Aeorema Communications Share Discussion Threads

[michaelmouse] 01/8/2018 18:40:44

It's very cheap now, and you haven't got clue what I may or may not be doing now or in the future. :) I've already said first stop 50p, but if things go well then much higher in future.

How's ZIN going? You must be at least 75% down on that one? I remember you were very keen when it was TAL. ;) Oops!

[clocktower] 01/8/2018 18:22:47

Clearly you cannot think it is cheap now then, or you would not wait around for them to hit what could be a re-entry point for others. :-)

Good Luck

[michaelmouse] 01/8/2018 18:21:40

BTW illiquid stocks move so quickly up or down on such small volumes. How about that eh? ;)

[michaelmouse] 01/8/2018 18:19:32

Isn't it you that wants or predicts that the share price is going to fall further? All I've said is that if it does I'll buy more. I'm waiting for a much higher price before selling any though. How about you?

[clocktower] 01/8/2018 18:11:46

If you think it is such a bargain, then I would not wait around wishing it to fall further just to be able to buy more, as someone else might, and you will miss the boat again.

[michaelmouse] 01/8/2018 18:02:43

Let's hope so clocktower and then I can buy even more at a very cheap price.

[clocktower] 01/8/2018 13:58:44

Seems to me this is heading back towards its levels that it has been at for most of the year. Unless a major holder increases their stake again, I think that holders that are bored will just move on and the share price will drift once again to it`s general support level.

[michaelmouse] 26/7/2018 20:02:42

Nice bounce after a very short bout of profit taking this morning (as predicted). The 30p mark was proving to be a resistance level. My guess is that it'll now be a support level. 50p coming in the medium term.

Growth has kicked in now which is and will be aided and abetted by their new initiatives.

The trading statement makes some very key points:-

1) The blue chip client base is expanding.

2) New initiatives are rapidly gaining traction and can be rolled out to existing clients as well as drawing in new clients.

3) The cash position and balance sheet are very strong.

4) The dividend has been increased by 50% despite the company having a greater focus on growth.

and

5) In their own words, "Looking ahead, the Company anticipates a similarly positive performance for the upcoming year as it continues to build upon on its position as an industry-leading, profitable, dividend-paying business with an illustrious blue-chip client base."

Then again who wants to invest in a industry-leading, profitable, dividend-paying business with an illustrious blue-chip client base valued at less than £3m? Perish the thought eh? ;)

[clocktower] 26/7/2018 19:38:10

LOL - Boffster - I note you have not answered all questions raised.:-)

I am sure it is not a horror story but not likely to be a shooting star either.

Any accountant can adjust the accounts, to help fit the picture and chuck in the kitchen sink in any set of accounts, or retain goodwill for example to be written off at will sometime in the future.

I would rather have thousands of customers providing 99% of the £4.7 million turnover than a few providing over 40% of the turnover.Which is it Boffster?

Lets just see what happens in the next few months.

[boffster] 26/7/2018 19:20:43

Not sure if do not know how a business works or are just being recalcitrant. The cash a bank will fluctuate - quite a bit - as bills are paid and payments are received.. these could be on 90 day terms or more. When money is owed to the co. it is a receivable. When the co. owes money it is a payable and it is all on the balance sheet. I would hope you know all this. I would expect in the full year results to show net assets (i.e. cash + receivables - payables) broadly similar to last year due to exceptionals consuming most of this year's operating profits. If the final results reveal some sort of horror then I'll apologise but I very much doubt they shall.

You are right, business could decline. Can you not say the same about any company? All investments carry some risk. Do you invest in anything? Or are your pennies all in national savings, leaving you with nothing to worry about than troll around here? :o)

[clocktower] 26/7/2018 19:08:45

One more thing came to mind for average PI to consider: If they want to raise funds to buy another business - a shareholder owning 10% of the company is one of the first to usually be offered stock at a discount in any rights issue or any form of funding, in most cases.

I notice they never provided a date when they will publish the audited full year results, so that could be a while away, in view of the information they have already provided.

[clocktower] 26/7/2018 18:54:35

Fact:Taken from the RNS.

"Alongside this, the Company has maintained its strong cash position with £1,446,562 in the bank as at 30 June 2018 (£1,897,212 at 30 June 2017)."

You can manipulate figures at times to fit into what you want but the FACT remains that there is around £450,000.00 less cash in the bank as of 30.06.18 compared the sum that was there at 30.06.17.

