Brutal reaction |
At last the share price is moving in a logical direction, still a way to go mind you. The directors must be sweating on their decision to buy a US property portal, the property market there has virtually disappeared. |
Apart from one big anonymous shareholder who has gone below 3% the only notifiable transactions this year have been large sales by directors. Does not look good. |
74tom despite your comments which I agree with, the shares are recovering nicely. I can't see what we are missing. |
The valuation here seems inexplicable at £1b EV when debt is included vs operating profit of £9.8m for the half year to 31/03, of which £9.1m is swallowed up by finance costs. The balance sheet meanwhile is hideous with a significant negative net asset value when you strip out goodwill + intangibles. Has to be one of the most bizarre valuations on the LSE. |
Switched to HARL , good timing |
All the top line figures are adjusted, even the sales figure. It is not until you read the accounts themselves you see how poor the performance has been. |
agreed, in fact I said as much on here in June. I use the-saleroom all the time to find auction items but the 6% internet charge means I always check to see if the auction house has its own free bidding platform as ATG charges are too high |
likeawalrus, it is already overpriced, extra publicity will be a negative. |
as ATG develops the US acquisition and assuming it becomes a significant revenue source, we may see ATG list on otcmarkets in the US in the next year or two? |
I have been looking at this (following a tip somewhere) for a while.
I think while a good idea that it is massively overvalued. I remember thinking the same about purple bricks. Post 81 above has it in a nutshell - price to sales scary.
It has a lot further to fall I think |
Sales growth slowed down in last half year. They've diluted shareholders. Price to sales scary too at 6.5 (as well as the PE). They have a reasonable operating margin ... but revenues need to grow more to justify this valuation. And if they push harder to get the revenue up, the op margins may start to drop (which then causes other issues). Shareholder base not very inspiring ... you would expect to see a Baille Gifford in there if this was investable. |
nasdaq futures recovered well after the sharp dip which might help UK tech stocks a little today . As you say , they often do have scary p/e or are even loss making for years :) |
I can't work this one out. I keep watching but there never is anything to get your teeth into. Even the recent decline still leaves them on a scary p/e. |
dreadful looking downtrending chart and could soon be a SOR situation ! But Tech stocks are not flavour of the month with nasdaq in USA falling again . |
I'm obviously missing something, why has the market decided today's acquisition is good? It is low growth in a low growth area with a rather sticky outlook. If the company wants to spend 40 mil on a side issue what does that say about the core business? |
Berenberg love technology and their recent track record reflects this. There are areas where Auction Technology could strike it lucky but to justify a p/e in the stratosphere they will have to demonstrate real growth and to date neither sales nor profit show any hint of succeeding. I am watching but at the moment, no way. |
 Berenberg 'bullish' on diversifying Auction TechnologyBerenberg believes there are 'multiple levers' that can be pulled at Auction Technology Group (ATG) to generate outperformance.Analyst Bharath Nagaraj retained his 'buy' recommendation and target share price of 900p on the provider of online auction marketplaces, which was trading flat at 795p.The stock has gained 13% since Nagaraj initiated coverage in September 'but this is after it briefly zoomed past our 900p price target and then declined on the back of softer guidance from the company for full-year 2023'.He said this was driven by 'non-operational metrics' such as interest rates and currency movements.'While total hammer value could be at risk given a decline in asset prices in recent months, we believe this can be largely offset,' he said.'Our view remains that Auction Technology Group is a strong multi-year growth story that is rapidly diversifying through new revenue streams, such as payments and marketing. Thus, we remain bullish on the name despite it trading at 28x price/earnings.' |
What a difference a few weeks does. No nice rise today. The latest numbers show miniscule sales and a tiny profit. Even after todays fall they are still overpriced. |
Anybody here? Nice rise! |
harry I haven't followed this stock for long but as soon as I looked at it I concluded it was significantly overpriced and had some way to drop, I must admit I didnt think it would happen so quickly, 10% since Friday. when sentiment turns against a stock it can be brutal, imo it has further to fall although there may be a short term bounce, I havent invested yet, but when I do (probably when its sub 800) I will trade my shares rather than do a William Wallace |
As we can see now the executives did know something when they en masse sold 1.1 million shares at £8.75. I was so disgusted I am now short. |
ATG having a bad day, could be an opportunity at this level but I'm happy to wait as it still seems over priced to me, if there's a global stock market 'correction' in the near future I can see the share price dipping below 600p (but not for long)...fortune favours the brave! |
Agree like a walrus |
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