Abacus Share Discussion Threads

[ba5hir is back] 13/7/2007 10:54

Dead cat bounce. Falls on bigger volume and rises on smaller volume. MMS sucking fools in as you say. The share price was already up 4% on just a few small trades says it all.

[nigelwestm] 13/7/2007 10:52

Looks like the market makers are having a bit of fun, drawing a few more suckers in...

[2delta] 13/7/2007 10:06

Just woke up, nice blue bounce but is it only a temporary reprieve. simon we don't know one another then although i'm about an hr & a bit away or so from Harrogate.

[mike61] 13/7/2007 08:08

Electrocomponents (ECM), a much larger company, produced (for them) a satisfactory first quarter interim statement.

ABU has a good business, but is going through a cyclical slow-down. The length of this slow-down is dependent on the winding-down of inventories in the industry, the appearance of new products requiring electronic components, etc.

Don't despair!

[simon gordon] 13/7/2007 08:04

2d - Glasgow then Harrogate.

[2delta] 12/7/2007 21:37

Tinnies starting to kick in now. Sore head to go with my sore nads in the morning.

[2delta] 12/7/2007 20:41

cyber - my funds were recently invested elsewhere as i didn't expect such a fall but may sell if fall continues and invest here to lower my average.

[2delta] 12/7/2007 20:38

Out of interest i know a simon gordon from football at school, the world is not so small so i doubt it is u but just in case tell me the first letter of your home city.

[cyberpost] 12/7/2007 20:34

2delta... I have all my funds tied up... so unable to buy. If i had funds, i would definitely buy Abacus. Its a sound, well established and clean business. Very transparent figures, they dont hide anything. That's what i like in a company.

[simon gordon] 12/7/2007 20:13

2d - Apology accepted.

I suggest you read this book:

[cyberpost] 12/7/2007 20:00

Even if say cashflow comes in at 12p (expect it to be around 15p) and remaining static for the foreseable future.... a predator paying say 150p/share... the business will become effectively 'free' after only 12 years.. which is stupendoulsy cheap. And this is cashflow not earnings we are talking about. If we looked at earnings, then it would pay itself off in far less amount of time. Hence, what I mean about a buyer taking it out if the market doesnt want to attach value to it.

[2delta] 12/7/2007 19:52

cyber agree with u sentiment is very negative and several months of turbulence ahead. Don't think there is anything material wrong with underlying business and cashflow is forecast @16p but perhaps under review. Don't think we are at economic slowdown of sig. proportions to cause recession yet and do expect recovery in share price at some stage or quite possibly a predator to take advantage of current malaise.

[cyberpost] 12/7/2007 19:40

2delta, it is very unnerving seeing a stock fall like this. But taking a step back and looking at it objectively, Abacus does have solid management and have been delivering solid financial results year in year out. Their cash flow is something to be admired and they have weathered such storms before.

I am not a holder, but i do feel ABU will recover. Its financial state is sound, its being battered because sentiment is against it. Some large holders may be bailing out at any cost. Hold tight, it will recover, otherwise larger outfits may well take it out. There is nothing fundamentally wrong with it.

[mike61] 12/7/2007 19:04

Just a reminder of what the Chairman said in the Interim Accounts on 30th May, 2007, and effectively repeated in the statement made on 9th July. That statement implied that UK, Italy and Sweden had slowed in bookings (I am not sure whether that is volume or value of orders - i.e. less orders but not discounted, or the same number of orders, discounted), whilst Germany has expanded.

"The first six months of the current financial year to 31 March 2007 have been
characterised by fluctuations in the trading profile. The first four months
continued the good performance seen in the second half of the previous financial
year. The last two months saw reduced bookings in the UK, Italy and Sweden and
stable bookings in our other European markets. Bookings in April showed some
recovery but May has again reverted to weaker levels. This has led the Board to
conclude that it is unlikely that current trading trends will allow progress to
be in line with its previous expectations of growth in the second half.

"The current market conditions are disappointing but looking further ahead we are confident of achieving good organic growth, particularly in Germany where market conditions are more favourable and where we have in the past few months opened four new offices. Elsewhere in the Group, as bookings improve, higher sales will translate into improved gross profit with minimal additional overhead."

[bletherer] 12/7/2007 17:55

Go easy on him Simon, he's holding a lot of these.

[simon gordon] 12/7/2007 17:52

2delta - are you saying that your comment on a 'rights issue' is bogus?

[2delta] 12/7/2007 17:40

hmm, interesting, well you've been predicting 75p as support levels from charts for some time so u might be right. I remember '99 when it touched 80p approx and i bought before climbing to 120p when i bailed out. Dotcom took it alot higher but it was a different comp back then. Now larger turnover but less profitable but the share price did trade around £3-4 when its eps was mid 20's early 2000's. One big roller coaster this and hopefully we are close to the bottom before a nice climb. Afterall day trading is for gambling & investing is about patience & time not to mention good timing.

[2delta] 12/7/2007 16:24

Only making it up, LOL or am i

[imprima2] 12/7/2007 16:22

Eurodis had 3 or 4 rescue rights but didnt work. I lost money on that !!