Gresham Technologies Share Discussion Threads

[richjp] 22/12/2016 17:31

Well we finished today at the highest level for just over two years. It seems that it does not take much buying or selling to move the share price either way.

The Cantor note is obviously very encouraging. I see no point in GHT changing their broker though as has been suggested. It's results that matter in the longer term and as we know things have been slower than most of us would have liked. I also do not blame the current broker for the confusion regarding the recent RNS. There is plenty of experience now on the GHT board and management team to have avoided that and that is where I feel the responsibility lays.

[double double] 22/12/2016 16:05

"Cantor Fitzgerald has initiated coverage on five UK-listed technology stocks which the broker feels all “stand before significant GLOBAL market opportunities.”"

link not working on this quote.


"Elsewhere, brokerage firm Cantor Fitzgerald focused on the UK tech sector and initiated coverage on five stocks, which it said were "ideas for 2017". hese included accesso Technology Group (LON:ACSO), Blancco Technology Group (LON:BLTG), dotDigital Group (LON:DOTD), GB Group (LON:GBG) and Gresham Technologies (LON:GHT), all newly rated as 'buy'.
"

[double double] 22/12/2016 15:34

Wait and see the share price in the new year as we get closer to a trading statement. Cantor would have met the company before writing their note. We just need one stable year behind us and a healthy forward looking statement......

[martinthebrave] 22/12/2016 15:29

Wow, I didn't expect to make that sort of impact lol.

[martinthebrave] 22/12/2016 15:11

Decided to join you here today guys. I like the recent Broker reports & this seems like a well informed board. GLA.

[gottafly] 22/12/2016 11:31

Brilliant info, thanks dd

[double double] 22/12/2016 10:23

The difference between N1SINGER and Cantor is about £0.5m, Cantor are more positive.

EPS for 2017: 6.24 v 6.40
revenue for 2017: 19.8 v 20.3
Pre tax profit for 2017: £3.9m v £4.2m

For 2016 they are broadly in line.

I am getting these numbers from Bloomberg terminal. I only get raw numbers not commentary. You would have to buy the research from Cantor to get all the info.

Hopefully Cantor have visited and spoken to the Board/Company recently before this research note.

Hopefully everyone are being conservative with their numbers and these numbers will be beaten.

[gottafly] 22/12/2016 10:07

dd, thanks again although I cannot seem to access the full text. Agree the word minimum was used but to me 'more than' is a far more positive statement although you could argue they mean the same. However, I think generally minimum has a negative connotation as can be seen by the general reaction on here which was luke warm to put it mildly.

It will be interesting to see what N1Singer do since another broker is forecasting a very different (and very improved) picture, will they issue a revised forecast?

[double double] 22/12/2016 08:45

N1Singer are small and if they want to get noticed then a change of broker would be a good idea.

hxxp://www.stockmarketwire.com/article/5470341/Broker-Forecast-Cantor-Fitzgerald-issues-a-broker-note-on-Gresham-Computing-PLC.html

I did also suggest at the time the importance in the announcement could be the word "minimum" "£1.1m".

[gottafly] 22/12/2016 08:39

dd, very interesting and thank you, any more details, a web link?

Perhaps they will soon be house broker and if so I would raise a big (no thunderous) cheer since I think that N1Singer do not fully support GHT, personally I think they had a strong hand in the last two 'strange' full RNS announcements - Capital Markets Day and Insurance win.

Just noticed that on the 15th Gresham tweeted - Excellent new insurance win for Gresham with a contract win of more than 1.1 million. So the RNS pitches things conservatively, minimum 1.1 over 7 years, but the tweet is more upbeat (in my view) such that the 1.1 million is the absolute minimum. The maximum could be far higher and I think explains the material requirement for an RNS rather than an RNS Reach, so N1Singer continue to play low ball!

[double double] 22/12/2016 08:07

WE are about to take off soon!!

Cantor have this morning issued a overweight rating on GHT target price 180p.

First time I have ever known a broker other than the house broker look at GHT:

Cantor Fitzgerald analyst Kevin Ashton initiated coverage of
Gresham Technologies Plc with a recommendation of overweight.
Ashton predicted Gresham Technologies will trade at 180p
within a year.

Gresham Technologies had operating income of 1.65 million
pounds and Ebitda of 2.81 million pounds on revenue of 15.6
million pounds over the last 12 months.

Sales growth is up 15 percent in the past year, relative to
the 9.6 percent median gain for companies in its Bloomberg peers
group. Ebitda rose 139 percent over the past year, compared with
the 12 percent median increase for the group.

Gresham Technologies' operating margin in the trailing 12-
month period was 11 percent relative to the 10 percent median
among its peers. The company's next earnings announcement is
expected on March 7.

[double double] 21/12/2016 17:37

I wonder what happened in 2015 which was so dramatic (turnover). Lets hope it continued in 2016 and carrys on.

[schytalk] 21/12/2016 17:24

Whilst the 2014 accounts are in the abbreviated form it is possible to work out the performance by looking at the profit/loss balance sheet numbers, this would appear to indicate a small profit of £25k.

