this is the correct thing to do and adds to transparency.

[dorian12] 06/5/2024 14:32

CSFS have been smashing forecasts. 2023 revenue was originally forecast at £5.7m at the start of the year and actually came in at £9.6m. Likewise I expect the 2024 broker forecast of £11.3m to be well beaten.The current CSFS 2024-2026 broker forecasts are out of date. They weren't upgraded following the 2023 trading statement in January. The H2 2023 revenue was £6m, so the 2024 forecast of £11.3m is now less than 2x H2 2023 revenue.The forecasts are far too low imo, given the 100% revenue growth over each of the last two years and the CEO's £100m aspirational revenue target in 5 years.The broker has said they expect to reappraise their forecasts following the 2023 results release, which is due on Wednesday. The 2023 numbers are already largely know from the trading statement, but we should also get a trading update for Q1 2024.Based on the current conservative forecasts, CSFS would have a 16% EBITDA margin in 2024, rising to 27% in 2026. When revenue forecasts are upgraded these EBITDA margins should also increase.This compares with AGFX forecasting a low single digit EBITDA margin for 2024 and high single digit for 2026 (or mid-teens with the additional investment).The market cap of CSFS is £22m. Current forecasts are for £1.8m EBITDA in 2024, rising to £4.4m in 2026. I think it's cheap based on these outdated forecasts, which I hope will be upgraded continuously as we move through 2024, starting with the update on Wednesday.

[dorian12] 06/5/2024 14:24

I think AGFX and CSFS are different businesses. CSFS is doing a great job at being a cross border fx payment provider to HNWI and corporates, almost wholly with spot deals (and therefore no collateral requirements).I think AGFX is a more complex business offering fx risk management services, focused on Financial Institutions and large corporates, and with the majority of their revenue from forward contracts and structured solutions contracts.The CEO is doing a very good job at CSFS. They have built their scalable tech platform and are focused on their core business of processing cross border fx payments, offering clients better rates and service than banks. They are expanding their payment network, increasing the number of currencies they can offer and expanding geographically, whilst staying focused on being a payment provider.There is a huge amount of business to be won in this space from the banks. This can be seen by the CSFS revenue growth. Admittedly from a small base, but it has grown revenue by 100% for each of the last two years (from £2.3m in 2021 to £4.8m in 2022 to £9.6m in 2023). The CEO has stated an aspirational target of £100m revenue in 5 years.Perhaps AGFX is realising it's a space they want to be more involved in.

[mighunter] 04/5/2024 15:20

Answer is in the documents "as a significant proportion of the Company's existing cash resources are required to support the existing regulatory and working capital requirements of the business."

[thaiger] 04/5/2024 12:49

Can't understand why they need to raise fund, as they have cash. Raised £3.2m @45p at a significant premium to the closing price on Friday?!? Retail Offer at same price to placing yet one could buy at below 37p!Something is not right??

[adamb1978] 03/5/2024 16:57

Hi

Can someone help me with the difference between AGFX and CSFS? Reason for asking is that:

AGFX recently said "The adverse market conditions experienced during 2023 continued into the first quarter of 2024"

CSFS Jan TU: "The Group is pleased to confirm that the previously reported strong trading momentum was sustained to year end"

CSFS prospectus said: "The Directors believe, there are three notable competitors quoted on the London Stock Exchange: Argentex Group Plc, Equals Group Plc (formerly FairFX) and AlphaFX Group Plc. These listed foreign exchange businesses have different sector focuses to the Group...."

Is that different in trading experience really as simple as different sector focus? I know CSFS talk heavily about their tech platform...whereas AGFX makes less of a play of tech.


Reason for asking is that, whilst I apply almost complete strategic ignorance in investing and invest almost purely on numbers, its hard to ignore read across from one competitor to another. I have a small/moderate position in CSFS and believe it looks cheap even if you assume zero growth on top of their their annualised H2 2023 figures.
Cheers

Adam

[sam_] 03/5/2024 16:16

It’s climbing back fast before the weekend!