Arcontech Share Discussion Threads

[gsbmba99] 04/8/2017 09:20

Was revisiting Multibagger's post containing the Finncap 1H results commentary. "FY17E sales increase from £2.1m to £2.3m and adj. PAT from £0.4m to £0.5m. We highlight that this assumes minimal new sales bookings in H2 and also a £100k h-o-h increase in opex to accommodate for an increase in S&M." At the same time, FinnCap raised FY18 revenue by £90k but dropped PBT by £20k suggesting additional revenue modestly outweighed by additional costs of £110k. Wondering if this suggests that company preparing to invest into a £200kish pa sales & marketing effort? Might make sense if the desktop product ready to transition from trials to rollout. Or, could just be conservatism on part of company.

[multibagger] 04/8/2017 07:58

Thanks Taffy100 for sharing...sounds a positive development, though I get the impression that there may not be any immediate or short term business benefits.

However, I imagine it would allow our developer team to remain at the forefront of trends, standards and protocols being developed across the financial system on a global scale.

Good luck all :)

[taffy100] 04/8/2017 07:28

Symphony Software Foundation Sets Out to Build a New Fintech Innovation Model

Adds four new Silver Members: Arcontech, BankEX, Cloud9 Technologies and FinTech Studios

Matthew Jeffs, CEO, Arcontech, said, "Arcontech is very happy to join the Symphony Software Foundation. Communication and community is the very essence of the financial marketplace. The combination of Symphony and Arcontech as a provider of real-time market data solutions makes perfect sense. Working with the Foundation will allow us to contribute our knowledge in the processing and management of real-time market data whilst significantly enhancing our highly performant, vendor-agnostic desktop solutions to present a truly viable alternative to traditional market data terminals."

[janeann] 27/7/2017 07:37

Interesting multi - have been wondering why that has been happening. You may be right.

[multibagger] 27/7/2017 07:29

Good morning all :)

The recent flurry of 3 RNSs this month of employees converting their options to shares...leads me to strongly believe that a maiden dividend announcement is highly likely :)

Could be announced along with the results in Aug 17.

Good luck all !

[multibagger] 11/7/2017 12:58

Last time trading update/prelim year end to 30.06.16 was announced on 10.08.2016.

Not long to wait for the update now :)

Some decent sized trades gone through today...good luck all !

[baticle] 29/6/2017 15:57

A maiden Dividend of 1p ps would sound quite appropriate and well within the companies means to pay it,but we shall see.Looking forward to the next Trading update to see what progress has been made.

[gsbmba99] 29/6/2017 12:34

FWIW, I've pencilled in 1p this year and 1.5p next but have no idea and it isn't forecast by FinnCap. I like the growth and income potential here and can see the potential for a steadily rising payout ratio leading to dividend growth ahead of EPS growth. I'm hoping that a few years down the line, after establishing a sufficient cash buffer to make their target customer base sufficiently confident, we might eventually get to JIM or BVXP levels (2/3 of EPS). I look at cash differently than others here. I subtract the deferred income from the cash balance to arrive at "free cash".

[multibagger] 29/6/2017 07:22

Good morning all :)

Nice to see a sharp comeback in share price after recent non-specific fall in share price...people taking / building a stake before Aug trading update and potential announcement of dividends.

If dividends are announced and given that ARC are ultra conservative and risk averse, I would expect a minimum dividend of 1.0 to 1.2p per share - this would leave abundant dividend cover. Any thoughts ?

Good luck all !

[baticle] 27/6/2017 07:45

Agreed multibagger ... any new contracts fall mainly to the bottom line as
a large proportion of the costs are fixed and once you eliminate 'Cash Burn' from a company even if the profits are small to begin with it allows management to focus on growth but also has a positive effect on the share price
Just been looking at ZOO digital Results.....interesting

[multibagger] 27/6/2017 07:30

Sounds like we have some investing common ground Baticle...I have been here for around the same length of time approximately.

Onwards and upwards, I got the impression that the management were not going to make announcements of contracts less than £100k per year...so we could have been accumulating a few of these sub £100k contracts and as investors none the wiser as yet.

