Aeorema Communications Share Discussion Threads

[themattbarnes] 14/10/2015 15:16

as a company they could do with a bigger presence, whether thats office, website or social media.

i know AEO was formally cheerful scout, and their selling website appears to be cheerful twentyfirst, but the amount of updates there, a stale twitter account etc etc seems a shame.

[ramas] 14/10/2015 14:48

You and me CT are the proverbial ying and yang , half full / empty we will know soon enough I guess. I am with you on TAL and an early bird there, and I'll certainly buy more on weakness not from AEO funds I hasten to add......

[clocktower] 14/10/2015 13:53

ramas, when you talk about office upgrades, this is often done to impress clients because business is tailing off and this can be a step to inject new life into a company that is suffering from a slump in sales and to try to reinvigorate the staff.

Here we are the 14.10.15 last years results were on the 16th, so maybe they will do a late Friday afternoon job if the results are not living up to what we have expected.

The current share price does not bode well imo, and in view of the volumes running up towards these results it seems there have been pretty large sellers since this stock hit 37-39p several months ago. When you consider this,it has not moved as high as I would have expected if the news results were going to be truly exciting.

Also, the new staff will have not hit the ground running so there maybe some costs associated with hiring fresh blood.

I am turning to the side of caution having sold the balance of my trading stock in AEO. Still good for the long term and as part of a portfolio imo.

I am banking on buying trading stock at lower levels that the current share price but ready to move on if that will not be the case.

STL has been outstanding this year and looking forward to TAL perking up.

Good luck.

[drmaccers] 14/10/2015 10:07

I've bought in for results. With a bit of luck they will be even better than they predicted. Surely they would air on the side of caution so they can beat expectations?!

[old thumper] 14/10/2015 09:58

It's always a bore waiting results but the longer they take the gap until the next result will be reduced. (best thing I could think up)

Tue/Wed and Thurs are the favourites for results, so perhaps we'll see something tomorrow.

[ramas] 14/10/2015 08:50

It's probably worth noting businesses are not in the habit of spending hard earned profits on an office refurbishment just to make it look prettier , it's about improved efficiency, productivity, client visits, flexibility. I suspect they have had to turn business away in the past.

[themattbarnes] 13/10/2015 13:49

Good points OT.

i suppose i was more thinking from a sum of the parts point of view, not the client list etc.

Either way, so results soon will be nice, turning a decent profit is rare on AIM! And no harm in some name dropping of major clients!

[old thumper] 13/10/2015 13:21

Matt, With nearly 60% of the shares held by the board why would they even look at anything less than £1.

But the company is more than assets, P/E, dividends, it's a established company with a known name and a good list of clients. From scratch that would take 5-10 years to match.

As for the MM's, they're keen to buy but not to sell, it's their time to sweat :-)

[themattbarnes] 13/10/2015 12:26

price dropped on no sells. MM's trying to get hold of some stock i would suggest.

[themattbarnes] 13/10/2015 10:47

i like blue sky as much as anyone but would like to hear your reasonings behind a £9.4m company valuation.

Thanks.

[old thumper] 13/10/2015 10:11

A small company like this with clients with big names is a bit like a junior gold miner, a new name to the client list will make a big change to the SP

At the current share price for a takeover we're free for the buyer, even at a £1 it's dirt cheap.

[ramas] 13/10/2015 09:15

It's good to put balance into a stock discussion. As mentioned before by you or OT there is more stock bubbling around these days by I suspect less analytical and more trading type minds. The volumes don't concern me and suggest it's nothing more than 30% flippers , maybe even TBM is still hovering about ?
Each time we get to 30p I am compelled to buy because in my opinion the company is being valued at zero, but we will see in a few days time where the current finances are.
edit: good results pending of course a conservative value imo is an asset adjusted pe of 10 making around 60p a share. this factors nothing in for growth - crack this nut and the share would fly - for example a big multiyear deal

[clocktower] 13/10/2015 08:00

I hope it is you ramas, in the past I always got it wrong as Sparky liked to point out but it seemed to have done Sparky the world of good, so I guess a happy bunny.
Have a great day with the buzz in the air.

