Arkle Resources Share Discussion Threads

[hightone] 05/2/2003 19:07

i thought the results where out today not showing on my monitor if they was.

HT.

[mad4it] 05/2/2003 19:06

Thanks fozdad, much appreciated.


A fairly accurate summation by citywire I'd say.

Yet again there was a lot of manipulation on the share price today, I would suggest at least one of the T trades is a buy, as are some or all of the 'apparant' MMs sells. I think the 1.35 mill T was probably the buy.

I have to say that I'm very impressed with the growth in Asia from a standing start, that's good management for you, combine this with the approx 34p in Net cash and a NAV of around 39p and, apart from the depressed chip sector, you can't really fault ARK as a medium term investment. But the key to explosive share price growth is a cyclical recovery in the chip sector.
Good to see Andy Cropssley agrees with me, he is definately one of the shrewder, more respected Fund managers. Citywire sums things up nicely:


For 2003, ARC's keyword is Asia, where the rise of China as a manufacturing centre is driving economic growth far faster than almost anywhere else in the world. Having increased Asian revenue from nothing to 6% of sales by the final quarter, the company is hoping for bigger things in 2003 with offices in Taiwan and Japan and a full year of a distribution deal in Taiwan and China.

Citywire Verdict:

By returning the cash and pushing into Asia, ARC is doing all the right things as it waits for the upturn in IT spending in general. The big question is when is that coming? The answer from the likes of Intel, Microsoft and last night Cisco Systems, is no time soon.

Of course Arc is a lot smaller and nimbler than those behemoths of the IT world and the shares (ARK), down 0.25p at 24.25p, trade well below cash.

Indeed the amazing cashback deal promises a full 16p a share on its own - one reason why Andy Crossley, smaller companies manager at Invesco-Perpetual, likes the shares.

However, the very weak sentiment towards the whole IT sector will likely limit the upside for some time to come.

©2003 Citywire

[fozdad] 05/2/2003 16:49

Mentioned on Citywire:-

[fozdad] 05/2/2003 11:20

Results show good steady growth and an optimistic outlook, but I guess we're all waiting for the Share Buyback document before any real movement in the share price.

[mad4it] 05/2/2003 10:04

Good summation howdlep.

Steady as she goes then.

I've only got a modest stake now, so I'll hold, as the downside, in the medium term, remains minimal.

[spyderman] 05/2/2003 09:32

will be interesting to watch revenue growth, operating losses dissipate, and of course the share buyback

[howdlep] 05/2/2003 07:39

net cash at 31/12/2 was £101m with 298m shares in issue. So approx 34p cash per share remaining. Looking good given the reduced costs, increased turnover and the prospect of a bid for its technology and cash on the balance sheet.

Cash flow and balance sheet
The net cash outflow from operations was £4.3 million, (Q3 2002 an
outflow of £4.5 million). Capital expenditure was £1.6 million
including a technology investment of £1.0m. There was also purchase of
the company's shares for £1.7 million. The movement in net funds
during the quarter was an outflow of £7.1 million. Net assets at 31
December 2002 were £114.8 million, including net cash of £101 million.

[boobly] 03/2/2003 09:47

One of the greatest problems facing investors - especially in the technology
sector - is the INTEGRITY of the directors .
Let`s hope the ARK is not full of PIRATES.

[spyderman] 03/2/2003 09:10

well theres hope anyway...

results wednesday

[spyderman] 03/2/2003 02:20

see page 27 of the investors chronicle

IT hardware was by far the best performing sector in the last gulf war

perhaps it will happen again...

[boobly] 02/2/2003 13:08

Yes - But very tedious at the moment !
Although I suspect there is plenty going on behind the scenes!
Where`s Divina these days ?

[spyderman] 02/2/2003 11:10

anyone else following this stock?

[spyderman] 01/2/2003 13:08

not long now - we should have a much better idea on wednesday

i just hope they dont do a buyout, the upside potential is just so much greater if they payout 17p, 7p left or market value of about £21m including up to £50m cash, if they can start turning in operating profits there would potentially be enormous upside

[mad4it] 31/1/2003 14:28

ghhghh

You could well be right. It would be a logical solution.

But the share is being artificially held at the lower end of a very tight range by the MMs, so I assumed this might be for the benefit of the company and a share buy-back on the open market.

[ghhghh] 31/1/2003 14:20

I assumed that they would do the same as nCipher, issue B shares and then buy them back. Hence shareholders get 17p per share cash.

[mad4it] 31/1/2003 14:03

spyder

Assuming they go for a substantial redistribution of cash then buying up shares at these prices, or lower and increasing the cash per share is a good way of enhancing shareholder value, prior to releasing it with a cash return to shareholders.

Therefore, paying a small premium is only helpful if it allows shares to be bought without pushing the price up, thus forcing ARK and it's shareholders to pay more for their own shares. Of course this is a bit of a catch 22 as most shareholders would prefer the price to go up so they make money on their investment. The results next week should clarify the situation.

[spyderman] 31/1/2003 09:20

anyone have any further thoughts on how buyback will be structured?

surely would be best at small premium to market price to boost NAV per remaining shares, take out the weak sellers

[emmett] 17/1/2003 13:10

Shifty Clifty, actually the Intel results have a bigger implication than you might think. For every Pentium in a PC there are more than 10 other processors.

If you think if the Pentium as the brains then the other embedded processors are the muscles. ARC's configurable processor is intended for these embedded applications. For instance every PC has one or more USB ports. ARC provides a complete solution for USB including the software.

There are many more embedded processors sold than the CPU type.

I'm also sure that Intel's name has been associated with ARC in the past so it all sounds pretty positive to me.

[spyderman] 17/1/2003 08:18

yes tanners these results certainly will be interesting

if theres not a buyout, they are likely to add detail of the share buyback plans

[tanners] 15/1/2003 23:58

Dare I say it, but normally a good sign when results out earlier.
The first three quarters this year were all exactly one week earlier than the corresponding quarters for 2001, so three weeks earlier for the finals is quite a difference.
Holding and hoping!

[shifty clifty] 15/1/2003 13:07

I take it the Intel results caused the little rise then. Can only be a good thing IMHO. Outlook is much better for PC's but does this stretch to the kinds of tiny devices that ARC specialise in? I daresay there's contact with PC peripherals at least!

Riversoft - what a shame!

[spyderman] 15/1/2003 09:44

golly results in 3 weeks exactly, thats earlier than last year, was Feb 21

anyone heard any rumours if they are going to announce a buyout with the results?