Arcontech Share Discussion Threads

[rcktmn] 16/11/2005 11:12

UH,
Appreciate what ur saying... you may well be right.
However, I would say that raising more funds has always been expected in this co's development stage. It's only a maybe though and if Melchor is correct then with profits being generated they might not have to (or if it did it would be a small amount).
I still think that the share price could go down a bit more until the next set of results or until the next set of deals/contracts announced and waiting to get on board may be the right thing to do...however, I'll be topping up over the coming weeks as I'd rather be in at this stage than out. (imo)

[unionhall] 16/11/2005 09:45

No share price increase until this is out ot the way ..

"it is likely, depending on market
conditions, that the Board may still decide to raise additional capital before
the financial year end."

Also Japan discretionary takeup disappointing so top up time not for another six months I'd say.

imho....

[arics] 16/11/2005 09:30

It would appear that medium term, say 18 months, that at sub 1p these are currently worth buying.

[melchor] 16/11/2005 09:24

Just maintaining the 68% increase in t/o (and not assuming the momentum seen by the second quarter) should definitely mean that the break-even line is broken.

If we take the fact that much of the 68% increase has occured in the second quarter, and carry this forward, we can assume a profit situation for the third quarter and substantially higher for the fourth.

The only broker's forecast of 0.46p per share seems, on this premise. very attainable.

This company is finally moving forward at an exponential rate.

Excellent news.

[rcktmn] 16/11/2005 08:58

Good improving interims announced this morning., Liked the bit about loss b/f tax down to £98k in Q2..
I'm still very positive with ARC and will go in for some more shortly before the market wakes up to the potential.. (imho)

Highlights

* Loss before tax reduced to £392k, compared with £560k in the first half of
2004.

* Loss before tax down to £98k in second quarter

* Turnover up 68% to £893k, compared with £532k in the first half of 2004.

* New distribution agreements with HSBC and AIG.

* Red 24 sales are more than five times that of the corresponding period last
year and now comprise over 50% of Group revenues.

* Investment in product development will result in further new product
launches in the second half of the year.

[arics] 14/11/2005 12:27

just had 350k at .83p, could be a decent buy at these levels.

[renixus1] 12/11/2005 19:08

It's not hard to find evidence that they are certainly permeating through the insurance and banking sector retail offerings lately and getting noticed in general. Interesting to note that the HSBC press release was dated June 2005, so the interims in December will be the first taste of the impact on the bottom line IMO.

Check out these links - that's after a five minute search! I'm sure there's tons more out there.













I'm quite sure that big banks like HSBC don't offer their customers a service that they don't think will be around for a long time. i.e. while ARC have the HSBC contract, I don't think there will be any funding issues.

[rcktmn] 12/11/2005 11:43

renixus1..
I'm already in from a couple of years ago... and at these levels and with good results due in Dec (could even be in Nov) I'm looking to go in again in the next week or so, just waiting to free up some funds ..
IMHO this is a winner...bargain at these levels but may go down a little more in the next week or so

[melchor] 12/11/2005 10:51

Some time ago, in the chairman's statement, he mentioned how they were building up the company and mentioned how a mere 60,000 members was hardly a substantial client base for ' a structure that is aimed at 650,000'. Th is implies that bar extraordinary expenditures like compliance and due diligence costs on launches, the baseline of expenditure is in the region of the 1.5million - add to this variable costs to service claims which are bound to build up with increased membership.

It was in July that 750,000 members was mentioned, one can only assume that by now these have increased decently.

If ARC only get £20 per member, breakeven, in my opinion, is achieved. If they are getting more than this, then we are in profit. If new members come in, after the delays with setting up in Asia etc., at the rate they came in between March 05 to the statement in July 05, then we should be talking of a very substantial profit per share.

The directors felt it necessary to make a trading statement in July, shortly after coming out with the 04-05 figures. That statement should be an insight that 05-06 figures will break out of the slow build-up of the company and in my opinion will break out very substantially. Remember, at 0.5p per share profit, the p/e is less than 1.5. If they do get into a situation where this is looking a viable end result, a growth company like this warrants a p/e ration in the late teens at least ... one can calculate what that will do to the share price.

It's what happened to the Asos internet shopping site ... once set up costs were achieved - the bottom line - everything over was profit, and then also, it was still growing -- the share price went up and up and up.

[renixus1] 11/11/2005 20:45

On HSBC's website they say the Red24 service that they offer to premier customers saves those customers £80 per year.



ARC now say they have increased the number of customers availing of this service ten-fold since mid 2004 to 750,000+



That's a potential whopping £60MM+ in revenue at £80 a customer. I'm sure HSBC got a discount, but to a company that generated £1MM in revenue according to the latest financials, there is bound to be some filtering down to the bottom line. I'd say breakeven has been well and truly exceeded.

