Eckoh Share Discussion Threads

[greg the grinch] 27/3/2014 11:38

:o)

just sittin and waitin

[eatupkids] 27/3/2014 09:22

Here's a great article about the Target breach. You have to imagine that this will have prompted a lot of US corporations to take security more seriously?

[mazarin] 27/3/2014 09:07

This undoubtedly has further to go. Contract news like this has been a while in coming, but worth the wait, particularly when they come in 3's. I get the impression Eckoh is stacking them up before deciding to give the RNS, (good cost saving strategy...!)

[oohrogerpalmer] 27/3/2014 08:46

what is the level of card fraud in the states , anybody know ??

[mylands] 27/3/2014 08:44

Card security in the States???

You don't even need a PIN in most card transactions, you simply sign!

[ratel274] 27/3/2014 08:38

I wonder if the American interest has been triggered by the loss of their customers' data by Target. It was widely discussed on CNBC at the time. I recall one guest host commenting that America had generally fallen behind other parts of the world when it came to card security.

[septimus quaid] 27/3/2014 08:38

We're in the money
Come on, my honey
Let's spend it, lend it,
Send it rolling around!

C/o 42nd street

[mylands] 27/3/2014 07:59

sagam

Me to!!!

[sagarn] 27/3/2014 07:20

Eckoh secures three new Payment Contracts



All with blue chip's to boot! Particularly like the last bit of the statement: "As we move into the new financial year our sales pipeline remains at an excellent level and we are also seeing a significant upturn in interest from overseas, particularly the US where we are already looking to expand our initial Veritape product offering."

News gets better and better. Very happy holder indeed!

[greg the grinch] 19/3/2014 16:28

A possible 100 bagger!

[greg the grinch] 19/3/2014 16:26

A buyout even at 50p is a disaster, this is a 10 bagger if you sit tight and everything goes to plan.

[brumont] 19/3/2014 10:19

Septimus, don't agree at all that HH holding 20% will in any way deter a bid but not from them.
These are held for discretionary clients for whom they need to make a profit so HH will be sellers at the right price.

[sagarn] 19/3/2014 10:13

Septimus: why do consider they wont make a full bid? Company looks very attractive and if they don't, quite possible someone will. Loose change for a bigger outfit and ECK keep getting stronger and stronger.

On a side note, as well as the trading update due next month, ECK usually announce some new partnerships/contracts in April/May, so I would expect the share price to start to accelerate in the next few weeks, especially after the little consolidation they have had. Also very reassuring they stood pretty firm in the market battering recently. Quality company and happy holder!

[septimus quaid] 19/3/2014 08:05

From yesterdays's RNS, see Hargreave Hale's holding has now exceeded 20% of shares in issue.

I have mixed views about this, nice to have a vote of confidence but they're unlikely to make a full bid so will just hang around indefinitely, possibly deterring other companies from bidding.

[baxter99] 05/3/2014 20:43

Agreed, seems to like this pattern. I spotted it was kicking off on level 2 early this afternoon but couldn't deal immediately at the asking price (always a good sign). Put an order in just above the ask and got it a few minutes later at the ask. Since gone up. Some big trades too (not mine)

[mazarin] 05/3/2014 15:30

Well, well there's 'a picture' in the form of another nice graph building beautifully today. Although I recall we've been here before....possibly starting sometime near the end of January into early February....I think?

[malinkie] 05/3/2014 14:23

Summat afoot folks! Too much buying. News in the pipeline........

[mazarin] 05/3/2014 08:47

Roland and others, it's always been there in the header, it's just a question off looking around for it - in meantime thanks for all your constructive posts.

Although what I'm actually waiting for is some more welcome news of Contract wins, that in my view is now very much overdue.

[rolandormrod] 05/3/2014 08:27

Thanks everyone. I had no idea about the edison report on their website. All the signs are there that their growth will continue, I bought in mostly on the fact that they are not in huge debt, have net cash, realistic P/E as far as tech companies go and they have a clearly a very good proposition as you don't normally hear of 100% renewal success that often.

I think you have me down to a T Septimus although I think I'm starting to change slowly but surely haha. I hope my gut instinct proves me right on Eckoh.

[nickelmer] 05/3/2014 06:47

Hi rolandormrod

If you take a look at their web site, hxxp://www.eckoh.com/investors/analyst_appraisal_details.aspx?positionId=738

Edison have pencilled in 2.3M profit for year end March 2014, 3.4M for the following year.

The shares have done extremely well and can be argued are expensive, however that depends on your view on the growth prospects for the company. Eckoh are highly operationally geared, that is to say, with high margins and steady costs, an increase in turnover of say £1M will see circa £700K added to bottom line profits, so any large contract wins would have a significant positive impact on future profits.

Their partnerships with large blue chips such as Capita and BT could easily deliver such deals, as they have already, then of course there is the Veritape deal and it will be interesting to see what a full years contribution from them will bring, which will not show through fully until year end Mar 2015.

It will be very interesting to see the full year results and accompanying statement, or indeed any pre results trading statement

I remain a long term holder

[septimus quaid] 05/3/2014 06:37

Rolandormrod, I've been watching these shares for a few years, in and out a few times but now pretty much in. Your investment strategy sounds a bit like mine, jump in with both feet and worry about the detail later.

Probably the main reason for my holding (apart from my long term familiarity) is that, in these troubled times, (as reallyrich says) they are actually cash generative (in a highly specialised market) and pay a small divined. This, to me, cuts through a lot of the BS you get about other small cap companies.

They had a bit of a bad patch a few years ago with the channel 4 debacle but seem to have put that behind them now.

As ever, looking forward to a potential buyout, Capita could be a suitor as they themselves seem to be doing very well and are one of ECK's big customers (no idea really, just seems like a potential good fit for Capita).

[reallyrich] 05/3/2014 01:02

Hi Rolandormrod, It is extremely cash generative which ads to the value. Look at the cash balance increase over the last few years.

[rolandormrod] 04/3/2014 23:40

Hi Guys

Quick question from a fairly newbie investor.

I just had a quick look through this financial years contract wins. From a very rough look based on contract RNS's and interim statement (operating profit 0.7m) that we should see at the very very least a Pre Tax Profit of 1.5m and hopefully nearer to 1.7m. If that seems reasonable as an estimate then that would be around a 25% lift in pre tax profits at the bottom estimate.

With all things being equal regarding Adjusted EPS at the bottom level of the estimate (due to Veritape Aquisition) the current PE ratio would put share price at 44p at the very least the way I've calculated it. However the MC is looking a bit lofty next to the profits being made, current growth and what the company has on its balance sheet as well.

Does anyone have any thoughts currently on the share price, or disagree with the above? This is the first time I've really scrutinsed my reason for being here since buying in so would be interested to see what others think.

[mazarin] 03/3/2014 23:45

Today's RNS x 2 follow a similar pattern to those posted late Jan (posts 176 & 186 refers) My interpretation is 'a matched' transaction' involving Kestrel Partners, who reduced to under 10% around the same time as Hargreave Hale increased their holding to just over 20% and this just produced only the slight shift back up to 36p today. This on a day when the wider market trembled as the 'Russian bear' stirred...!

[rolandormrod] 28/2/2014 11:08

I was about to say that it was getting quiet in here. Funny how thats changed this morning