Eleco Public Share Discussion Threads

[lgw500] 01/7/2015 14:38

I am highly concerned that the new FD has left. He lasted far less than it took to find and appoint him. What on earth is going on? Prompt explanation is required. Has he found something he doesn't like?

[ansc] 01/7/2015 14:28

The share capital reduction, as agreed and passed at the AGM, has now been rubber stamped by the High Court:

[Elecosoft plc ("Elecosoft" or the "Company") - 01 July 2015

Share Capital Reduction

The Board of Elecosoft is pleased to announce that on 1 July 2015 the High Court issued an order confirming the Capital Reduction and proposals which were set out in the circular to Shareholders on 11 May 2015 and which were resolved on by a Special Resolution duly passed. Following the registration of the Court order with Companies House earlier today, the Capital Reduction has now become effective.

As a consequence of the Capital Reduction, the Company's share premium account and share capital reduction shares issued pursuant to the capitalisation of the Company's merger reserve and share based payment reserve have been cancelled, and the nominal share capital of each Ordinary Share has reduced from 10 pence to 1 pence each. Application has been made for the new Ordinary Shares of 1 pence each to be admitted to AIM and admission of the 74,867,127 new Ordinary Shares is expected to become effective on 2 July 2015.

Following the Capital Reduction becoming effective, the profit and loss reserves at the date of the capital reduction and future profits of the Company will now be available for the payment of dividends and the Company would now also be permitted to buy back Ordinary Shares, in each case, should circumstances make it desirable to do so.

The Company's total issued and voting share capital now comprise 74,867,127 Ordinary Shares of 1 pence each and this figure may currently be used by shareholders as the denominator for the calculations by which they can determine if they are required to notify their interest in, or a change to their interest in, securities of the Company.]

That completes a tremendous turnaround/acheivment by the company since the perilous cliff-edge situation which they found themselves in two years ago.

A heart-felt 'well done' to all concerned. Things can only get better ..... surely?

[ansc] 29/6/2015 17:30

FD didn't stay long:

[29 June 2015 - Elecosoft plc ("Elecosoft" or "Company")

Directorate Change

The Board of Elecosoft plc announces that Andrew Greenwood, Group Finance Director, has left the Company. The Board expects to be making an announcement regarding the appointment of his successor shortly. The Board thanks Andrew for his contribution and wishes him well.]

Short-lived attempt to get the share price down this morning. 25p or lower and I'll be interested.

[lgw500] 17/6/2015 11:23

Onwards and upwards!

[ansc] 16/6/2015 20:32

With the start of this new thread, out of interest, the bid/offer prices (25k) today were 25.67/27.0p. I'll try to remember to check at each anniversary.

[ansc] 16/6/2015 08:51

New name, new thread -

I've put a cross reference to this now historical data in the new thread for anyone wishing to remind themselves of the company's turbulent past. A new dawn breaking?

[ansc] 16/6/2015 08:44

Confirmation this morning that the company's name change (resolution passed at last Monday's AGM) has been formally ratified -ISIN and TIDM remaining the same - so I thought a new thread was warranted. Looking forward optimistically!

[rathkum] 12/6/2015 18:16

And here's an article from an American construction publication.

Here's a bit I like:

“BIM has been gradually taking off in the U.S., but it’s coming in a big way as people begin to realize the benefits of 4D planning,” says Jason Ruddle, managing director of Asta Development. “While the U.K. has seen a huge increase in BIM projects due to new government requirements, it’s owners and forward-thinking construction firms driving that adoption here in the States.”

[rathkum] 11/6/2015 19:50

Eleco coverage in a Middle East journal.

Gulf Construction is the undisputed leading trade journal for the building and construction industries of Saudi Arabia and the other Gulf states. It has established a reputation as the most authoritative and respected industry journal.

[lgw500] 11/6/2015 10:12

Yes, I also hope your asthma has eased.

I am hoping that the company will soon get its petition through the court to allow it to purchase shares. This will help the market. I remain an enthusiastic holder but will not add for now.

