AT Communications Share Discussion Threads

[masurenguy] 20/3/2008 07:52

Cheers Riv - hopefully will will get a good set of results and a very positive forward outlook statement when the results are announced on April 9th.

[rivaldo] 20/3/2008 07:48

An interesting article from the IC this week with this reassuring message:



"Similarly, business-focused telecoms resellers – such as Alternative Networks, AT Communications and Redstone – "should be unaffected by [economic] cycles because of their mission critical requirements to clients' businesses", says Andrew Darley of KBC Peel Hunt. Telecoms companies citing broader economic conditions as causing problems in their business are looking for excuses for their own poor execution, he says."

[greek islander] 13/3/2008 23:25

Steg
Exactly. One day it'll start to change back. I guess.

[stegrego] 13/3/2008 19:50

You have to take the rough with the smooth GI.

I dont think its going to get much easier for a few months, if not years.

Still money to be made out there though and im pretty confident that most of the positions ive taken or held onto over the past 6 months will pay dividends over the coming 18 months.

Im in GNG, RCG, ATCG and SQS amongst others but look at the falls now as maybe long term oppotunities rather than short term problems.

Ive had 1 out of about 40 companies i hold come out with bad news in the past 6 months or so, the rest are either doing ok or better. Until such time as that changes, ill be hanging on to them all and adding on weakness.

[greek islander] 13/3/2008 19:08

Mas

The same PIs seem to cover many of the same stocks on ADVFN because we are all looking for value and low pe's and pegs where possible. Like ATCG RCG GNG SQS etc etc. Zulu Principle seems to be followed by many. Some more closely - Liars - than others.
So we are all suffering together. In fact only SQS and ETC have provided me with any solace these last few months. It's a good job I remain long and in fact throughout this last six months have constantly topped up at what I assumed to be bargain prices, only to see them almost inevitably drop further.
As fast as I increase the size of my portfolio it seems to creep backwards - it really is like walking in deep mud!!!! But then I am sure many are in the same boat.
Would be nice if forthcoming announcements from ATCG ETC and GNG can bring us some longer lasting relief.
I feel at times that you Mas and many others - you will know them - are all in this sinking boat together. We may keep writing about these low valuations but no one is listening and it may be a while before they do. Mind you, when that happens watch these stocks climb!

[geraldus] 13/3/2008 16:15

In for some of these today after watching them for the past month.Had a small update in Shares mag also. - G.Spotts.

[masurenguy] 13/3/2008 15:07

Lets hope that we get some knockout results GI - in this current market any companys results have got to be almost stellar in order to achieve a sustainable increase in their share price. Since we currently remain on a very low PER & PEG (even in this market) there is still much more scope for an upward movement in due course !

[gryphon2] 13/3/2008 14:44

I think monday they expect results

[greek islander] 13/3/2008 14:31

Well noticed Mas, my broker just told me that MMs were looking for quite a lot of stock he thinks to fill a biggish order. This, combined with the forthcoming results, makes we wonder whether we are in for some knockout results and someone has got wind of it.
Could mean a much needed price increase over the next few weeks. Plenty of scope for that with a pe that is pretty awful.

[masurenguy] 13/3/2008 13:38

Results were out on March 12th last year but publication was probably brought forward to reassure the market after the circumstances surrounding the departure of the previous FD a month earlier. Interims were issued almost exactly 3 months after H1 and therefore I would assume the same timeframe for full year results. With Easter falling early this year one might expect results by the month end on either w/c 31/3 or 7/4 at the latest.

I noticed that the Offer was moved up by 1p in response to a 25K Sell @32.9p that went through just before 1.00pm. A subsequent 9K Sell 20 minutes later did not move it back down either so this could suggest that there may be a buyer looking to accumulate.

[anteos] 13/3/2008 10:54

usually the finals are out by now. does anyone know when they're due?

thanks

[gryphon2] 11/3/2008 08:14

Wise words Islander .. I am like you .. holding, adding slightly where i see value.. gritting my teeth and hoping!!

[greek islander] 10/3/2008 19:26

The fear of the debt has really impacted hugely on this stock and as that threat goes away the re rating referred to above should see this share price surge. Mind you their are a lot of stocks on AIM that should surge equally - we shall just have to remain patient I guess.

