Arcontech Share Discussion Threads

[zho] 04/12/2018 13:30

Diplomat65,

Leon Boros is a successful and well-known investor - see

[diplomat65] 04/12/2018 13:04

Can anyone explain if there is a link between today's RNS announcing Leon and Sue Boros spreadbet and the 7.5p jump in share price?

[bones] 09/11/2018 19:08

Thanks gsbmba99,That all looks very encouraging and, intuitively, appears to suggest ARC management know where they are heading with those relationships.I am still fascinated by the chasm that exists between the market cap of ARC and that of all the giants they deal with and fight against! That must either close to some small degree or ARC will be swallowed as a fly to a chameleon.

[janeann] 21/10/2018 19:30

'Some punters must be feeling chumpish having sold at 123-125 '.... some feel foolish not adding on the recent dip; had planned to but watched it go down and did nothing. But welcome ghf - and congratulations on your patience!

[multibagger] 20/10/2018 12:29

Welcome GHF and I am sure that your investment in ARC will be amply rewarded in the years to come :)

Good luck !

[glasshalfull] 20/10/2018 07:46

Good morning folks,

Courtesy to declare I’ve also been buying. When the share price took off on the “comfortably ahead” statement in July I waited for it to settle down, but it never did & just kept going!

Refreshing to read this investment thread. A mixture of good analysis & industry background. Quite a few excellent investors/ posters here & delighted to see patience rewarded for many of you.

Looks like a few newbies such as myself are waking up to the ARC story. In my own case the recent stock market wobble & retrace in the share price by (-27%) in a little over 8 weeks was the catalyst for me to buy in over recent days. Clearly madmix & myself were waiting patiently for the opportunity :-)

The investment case has been v well documented on the thread. The high recurring annual license fees coupled with the prospect of op gearing kicking as they expand software sales with existing clients and hopefully convert further Tier 1 trials. Looks an excellent risk/ reward investment IMHO.

Kind regards,
GHF

[multibagger] 28/9/2018 11:40

Madmix,

There is never much ARC stock to be traded...so it moves quite a lot either way, on any kind of trading volume.If you buy the ARC story with its level of recurrent revenue and the fact that most of any new contracts/revenues will go straight to profits, there is no quick way to build a decent sized position. There are some large investors always willing to hoover up the shares when they come on sale. At this share price, we are still very undervalued taking into our cash position and PE ex-cash.

Good luck :)

[madmix] 28/9/2018 10:30

I've been buying this morning. Despite the weak bid price, there wasn't much stock available, so I'm not surprised to see a modest amount of buys causing a big bounce.

Had been waiting patiently for a decent dip.

[bones] 28/9/2018 10:15

Some punters must be feeling chumpish having sold at 123-125 at 9am and seeing the share kite up to 140 by 10am! These MM's certainly move it quickly on small volumes.

[multibagger] 27/9/2018 22:15

Good meeting and nice to meet mentioned BBers and also have chats with various employees. Nothing new to add, other than we are doing well and though "traction" is building, they will RNS only what is absolutely required. So no change there.


However, I am pleased with my new cap with the Arcontech logo compliments of our company :)

[boros10] 27/9/2018 18:13

Nice to meet you Colin and the other long term holders. It was a good meeting.

[gsbmba99] 27/9/2018 17:53

Yes, good to meet a few board stalwarts in person. I had mentioned to a couple a Waters Technology podcast episode with Bloomberg's head of Enterprise Data. It mentions a few high level issues. Would be keen for views from cbootle and others who know the products or the market well.

[bones] 27/9/2018 15:12

Just to add to the last post, it was confirmed that the recurring revenues proportion of the turnover number is well into the 90's percentage wise.So we have a pleasurable combination of steady repeating and growing income and the benefit of high operational gearing whereby the large proportion of increasing revenues drops to the profit line.

[bones] 27/9/2018 14:44

Back home from the AGM. I was privileged to meet Multibagger, Boros10, cbootle and gsbmba99 in person together with other investors and the directors.Good discussions and questions all round but I would emphasise that the directors were very careful not to exceed the prior contents of recent trading updates so I cannot add anything startlingly new in the area of current outlook.ARC remains a core investment for me on the basis that the company has its tentacles inside some major organisations where the hope (and expectation?) is that the new desktop software will be gradually rolled out amongst divisions and departments globally. On top of that, the pipeline of Tier 1 prospects is decent (6 at last count after accounting for the two that were converted from 5 on last year's list - hence a net three new major prospects were added this year).

[melody9999] 27/9/2018 08:27

Would welcome a post with feedback from the AGM and any indication of current trading.

[cbootle] 26/9/2018 09:58

The annual report and accounts doesn't separate recurring and development fees ( however my understanding is the majority (likely a large majority) of the fees are RALF (recurring annual license fees).

As clients are very "sticky" once on board, this gives significant financial stability to the company. Their top-tier investment bank clients take a long time to make purchases, due to risk analysis and due diligence. They are equally if not more averse to discontinuing contracts if there's a possibility of affecting the smooth running of their systems and company.

Total income fees are increasing significantly and go straight to the bottom line. The last two years had income of £2.5m and £2.3m for 2018 and 2017 respectively. Profit before tax was £575k and £373k respectively. As overheads are reasonably flat £1,958,176 vs £1,942,430 (less than 1% increase) a small increase in income adds greatly to the net profits.

Overall, the company is in a stable, profitable financial position; growing revenues, growing dividends, increasing client base and successful new products in a market that has plenty of potential.

[melody9999] 26/9/2018 08:16

Does anyone know what proportion of revenue is recurring as opposed to one-off development?

[bones] 25/9/2018 23:16

I hope to meet some of the regulars at the AGM on Thursday. It will be my first one at ARC, so please be gentle!I'm over 6ft tall (male) but will NOT have a pink carnation....

[bones] 17/9/2018 18:05

Agreed spann, maiden dividend also took out cash last year, as will a 30% increased one this year :)

[spann_703] 17/9/2018 09:37

Bones re #1594,

Thanks for the response. Yes, I see now there are tax credits - and also a dividend payment to take into consideration.

Cheers,
Spann