Atlantic Global Share Discussion Threads

[paulkent] 23/9/2003 07:09

yesterday, there were a million of sells werent there??..or did i misread it?
and im not that worried about todays director sales announcement as its only about 5% of what he had...and the institutional demand is always a good line!!!!

[rob molloy] 23/9/2003 07:08

Director sells, to satisfy institutional demand.

More Good news in the longer term, no placings etc etc.
Thats why we have been held back. Now we will see the buys come through.

[blopblup] 23/9/2003 06:47

Pualkent,where do you get the million plus sells from?????

[paulkent] 23/9/2003 06:43

reckon the million plus of sells at the end explains the fall..?

[topinfo] 22/9/2003 21:33

I agree, I think an announcement will be just around the corner, however it was rather a sharp fall to say he just bought in, there gain it was a bit of a down day in general.

[makday] 22/9/2003 17:23

I have to admit this looks like a very strong buy particularly when the director buys into the company.

[blopblup] 22/9/2003 16:38

LONDON (ShareCast) - Software group Atlantic Global chairman Adrian Bradshaw bought 60,000 shares in the group, at 83p each, bringing his holding to 470,000 or 2.07%. ATL - Atlantic Global

Latest Prices
Name Price Chg % Buy/Sell
Atlantic Global 77 -5 -6

Software & Computer Services -2%



The move comes a week after Atlantic, which develops business and resource management software, reported broadly unchanged pre-tax profits for the first half.

However it expects improvement in the second half as interest in the company's products is now at its highest level ever, it said in company statement last week.

The group's share have been on a steady rise since June this year.

[paulkent] 22/9/2003 15:46

bought some more at teh close rob...i alwasy think director buys, especially when not jsut a few grand, are a really good indicator..buying anywhere below usually works out in the medium term..on top of the results and the underpinning that profits give, i think any kind of new or good news will give these a real boost

[rob molloy] 22/9/2003 15:31

Paul,
weird to say the least this retracment, still there's always tomorrow

[paulkent] 22/9/2003 15:23

bloomin heck..Director buy at 83p and shares fall!?..think it might be worth topping up at anything below this level then as he clearly knows more than us lot and thinks its worth it...

[scrapheap] 22/9/2003 14:49

Down day for market - I'd expect the shares to respond very nicely to such a chunky director buy normally... positive anyway and expect good news to come for s/ders in the near future!

[adriand] 20/9/2003 10:29

one of two things.

it brings the thread to the top of the BB also used is ttt= to the top

it is also where someone has edited a post out completely but hasn't the good manners to say so. at least put in "edited"

[morose] 20/9/2003 10:25

what are posts with nothing but a single fullstop supposed to mean?

[excelsior] 19/9/2003 20:09

PaulKent

You will have to accept that that some folk just lack vision...I for one resonate with your posts.

Enjoy your weekend.

P.S. Thanks, blopblup.

[paulkent] 19/9/2003 16:24

blopblup
good article..i think thats what i was trying to point out far less scientifically of course!!!

[blopblup] 19/9/2003 15:38

from every investor.Read with delight.

Atlantic Global has Corporate Vision of bumper profits ahead


Atlantic Global
Business Summary
Development and sale of computer software.

Market: AIM
Website: www.atlantic-global.net





I took a chance two weeks ago in recommending shares in tiny software company, Atlantic Global, ahead of imminent results. In one sense the gamble didn't pay off- the shares fell sharply after my recommendation and are still modestly down. But the results, and especially the accompanying comments on their new products and the potential for the business, have left me even more convinced that Atlantic is going to be a big, possibly huge, winner for investors.


Market Data
EPIC Company Share Price Market Cap £m PER Dividend Yield% 12-Month hi-lo Company Report
ATL Atlantic Global 83.50 19 138.8 0.60 25.00-89.50



There is so much going on in the stock market, with armies of companies and their public relations representatives fighting for attention from a relative handful of journalists and analysts, that companies with great stories to tell can find that hardly anyone is listening. I think Atlantic Global has a terrific story to tell in terms of products and, equally important, it has the internal management disciplines and financial controls to make sure that a big chunk of revenue falls through to profits. As a result the company has managed the unusual feat for a technology business of growing profits in an almost unbroken line through the worst-ever downturn in the industry. At this rate the company may even one day live up to its wonderfully ambitious name.


Working in partnership with very large corporations
The background to the company is its timekeeping software which plays a central role in running any business with many employees. Central to the group's approach has been its practice of working in partnership with very large companies. This ensures that it creates software that will be genuinely useful to its target customers and helps keep development costs down. Revenues come from an initial charge for the software application plus a further consideration for each position using the software and a recurring maintenance charge running at around 20 per cent of the upfront fees.

An important feature of the software is that it is easy to use so requiring little support and is increasingly delivered over the web further cutting down costs. Growth comes in part from launching new software modules. The latest year has been a big year for development- the company will end the year with six modules against three a year earlier.


Corporate Vision software represents a step change for the company
But the real excitement centres on one of these modules, Corporate Vision, that the company describes as a step change in its development. Corporate Vision stands at the heart of the business process. It enables senior executives to see what is happening to projects within the company in terms of resources being used and milestones being achieved or missed. As well as seeing at a glance what is happening in readily comprehensible terms across often far-flung business empires, top management can drill down through the initial presentation to examine what is happening in greater detail.

