Alpha Share Discussion Threads

[ihatemms] 10/10/2023 20:01

Wjccghcc- the interest on client cash will add about £85m to the cash pile this year alone ( it did £33m in H1 this year) !!Next year it will probably add about £125m to the cash pile ( estimated average client balances of 2.5b @ circa 5%) !!. You can find the quarterly cash balance and % on their website.

[wjccghcc] 10/10/2023 18:48

The company and Stockopedia don't include Other Income (effectively interest income) in the forecasts as they have no control over interest rates. On Liberum forecasts, the underlying PE is 26 and the actual PE is 10.

Personally, I think some credit should be given to the other income since it still adds 30mm to the cash pile each year. And if interest rates stay higher for longer...

[mrscruff] 10/10/2023 14:37

Stockapedia and MorningStar claims ALPH has a P/E of 27.65 yet others like TradingView and Yahoo have a P/E of under 15 that seems way too cheap. 27.65 should be about right. Can someone please confirm?

[mrscruff] 08/10/2023 19:46

Useful to be in cash! I presume the lower P/E (in comparison to similar high growth level companies) is as a result of long term rates being lower than current rates. However, if we presume rates stay higher for longer around 4 percent mark then ALPH is still extremely good value for growing.

[cambridge130] 07/10/2023 13:26

Alpha will have over £350 million in cash within 2 years at this rate

[mrscruff] 06/10/2023 09:38

This hit the bottom trend line yesterday so I have opened a new small initial position here for the long run. Given rates may stay high for longer, this has to be the fastest growth investment on AIM up there in quality with Bank of Georgia also benefiting from higher rates and low or no debt?

[bulltradept] 05/10/2023 10:36

Look at the daily chart. Now @ £18 :-)

[ali47fish] 29/9/2023 12:56

built what do you mean

[bulltradept] 29/9/2023 08:48

Double top at £22.80. Buy at under £18?

[wjccghcc] 28/9/2023 23:39

It's only approx 10% of his holding so probably not.

[ali47fish] 28/9/2023 19:03

any significance of the ceo transferring to family and selling to institutions

[kalai1] 13/9/2023 13:05

Alpha Group International plc posted unaudited Interims for the HY ended 30th June this morning. Group revenue increased by 20% to £55m, underlying profit before tax was up 9% to £19.6m and on a statutory basis increased 194% to £52.4m. Basic earnings per share was up 163% to 87.8p. The balance sheet remains strong with adjusted net cash increasing 25% in six months to over £142m. Valuation remains something of a headwind with forward PE ratio a 26.1x bottom quartile for the IB&IS sector, the share price also lacks momentum and continues to drift sideways in a 2-year range. The business is solid, profitable and has longer run growth potential, but ALPH remains a share to monitor for the time being...

...from WealthOracle

[mysteronz] 13/9/2023 12:13

That’s disappointing i agree - it slipped my mind.

Not part of my investing thesis but hopefully they are progressing that in time. It will come when it comes

[sailorsam1] 13/9/2023 12:12

Excellent results. Strange market reaction

[ihatemms] 13/9/2023 10:14

We were promised (in March 2023)an update on the main market listing on the interim statement date. Can’t see it mentioned today in the report? That’s a bit disappointing.

[mysteronz] 13/9/2023 09:06

Great update, throwing off cash, macros challenges but will unwind and the business is doing all it can to make sure it is ready to take advantage.

Recruiting, technology improvements and continuing to add new revenue streams.

This business will be huge (and is now) amazed at the different, and complementary things they are doing. Cobase, fund finance on top of international fx office.

[ali47fish] 13/9/2023 08:38

today's update sounded good share price down 5pc - any views

[sailorsam1] 12/9/2023 08:13

Looks a good deal. Should be lots of cross sell opportunity

[johnrxx99] 05/9/2023 05:37

Sharescope says interims today but unconfirmed. Does anyone have info?

[datait2] 14/8/2023 21:34

this has been posted before on LSE but worth a read--


www.citibank.com/tts/sa/2205370-alpha-case-study/Alpha-Case-Study.pdf

[datait2] 14/8/2023 21:00

Morningstar state--
The operating segments are Corporate London, Institutional, Corporate Toronto, Corporate Amsterdam and Alpha Pay It blends intelligent human capabilities with new technologies to solve complex problems across three key areas: FX risk management, global accounts and mass payments.

I like the ROE and the ROA and the gross and net margins.
A high gross margin business will always be a high gross margin business
Charlie Munger says the ROE is overall what a company can give back to its shareholders.

Alpha has ROA of 14%, ROE of 30%, gross margins of 75% and net margins of 40%.
what alpha need now is to keep revenues as high as they can for as long as they can.
new business ideas such as fund finance is one of those methods.

[datait2] 14/8/2023 20:51

I know they are changing their computer legacy system, with salesforce software. I say they are not expensive on an earnings per share ratio , they are certainly cheap compared to US stocks.
They do have a large TAM they can access , I like their new fund finance service. A lot of UK institutes own alpha, very little retail. We await alpha to access more tracker funds to own it and get away from AIM, get more funds from abroad to own alpha.
I would say its a well run business in which the owners are in it for a long time, especially with 30% of staff being shareholders.
"I am proud that the operational progress and investments that we have continued to make during this period remain very much long-term focussed." was a comment from the CEO in the latest earnings update.

[maddox] 14/8/2023 15:29

Hi datait,

Alpha have deployed tech to reduce the mundane processes and enhance the service to clients. However, Alpha's type of clients like 'high-touch' client care - so you need to get the balance correct.

I've bought in recently - but it took me a long time to get here as I couldn't identify what their edge was - that justified the valuation. So sample of one - but I may not be alone in not immediately seeing the differentiator.

Regards Maddox

[datait2] 14/8/2023 10:40

motley fool giving us a bull/ bear feature today--

[datait2] 14/8/2023 10:27

I notice we are around a p/s ratio of say 10 which is high, but a p/e ratio of around 20 which is low. ( compared to other financial service industry stocks)which do you think is more influential and more important to work out if we are under or over or correctly valued.
I think alpha should up its rev growth, cos normally rev growth and earnings should run at the same rate.