Aeorema Communications Share Discussion Threads

[clocktower] 26/7/2018 12:22

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 12:11

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 11:58

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 11:25

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 10:28

The BELLEND of the clocktower

[clocktower] 26/7/2018 09:39

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 09:04

Rebounding now I see :-)

[susiebe] 26/7/2018 08:45

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.

[dave4545] 26/7/2018 08:45

Love it when the idiot traders bail for a loss through impatience then the price jumps back up higher afterwards.

Sooner they are all wiped out the better.

[clocktower] 26/7/2018 08:23

Surprised to see the fall today, however one has to look at the base line, which will show all the so called exceptional costs along with the fact that the balance in the bank as of 30.06.18 compared to 30.06.17 has dropped by around £450k. This I suspect was the reason for the RNS at the time is was yesterday.

The timing of receipts and payments might have made this look better than it really is imo.

Their stated ambitions are also a concern, as they could do a deal that causes dilution at some point, or raise funds for an acquisition.

Good Luck though but I cannot see these recovering and may well struggle to stay in the 25/30p range. DYOR.

[michaelmouse] 26/7/2018 07:59

I do expect this to bounce later and start to form a base. Once the stale bulls and day traders depart then I expect the share price to march towards 50p medium term.

[michaelmouse] 26/7/2018 07:56

Sadly, it's what you get when a bull market is long in the tooth. Lots of newbies that think that they've gonna make millions trading. As I previously said, the value/growth stocks always win in the end, and the day traders gradually disappear into the ether when the momentum/story stocks start to go south.

Patience and lots of it needed in the meantime.

Great trading update yesterday and that's what's important in the long run.

[dave4545] 26/7/2018 07:47

11319 paid 34.349 just sold for 29.3p

£580 loss

5670 paid 32.28p sells for 28.90p

That's the market, people chasing spikes then selling for big losses, nobody risks buying these stocks before the good news though and they cannot bare
to leave their money in a stock that might go quiet for a while.

[dave4545] 26/7/2018 07:32

11245 paid 32.7p sold for 29.15p
1305 paid 33.1p sold for 31p

The get rich quick herd, play the biggest % riser then bail, plenty of other trades will match. Like I said this market has become a crazy ponzi, it's hard to have momentum for more than 1-2 days

[cheshire man] 26/7/2018 07:10

Missed the late RNS yesterday excellent TU from AEO happy to hold onto this one :-)

[bigfrocks] 26/7/2018 05:32

How's that tail clocktower? You haven't tripped over it yet?

[boffster] 25/7/2018 22:28

At these sort of prices I'm happy to just sit on my shareholding and cop the dividend. The dividend is covered around 4 times so there's plenty of scope to increase it, or maybe even do a small scale share buyback. For now, I've no issue with management saving their pennies in order to make the right acquisiton, and I absolutely agree that they should wait for the right opportunity at the right price, rather than just buying anything, particularly whilst we have strong organic growth.

[dave4545] 25/7/2018 21:05

mm

I'm not knocking these at all, the stock represents excellent value. It always did.
I'm just saying this penny market has become all ponzi, not many investors out there just 99% traders all wanting a fast buck piling into stocks with good news and then getting out just as quick. I have stocks all over my monitor that punters could not buy quick enough 50% higher just a few weeks ago and now they are dead. That is the penny share market. If a stock is traditionally a quiet stock with not many Rns's apart from interims and finals then people might not want to leave their money in it for a long time so perhaps it could spike and then drift back. We shall see

[ramas] 25/7/2018 19:19

On this we agree mm , still in AEO with all my free shares paid for by previous dividends , if we get a better outlook which has always been put forward as a blocker then this could go places over time , those 18p buyers cannot believe their luck no doubt and I'm trying not to be too bitter ........

[michaelmouse] 25/7/2018 17:48

In the long run dave4545, the financials/fundamentals of a company are the true driver of the share price and the "ponzi" schemes eventually collapse often overnight.

AEO has an excellent balance sheet with no debt, and the trading statement released at 3:30 today was very welcome indeed. Growth is being achieved, they're generating good FCF and the dividend has been improved by 50%.

They've been very clear with their figures which I like, and they appear confident for the year ahead. New initiatives are also bearing fruit.

The momentum they've achieved in the business growth will ultimately lead to momentum in the share price.

Anyway, each to their own!!

[michaelmouse] 25/7/2018 17:21

LOL. You follow the ponzi schemes then Dave. I'll stick with AEO. Highest riser today, hugely undervalued and plenty of momentum to come.

[dave4545] 25/7/2018 16:09

Good update.

Problem with this market is it's all ponzi so stale holders will use the rise to escape and new buyers will only hold for 1/2 days max so tomorrow morning might be
a good chance to escape with a little bit more before it all goes quiet again for a few months.

Not negative. I think it should be valued higher but this market does not recognise
that any more in small caps. It's all about momentum.

[fozzie] 25/7/2018 15:48

Great update, gave the porty a nice little push in the last hour, well done AEO 👏🏻

[kaur70] 25/7/2018 15:32

Fabulous update
All growth! Onwards and upwards

[michaelmouse] 25/7/2018 15:25

Written in November last year:-



AEO appear to be delivering on that promise. Excellent, well done to their staff and management!