Arcontech Share Discussion Threads

[multibagger] 25/2/2016 10:18

Is that you loading up Gary ?

[multibagger] 25/2/2016 08:25

I have attended an AGM in the past and met the senior team. I get the impression that they are a very credible group and understated and conservative in their approach. Contrary to many other companies, they are more about substance than spin.....they seem to be quietly grafting away and nurturing the company...under promise and over deliver. The ARC headcount is quite low and a number of the employees are shareholders as well. Past employees speak highly of their former employer and one of them posts here occasionally.

This could be one of your boring but very fruitful investments, that most people won't take a second look at as they are often taken in by the hype and drama of the next mine or oil well.

ARC remain at risk of an aggressive bid, but with over 50% tightly held, for it to be successful, this would have to be at a significant premium to the current market price. I don't think there is an intention to take this private.....if that were the case it would have been easier when the share price was languising, rather then when it has grown 200+% over the last few years.

I'm quietly confident about this overlooked but fundamentally very strong share which meets the Liontrust Economic Advantage criteria and also those espoused by Gervais Williams (Miton fund manager ) in his recent book....The Future is Small.

Good luck :)

[garykc] 25/2/2016 07:45

All good balanced points. I do fear the "going private" route as that has happened to one of my other shares ATC. Little more behind that one than meets the eye.
I am more than happy to buy more today/tomorrow once I release some other funds elsewhere.

[multibagger] 25/2/2016 02:01

The Directors hold about 25% and Anthony Cross about 13% and they along with other >3% holders count for over 50% equity (all figures from memory so there may be small discrepancies). So this is pretty tightly held by my book for a PLC.

The Directors bought by the shed load when the share price was 0.11p range a few years before so they are now seeing a good increase in the value of their stake. I have been buying from 0.16 range upwards.

ARC is still massively undervalued.....how many AIM stocks are debt free, cash rich to £1.8m ( 45% of market cap) and working in a niche area with recurrent rolling contracts covering 105% of their costs and growing ? The research note from Finncap when they initiated coverage is a good document to read.

ARC customers are true blues like The Bank of International Settlements, Bank of England, HM Treasury Debt Management, Deutsche Bank for starters. These are just the customers I know of....and I am sure there will be other big and familiar Insituitions.

The market will wake up in due course and probably with a bang when dividends are announced....I am happy to load up to the eyeballs and patiently wait for the recurrent dividends and gradual capital appreciation. The only downside is the very poor liquidity and that should improve once investors become aware of this brilliant little gem :)

Good luck all !

[oilbuy] 24/2/2016 19:47

And when would they get this money back ?

Would you like to see them sell their holding ?

This is the misunderstanding of many an investor.

Richard Last is an exception to the rule among a few others. He has 13%.

The company is a PLC.

Maybe if he wanted to take it private he would increase his holding.

Just a few thoughts !

[garykc] 24/2/2016 18:41

Please. He has only bought 2.5m and that was in Sept last year. Before that was in 2014. My point being, if it's so undervalued, why can't the directors see that and put their hands in their pockets and buy more!!!

[oilbuy] 24/2/2016 18:01

garykcThey have bieng buying Look at the recent RNS's and Richard Lasts holding !

[garykc] 24/2/2016 16:44

So why aren't the directors buying if the share price is so ridiculously low Multi? Don't get me wrong, I hold a few of these and am in decent profit, but I can't see any director buys in quite a while to boost market confidence.

[multibagger] 24/2/2016 16:20

No debt and sitting on £1.8m.....which is about 45% of market cap. Excellent
revenue visibility with 105% of costs covered by recurrent contracts....Fincapp broker note issued with same 0.3p target though H2 revenues slightly weaker (with no change to year end forecast).

Surely we can't be sitting at this ridiculously low share price for much longer !

[multibagger] 24/2/2016 13:18

Good set of results and the cash pile is growing strongly. Most of the increased revenue has gone straight
to the bottom line.