The stocks I hold at the moment have the most amazing potential to react to any move to a bull market. I have been in this situation before in a bear market but were not solidly long as I am these days and am in a much stronger position to take advantage of the very very low pe's of my current holdings.
I am convinced that companies like ATCG have the potential to see pes of up to 20-30 and we can all work out what that would mean in share price terms. It's just a case of hanging on and increasing our holdings as money comes in and then have faith and be patient. One thing I have learnt over the years of investing is that you can never NEVER predict when the next bull run will start and all I can guard against is panic for I know that when it starts this time I shall be in there from the start.

[masurenguy] 10/3/2008 17:11

Looks that way but at least it closed blue amidst another sea of red today :o)

[jwe] 10/3/2008 16:45

A disappionting day given the article,but,it seems,we still have a seller!

[masurenguy] 10/3/2008 08:47

Looks like yesterdays Telegraph article has prompted some buying this morning !
Buys of 50K, 25K and 21K in the first half hour.

[gryphon2] 10/3/2008 08:45

not too many early risers read the telegraph then .. or they just don't believe!

[masurenguy] 09/3/2008 10:12

Thanks jwe - here is the text of the actual Questor comment

AT Communications
Price 33.25p
Questor says Buy

The marketplace for business communications is a crowded place to be. There are any number of providers who will package up the data, mobile and fixed-line offerings of others and deliver them on. AT Communications, (ATC) however, does rather more than that. The company provides IP technology to many of the UK's largest companies, and as well as offering consultancy, maintenance and distribution services, also has a distribution arm that supplies products to the likes of Amazon.

Last week the company, which has been battered in recent months on debt and cashflow fears, unveiled a landmark deal that it hopes will put it back on the straight and narrow. ATC has been hired by De La Rue, the security printer, to install IP telephony services to its operations across the world - the first time that it has won such a global contract.

What's more, the company has recently refinanced its bank facilities on more favourable terms and is now throwing off enough cash to be able to cut debt significantly, as well as meet the City's profit expectations.

The De La Rue deal, it is hoped, will be the sign of things to come and should lead to a revaluation of the shares in coming months. On a little over four times 2008 earnings, the shares look cheap. Buy.

[jwe] 09/3/2008 10:02

Tipped as a buy in todays Telegraph with much emphasis placed on the DLR contract which it says should lead to a rerating over the coming months!!

[jasper28] 07/3/2008 15:39

A wishfull statement Masurenguy, Myself along with you , have proberbly been in from day one, knowing the company was a banker, but yet it fails to produce.

I hope you right, and we see the share price bag.

I could have sold way back at nearly 60p but decided to stick it out long term, i think now were looking at the company been in its best position so far since floating and things are about to change.

I have a good feeling about the coming months a head.

[jwe] 07/3/2008 11:59

A nice summary

[masurenguy] 07/3/2008 11:48

At 33p the valuation remains compelling. If the final results are in accord with the last trading update (Sales £89m & PTP £6.2m) then this will reflect sales growth of 65% and PAT growth of over 100% subject to any exceptionals and tax at circa 25%. The number of shares in issue has increased by circa 26% since last year so this would equate to an eps increase of circa 67%. This represents an historic PER of 5.5 and a PEG of less than 0.1.
It is also worth noting that since last years results FD Ian Crawly has invested just over £1m buying 2.46m shares at an average price of 41.1p and CEO Alex Tupman has invested a further £471k buying 1.25m shares at an average price of 37.5p. Together they now hold 19.5% of the shares. In addition the COO and Chairman also have a combined holding of 4.5% so the 4 most senior executives hold almost a quarter of the companys shares collectively.

The main drag on the share price remains the debt which was £18.5m last year but should be nearer to £15m at the Dec 07 year end but even this has also been rescheduled on more favourable terms. However, negative sentiment toward Telecoms and the general market malaise emanating from the liquidity crisis plus the uncertainty still surrounding sub-prime/derivative liabilities is also having some impact.

This company is growing sales at more than 50%, profits will have doubled over last year, new blue chip clients are being acquired, directors are backing themselves by making significant investments in the company and yet the share price continues to languish in the low 30p - 35p range. Unless there are some unexpected set backs or bad news this must re-rate in due course and when it does it could move up very quickly.

[jwe] 07/3/2008 10:28

the 65k sell and negligible impact on the share price does now confirm imo we have a decent sized buyer,and that i was wrong in my first assessment of the 150k sell

[badgerry] 06/3/2008 20:46

Perhaps the 150K trades were actually a cross at 33p between Brokers and not a sale, which may explain the fact the stock stayed steady?

[stegrego] 06/3/2008 18:43

Since when have logic and shareprices been connected?