Aeorema Communications Share Discussion Threads

[michaelmouse] 24/10/2015 09:49

It will be interesting to see if AEO mirrors the performance of AVS over the next few years. Certainly there are many parallels.

One or two of you might be interested to pop over to the AVS thread which I initiated in 2009.

The capital appreciation in AVS shares since 2009 has been spectacular, and I can tell you that I haven't sold a single share in all that time since accumulating them when the price was in the mid to low 20s.

Perhaps more importantly is the dividends and special dividends that AVS has paid during that time. My yield on my original investment is around 35% per annum and increasing year on year. In dividends alone my original investment has been returned manifold times.

AEO is a far smaller outfit of course, but with plenty of cash and no debt, it's far from high risk. The market cap. at around £3.5m is undemanding (to say the least) and hopefully the company can demonstrate real growth prospects. While we're waiting there's a 7.5% dividend yield to enjoy anyway(at current SP).

I have been accumulating shares in AEO in the low 30s and around these prices over recent months.

For obvious reasons, I don't declare my interest in a company before I have accumulated at what I feel are rock bottom prices, but equally I would never talk a company down in the hope of influencing others when my motives were simply to supress or depress the share price to buy more for my own financial gain. It is far better to just say nothing and wait until the share price comes to you rather than try and deceive others for your own gain.

"For what shall it profit a man, if he shall gain the whole world, and lose his own soul?"

This should explain why I dislike the dishonesty and lack of integrity of Clocktower and his ilk.

It should also gives you some pointers towards my investment strategy and record. You might like to also pop along to the TRAKM8 thread where I started accumulating shares when they were in the teens.

Good luck with your investing.

Michael.

[old thumper] 24/10/2015 05:25

ramas, Mike Hale must be smiling as the majority of his holding is at 10p so he's on a 33.3% dividend. So if the dividend increases over the years we're all be on huge dividends based on you purchase price rather than the current share price I know my is a lot more than 7.5%, now where's my nearest Primark shop?

[ramas] 23/10/2015 21:09

I think CT has an eye to buy AEO after the dividend in anticipation of a large drop once it does ex div ... Last year you could have taken a decent turn taking this approach , you can do this on a small shareholding without pushing the price and effectively leverage your notional dividend. I cannot do this in size but am very happy to take the current 7.5% yield and believe AEO will perform this year and grow earnings , increase the dividend and thereby share price. Ex dividend is 5th November and I would say it's extremely tempting at today's price and the reason why I have been buying more. AEO has paid dividends for 3 years running now at 7-10% yield and I'd argue its in the best place now for growth with the web, office refresh plus new talent on board. Check out the new additions on the website today and see what they have been up to for their blue chip clients. IMO and dyor always

[themattbarnes] 23/10/2015 19:40

Can't believe CT has been on this board, coming up with bad things to say about this share for a year+! A year!! That's a lot of wasted time!

[ramas] 23/10/2015 18:40

Maybe last years price action ex divi causing some consternation to potential buyers ?

[old thumper] 23/10/2015 14:31

So far everything Mike Hale has said is true and cautious, so reading the Chairman's statement I believe we have a good year ahead, with growth being the key. Backed by the company with a 50% increase in the dividend.

And don't forget the new FY is 4 months old so he already knows how business going on.

[clocktower] 23/10/2015 11:06

I am surprised that the selling continues today, bearing in mind the generous dividend the company will pay. Still it is good for investors like ramas that have been buying for the divi and long term. As for me I am not sure that the effective price of around .36p will be the new low after the divi is paid, if it falls like it has in the past.
However, the daily volumes so far seem to be going back toward normal levels.

[michaelmouse] 23/10/2015 09:29

"it seems it is brought about by poor investment decisions."

LOL. Crawl back under your stone.

[clocktower] 23/10/2015 09:18

Mark1000, As I posted well before results, I had sold all my personal trading stock, as the record shows if you go back to the posts around the time. While I do not take offence I completely refute what the likes of M`s allegations of being corrupt, in fact just the opposite. Still he can think what he likes, it seems it is brought about by poor investment decisions.