[double double] 21/12/2016 15:42

I think Federal Home Loan Bank San Francisco is also know as Freddie Mac, one of 2 (Fannie Mae) which issue something like 80% of all US mortgages. Had to be bailed out during the crash of 2008.


2017?? I think shytalk may be right 2017 could be the year we do take off big time.

Staying with public information on C24.

2015
turnover 1,970,000
operating PROFIT 229,916

2013
turnover 540,178
operating LOSS 374,841

2012
turnover 528,962
operating LOSS 374,885

There are no public accounts for 2014 as they are exempt "total exemption small company accounts":
A small company must meet at least two of the following conditions: annual turnover must be not more than £6.5 million; the balance sheet total must be not more than £3.26 million; the average number of employees must be not more than 50.

[schytalk] 21/12/2016 10:10

As promised here is my research, from public records, of what I believeare C24 customers. I am only listing 17 but I found a number of probables and remember that GHT stated their were some 30 plus, so there are some gaps.

Bank of America
Barclays
BMO Capital Markets
BRAC Bank Limited
Citi
Deutsche Bank
Federal Home Loan Bank San Francisco
Fidelity Bank
First City Monument Bank
ICAP
JP Morgan
M&G
Morgan Stanley
Paysend
SOCGEN
UBS

As with GHT, customer information is very hard to find. I would guess that a lot of banking clients have a confidentiality/no publicity clause but the lack of information on the client base is not helpful to the small PI.

[gottafly] 20/12/2016 21:00

Richjp, I did indeed make GHT aware of the concerns 'out there' although I did not specifically quote ADVFN, but yes individual messages of concern from here were quoted, so I think I reflected the general concern.

We can all thoerise as to what/how we have got here, there are so many things that you can summise. From a 'small' private investor perspective I think that GHT has acted poorly and has been simply driven by what is required for transperency and dare I say it 'large investors' who represent more than 75% of the shareholding and normally have more exposure to management.

I remain concerned that an orderly market is not in operation and I have advised GHT of my opinion, supported by comments from here. The issue of a full RNS (indicating substance and materiality) seems at conflict with the rather low key wording - the result confusion. The promise to review their communication in 2017 is interesting but it is only a promise to 'review' and I would not hold my breath.

We do not have long to wait until the H2 trading update in January. On balance I still think this will be good to strong and that this latest RNS announcement was supposed to be some 'jam', we shall shortly see.

Looking at the bigger picture of what GHT have to offer and the market dynamics driven by 'open banking' I still believe that GHT are ideally placed and that over the next year or so we will see a meteroic rise in the share price This makes the recent RNS announcement all the more 'strange'.

[4-10] 20/12/2016 16:57

I would think it's pretty unlikely that there is not someone in Gresham monitoring this board it's been active for the best part of 12 years.

[double double] 20/12/2016 16:43

SP tells me all is ok for now. Some months ago I did say the share price could be 125-150 by year and it is not far off, barring any nasty profit warning in the new year as some seem to expect. But I am glass half full.

Any ways I also now have a reply, eventually! They are not saying there isnt an issue and I did point out other investors were concerned and that we are a long standing loyal bunch of investors for decades(s) etc... I will go back to them and point out this board.

Heres the reply:
"Thank you for the emails, and please accept my apologies for the delay in responding.

The Board always welcomes investor feedback, whether positive or not, and I am sorry to read of your sentiments on this occasion regarding investor communications. The Board is now fully aware of this issue, which will be considered in detail as part of the Board’s ongoing review of the communications policy for 2017.

Thank you for your ongoing support."

[richjp] 20/12/2016 16:27

Gottafly, I appreciate you contacting the company as I am sure we all do. Did you make them aware of the discussions on this message board and if not I wonder if you would mind doing so, as it is you that made the contact?

I would not expect a company normally to follow message board chatter however the discussions on this thread are usually civilised and not great in volume. This also seems to be the board where GHT is most discussed by PIs.

You only need to go back to post 5993, the first following the RNS and quickly read through a couple of pages, to get a very good idea of the concerns that have arisen and the confusion that some of us feel.

If GHT are as serious about their communications as they claim in their response to you, I feel it would be in their interest to read the comments that have been made.

[jadeticl3] 20/12/2016 15:52

I would like to believe that, and I hope that is how it emerges, but if it does I would recommend they find someone to vet these announcements and make them say what they should say.

[double double] 20/12/2016 10:28

I agree with that and have said I dont think they are announcing all client wins, even Tier 1 wins, and that is why I am still glass half full. The share price says we are doing OK.

[planit2] 20/12/2016 09:39

How about this for an explanation:
Things are going slightly better than imagined with sign ups, the RNS was about an extra 'surprise' win. The other expected deals are moving ahead nicely but haven't all been signed up yet. Because of this there is no guarantee that profit expectations are going to be beaten but things are looking good.

A kind of 'increasing momentum' RNS

[gottafly] 19/12/2016 18:56

So what can we gain from the GHT reply, very much boiler plate but they appear to be stating that the announcement was material, the question is how/why and in what context.

[richjp] 19/12/2016 18:15

As the Tier 1 order was announced in the interim statement in August I don't think that there would be any need for a separate RNS.

Despite my concerns I am still staying in.