Argentex Share Discussion Threads

[cambridge130] 28/11/2023 10:57

This company is is desperate trouble. Shares will halve again over the next 6 months.

[ali47fish] 23/11/2023 07:26

ned buys a chunk

[ali47fish] 21/11/2023 18:47

didnt wait long good on him is this significant- is the company out of water

[big7ime] 21/11/2023 16:51

Director buy

[ali47fish] 16/11/2023 15:02

new ned on board

[thorpematt] 15/11/2023 19:04

Dead cat bouncing?

[big7ime] 15/11/2023 17:23

Good profit made for those that were brave and buying when others were selling last week.

[jimtech] 11/11/2023 08:14

I was invested heavily in Argentex but I sold down earlier this year after reading the Google reviews at hxxps://maps.app.goo.gl/9g7PZBkAzPzpmQiq8

Here are some examples:

“Won't stop cold calling on the private number, lying to the reception to get through to the right person. No respectable company acts like this.”

"Constantly cold calling and rude to my staff when they wont give them my direct line. Won't be using them."

"Cold calling me daily. Not a way to get business in 2023."

"CONSTANTLY SPAM COLD CALLING ME. I AM REGISTERED ON TPS AND NOT INTERESTED. VERY RUDE SALES PEOPLE AND THE REASON I LEFT IS BECAUSE OF HOW EXPENSIVE U BECAME AFTER A COUPLE MONTHS."

"phone calls to private numbers without consent."

"Hassling, unsolicited contact, don't take no for an answer, avoid"

Clearly Argentex have a lot of work to do in their approach to winning business – from management to sales people - and it’s going to take a while to get back to growth.

And given their lack of transparency regarding their business activities AND TWO CEOs AND A CFO LEAVING IMMEDIATELY WITHOUT EXPLANATION (!!!!), I just don’t trust them to do what’s best for their shareholders.

Management - what is left of them - run this business like a private company leaving investors in the dark.

Arrogance and entitlement abounds.

Pleased to be out of it. It'll take a lot to convince me to buy in again.

[nickoftime] 11/11/2023 00:01

A few of AGX's client service staff have left to go to competitors. The company I work for use AGX and ex AGX staff have called us to change provider offering us better spreads. We have not changed but some will have leading to the increase in churn.

[big7ime] 10/11/2023 12:46

Smithie, that’s because not every client trades in a six mth period. As long as the number trading is rising the business is expanding clients.

Reading between the lines I think Harry had a big ego and wanted expansion at any cost. The business needs time to train new starters and embed new clients. The existing board seem to have realised and hopefully bring it back to increasingly profitable growth

Shares get oversold in current mkt so could be an opportunity as they return to trend. It’s still a very profitable business, I don’t see a reason for this to change and the current divi yield is 5%

[maddox] 10/11/2023 12:22

Yep, that's the opportunity Smithie. Big market and the banks are not being responsive to market change. IMHO there are some strong clues in the last AGFX results as to where the strategic focus needs to be.

Gresham House increasing their holding suggests that FIs are supporting the shakeout and revised strategy.

[smithie6] 10/11/2023 11:27

Banks charging 3-4% either side of the mid price is horrific profitiering.

[smithie6] 10/11/2023 11:26

Btw
Logic says that the margins for currency exchange are reducing & will continue to do so.

(One day the public might have direct access...& trade with each other....& the mkt operator takes just 1/2%.

[smithie6] 10/11/2023 11:24

...excellent first sentence imo.
Spot on.

[maddox] 10/11/2023 10:34

The interim CEO will be tempted to kitchen-sink the full year figs - so probably some more negatives to come. Also, there is clearly going to be internal pain and unhappiness - so keeping the revenue rolling at current rate is not guaranteed.

[beckaroo] 10/11/2023 10:18

They had 35M revenue on Sep 3rd, compared to 25M on June 30th, so if it is the same as last year (50M) it means about 4M a month which should be achievable.

They also stated operating profit is in line with last year. Operating profit 5.2M at June 30th, but last full year was 12.3M.

I don’t see how they can get operating profit up to that forecast with the same turnover as at half year,

[yump] 10/11/2023 10:13

Smithie
Yes flat 2nd half or worse seems likely.
Stuck on a p/e of 10ish for a long time I reckon.

Lose some people, get rid of the ego trip bits of expansion that didn’t work. Come back in 2 years ?

[yump] 10/11/2023 10:10

Red Ninja

If the current board get rid of the ultimate decision makers who have led investors up the garden path, how can the current board lack credibility ?

[smithie6] 10/11/2023 09:55

1) Perhaps part of the problem is the excessively high churn of clients as I posted before.
A good business with a good service/product should not lose such a high % of its clients in 1 year.

H1
"Despite an increasingly challenging macro-economic environment, clients(3) trading increased by 8% to 1,493 (H1 22 : 1,381) with 305 new clients traded in the period (H1 22: 284)"

ie. ~200 left !
1 in 7 !

------
2) H1 revenue was noticeably up vs prior year, yet including H2 it will be flat. Without looking at the numbers that infers imo that H2 is noticeably down vs prior year. That infers to me that there is more bad news not yet announced.

[maddox] 10/11/2023 09:47

We've got the inevitable profit warning out of the way - it would have required a miracle to have hit the brokers' consensus forecast.

We still have a potential share overhang - it'd be good to get some clarity on what is planned - hopefully being retained or organised sale.

[red ninja] 10/11/2023 09:31

This current board appear to have won the battle against the CEO/CFO presumably on the basis that trading performance was lagging, but investors were left in the dark.

Doesn't that indicate a lack of credibility ?

[yump] 10/11/2023 09:23

Erm… the board that were in charge of announcements and credibility has gone.

That leaves a neutral state. Unless you expected subordinates to revolt en masse because they didn’t like the leadership.

[red ninja] 10/11/2023 08:18

It is not looking particularly cheap and I'm not sure this board has much credibility at the moment.

[dr biotech] 10/11/2023 08:02

Well they had a reputation of over promising and under delivery. So a change to that wouldn’t hurt