Good luck ramas with your purchases.

[michaelmouse] 23/10/2015 08:39

susiebe - No problem. I am sure that the majority of posters do conduct their own research fortunately. However, I do take exception to posters like CT and their duplicitous, self-serving and morally corrupt shenanigans.

Best of luck to you.
Michael.

[susiebe] 23/10/2015 07:51

michaelmousethank you for post 3435 once again shows the importance of DYOR!

[mark1000] 23/10/2015 01:03

ct - do you still own shares here or have you mostly sold out?

[ramas] 22/10/2015 21:20

Fwiw I've been buying in some size today and my stock won't be traded through the ex dividend period. If opportunity presents I'll get some more in coming weeks months target is to double my holding in the view this should be a good year for AEO

[ramas] 22/10/2015 16:09

CT I even do a bit of dividend surfing on bluechips , With AEO there is some risk of getting chopped out especially if there is a new buyer in the wings but hey that's the game. Expect this will run up ahead of ex dividend a few weeks from now

[clocktower] 22/10/2015 16:08

OT it is but a dream! I expect more options will be taken up - result further dilution. It is clear to me why RTI sold out when they did at around 33p because had they done so after this set of results the share price would have really hit the floor.

Expect more volatility now there are more floating shares than 2 years ago.

How many 3%+ holders now - how many 2 years ago?

[old thumper] 22/10/2015 16:02

ramas, perhaps your right but if we end the year with £2.4m and aiming for circa £1.5m in the bank that gives us £900k for divi's 10p per share. Something to dream about.

[clocktower] 22/10/2015 15:52

You hit it on the nail ramas, "Last year the price slumped post ex divi" I see nothing this year that will alter that as the chairman's statement more or less said expect little in H1. So if you are trading the stock rather than leaving as part of your portfolio for example, it will be one for a later date.

Let me pass a thought for you to consider: You have companies offshore that pay no corporation tax, so dividends are good, and it is wise to hold onto the stock as appreciation occurs over a longer period of time as well in general. You have individuals that trade the same stocks that it is not in their interest to receive dividends that just want capitol growth, in fact it harms them if they receive dividends. When errors occur on the part of the private investor, they sell those stocks and the company buys them for the long term. Result = No Tax

I should have added, the company sells after divi - the stock slumps - the PI buys back and in general up they go. Ok on most smaller companies.

This applies to all stocks.

[ramas] 22/10/2015 15:13

OT I think your numbers might be out .... It looks like the website costs are in this year but I think the refurb hits the current years nevertheless the foundations are appear to be in place for real organic growth, big bluechips like live events that are AEOs speciality.
Rereading The chairmans report it's quite optimistic but with the cautious approach we are used to. I think there is a very good chance for a big deal in the coming months
Last year the price slumped post ex divi but it's a tough call this year , maybe with the potential for growth AEO might finally hit the tipsters radar ?

[old thumper] 22/10/2015 14:42

The cash is down by £70k however this would had been hit by website £50k?, office refurb £100k? + 5p dividend last year £450k = £530k cash earned last year.

So if we earn £530k this year, with £50k no website + £100k no refurb + £170k smaller divi = £850k which means the cash should be around at £2.4m, umm!

[ramas] 22/10/2015 14:15

Agm is on Monday 23 November 10.30am

[clocktower] 22/10/2015 11:48

Agreed ramas.
Thanks M - you too.

[ramas] 22/10/2015 11:37

CT I'm with TW on GBO and think it stinks .... We will see I'll close at 10p and accept it might bounce back if the accounts are real. AEO lets see what the market decides in the coming days personally I'm pleased for another 10%+ dividend year at my buy price 15% and I'll watch the trading with interest maybe buy if the price gets silly :P

[michaelmouse] 22/10/2015 11:33

I wish you well clocktower. :)

Michael.

[clocktower] 22/10/2015 11:25

Mark that folks! No hard feelings Michael.