[ansc] 11/6/2015 09:57

Thanks for the info re Conor McCarthy/MFM Techinvest Technology Fund, rathkum, very interesting. With finnCap showing far more interest in pushing Elecosoft than Cenkos ever did, plus the odd positive note from Hardman, the company looks as though it's going to be appearing on many more investor's radar screens now; great stuff!

A pity you couldn't make the AGM and I do hope your asthma has since eased. It's certainly a difficult time of the year down here in the South West for asthmatics with the wheat fields now in full flower and spewing out their pollen. Having witnessed one of my ex-work colleagues suddenly being overcome out in the middle of a field, it's a very scary condition to have.

One thing I didn't mention in my brief post-AGM write-up was being told by the Asta representative how popular their User Forums are ..... the one they held in February was so oversubscribed numbers had to be restricted! BIM is creating a vast amount of interest.

Although I'd vowed not to buy any more shares as my Elecosoft pot is already overflowing, having been so impressed at the meeting, I couldn't resist trying for a few more this morning; none available online but the Mingy Machs are bidding 25.67p for 25k. As if!!

[rathkum] 10/6/2015 15:11

Thank you ansc and LGW500 for your excellent and detailed feedback on the AGM. Much to my disappointment, my worsening asthma over the weekend got the better of me from attending the AGM. Taking cue from your comments, seems like it was all positive.

Techinvest is a stockmarket newsletter that I used to subscribe until the bottom fell out of the markets in 2008/9 is a well respected and quite influential publication that has a strong following among private investors and institutions.. It is a newsletter still edited by well respected commentator on technology stocks, Conor McCarthy. His model portfolios in the newsletter, and the fund his company manages (the MFM Techinvest Technology Fund), have a great track record. His style is to hold stocks for a long time rather than bounce in and out which is probably a wise strategy on small technology stocks, and he only tends to sell when news flow tells him the investment case has changed.

Annual subscription cost £299, more than any other publication I know of.

The fact that Eleco has received a ‘New Buy’ recommendation in its April edition speaks volume as Eleco should get a greater following going forward. Trading volumes in April and May bears this out as the publication in normally out at the beginning of the month. It would be interesting to find out what the May edition had to say.

Page 7 third column

NEW ISSUES NOTES
• We’ve kept a close eye on
Eleco
(23p) since
the Company announced restructuring plans
last year under the guidance of newly-
appointed CEO Nick Caw (formerly Business
Development Manager at Microsoft). Eleco
offers software that supports the construction
industry during each stage of the project
lifecycle. It serves customers in the UK,
Germany, Sweden and Benelux and counts 69
of the top 75 UK contractors as clients. Eleco
also plans to grow into the US. Regulatory
changes around BIM (Building Information
Management) will also drive further growth.
For the year ended 31 Dec 2014, broker
Cenkos expects revenue of £16.6m and pre
tax profit of £1.0m, up from £0.6m a year
earlier. This corresponds to earnings per share
of 1.16p (FY2013: 0.75p).
Buy. More next
month. The MFM Techinvest Special
Situations Fund has a holding

[ansc] 09/6/2015 14:22

Why would any shareholder, let alone the supportive Messrs Allen and Ketteley families, want to sell any shares when they can see that the company is on the verge of much improved profitability at long laat? The executive (and non-execs) directors have had ample opportunity to purchase shares in the market place during the last six months just like the rest of us and (for whatever reason) have declined to do so ..... after all, they've been closer to watch events unfolding than we have.

[lgw500] 09/6/2015 13:30

I agree with the comments above. The AGM was good although I felt the chairman should have provided the two new executives with a platform to talk. Whilst I admire the chairman, he has achieved the goal of keeping Eleco alive and it now requires the executives the space to do their job. An excellent presentation from Nick Caw showed that the recent video conferences were hopeless. He presents very well.

I really hope the executives buy shares. Why don't the Allen and Ketteley families sell a sensible chunk of their shares to them? This would wake up the market makers and do the company the world of good. I do hope the company reads this board.

I remain positive and wish the company well.