Only a matter of time before share consolidation and maiden dividends :)

[spig69] 24/2/2016 08:28

Not a bad interim report. Good cash balance. If you remove the 0.1 pence worth of cash from the share price and multiply the EPS by 2 to estimate full year, this share is on a very low P/E ratio. I've topped up with 533K of shares. Good long term prospects despite slight warning of quotes taking longer to convert to contracts.

[oilbuy] 24/2/2016 07:46

TattyAgreed , it's done close to 300% over the last year and it's heading for 1p.

[taffy100] 24/2/2016 07:42

Slow burner - could take-off anytime

[swizz] 24/2/2016 07:35

Makes good reading as do the numbers.....GL S

Richard Last, Chairman of Arcontech Group, said:

"The Board is pleased to report continued progress by the Group in delivering increasing levels of turnover and profitability. Results for the current year ending 30 June 2016 remain on target taking into account the reduced revenue from one of our clients in Asia. Costs continue to be managed closely. With net cash balances as at 22 February 2016 of £1.8m and a good sales pipeline, we are increasingly positive about the Group's prospects."

[oilbuy] 24/2/2016 07:07

1.8M cash Operating profit up 78% A great company. Tightly run like they should be.TIDMARCRNS Number : 9335PArcontech Group PLC24 February 2016ARCONTECH GROUP PLC("Arcontech" or the "Group")INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2015Arcontech (AIM: ARC), the provider of products and services for real-time financial market data processing and trading, is pleased to report its unaudited results for the six months ended 31 December 2015.Financial and business highlights: -- Turnover increased by 9% to GBP1,132,246 (six months ended 31 December 2014: GBP1,041,599). -- Operating profit increased by 78% to GBP205,889 (six months ended 31 December 2014: GBP115,900).-- Annual run-rate of recurring revenues at 31 December 2015 amount to GBP1.9 million (2014: GBP2.1 million) and cover 105% of the cost base (2014: 112%). -- Net cash of GBP1,538,519 as at 31 December 2015 (31 December 2014: GBP1,073,948). Richard Last, Chairman of Arcontech Group, said:"The Board is pleased to report continued progress by the Group in delivering increasing levels of turnover and profitability. Results for the current year ending 30 June 2016 remain on target taking into account the reduced revenue from one of our clients in Asia. Costs continue to be managed closely. With net cash balances as at 22 February 2016 of GBP1.8m and a good sales pipeline, we are increasingly positive about the Group's prospects."

[multibagger] 23/2/2016 13:50

Come on ARC....let's have some news !

O/T

LTG creeping upwards....another solid performer poised for excellent growth.

[multibagger] 16/2/2016 13:11

On the other hand being invisible ARC has not suffered the same drop as other shares. 'Wonder if the legal process will be sorted fairly soon....feels about time !

[janeann] 09/2/2016 14:57

Looks like the recent burst of activity was another false dawn; gradually creeping back to its old level!

[multibagger] 02/2/2016 07:23

3m trade yesterday at close....so still interest and good to see that the share prices is holding up (longer than ever before despite volatile markets).

Still marketcap at under £4.5m with over £1m in cash.....the market is mad to ignore this little gem (I would say that, wouldn't I ?)

Now awaiting the clearance from the High Court (expected mid Feb according to company )for next leg up.....I think a share price in the region of 0.40-0.45p is justified.

[multibagger] 28/1/2016 13:10

Eitherway, we are heading in the right direction gradually with decent volumes today - 11.8m so far

4 v 1 with PEEL left at 0.3p

All in good time :)

[garykc] 28/1/2016 08:41

Could have been a buy multi. Depends on the trade time etc. obviously.

[oilbuy] 28/1/2016 08:32

Looks like a buy order in !

[multibagger] 28/1/2016 08:32

Commiserations Gary - different kettle of fish here and I share your confidence in ARC :)

Some decent volumes so far....

edit: someone selling into strength and profit taking with 2.5m trade at .0029

[garykc] 28/1/2016 08:29

One of my better investments after the theft of my ATC shares from the BOD and the debacle that was FTE. Only a smallish 4.5m holding but am very confident of the future growth of this business, albeit very slowly and cautiously.

[multibagger] 28/1/2016 08:19

ARC - onwards and upwards :)

CTP - I'm very much in and not complaining !