Long game for me, so happy with the way things are developing :) Roll on August....

Good luck all !

[baticle] 27/6/2017 06:49

Hi multibagger...
I've actually held for about 4 years here buying at 0.12p and just followed the company steadily and quietly over the years as it makes up a part of my portfolio. Being a bit of a techie geek I like the story here with what now is a sustainable profit and as mentioned Cash on the books ,I tend to be more vocal on the Distil BB,
I will be looking forward to possibly a maiden Dividend here and news of more growth & contracts.

[multibagger] 26/6/2017 19:41

Hi Baticle....welcome on board...haven't see you here before !

If my reading of the tealeaves are right...more than likely that we'll get a maiden dividend announcement in Aug.

Strong, debt free, profit making company and can't blame the Chief Executive wanting to have a bigger stake :)

[baticle] 26/6/2017 16:41

Between the directors themselves they own a fair chunk of the Co. and looks like they still want more, not a bad sign at all.

[multibagger] 26/6/2017 16:30

Another resounding vote of confidence by the Chief Executive demonstrated by a further chunky purchase :)

Good luck all !

[janeann] 26/6/2017 13:59

Arcontech (AIM: ARC), the provider of products and services for real-time financial market data processing and trading, announces that it has received notification that Matthew Jeffs, Chief Executive of the Company, purchased 20,000 ordinary shares of £0.125 ("Ordinary Shares") at an average price of 61.48 pence per share (the "Transaction").

[gsbmba99] 09/6/2017 09:13

I've been watching it carefully. It's been a series of sells at successively lower prices. Similar thing happened to MAB1 where the bid went from 475p to 370p in a matter of days on low volume sell orders without a buyer. At 52-55p, it's trading below the 55-59p it traded at following the "significantly exceed" statement with the results. It looked attractively priced so I bought a few more.

[multibagger] 09/6/2017 08:57

MM games I guess - nothing wrong with the company or prospects. For us long termers, another buying opportunity if we are not packed to the rafters with ARC already :)

Could be a big order to fill....and election debacle the vehicle to drive down the price....

[cbootle] 09/6/2017 08:53

No idea, I guess no news is bad news - markets don't like months of silence? Market cap of £6.2m and cash in bank of £2m+ (IIRC), profitable on licenses alone (new business goes to bottom line), dividends anticipated... what's not to like?

Something rather similar happened over at G4M a few days ago. MMs trying to fill a huge order coincided with a dramatic drop. Don't know if cause and effect though. ARC shares are extremely tightly held, hence low liquidity.

IMO bargain time!

GLA!

[janeann] 09/6/2017 08:32

anyone a view why this has been so hard hit recently?

[janeann] 27/5/2017 19:02

well its still here over 2 years after that article - it was pretty hard hitting .... 'an insignificant entity that really has no place on the stock market,' that has more than doubled since the article was written.

[multibagger] 27/5/2017 16:55

I did raise the issue of covering ARC with Shares in their Under the Bonnet column and they pointed me in the direction of their coverage about 18 months previous to Dec 2016, when I had exchanged emails with them.

They are pretty full of themselves as you will see from their belittling write up !

This is the link they sent me...

hxxps://www.sharesmagazine.co.uk/news/shares/arcontech-shares-soar

It hardly matters what they think, as the market thinks otherwise - so much for self proclaimed experts. The City has no shortage of such wannabes.

[janeann] 27/5/2017 16:40

I just happen to have opportunity to read it - and wanted to read the bit on prsm so came across the bit on idea - so was just making you aware! Never see anything on arc - that's a pity as a bit wider awareness might give it a lift. although quite happy with my holding here.

[multibagger] 26/5/2017 07:10

Hi Janeann, though I subscribe to Shares it is to gain ideas about companies to research. I pay little or no attention to their prompts to buy,hold or sell. Their buying/selling decisions are often quite poor IMHO.

[janeann] 25/5/2017 13:17

o/t Thanks multi - I note today idea is in shares mag as 'take profits'!