[ansc] 09/6/2015 09:25

Resting after a long (9.5 hrs), tiring trip up to the AGM yesterday but extremely pleased that I made the effort, it proved to be very worthwhile; quite surprisingly, given the recovery/transformation made by the company during the past 12 months, shareholder attendance was down on last year. No surprises during the formal part of the meeting before an excellent, short presentation by Nick Caw (CEO) who whizzed through some of the advantages of Eleco's software attractions. Lunch, as usual, was top notch ..... it's always been the best of all the AGMs I've attended through the years.

Following lunch, shareholders had the opportunity to chat with staff in attendance (manning a few of the software packages offered by the company) and learn a bit more about Asta, Esign, Arcon etc; somewhat surprisingly, very few appeared to do so. I learnt for example that the reference the chairman had made in his statement to the USA license sale ["Of note in the period was a significant license sale by one of ASTA's key US channel partners with a US State Department of Transport"] had caused quite a stir out there at the time because Asta had been competing against giant-sized software conglomerates (Microsoft and Oracle to name just two) yet the contract had been awarded to an almost unknown minnow ..... a brilliant eye-opener for all contractors in the States. I was most impressed by all the packages on display.


All in all, I'm even more convinced that Elecosoft (as it's now going to be called) justifies my long-held conviction that, in 18-24 months, the company will be a much larger, highly profitable and turn out to be an appropriately rewarding investment for any patient shareholder.

[lgw500] 06/6/2015 21:47

More purchases at 25.45p.

[lgw500] 05/6/2015 10:37

I can confirm the 25k yesterday was a purchase. On yesterday's "Sale of the Century", 25k was offered at 25.5p, 50K at 26p and 100k at 27p. They are being equally generous today....

[ansc] 04/6/2015 17:52

By using such a wide indicative price range [24.0/27.0p] the devious Mingy Machs are able to record virtually all trades as sells whereas today's 25k and one of yesterday's 25k trades were almost certainly buys.

So tiresome.

[ansc] 03/6/2015 15:50

Yes, the chairman's statement on Monday is going to be of major interest to me. Nevertheless, that didn't deter me from adding a few more just now seeing as the Mingy Machs appear to be trying one of their 'tree shakes' this afternoon. Typically, it hasn't been reported by them yet but if had been a sale instead .....

[rathkum] 03/6/2015 14:01

Who knows - Perhaps a positive AGM statement (which I intend to attend all being well) on current trading followed by a strong interim in September, may just bring the share price closer to his target price.

[ansc] 03/6/2015 09:40

I've never been a chart follower myself, rathkum, but I'm happy to go along with Mr Mir's 40p over the next two to three months; my 'gut' feeling, however, is that a might take a tad longer.

Are you intending to go to the AGM next Monday?

[rathkum] 02/6/2015 23:41

I had requested Zak Mir a renowned chartist with shareprophets for his views on Eleco from a chartist point of view

Here's the link with the chart for which registration is required.


Eleco (ELCO): 40p On Tap At Price Channel Top
It is clear from the daily chart progression and the individual candles, that this is not the most liquid of situations that we see here for Eleco Nevertheless, there are some very helpful indications here on a technical basis. The first is the way that as long ago as the summer of 2013 we were treated to a 50 day/200 day moving average golden cross buy signal, followed soon after by an unfilled gap to the upside. This gap through the 15p to 17p zone was only partially filled in December last year before a new leg to the upside began.

The view now is that one would not expect to see any sustained price action back below the 50 day moving average at 21.14p, and especially while this remains in place as support the top of the 2013 price channel as high as 40p could be the target over the next 2 to 3 months. Indeed, the setup here appears to be so robust that only a weekly close back below the 2013 price channel floor / 200 day moving average would even begin to delay the upside scenario.

[ansc] 28/5/2015 14:03

For any investor itching to sell, you'll now receive 25.3p for each of your 10k.

Me? With the AGM just around the corner, no chance!

[rathkum] 20/5/2015 18:38

These MM have a vast resource of tactics and it would take probably more than a lifetime to figure them all out. On AIM I guess they are in the business to screw the public at every opportunity they get.

Analyst interview, finnCap