Oxford Metrics Share Discussion Threads

[lignum] 24/2/2017 15:47

I don't think there are any special dividends to come - they only followed the sale of a division a couple of years ago.

[billy5] 24/2/2017 15:28

Something's afoot, there is a lot of activity, all blue.

I haven't seen any dividends mentioned so far this year, is there a big one about to be disclosed?

[billy5] 24/2/2017 15:22

That's weird, between 11.37 and 11.38 it shows £4m x2 and £2m x3 =£14m.

Your other comments are interesting.

[lignum] 24/2/2017 13:20

Billy - I can only see 8m buys (1 x 4 and 2 x 2) at 49p?
Only 4 holders have this many shares - I'd be surprised if Harwood sold any of their 27% so my guess would be Julian Morris is the seller now he stepped down to be a Non-exec.
Looking forward to seeing who bought them - the 4m is disclosable.

[billy5] 24/2/2017 12:31

In the last hour 14.2 million buys.

Is there something I have missed?

[pj 1] 24/2/2017 10:02

Thanks lignum, I'd totally missed that somehow.

[lignum] 24/2/2017 09:15

PJ1 - the preliminary announcement in December states that the 5 year plan aims to double group profits by 2021 - all from existing business, no acquisitions, and all funded from internal resources. They forecast a dip in earnings in 2017 as they build up sales channels in Yotta but 2018 on will show significant growth. The strength of the pipeline they referred to yesterday suggests the sales channel is already producing results.

[pj 1] 23/2/2017 17:28

Still on my w/l. Have they given any financial targets in line with the 5 year plan? TIA

[lignum] 23/2/2017 16:43

AGM statement. Steady as she goes. Strong pipelines. Slightly ahead of management expectations year to date.

[lignum] 13/12/2016 13:22

OIG have a significant holding in OMG. Included in their interim report today is following comment on OMG:

"The Group operates as a diversified technology service business with two core divisions, Vicon and Yotta with a strong international presence. Vicon operates as a technology service business providing image capture products and services for the film industry, life sciences and engineering industry. Yotta provides software systems for local authorities to help improve the management and make informed decisions on infrastructure assets, it is increasingly becoming the key growth component of the business, as it looks to expand its software business into new geographies in Holland and Australia. The loss making OMG Life has now been terminated and shut down.

The company has significant dollar revenue and profits which should lead to earnings upgrades over the course of the coming year."

Yotta is clearly being positioned for growth. Also interesting to see the comment re earnings upgrades.

[pj 1] 06/12/2016 09:01

As important.What don't you like?

[lignum] 06/12/2016 08:47

I like the strategy and look forward to good news on Yotta. Excellent that they have a first deal in Germany and hopefully many more to come through. I also like that they have flagged the short term hit to earnings as a result of investing in sales - this is exactly what a private company would do and what is needed to generate growth. Their target of doubling profits in the next 5 years doesn't seem unrealistic.

[lignum] 01/12/2016 18:40

Bearfoot - I'm sure that Harwood (28% shareholding led by Chris Mills) and Ruffer (10%) are thinking hard about how to maximise their investment value. Vicon is probably at the stage when it should be divested but that would leave all the overhead to be absorbed by Yotta and the remaining OMG (overhead + Yotta) would probably tank. They need to get growth into Yotta to sell it at a premium and assuming Vicon maintains its position they are then in a position to sell two growth businesses and discard the central costs. That's the theory anyway. Any good news on Yotta (especially from Germany) should have a big impact on the share price.

The piece that I don't understand is how Yotta fits in with the billions being spent by Google, Amazon etc on road mapping ahead of the introduction of driverless cars. Clearly OMG can't compete with this investment and Yotta's focus is slightly different (street furniture as well as road condition etc). But eventually the big boys data will also address this; however by that time Yotta should have the relationships and a sticky revenue stream in place. Hopefully.

[billy5] 01/12/2016 15:42

No problem.

Thanks.

[bearfoot] 01/12/2016 15:33

Billy, yes agreed re a progressive earnings-related dividend policy! My apologies for my hideously simplistic 'lesson'. Good luck!

[billy5] 01/12/2016 15:03

Bearfoot, thanks for the info, I understand what you are saying and have been trading for over 40 yrs so have picked up a fair bit over that time. I am unlucky enough to still be a basic rate tax payer but find this very rewarding both financially and mentally in my retirement. Having said that, a slight increase in the dividend on Tuesday would be gratefully received.

Billy

[bearfoot] 01/12/2016 14:39

Hi Billy - the effect of paying of a special dividend is simply to reduce the asset value of the company (and therefore logically the share price) by that amount. In over-simple terms: if there's a 5p special dividend then it the share price will fall 5p. Indeed, this is exactly what happens when a share goes ex-div.

A hypothetical example: if the OMG price before the dividend was, say 50p, then after the dividend it would be 45p (all other things being equal). In effect you have 'taken' 10% of your investment out of OMG. This is then taxed as income so if, unlike me, you are into paying higher levels of tax, you will be taxed at up to 45% on your 'sale' of this part of your holding. Ugh! Indeed, assuming you've got unused CGT exemption, then you can sell some of your holding at any time and with no tax cost. Personally, I'd rather the money was invested in growing the existing businesses. They have/had £8m of cash. I'd like to see them making that resource work to accelerate growth for the existing businesss... rather than being beinignly returned....

All the best

[bearfoot] 01/12/2016 14:15

Lignum - thanks, I fully endorse what you say. Undoubtedly the combined market cap of, and interest in, a self-stabding Yotta and Vicon would be substationally greater than that of OMG, not least becuase they would both be 'hot' AIM IP investments, and obvious investment/takeover prospects. As it is, they are concealed from the market and investment community by the cloak of the cash-rich (overhead-enhancing?) and now mis-named (with just two investment interests) OM GROUP. I just wonder what the possibilities would be if the two divisions/subsidiaries were spearated out in a demerger...... Surely that's something the Board of OMG has to consider to be in the best interests of the shareholders, not to mention employees? These two are exactly the kind of IP-led technology companies that the country/Government needs to get behind in the championed quest for future growth. On the other hand, perhaps OMG have done, and are doing, a great job in nurturing the two investments and calmly protecting them from unneceesary distractions during their critical growth period? Whatever the case, the formula has wroked and aside from the ill-fated Autograher project OMG has proved to be a perfect share to own and hold. Added to that, it's at the oposite end of the SPIV-index to the majority of fast-talking AIM bubble-managers. Long may that last!

[lignum] 01/12/2016 13:39

Bearfoot - good post - it would be very interesting to see the share price chart adjusted for all the special dividends from sales of the business. This has been a great share for me over the last few years and if they can get some traction overseas on Yotta I expect more of the same. I also feel that the value of the two remaining businesses could be greater than the sum of the parts.

[billy5] 01/12/2016 10:51

Looking forward to Tuesday, hope we wont be disappointed.

[billy5] 29/11/2016 17:13

There seems to be a bit of interest of late, possibly in anticipation an announcement regarding the forthcoming dividend. Could there be a Special in the offing?

Fingers crossed.

[lignum] 19/10/2016 08:38

Yes should also allow them to focus on Yotta & Vicon - the Yotta partnership in Germany sounds quite good but hasn't generated any orders yet - if the Germans get happy this could be very interesting.