Directors have been buying in at 1p. The current share price is below that now.

I think this could be a bargain.

Interims out in December.

Anyone else buying in?

Btw, as with any high growth tiddler, working capital shortages are a potential company killer, as funding growth outstrips the ability to collect cash from revenues to cover outflows. Every once in a while a tiddler gets it right and the benefits to shareholders are enormous when they do. I think ARC has a sensible bunch of directors. They have a few accountants in there to watch the working capital number, which to some extent has been managed by them pumping in their own money - another good sign.

[grupo guitarlumber] 01/11/2005 04:53

INTERVIEW - China 2006 steel output growth seen slowing

---- by Delia Liu ----

BEIJING (AFX) - China's steel output will continue to rise next year but at
a slower rate than seen in previous years, Luo Bingsheng, executive vice
chairman and secretary general of the China Iron & Steel Association (CISA),
told XFN-Asia.
"China's investment in the iron and steel sector rose 28.1 pct to 173.3 bln
yuan in the first nine months, which will definitely generate some new steel
capacity next year resulting in larger output, but the output growth will
definitely slow," Luo said.
He said overall steel output in China for the January-September period this
year surged 27 pct year-on-year, but growth for the same period next year is
expected to be below 20 pct.
Luo attributed the expected slowdown in output growth next year to the
government's policy of shutting down smaller and less competitive steelmakers
whose combined capacity totals around 180 mln tons of steel, accounting for some
30 pct of the national total.
These smaller steel producers are high energy consumers and heavy polluters,
he said.
However, the shutdown of smaller players will take time and cannot be
completed within a short period, said Luo.
"It's not a one or two year job as there are many complicated issues
involved, including the compensation for employees in the smaller steel mills."
As a result there will be no immediate output fall early next year, he
added.
Luo said China aims to restructure the iron and steel sector by shutting
down smaller mills, encouraging mergers between big companies and allowing
foreign investment to reinvigorate the sector.
Apart from the recent merger by Anshan Iron & Steel Group and Benxi Iron &
Steel Group in northeastern China this summer, Wuhan Iron & Steel Group will
merge with Liuzhou Iron & Steel Group with no timetable provided, said Luo.
He said the government is hoping foreign investment will help the sector
become more competitive.
"Mittal partly controls Hunan Valin Steel Tube & Wire Co Ltd (SZA 000932)
and is also in talks with other domestic steelmakers," he said, adding that
Arcelor, the world's second largest steel group, is also seeking to buy into a
Chinese steel mill.
According to Luo, it is hard to accurately predict steel output figures for
next year.
Steel outpit in 2006 "will be determined by the national GDP, fixed-asset
investment in the steel sector, exports - especially exports of machinery and
electronics - and the development of heavy industry," he said.
He projected China's total crude steel output to reach 340 mln tons this
year, up from 273 mln.
Luo said China's demand for iron ore will also increase next year, but the
growth will slow as well.
The CISA data show China's iron ore output rose 29.6 pct year-on-year to
279.65 mln tons in the first nine months.
(1 usd = 8.1 yuan)
[e-mail]
dl/ap/tr

[waldron] 31/10/2005 08:58

Dexia Raises Arcelor Target To EUR25

Monday, October 31, 2005 3:37:59 AM ET
Dow Jones Newswires



0825 GMT [Dow Jones] Dexia raises Arcelor (5786.FR) target price to EUR25 from EUR24 on strong 3Q results. Sees outlook improving with steel price rebound and growing demand. Expects share buybacks and dividend at year-end. Keeps buy rating. Shares +0.9% at EUR19.37. (ASC)

[ariane] 27/10/2005 14:15

Arcelor's Dolle says Ukraine steel exports could weigh on European prices

PARIS (AFX) - Arcelor CEO Guy Dolle said Ukrainian steel exports, which will
begin entering Europe when the country joins the World Trade Organisation next
year, could result in a large increase in supply that could in turn weigh on
prices.
Speaking on BFM radio after reporting third-quarter earnings this morning,
Dolle said Ukraine "is both an opportunity and a threat."
"It's an opportunity because there is iron ore, and because there is a steel
sector that is certainly outdated," Dolle said, just a few days after the group
lost out on the bidding to acquire Ukraine's Kryvorizhstal steel group to rival
Mittal Steel Co NV.
"It's a threat because Ukraine is going to join the WTO sometime in the next
12 months. So there is a risk of very high exports of its products to Europe,"
he added.
"Today, Ukraine produces 40 mln tonnes of steel, and consumes less than 10
mln," Dolle said.
He also reiterated that Arcelor will continue to search out other
acquisition opportunities, including in Europe and China.
This morning, Arcelor posted third-quarter net profit of 657 mln eur,
compared with 629 mln in the same period last year, well ahead of analyst
expectations.
[e-mail]
afp/js/jc

