Aeorema Communications Share Discussion Threads

[michaelmouse] 14/11/2017 13:13

At the current 30p share price the market cap. is around £2.8m. However, if you strip out the near £1.9m cash from the balance sheet then AEO can be snapped up for a laughable £907,937.

Stripping out the cash means a potential buyer gets a profitable cash generative company for less than a million quid on a p/e ratio of around 4. If AEO was a heavily loss making cash guzzler then possibly you could make a bear argument. However, given that it made a profit of £211,000 and generated cash of £750,000 in the last 6 months then that makes it no brainer to buy doesn't it?

In fact, I'd suggest that AEO's share price needs to rise substantially and/or they need to deploy some of the cash quickly and effectively otherwise AEO won't be the predator. At the moment at this lowly valuation it's a sitting duck imo.

[boffster] 14/11/2017 12:51

You are a little tinker!

[clocktower] 14/11/2017 12:47

Boffster, always good to ride a roll-a-coaster. :-)

Make sure you bail out before the big dip!

[boffster] 14/11/2017 12:35

So today you're a bull then, right?

[clocktower] 14/11/2017 12:13

Stock being driven up to prepare for a cash call to make an acquisition maybe? Could it go towards 40p ?

[dave4545] 14/11/2017 12:08

Big reversal in place but who on earth could sell at 25p bid after those results just makes no logic or sense to bail unless they wanted the money for a more fast moving play.

Delayed buy in the system maybe because mm's have gone 28p bid but 28p has only been
paid for 5000 shares so far.

[clocktower] 13/11/2017 15:29

LOL - They would have been laughing their socks off if they had sold any thing over 75p PJ1 and found better fishing grounds for their rewards. More to the point will this now become another of those AIM companies that works for the board of directors and major investors rather than a fair balance between one and all?

[pj 1] 13/11/2017 15:16

Long Term, anyone who bought before Sept 2013 is/are probably laughing their socks off.....

[clocktower] 13/11/2017 15:13

PJ1 - They did not take excessive salaries and the dividends supported the stock price, for those that were looking for income rather that capitol growth by way of an increasing stock price. When you look at the decline in the share price from around 90p the dividends would not have made up for the losses suffered by those that purchased anything near that price.

[pj 1] 13/11/2017 14:52

No the previous Team had no definitive plans for consistent growth. It was totally a lifestyle Business hence the high dividend imo. To be fair those dividends must be considerable over the years for anyone who has held long term.

It will be very interesting to see how the Business develops from here.

[clocktower] 13/11/2017 14:46

Were they not always aiming for growth? Maybe it was a case of the previous leaders, whom always seemed to me to have pretty high moral standards and not wanting to dilute small stakeholders by taking chances or raising cash to take a gamble that they could profit from consolidation or the like, rather than from having a team that can build from the strong base they established.

[michaelmouse] 13/11/2017 13:38

Nice to see you here Glasshalfull.

clocktower - If you read the report you'll see that they've changed strategy and are going for growth. Generating cash is clearly not a problem since they added £750,000 to the balance sheet in the past 6 months. In fact they could easily have paid a 5p dividend if they so wished and still have kept £1.2m cash on the balance sheet.

If they employ the cash wisely to generate growth then the capital gains will far exceed anything they could have paid out in dividends.

As is it, I'm excited by the prospects now. Good growth with a small dividend thrown in is always very appealing to me.

[clocktower] 13/11/2017 11:47

At this price the dividend is not very appealing either, and bearing in mind what the company have said, it is unlikely to offer any special dividends, as they have in the past. With the spreed so wide there is little room to make a turn, if trading this stock now. However, Good Luck if your staying invested here.

[glasshalfull] 13/11/2017 11:04

...or those investors may be perfectly happy to stay invested here!

£2.5m mkt cap & company have £1.9m cash on the balance sheet. Underlying PBT £500k once Imaginerium investment stripped & also the salaries of departing Directors.

I agree with michaelmouse.

Kind regards
GHF

[clocktower] 13/11/2017 08:31

MM keeping the spread wide, as there is so much stock out there that investors picked up for what now looks like a song. Those investors might now be willing to take profits and move on for another quick turn or possibly putting up more cash here (at a discount), if they have a target in mind.

[michaelamouse] 12/11/2017 13:07

Case studies into the mind of michaelmouses investment philosophy where even investing in KNOWN FRAUDS is not off limits.

Michaelmouses is so arrogant he ignores verifiable facts about two frauds, Avanti and INTQ. Instead he ramped them both. AVN languishes around 8p a 250p fall from his 270p and 115p purchases. INTQ had to be written off by hapless TOSCA.

I am all for a sensible, honest open debate for either bear or bull case. However, I have come to learn michaelmouse is a special case with a very clear agenda. He posts misinformation, employs scare tactics, like the 5p placing on the NIPT thread this week. OPTI investors have heard this nonsense before. He creates his own set of account along with fictitious cash-burn figures. He attempts to come across as some sort of investment guru, preying on the less knowledgeable, or new PI.

I set this thread up to demonstrate the folly in michaelmouses that is his own self deluded importance. "unfortunately for you people do listen to me." That is a direct quote from the NIPT thread. Unfortunately, if that statement is true he may well have cost investors money. Put it this way, had anyone followed his buy tips on his blog or "buy for the brave" on the AVN threads, they would have lost money on a sickening consistent regularity. Had they a mind to do the opposite, they would have made money. I will demonstrate this here in an effort to warn of his danger, spite, agenda.

He may frantically run around editing his posts and blog!

