Arcontech Share Discussion Threads

[ccr1958] 08/6/2015 20:14

Good debate chaps .... I am interested in the retained customer ..

[elcapital] 08/6/2015 19:13

You will do well with CTP, but IMO you wont do well with arc.

[elcapital] 08/6/2015 12:50

No. I said I would not be long or short. I just cant see it going anywhere. It is far too old as a company and I believe if it was going to be a player, it would have been one by now

[escapetohome] 08/6/2015 12:42

Sometimes niche software sells itself. Companies can't afford not to have it, so put that in your pipe and smoke it.

Trying to pick up on the cheap eh?

[ccr1958] 08/6/2015 12:38

We'll see . I hear you .

[elcapital] 08/6/2015 10:05

That is my point ccr! They can not afford it!

ccr1958 8 Jun'15 - 09:51 - 687 of 687 0 0

EL you cant get the best people without paying a fair wage tho...

[ccr1958] 08/6/2015 09:51

EL you cant get the best people without paying a fair wage tho...

[elcapital] 08/6/2015 07:39

I am no longer working in this sector (not for some time) but the for good sales/marketing staff you are looking at 75-100k basic plus a package of all the bits and pieces and an OTE of 50-100% more. This is what will hold it back, it just cannot afford to bring in those type of people given its turnover.

[multibagger] 08/6/2015 07:29

Hi ELcapital and good morning to you as well :)

Thanks for your candour and I am sure the BB will benefit from your viewpoints - it is always helpful to see things from a competitor's viewpoint and from someone who knows and understands this niche market. This is the old KTS but my investment in ARC is about 18 months old, so I do not know the history.

So in this sector, what are the pay ranges and the nature of OTE payments in percentages ? I beleive that Chandra Dass another former ARC marketing guy left sometime last year to pastures new in Singapore - is there a lot of marketing staff churn in the sector ?

[elcapital] 08/6/2015 07:04

I have jumped to a conclusion that this is the old KTS?

[elcapital] 08/6/2015 06:58

Morning

I know of him, I dont know directly

I dont hold, and I wouldnt short (probably difficult to anyway aside from naked) but I just can not see them getting anywhere without a stand out product. My role at one of their competitors some time ago was varied, primarily sales but also it was a small company and my role spanned most aspects.

[multibagger] 08/6/2015 06:55

Hi ELCapital - I am sorry to hear that it did not work out for you and it sounds like you were in the marketing team....I guess you may know Chris Bootle ? He sometimes posts here and worked for ARC in the past, has an investment in it and posts with a sense of fondness and loyalty.
As we all know, different people have different experiences.
Good luck in your investments and do you hold ARC at all ?

[elcapital] 08/6/2015 06:46

I can not see a long term future for it, it is barely surviving, thats all. It needs decent investment but even then, the competition is fierce. I have first hand experience of this market place. We just got lucky, well the owner got lucky, the rest of us got screwed.

[multibagger] 08/6/2015 06:37

Hi ELCapital - Thanks for your viewpoints. We seem to have kept our heads above water and survived for a more than a few years and Directors hold about 25% of equity. Our share of recurrent revenues is rising and we are debt free, have made a small profit and have about £1.291m in cash and there is talk of a dividend. We have a number of top notch sticky customers as far as we know.

A successful fund manager has taken over 12% and I agree that we are a takeover target - so why is it just a matter of time unless...... (if I have understood you correctly before we sink, is what you appear to be saying ?)

[elcapital] 07/6/2015 20:46

I know this sector very well. They probably know me from some time ago. We have spoken

The only chance here is for a reverse takeover. The turnover is too low for to get decent people. Any decent person in this sector in sales would want 100k base plus minimum same again in commission, and the bits and prices Compare this to their turnover, and you see ho far off they are.

Just a matter of time I think unless..............

[multibagger] 07/6/2015 20:38

Thanks Taffy100 for posting and sharing....ARC will come good in due course, we
seem to move pretty quickly upwards on relatively small volume buying and then fall back equally quickly ! Looks like some stale bulls are selling out on any small movement.

The business fundamentals are sound and the market will recognise this in due course.

Good luck all :)

[taffy100] 07/6/2015 11:56

This could be good news for Arcontech

[ccr1958] 05/6/2015 08:38

Thanks multi... ground floor and all that ...c

[multibagger] 05/6/2015 07:38

ccr1958,

In the times that I have spoken to them I have not gleaned any new information other than what is in the public domain. I got the sense of quiet confidence, understated and conservative in approach and no urgency to meet market expectations of newsflow etc. A sense of that things were going according to their plan and the marketing team were well staffed and greater progress was expected.

They would not reveal anything that they had not been news released (as you would expect). I am hoping to attend the AGM which usually happens in Oct (if my recollection of the month is correct). Salvaging of this "big customer" will definitely help profitability and we should be sitting on more a guestimate of £1.5m then.

Given change of NOMAD to FinnCap, I feel that money is being put aside for an acquisition...all speculative on my part. Otherwise, they should start paying us a dividend or arranging for a share buyback. Guess consolidation of shares will occur in due course. There may be more instituitional buying and given the poor liquidity, that should cause us to re-rate upwards pretty rapidly. I think a share price about 2.5-3x from where we are is fair....for starters.

Good luck :)

[ccr1958] 05/6/2015 02:56

Cheers multi ...The customer retention is obviously key ,I couldn't see who they were referring to tho ? Any way as for patience, I can do that . It does pay with good investments as we are experiencing elsewhere !!

[multibagger] 04/6/2015 20:56

Welcome aboard ccr1958 !

Reassuring news today - major customer retention is key. We have to be very patient, but compelling reasons to invest (previously posted but for the benefit of new visitors)

Debt free
£1.291m cash as of 19.03.2015
Market cap very undervalued
High Barriers to entry, scalable business with no major capex
High customer retention
Over 112% of operating costs covered by recurrent revenue
Directors hold about 25% of equity
One of UK Top Fund Managers Anthony Cross holds about 13.1% equity
Talk of dividend when profits are sustainable
Profit making, recurrent and predictable revenue stream
Central Banks, HM Treasury Debt Management, Tier 1 Banks and top global investment banks,financial instis, betting companies as customers
Wide geographic footprint
Increased required for transparency and audit trail following LIBOR and other financial scandals
Fintech - a growing investment area for new funds coming on stream
Potential takeover target due to low market cap
May use funds for acquisition - which will perk up investor interest
Ticks all the criteria for "small company" effect as per "The Future is Small" by Gervais Williams, Miton Fund Manager
Chartists will like the 50/200 SMA golden cross that has recently formed

Good luck all :)

[dosser2] 04/6/2015 18:51

Down!!! Didnt last long

[ccr1958] 04/6/2015 11:16

Multi I am in !! Lets see how we go !!..

[janeann] 04/6/2015 11:01

yes - I should have bought a few more rather than posted on here;