[ariane] 27/10/2005 07:21

Arcelor Q3 results ahead of forecasts as sees 'very strong' FY UPDATE

(updates with details on inventories, pricing, sales by segment)
PARIS (AFX) - Arcelor said third quarter net profits rose to a
better-than-forecast 657 mln eur from 629 mln a year earlier on the back of a
strong product mix and the expansion of its low-cost operations in Brazil and
Argentina.
Sales were also better than expected at 7.481 bln eur, up 4.6 pct or 0.9 pct
on a comparable basis.
Societe Generale had forecast net profits of 433 mln eur and sales of 6.771
bln.
EBITDA rose to 1.122 bln eur from 1.098 bln, for a gross operating margin of
15.0 pct from the year-earlier 15.4 pct.
The number-one European steelmaker said the third quarter was characterised
by adverse market conditions, notably higher costs due to strong raw materials
price increases, excess inventories and weak demand.
The company's performance thus clearly reflects the its "resilience", it
added.
Looking ahead, the steelmaker said order books for flat carbon products are
improving and inventories are at normal levels. For flat carbon steel, prices
reached their low point in September and shipments have since started
recovering, with improved market conditions.
Shipments and therefore production levels have continued to be adjusted to
market needs and should increase only moderately during the fourth quarter, it
said.
Overall, with its growth in Brazil and Argentina and amid "significant
progress" also achieved by most of its European operations, Arcelor reaffirmed
that its full year results will "show a very strong performance and an ability
to adapt to the (business) cycles."
Net financial debt at Sept 30 was 1.428 bln eur, down from 2.512 bln at Dec
31.
By segment, third quarter sales of flat carbon steel rose to 3.875 bln eur
from 3.769 bln, while long carbon steel increased to 1.758 bln from 1.644 bln.
However, stainless steel sales fell to 854 mln from 1.017 bln.
[e-mail]
jms

[marmiesz] 27/9/2005 22:53

Good to see this climb gradually. Holding for the LT. Luck to all,

Marmie

[rcktmn] 27/9/2005 10:55

yes, strange... it did tick up y'day.... think the mms are keeping a lid on this... they may be managing an orderly increase over the coming months rather than pump & dump... we'll see

[melchor] 27/9/2005 09:33

Why no tick-up?

[ariane] 27/9/2005 07:41

Arcelor, Mittal submit bids for 49.29 pct of Turkish steel firm Erdemir -
report

PARIS (AFX) - Arcelor and Mittal were among six companies submitting bids
for 49.29 pct of the Turkish steel producer Erdemir, the dailies Les Echos and
La Tribune said.
Les Echos cited the Turkish office in charge of privatisations.
Others submitting bids included the Russian steel companies Novolipetsk and
Severstal and two local groups. Thirteen companies had been prequalified to bid.
[e-mail]
mjs/vs

[ariane] 27/9/2005 07:38

Tuesday, September 27, 2005 2:02:11 AM ET
Dow Jones Newswires



0558 GMT [Dow Jones] When steel equities pause or selloff on backward-looking or newsflow concerns over current market conditions, yet forward looking data is improving, "this is the time to be buying into steels, ahead of the recovery truly setting in," says CSFB. Arcelor (5786.FR) remains top pick on valuation and structural grounds. Other favoured structural plays are Mittal (MT), Evraz (EVR.LN) and Corus (CGA). (SMT)

[melchor] 26/9/2005 11:34

More than a slight tick up ... in percentage terms, at least ... looks like this comapny is being noticed.

Still, nms is still very low, can't be that much stock around.

Maybe a good thing, means that the share price can change very substantially with only a moderate interest. This happened some months back when the directors bought shares, and it was obvious the mm's did not have any to give. It is also good to know that those holding are sticking to them.

[rcktmn] 24/9/2005 10:35

Haven't seen the article myself yet but I believe there was a piece in the Invest. Chronic. yesterday about ARC... looks as though thats the reason for the slight tick up and some buying interest... It's getting better folks !
At least ARC are beginning to get some publicity !

[rcktmn] 06/9/2005 10:20

On first reaqding of the RNS it's difficult to see eactly what it means and what the're doing... as you say, with ARC it's not always easy... still, I think it's positive and hopefully we'll have more details in the next interims due in Dec... Hopefully, we'll also see how the progress towards generating profits is doing as well !

[base97] 06/9/2005 09:46

melchor/rcktmn, With you all the way, just a wee bit cautious on whether to increase my core holding but the signs are good. Rgds. (I think I,ve just contradicted myself! That,s what ARC does for you)