Not only does the company have a great new piece of software to stand at the heart of its family of software modules, but it already has an impressive list of some 120 big corporations to whom to sell the new package. It was originally developed in 2001 in partnership with giant US pharmaceutical company, Pfizer; subsequently a more generic version has been developed with Norwich Union with launch planned for November.

At the heart of the sales pitch is the scope to enhance productivity within a business and save costs. Chief executive, Eugene Blair, claims his software should save five per cent of a company's costs and repay their cost of investment in three to six months. Unlike Atlantic's other modules, the sales pitch can be made directly to top-level management whose attention is immediately caught by the benefits on offer. As one executive apparently put it, if they can manage their resources better to save on just one contractor they will already have paid for the package.

Nor will Atlantic Global be stirring up the competition. The software is designed to work in tandem with transactions-based software supplied by industry giants like SAP and Oracle; it also creates work for management consultancies who can build transforming strategies based on operational weaknesses and opportunities highlighted by the software. They are likely to be enthusiastic supporters, and sellers, of Corporate Vision.


Dramatic potential after initial slow build-up
Sales will build up slowly at first. The plan is to have two or three customers in the early months to develop testimonials for the product. After that there is the potential for an explosive roll-out of a product that could have a dramatic impact on profits. This partly reflects the pricing. A typical Atlantic module sells for around £40,000. Corporate Vision, addressing somewhat larger businesses and much higher levels in the corporate hierarchy will have an initial sale estimated around £182,000, over four times as much. It doesn't take a rocket scientist to see that if the product is a success, and the considerable feedback the group is receiving suggests strongly that it will be, then this company could soon be four or fives times its present size. Not only that but profits would rise even more since the upfront revenues are mostly profit.


Financial Data
Fiscal Year Proj Turnover £m Pretax Profit Change % EPS Change % DPS Change
%
2002 1.55 0.47 NA 1.54 NA 0.50 NA
2003 * n/a 0.70 48.9% 2.00 29.9% 0.60 20%
2004 * n/a 1.00 42.9% 2.90 45% 0.75 25%

EPS - Earnings per Share
DPS - Dividend per Share


Analysts are forecasting profits reaching £700,000 this year against last year's £470,000 and £1m next year. Those projections provide underpinning for a fast-growing business capitalised at £18.9m. But the real interest will come if Corporate Vision is anything like the success expected by the company; those projections, especially for next year, could start to fly higher, taking the shares with them.

The Share Weekly Quality Ratings
Relative Strength 10-year Trend Latest Trading Profit Forecast Ratios External factors TSW Rating
6

[morose] 19/9/2003 10:00

I think there is some disappointment that no new deals were announced with the interims,or presumably at the analysts meeting.

This share is newsflow driven and these type of shares seldom look sound on basic fundamentals.It is the growth potential that appeals.

I dare say there will be a decline of sorts, already happening, following the results as a few disappointed investors throw in the towel, but all it needs is some good media coverage or another deal and it will head northwards very quickly.
Take your eyes off the screen and you could miss it!

In the absence of newsflow who knows, but the future looks promising to me.

[paulkent] 19/9/2003 09:56

but how do you get 136 when the EPS for the half year was over 1p and the share price is only 80p?..doesnt make sense to me; all i look at simply is mkt cap v profit..mkt cap under £20 million, profits already over £500,000. So the way i lok at that is that an effective return of around 2.5% is already in place and THAT is based on profit achieved in VERY TOUGH TIMES. So the downside looks strongly protected. UPSIDE is increased spending by existing clients as things improve, more new contracts won by Atlantic, increased profitability through good management etc etc...so while i view a MASSIVE upside as dependent on an exciting RNS of a BIG NEW contract (alwasy possible) i think its still well palced for healthy upside and is ALREADY profitable which protects the downside; im in other shares which are either gonna go bust or make fortunes, so its healthy i think to have some shares which should grow well, dont look remotely like going bust, and MIGHT, jsut MIGHT land some nice contracts

[bbbb] 19/9/2003 09:01

paulkent: the p/e of 140 was on the ADVFN quote page yesterday . it' s the historic figure. It' s now been adjusted to 136.

the interim net profit was £231,000 against £230,000 last time.
that's an increase of 0.4%.

in 10 years at the same rate it would be a 4% increase. the compounding effect, however, would mean the 4% increase would be achieved in only about 8 years.

the only snag is that there was inflation of about 2% last year, so the real growth is minus 1.6%.

I just can't figure out why that is such a fantastic deal for the investor at todays price. but maybe I'm missing something!

[paulkent] 19/9/2003 08:23

bbbb
as im not really that soffistikated youll have to explain what you mean to me...coz the way i look at the numbers, the half yr profit was over £200k, and there is a consistent profitable trend..higher profits expected in second half..so assume theres already profit of £500k per annum...well to my simplistic way of thinking, on a 5% gross yield i reckon thats a mkt cap of about £10million....current mkt cap is only £18mill i think?...so thats a pretty good underpin...if u assume profits will increase (ie, if you like the business and management) then i think £20mill is by no means ott...in fact it only takes a medium uplift in spending in this sector for profits to jump dramatically i would have thought...remember the profits theyve BEEN making have been in VERY tough times..
the EPS was over 1p wasnt it for the half yr, so if you assume over 2.5p for the year then i dont see how you get a P/E of 140 when the price is only 80p..surely thats a PE of 35 ish??...

[blopblup] 19/9/2003 07:18

I shall try to find out!