Do you remember when the sudden change occurred last time out of the blue - as you 100% sure through no fault of their own that things could go haywire over the next 11 months?

Boffster, as you know the BoD so well can you tell us how many customers accounts make up around 50% of turnover?

Still, as I said good luck if you invested here - I wish you well but I am entitled to express my view folks, as is one share that I have punted well with over the years. As I said I was surprised by the positive RNS yesterday, at first sight but when I started to look at the fact that the full year figures are going to show a sizeable loss - things did not look so bright after all.

Who is to say the directors will not start to take bigger salaries in the coming 11 months, leaving a squeeze on returnable profits.

At least Mr Hicking is picking up stock and supporting the price, are you JH Boffster?

[michaelmouse] 26/7/2018 15:26:23

Jonathan Hicking increased his stake by a further 1%.

[zico01] 26/7/2018 15:01:28

clocktower :

You don't like this company anymore for what ever reason MOVE on.
No one's asking you to invest your money .
According to T/S it has had strong final qtr, this bodes well for the current year.

[boffster] 26/7/2018 14:11:31

So you're expecting some more exceptionals to come out the woodwork then are you? Because last time I checked, 280k was a bigger number than 230k.

Ps. use of capital letters doesn't make your scaremongering any more... erm.. scary.

You know as well as I do that cash at bank is only part of the story and one needs to examine the balance sheet to get the full picture. Liabilities last year were high, which flattered the cash figure somewhat. The company's cash at bank has improved £400k since the interims. Net assets had fallen £170k at the interims vs the full year, which is in line with the exceptional payout.

I'm well connected with this company, been to the AGM, spoke with the management, including the chairman who holds a near 20% stake and takes very little in the way of salary. I haven't seen or heard anything which would make me sympathise with your rather suspicious viewpoint..

[clocktower] 26/7/2018 13:28:29

The dividend is nothing more than a sweetie to induce the children - known as a Sucker Sweet imo.

Each to their own. Good Luck is your buying or holding.

[clocktower] 26/7/2018 13:22:10

Exceptional or not the bottom line will be RED and who is to say there will not be more of those in the coming year - unexpected of course.

In addition what do you have to say about the drop in the cash in the Bank bearing in mind the operating profit.

Look at what that adds up too.

BIG RED LINES. BEWARE of false promises, nothing is certain other than death and taxes.

Are the company looking for staff by the way?

[boffster] 26/7/2018 13:11:58

From the interims:
"Costs associated with the change of management generated exceptional items of GBP231,357"

From the trading update:
"operating profit pre-exceptional items of over GBP280,000"

I'd suggest taking anything our resident scaremongerer says with a large pinch of salt.

The payments were to the old directors / major shareholders as some sort of golden goodbye as far as I can gather. There is nothing that would make me think that these are not genuine exceptionals.

[clocktower] 26/7/2018 12:58:52

What you have to worry about zico01, is how few customers pay the bulk of that turnover. If they were to lose even two or three of those big clients, things could change rapidly imo.

How will Brexit effect them?

Wait until the full accounts are released - then the news will be AEO in the RED (due to one off costs), you know the reaction to that sort of headline. I doubt if there will be many Cheeful Scouts (Twentyfirst)around that day.

As for 50p - my guess is you will get two or three shares for that before the year is out.

Best of Luck

[zico01] 26/7/2018 12:25:23

Very undervalued will get re rated to at least 50p pretty quickly :

50% increase in dividend to 0.75p
T/O increased to at least £4.7 million
strong finish to the year
£1.5 million cash no debt
confident for current year
mkt cap of only £2.9 million

[ant111] 26/7/2018 11:28:45

The BELLEND of the clocktower

[clocktower] 26/7/2018 10:39:34

Wait till sell off Friday susiebe. One step up, two steps back next week maybe.

So, the so called one off costs must be pretty weighty I guess, bearing in mind the drop in cash.

Going forward the " Company anticipates a similarly positive performance for the upcoming year" only expects a similar year next 2018/2019 not a better year, so not very encouraging, when you look at it`s historical profits. DYOR

[cheshire man] 26/7/2018 10:04:40

Rebounding now I see :-)

[susiebe] 26/7/2018 09:45:53

After clocktowers post I might as well pack up shares and put the cash in my bank ac.FACT This company is thriving.That is plain to see from the RNS.This am is a short term reaction as some cant hold a share for 5 mins.I fully expect a share price in the 50/60s by end of year.