Amino Technologies Share Discussion Threads

[caradog] 15/1/2016 11:51

How can ST assume that the sales execution problem has been solved until we have signs of improved sales? Changing personnel and structure is a sign that the company is attempting to sort the problem out, but addressing an issue is not the same as solving it.

[greenknight1] 15/1/2016 07:52

Thanks for that

[cockerhoop] 15/1/2016 07:37

Last couple of paragraphs:

In my view, if both the Entone and Booxmedia acquisitions deliver the sales uplifts as expected, and I understand that Booxmedia won major contracts with Belgian broadcaster RTL and Dutch utilities company DELTA in the second half of last year, then investors are likely to attribute a much higher valuation to the high yielding shares given the prospects for a return to earnings growth and a more stable recurring revenue stream from the enlarged operation.

Clearly, a warning is never good, but I believe the reasons for October’s alert were not structural, simply poor sales execution, something that has been subsequently addressed. I also note that some savvy fund managers have been increasing their shareholdings in the past couple of months including Schroders, Investec, Downing LLP and Kestrel Opportunities. Ahead of the forthcoming full-year results and trading update, I rate Amino’s shares a buy on a bid-offer spread of 116p to 120p and have a revised fair value estimate range between 155p to 160p, representing a 10 per cent ratings discount to Amino’s peer group. Buy.

[greenknight1] 15/1/2016 07:31

I'm a cheap skate and don't subscribe

[greenknight1] 14/1/2016 20:26

Could you post the main points of the article please?

[markie7] 14/1/2016 12:15

big and positive write up by Simon Thompson today - target price 155-160p.

[davr0s] 06/1/2016 14:02

Taken an initial position earlier today - nice chart (now) backed with good buying volume too.

[simon gordon] 16/12/2015 19:41

Paid for broker note from Progressive Research - 3/12/15:

Sales force changes: Management has taken concrete action to address the unsatisfactory sales execution flagged in October. Steve McKay, the former CEO of Entone, will head up an integrated sales effort. Steve has a strong track record in sales having led Entone’s international expansion and secured a number of key Tier-2 customers. In addition, the overall sales effort has been re-focussed, with dedicated teams for Latin America and Europe, with a combined sales force for North America.

[imranawan] 03/12/2015 09:42

Agree Paleje. The only thing I took away from the RNS was that the progressive divi will be retained at least for 2016.

[paleje] 03/12/2015 09:00

Finncap reiterated their 175p buy advice this morning but today's further RNS trading update doesn't offer any clearer or more convincing picture than the last one imo. Without defining what the actual sales problem was, and how in practical terms it has been addressed, how is it possible to form an opinion.

[caradog] 30/10/2015 13:19

As I understand from the RNS of 12/8 and the earlier one about Boox, both acquired companies have elected to take half the deferred costs in cash, amounting to 5.3 million USD approx, so the £4 million you estmate as current cash is largely earmarked for them?

[lignum] 30/10/2015 13:08

Caradog - the announcement at 22 July states:

Initial Consideration of $65.0 million (£41.6 million), payable to Entone Equityholders on Completion, in cash
o Deferred Consideration of $8.0 million (£5.1 million), payable to qualifying Entone Management on the first and second anniversaries of Completion, in cash (of which a proportion will be used to subscribe for the Deferred Consideration Shares)

The H1 cash of £17m was after cash purchase of Boox (small amount of deferred consideration to follow).

[caradog] 30/10/2015 10:23

Do your figures include the deferred sums, due at 1 and 2 yrs relating to both acquisitions?

[lignum] 30/10/2015 09:43

Hyper - if that's the IC article I think they have it wrong. It suggests they have 25p per share in cash. 70 million shares x 25p = £18m cash.

Cash at H1 was £17m and they raised £21m in a rights issue but spent £42m on Entone which held c $12m in net cash at acquisition (say £8m). So after the acquisition net cash would be around £4m - I can't see how they can now have £18m in cash.

[stopps] 30/10/2015 08:41

Price recovery continues.

[shanklin] 30/10/2015 08:38

IMHO, it should not be for us to have to guess what they mean by poor sales execution. Amazed that anybody would think to tip AMO in the current information vacuum on that front.

[rarther] 30/10/2015 08:38

Miton Group have made some terrible trades lately... they caused the price to drop to 80p last year seemingly to liquidise some cash, then bought back after price rose 50%, now they have shed some more weight on price drop and shroders lapping it up

[paleje] 30/10/2015 07:55

I suppose it all depends on exactly what they meant by sales execution and the reasons for it, the information provided was inadequate. IC say "It doesn't reflect a lack of demand" but how do they know that? If they're right, it might be operational or administrative issues which are soon rectifiable.

It would be safer to wait for more information even though the dip is tempting.

[caradog] 29/10/2015 23:02

Both IC and Shares magazine issued a buy recommendation today after the latest drop. Seems a bit premature to me but brave holders may feel reassured.

[buffythebuffoon] 29/10/2015 21:57

Poor sales execution?

A friend of mine sold overpriced (in my opinion) cotton tee shirts from India in the early nineties. Don't you know it, his sales team (him) also suffered from poor sales execution.

When someone wants to buy, sales execution isn't usually a problem..... regardless of how technical the field one is selling in...

Buffy

[speedsgh] 29/10/2015 19:18

Miton reduce while Schroders increase. Will be interesting to see if they continue adjusting their holdings.

Holding(s) in Company (Miton below 14%) -

Holding(s) in Company (Schroders above 10%) -

[hyperboreus] 29/10/2015 18:29

One of Investors Chronicle tips of the week entitled "Connect to Amino's Growth which may be a shock/disappointment to anyone who has pressed the panic button and exited since the trading update:

In summary:

"The main reason for the expected revenue shortfall is poor sales execution and Amino's bosses say they have taken steps to resolve the issue. It doesn't reflect a lack of demand. As the likes of Sky and Netflix cash in on consumers' insatiable appetite for on-demand programmes across all types of devices, cable and satellite-TV companies have turned to Amino to modernise their offerings.

Amino's progress underpins robust growth prospects. Broker finnCap reduced its forecasts following the warning, but it still expects cash profit to rise a tenth to £7.5m this financial year, then soar 72 per cent to £12.9m in 2015-16. Yet strip out cash of 25p a share and Amino's shares trade at an enticing 10 times forecast earnings, and there's a prospective yield of 5.5 per cent."