[ramas] 12/10/2015 20:40

.... Unlikely SG gets a large payout I suspect the termination was within a notice and agreeable performance period. I also have wondered re the seller but For this I observe Mike Hales position and buying through the year. Website costs and office refurb will likely be very tax efficient speaking here as an accountant and I don't expect much impact to the profits other than beneficially to us all. Dividend wise I believe the directors want to draw income so I agree a special unlikely but 2 to 3 p dividend. Hope you have not been selling too many CT anyway I guess we now wait for the final results to see who is nearest actuality

[clocktower] 12/10/2015 17:38

Well that was a turn up for the books. Largest volume we have seen for a while.

Maybe it will rocket towards the £1, like the last occasions when I posted negative comments ramas. :-)

So here goes:- Caution should be exercised because of ramas ramping the stock over a long period of time.

Caution should be the word to the weary, as we had a poster on the thread warning that they thought it was better to be short (posted when the share price was around 33p,about a month or two ago,I seem to recall).

Caution because it unlikely that any special dividend will be paid this year as money has been spent re-furbishing the offices and on a new website.

Extreme Caution should be shown, as there might have been a big payout made to SG to terminate his contract, that would be shown as a exceptional expenses, and
although the last profits signal was flagged at not less than £350k - it might not have taken a large one off payment into account that would impact the bottom line.

There are dozens of other reasons I could suggest why caution should be shown that would result in the company not being in such a happy position as it was last year, due to one off costs but has allowed the company to say that trading profits will exceed £350K.

Imagine if a number of one off costs had disseminated the whole years profit and the company was showing a loss, even though there was a large cash balance in the bank but they wanted to hang onto this and not pay a dividend this year, what price the share price then?

What if they had suffered a loss of contracts and one large client failed to pay their bill?

Now ramas, its is clear to see that if someone had a lot of stock to sell they would be ramping it before these results to unload as many as they possible can, hence the reason the stock has not climbed higher before as it was being sold down in manageable bunches and now we see a last ditch attempt on social media to ramp it to just get the rest of any holding away.

Sleep well if you purchased stock today!!! :-)

DYOR no advice intended. lol

[themattbarnes] 12/10/2015 17:14

Thanks Ramas,

found it now.

For anyone else looking:

effective valuation of £700k 8pence.

making expected £350k+ 3.5 pence profit this year -
that's a bonkers pe of around 2.

The 8p derived as follows
40p less cash 17p
less DT asset 10p
less aim cash shell value 5p
makes 8 pence for the core business. Roll on results day next week and imodyor.

[ramas] 12/10/2015 16:50

Matt you can see my previous posts that get to a pe of 2 , basically netting the cash, deferred tax asset and notional aim listing valuation if AEO were a shell company

[themattbarnes] 12/10/2015 16:14

Ramas, sorry stupid question.

what calc are you using to get PE of 2?

[ramas] 12/10/2015 15:55

Don't mind me I'm just a cynical bull , debt free effective pe of 2 maybe a little more now what's not to like, been here 3 years likely stay until WPP or similar buy them and until then will enjoy the dividend ride. DYOR of course

[ileeman] 12/10/2015 15:25

Not being pumped, just mentioned a few times on twitter due to results this week.

Still fresh buyers coming in.

[a2584728] 12/10/2015 15:24

Pump and dump is BS and doesn't work, much happier now.

[ramas] 12/10/2015 14:56

I can't take all this pump,n hopefully not dump excitement , guess better enjoy it before we settle back to inate boredom for the other 11.5 months lol ......

[1ravls] 12/10/2015 14:49

Exactly 45min ago lol

[1ravls] 12/10/2015 14:47

Beware pumped by the Twitter gang.Lol

[ileeman] 12/10/2015 14:46

About to break the previous high.


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