Gresham Technologies Share Discussion Threads

[double double] 05/12/2016 15:44

Its ok guys its all good here. I am also looking at about 2-3 years or perhaps longer for a multibagger, have been here from 80p and did used to post under a different name thebullyboy. Had to open a new account long story.

Like jadeticl3 I have also been adding recently but my trade is not showing yet, I bought 9k odd today. If forecasts are met this year then next years forward pe of 18 looks good.

[schytalk] 05/12/2016 15:23

double double

Ok fair enough, I think perhaps we have done this subject to death.

[inforprofit] 05/12/2016 15:20

double double

Not trying to seek an argument but the statement with the C24 acquition was a bit more than a few line. Guess we will have to agree to disagree, less is more in my view.

[double double] 05/12/2016 15:00

I didnt literally mean realtime info for sharesholders. Once a quarter a few lines to state the fact is hardly to going mislead anyone.

[schytalk] 05/12/2016 14:56

double double

It could well be that Gresham are being cautious especially given what happened a couple of years ago. I don't think it is wise for them to continue any form of 'real time' announcing since that would likely create too much volatility in the share price

I think this revised information flow is a deliberate change of policy by GHT and confirms the stated strategy for building for the long-term. They want to build an annuity stream and become a significant dividend paying stock.

The 'lull' created by this changed emphasis has result, in my view (but always DYOR), a falsely low share price In the long-term this is of little confidence, my only concern being that GHT could be an acquisition target since at the current price they would be a 'steal'!

Perhaps the house brokers N1 Singer, could and should, have provided more support.

[double double] 05/12/2016 13:54

Thanks for the postings but I did read them, no actual trading update for q3. I am optimistic like others here but I think a company can become too cautious and that is where GHT is the moment. Ironic given that a realtime information company regards it shareholders in this way.

[schytalk] 05/12/2016 12:57

double double

This might also help your thought process as regards information flow since I think it is there if you look but not geared around individual RNS announcements anymore.

This summary was included in the Capital Markets Day presentation which Gresham did an RNS on to say that no new material information would be released.

This summary slide for Q4 objectives seems to have some merit.

Q4 2016
©
2016
Gresham Computing plc
•
Manage legacy revenues
•
Extend CTC usage in global customer base
•
Close additional Tier 1 “key customer” win(s)
•
Win further Clareti as Service sales
•
Break out in North America market
•
Build Clareti ARM pipeline in global transaction banks
•
Launch Clareti Loan Control
•
Prepare ground for Clareti Data Accelerator launch
•
Make a success of C24 integration
•
Look for further opportunity to scale on Gresham’s Group
business platform in 2017

[inforprofit] 05/12/2016 12:22

jadeticl3, yes I made the same judgement that the prospects are very good hence my 2/3 times expectation.

[jadeticl3] 05/12/2016 12:18

Made good reading when issued and still sounds good now. I
Bought more after this was announced and am trying to restrain myself from buying yet more, but if the company was trying to not encourage unreasonable expectations this announcement either fails on that score or the prospects in the next year are very good. I choose to believe the latter!

[schytalk] 05/12/2016 12:05

double double

Here is a re-post of the 'trading update' provided as part of the C24 acquisition.

Hope it helps, I think a step change is on the way .......


Highlights of the Acquisition are set out below:

Expected to be earnings enhancing in the first full year and represents the first acquisition for the Company as part of its strategy for Clareti-led growth.

Doubles the Group’s customer base by adding a further 35 recurring annuity-based customers in the Company’s target financial services markets in the UK, Europe, North America and Japan.

Acquires proven technology that will enable the Group’s flagship Clareti platform to connect to industry standard financial messaging networks thereby expanding the market opportunity for the Group’s Clareti products.

Brings a development team with deep experience in real time data management solutions which will ensure continuity of support for C24 customers and adds capacity to accelerate the Group’s development and innovation roadmap.