Some of michaelmouses pearls of wisdom.

"I bought shares in Avanti around the £2.60 mark,(he bought more at 115p) and this investment has fluctuated between profit and loss since I have held them" Well, it's certainly cleared that up....(it's a loss then - elric edit) Better not mention ANGLE, Eh!

hxxp://michae1mouse.blogspot.co.uk/2013/07/a-week-of-mixed-fortunes-for-two.html


Michaelmouse has been ramping a KNOWN FRAUD since July 2013. This is a big clue as to why he trolls TW/SP because they were bulls of Avanti until their CEO ramped the share with a price target of £25 when they were c£5. The CEO promptly sold a huge chunk of them hours later. The slide continues today. Of course, michaelmouse is not mouse enough to admit he got suckered, so he blames every blogger for his own poor management of his own investment.

It wasn't just Avanti either. He got suckered into another fraud, INTQ, BUT TOSCA saved him from losing ALL of his money before it went to Op by buying it out, only having to write the whole investment off 12 months later.



michaelmouse - 05 Aug 2016 - 13:06:23 - 3102 of 3496 Avanti Communications-Satellite Data Communication Services now Growing Revenue - AVN
More to come? Let's see in due course.

One thing is for sure. If the share price keeps on rising then even a fund raising is far less dilutive and more attractive?
michaelmouse - 05 Aug 2016 - 13:03:28 - 3101 of 3496 Avanti Communications-Satellite Data Communication Services now Growing Revenue - AVN
Yep, it is all speculation at this point, but the RNS is interesting since given the rumours about a bid it certainly doesn't deny them.

When this fell to the 20s, I said it may be one for the brave. It certainly has been. Speculators have had a chance to double their money. (and 48p you little liar - Elric edit)

michaelmouse - 05 Aug 2016 - 08:07:33 - 3054 of 3496 Avanti Communications-Satellite Data Communication Services now Growing Revenue - AVN
Flown through 50p. Next stop 60p?

michaelmouse - 05 Aug 2016 - 07:52:27 - 3052 of 3496 Avanti Communications-Satellite Data Communication Services now Growing Revenue - AVN
It looks set to go crashing through 50p? (yeah right - how is that going with margins crashing almost month by month - Elric edit)

michaelmouse - 05 Aug 2016 - 07:31:16 - 3050 of 3496 Avanti Communications-Satellite Data Communication Services now Growing Revenue - AVN
The thing is you wouldn't want to be short over the weekend. Imagine a press release on Sunday saying that a bid of, let's say, £1.50+ had been tabled. (well that didn't happen did it - Elric edit)


Reminds me of INTQ. Share price trashed by the usual suspects, but if you'd got in towards the lows it then multi-bagged 3/4 fold. (the fraud you claim is not a fraud - how did that turn out for TOSCA?)

michaelmouse - 05 Aug 2016 - 07:20:24 - 3043 of 3496 Avanti Communications-Satellite Data Communication Services now Growing Revenue - AVN
Have you ever seen anything like it? Shorters desperately competing with buyers to get some stock. It's a sight to behold. (Thankfully, there's not CGT via SB so this shorter is very happy - Elric edit)

michaelmouse - 05 Aug 2016 - 07:18:03 - 3042 of 3496 Avanti Communications-Satellite Data Communication Services now Growing Revenue - AVN
Infinity and beyond!!!!!! (blackhole and beyond - Elric edit)

michaelmouse - 05 Aug 2016 - 07:12:07 - 3041 of 3496 Avanti Communications-Satellite Data Communication Services now Growing Revenue - AVN
You wouldn't want to be short would you!!!!!!! (not that BS again - you never learn Elric edit)

[michaelmouse] 10/11/2017 15:48

Just as a guide, the vast majority of companies will be valued on a multiple of at least 10 times FCF. AEO currently stands on around 5 times FCF. Even at this stage the market cap should be nearer £4m than the current £2.3m imho.

[clocktower] 10/11/2017 15:45

Nice turn for those privileged few that paid 18p for stock not long ago.

[michaelmouse] 10/11/2017 15:17

The figures are compelling enough but if you look at the Chairman's statement as well, I don't remembering reading anything so upbeat from them in some considerable time.

[michaelmouse] 10/11/2017 15:07

Cheers bigfrocks. I have infinite patience. ;)

[bigfrocks] 10/11/2017 14:57

Yes yes m m good to see you back out the wood work!

[michaelmouse] 10/11/2017 14:55

Wakey wakey rise and shine. £750,000 of FCF in the last six months and £1.8m of cash on the balance sheet ain't 'arf bad for a company valued at £2.3m.

[boffster] 10/11/2017 14:22

I am not an accountant and I do not fully understand that figure but it appears to be payments promised for future years (it says more than one year but less than five years) rather than the rent due each year. Under the operating profit section we can see that premises rent was £91k in 2016 and £91k in 2017. The company have not changed address so I very much doubt they have agreed to a 100% increase in rental costs.

Litten and Fitzpatrick have now gone, so that's £100k+ reduction in salaries.

If you're not happy though please do sell your shares as I'd like to buy them. :)

[clocktower] 10/11/2017 13:44

I checked the website Boffster and have seen the updated list of major stakeholders.

Moving on, the is a big jump in commitments in lease payments: 2016 - £106,167 2017 - 197,167 - So over £90k there alone to cover going forward.

Group Trade and other receivables: Down over £150k between 2016 and 2017 - not a good trend.


Group Trade Payable rocketed from around £663K to £1,012,687

Just the above is enough to be pessimistic let alone other concerns at this moment in time.