Arcontech Share Discussion Threads

[multibagger] 20/1/2016 15:58

Yet another tickup - delayed buys will surely have to reported at some point, I imagine :)

[multibagger] 20/1/2016 15:49

Now this is very unusual on any trading day, let alone one like today. The bid moving up indicates there is probably a large worked buy which ran out of volume (MM unable to pick up in qty)....I won't rule out a holdings RNS in due course.

But get the distinct feeling something positive maybe afoot :)

[oilbuy] 20/1/2016 15:41

Another tick upNow .25 - .29

[oilbuy] 20/1/2016 15:32

Yep.Nice little jem here. Cash flow positive and a nice profit anticipated.

[multibagger] 20/1/2016 15:26

Price tick up - OMG ! Why ? How ? Today ?

[janeann] 20/1/2016 15:13

well its picked a pretty down day for a sudden upsurge! But yes been a few false dawns before.

[multibagger] 20/1/2016 11:01

Are we on our way with this tick up ? Or yet another false dawn ?

[oilbuy] 20/1/2016 10:31

Another 2.5M buy

[multibagger] 19/1/2016 20:33

Last year 6mth results were announced on 26 March....so a while to go before results. I guess there is some stake building at a PI level over the last few weeks as about 10-12m have been traded and buys at full ask. As far as volumes go, this is as exciting as ARC gets :)

Still holding up decently given state of markets - helped by poor liquidity and under the radar for most investors or traders. The tide will turn in the fullness of time hopefully !

[oilbuy] 19/1/2016 13:21

2.5 full ask. Somebody buying before results.

[multibagger] 06/1/2016 13:52

Someone buying a few and trying to keep it quiet it seems.....a few million / 2m+ trades over the last few days and bid moving up gently.

About time too !

[oilbuy] 06/1/2016 06:54

.3p target over the next few months in anticipation of the half yearly report.

[multibagger] 06/1/2016 06:37

A couple of decent trades over the last couple of days for a change !

[multibagger] 06/12/2015 13:29

O/T

I have been building stakes in similar business model software providers such as CTP, IDEA, and PHD. Also hold MXCP, ISPY in the software space. Researching RGS as a potential add to my portfolio.

Edit: Have added a decent stake in LTG as well.

[multibagger] 06/12/2015 13:25

I agree that the sales cycles appear to have long and unpredictable lead times. The company is profitable and growing but remains very conservative in management approach across a range of domains.

ARC could be one of those dull, boring companies that grafts away at building shareholder value and returns over a long period of time. That is the reason I have invested.

News of dividends,some biggish contracts (relative to annual revenue)or the prospect of a takeover could stoke interest in the wider market.

As they say, all in good time.....hopefully in my lifetime :)

Good luck all :)

[cbootle] 05/12/2015 17:32

I worked for them for 11 years, and during that time they had a real problem finding, keeping and getting value from marketing guys. Partly (IMO) because the timescales were so long (banks don't make decisions quickly, but spend months/years evaluating) so commission would have been slow. Partly because there are so few sales people who know this market well. Also (during my time there) Arcontech was too technology focussed rather than sales focussed (the original directors were programmers not marketers). And (as is very much the case) the cashflow and RALFs are sufficient to keep the company viable for the foreseeable future, all is well.

Things appear to have changed somewhat, but not the long evaluation timescales. So, IMO, this is very much a long-term low-key investment that at some point in the future will make good - e.g. if it gets another couple of key sales.

[gwr7] 05/12/2015 12:41

"Independent of any data vendor, Arcontech has delivered innovative, flexible, reliable and cost effective market data systems solutions for over 30 years."

I've just lifted that from the homepage. If it's been doing that for 30 years, why such a tiny company? Suggests there's not much money to be made in what they're doing. Or am I missing something?

[multibagger] 12/11/2015 05:33

Webpax...some more info for you to get your teeth into..


Debt free, conservatively run and managed, low profile
Profit making, recurrent and predictable revenue stream
£1.07m circa cash as per recent annual accounts, low employee headcount
Bank if International Settlements, Bank of England, Central Banks, HM Treasury Debt Management, Tier 1 Banks (Citibank, Deutsche Bank as far as I know) and top global investment banks,financial instis as customers
Global market, aiming for wider geographic footprint
Market cap very undervalued
Share price just above currrent EPS
High Barriers to entry, scalable business with no major capex, niche segment with one major competitor (Contex)
ARC products better value for money and ARC pursuing market of "conflicted customers disillusioned with bigger players" and want value for money
New products being developed which will increase scope of addressable market
High customer retention, with 3 year rolling contracts, unless cancelled
Directors hold about 25% of equity
One of UK Top Fund Managers Anthony Cross holds about 13.1% equity
Legal process underway to cancel share premium account to enable payment of dividends in due course
Share consolidation likely at some point, which will open the stock to fund managers
Increased required for transparency and audit trail following LIBOR and other financial scandals
Potential takeover target due to low market cap
May use available funds for acquisition, organic growth market pretty big
Recent Finncap new target of 0.30p - initial research note out in July 2015, target updated recently
Appears to meet Liontrust Economic Criteria for investment

Good luck :)

[webpax] 11/11/2015 20:21

Thanks for the reply multibagger it's appreciated. Yes I saw the reference to the contract termination which made me check the Annual report where I noted the dependence on those two customers. That's the main thing stopping me investing at the moment but I'll keep researching this one as it looks interesting.

[multibagger] 11/11/2015 19:16

Hi Webpax - welcome to the one of the best kept secrets and extra quiet part of the ADVFN BB !

We have Tier 1 banks,Central Banks, Bank of England, HM Treasury Debt Management, Bank of International Settlements and some recent big financial instituition and a german cantonal bank as recent customers. According to publicly available info, our customers stay with them generally, though there has been a significant premature contract termination in the last 6 months or so. Customers are on an automatic 3 year rolling contract unless terminated, so revenue visibility is good and predictable.

Very low liquidity and price volatility are par for the course here, but if you have a 3-5 year investment horizon, you are very likely to make a healthy return IMHO.

Good luck and hopefully welcome aboard with some investment in ARC :)

[webpax] 11/11/2015 14:37

Interesting little company, considering buying in here but note 43% of the revenue comes from just two customers. Anybody know who they are and how 'sticky' they might be?

[mikeh30] 10/11/2015 18:19

Cbootle - I caught that earlier.Usually a kiss of death with some of his predictions but I'm quite confident here.

[cbootle] 10/11/2015 17:14

Google alerts popped up with this, for those who like charts. It's preaching to the converted here!

hxxp://www.shareprophets.com/views/16412/zak-mir-s-bulletin-board-heroes-arcontech-alecto-minerals-altona-energy-cap-xx-patagonia-gold-quindell

[multibagger] 09/11/2015 20:50

My commiserations garykc re 762. I have sold some of my other holdings to top up here...a judgement call as I felt it was a compelling buy and I could not leave it any longer.

[mikeh30] 09/11/2015 16:50

Hopefully this should crack .30 this week.There may be some blue skies even in this miserable weather ;)