Acquires additional, as yet un-commercialised, intellectual property that complements the Group’s fast data management development activities.

[schytalk] 05/12/2016 11:42

double double

I don't think that is necessarily the case, since AIM companies are by their nature smaller and more volatile, dare I say risky! Gresham have already made a major announcement with the C24 acquisition which included a business update.

[double double] 05/12/2016 11:35

I would have thought a company was required to disclose more information when listed in the full market than AIM.

[schytalk] 05/12/2016 11:32

inforprofit

Welcome aboard and hope the share price does move north significantly since I have already stated on here that I believe it is cheap. A bid does worry me though since at the current low share price price there is the danger that GHT could be sold 'on the cheap'. The C24 acquisition was a very good move and significantly increases the company profile so perhaps they could be 'in play;. I am looking for 2/3 times the current share price and cannot see a bid being pitched that high.

[schytalk] 05/12/2016 11:21

noble3r

Is your post relevant to GHT since it is on the full market and not AIM?

[inforprofit] 05/12/2016 10:57

Well just bought into this share last week through my ISA. Looking to make some real returns on tech stocks and Gresham seems a good bet especially given the multiple break out alerts etc. The share price has been stuck for a year but the pointers indicate an uplift is overdue. I also reckon this is a bid target since it appears cheap, especially since the C24 acquisition.

[noble3r] 05/12/2016 10:48

General disclosure of price sensitive information
11. An AIM company must issue notification without delay of any new developments which
are not public knowledge which, if made public, would be likely to lead to a significant
movement in the price of its AIM securities. By way of example, this may include matters
concerning a change in:
— its financial condition;
— its sphere of activity;
— the performance of its business; or
— its expectation of its performance.

[schytalk] 05/12/2016 08:42

richjp

As regards your recent post of 23rd Nov and lack of news, I had a chat with a fellow GHT shareholder over the weekend and we both agreed that things were very quiet on the news front, with no new signing announcements. According to his research GHT felt it was no longer required (or even resonable) to announce new deals and that they were past this stage in their growth plans!

He went on to say that the C24 acquisition; apart from gaining further technology and technological skill, doubled the banking customer base and that this was now a Who's Who of the banking industry, so the sales model was now largely selling to an existing customer base. He also felt that the name change, to Technologies, was more than just symbolic and was a landmark event for the new Gresham.

Whilst this all sounded great (and supports my own hopes/view), I pointed out that the immediate result was a stagnating share price with no growth over the last 12 months despite the apparent significant leap forwards in the company progress/prospects. He replied, a small price to pay and a little more patience will be well rewarded. We shall see.

[richjp] 28/11/2016 16:32

Gottafly, yes I think you are right with the regard to the consequences of a profit warning. It is a stigma that takes a while to overcome. Anyway it's getting a bit late for a trading update now so I guess we will all have to wait until the new year.

I think one or two here may be expecting a bit too much from the C24 acquisition. Acquiring companies inevitably make noises about cross selling opportunities, however in my experience, users will not part from their existing suppliers without very good reason. That is not to say that I do not think it is a good acquisition, but I see it more as a bolt on acquisition rather than a step changer.

The major growth I would hope, should come as a result of the sales and support infrastructure they have been building over the last two years. Looking through the half year results again, what I find encouraging is that they mention that they are now in a position to go after larger orders rather than the niche applications they originally targeted.

We shall see.

[gottafly] 24/11/2016 17:14

richjp

I know we disagree somewhat as regards the information flow from Gresham but from my experience, and yes I have in a past life been in a very similar position, releasing the 'correct' level of information is a challenge and one that can only really be 'validated' with the value of hindsight.

Whilst it is somewhat frustrating, for us humble private investors, I would imagine that given Gresham's slip up a couple of years ago then great care will be taken not to overstate the financial position and prospects. My understanding is that it takes a couple of years to overcome the negativity of a profits warning and I think this largely explains the lack of share movement over the last 12 months.

I believe that Gresham will remain on the cautious side and therefore I not alarmed to see a 'quiet period'. The strong announcement around the C24 acquisition has given Gresham good 'wiggle room' as regards what is price sensitive information so I think we will have to be patient until we get the full year results. So if we were to get an announcement of some kind, this side of the full year results, then I think it would indicate a step change in the business and not just another deal (or two) signed.

[richjp] 23/11/2016 18:16

jadeticl3, Yes I did see your post however with the greatest respect, even with such as an esteemed PI such as yourself, most companies will probably give just a standard response. Who was the person you actually communicated with and was it by email or over the phone?

I take the point made by schytalk that they may being more conservative with trading updates, but if that is the case I think they should have made it clear that was going to be their future policy, when they last announced results.

[jadeticl3] 23/11/2016 10:44

richjp, please see my post of 22nd October, 5931, in which I asked the company if they planned to give an update soon. They replied promptly saying they did not so plan. I was disappointed and, like you, think it is a long way off to the ectual results at a time when a lot should be happening.

[noble3r] 23/11/2016 09:43

Thanks schytalk - I remain positive, it does have a feeling of 'turning a corner' about it.

Richjp you have private mail.

[schytalk] 23/11/2016 09:02

noble3r

Share volume with Gresham is a tricky one to evaluate since the vast majority of shares (76.23% have 3% or more according to the 2015 annual report) are held by institutions/large private investors. So the amount of truly 'free' stock is less than 25% and I think this is shrinking all the time because new 'major players' are appearing such as Richard Griffiths. Volumes do sometimes spike and this is clearly when a large block of shares is traded but due to the way the shares are held this is uncommon.

So what does all this tell us, well there is no rush to sell shares out there because there is no real volume. Equally, the share does not appear to be rated as a 'buy' again because there is no real volume. If you did want to acquire a sizeable number this would require a large number of individual trades which would likely drive the price upwards. So buying and selling small numbers is pretty easy and this is exactly what is happening. Overall it seems that the share is perceived as a 'hold'.

I still remain positive but as always DYOR. The share price is effectively unchanged over the last year, yet I believe that significant progress has been made so Gresham is a far better and stronger company but as yet the share price does not reflect that. The acquisition of C24, the Risktech 100 award all bode well for the future. A price of 150p, especially given the Brexit devalution, is a more accurate figure in my view.

richjp I agree it would be nice to have a trading update but as I have expressed on here before I think Gresham want to move away from regular RNS news (for every deal) and to settle into a more normal (for a larger company) reporting pattern. Further I believe we have already had a trading update as part of the C24 acquisition announcement:-

Highlights of the Acquisition are set out below:

Expected to be earnings enhancing in the first full year and represents the first acquisition for the Company as part of its strategy for Clareti-led growth.

Doubles the Group’s customer base by adding a further 35 recurring annuity-based customers in the Company’s target financial services markets in the UK, Europe, North America and Japan.

Acquires proven technology that will enable the Group’s flagship Clareti platform to connect to industry standard financial messaging networks thereby expanding the market opportunity for the Group’s Clareti products.

Brings a development team with deep experience in real time data management solutions which will ensure continuity of support for C24 customers and adds capacity to accelerate the Group’s development and innovation roadmap.

Acquires additional, as yet un-commercialised, intellectual property that complements the Group’s fast data management development activities.

The above all looks very positive to me and has the potential in my view to create a step change in the business.

[richjp] 22/11/2016 18:23

It's time for a trading update. There has been one very year around November time in one form or another as far as I recall and I will be a little disturbed if we have to wait until the new year.

[jadeticl3] 21/11/2016 18:02

I have bought some more today. With all this support I consider this price will look cheap in 6 months time, but it would not be the first time I have got ahead of myself with this company. However, I keep reminding myself that I first bought into GHT at 33p.