Eckoh Share Discussion Threads

[boadicea] 11/11/2021 15:42

Sphere - I follow your reasoning but from a historical view ECK does not warrant a premium rating (imo) and certainly looked overpriced at 80p. I regret not selling more of them nearer the peak but past mistakes (e.g. selling SCT prematurely) have taught me to hedge my bets in a sector that can be volatile and surprising in either direction.
So I am sticking with a modest holding here but not currently adding until the horizon clears. The recent large inter-insti trades put a strong valuation marker in place.

In similar stocks, I have one that has doubled and still looks cheap (to me). Another looked cheap but has fallen 30% and merely looks cheaper. Two others are on astronomic ratings but keep on rising so I periodically top-slice but don't sell out, remembering SCT!

The backstop is that a decent turnover in a fragmented sector is often of interest to a competitor and will lead to a takeover of a struggling company at the right price.

[sphere25] 11/11/2021 12:57

Had a little nibble here earlier, but it's a risky one as the trend is still down, but it could break that downtrend now. Looking at the action here lately, clearly the big mop has come out and buyers have come in and gobbled up enormous chunks from sellers (mainly Blackrock?) with over 5 million exchanged at 47p and more than 8 million exchanged at 48p recently.

It's one of those where you look at the valuation and wonder how cheap it is, but I have only glanced. More interested in the technicals and trying to catch a bounce and move higher.

The fact that buyers are willing to gobble up enormous chunks at 47p and 48p should at least signal a floor there so stick a stop there near the lows, but IF the sellers have finished here, it could bounce back and recover some of the losses from the highs at 80p.

52p was the first key level - looks to have broken.
If 55p goes, then the bounce could be on.


All imo
DYOR

[tnt99] 11/11/2021 12:12

Juicy new contracts coming through should see this rise back to 70p with any other announcements

[nickelmer] 11/11/2021 07:53

x20 yes, looks that way, Blackrock reducing their stake and Liontrust increasing theirs. There had seemed to be a large seller around for quite some time, presumably (hopefully) that was Blackrock and following the announcement, they have now finished.

[x2o] 11/11/2021 07:37

Did I misread or have black rock just significantly reduced their holding on 9/11/21?

[nickelmer] 10/11/2021 16:59

Maybe our seller has been cleared out.......

[nickelmer] 09/11/2021 11:51

I am convinced there has been a big seller around for some time, and that seller seems to remain. Until the stock is cleared it is going to need more good news to move the price any decent amount IMHO

[zipstuck] 09/11/2021 10:05

From the TS

We are also seeing encouraging signs of sales momentum building again in the third quarter, as it did last year, WITH SOME SIZEABLE CONTRACTS - that have been slower to move forward - now gaining traction.

[boadicea] 09/11/2021 08:22

This news should stop the slide and stabilise the price, probably around 50p. It will require further similar news to confirm an improved growth trend before we achieve any significant advance imho.

[nickelmer] 09/11/2021 07:57

Finally, signs of growth returning ! and mightily so! well done Eck

[boadicea] 29/10/2021 16:07

The share price is suffering as a result of lack of (good) news with the normal time for an update having passed. I have two other holdings unhappily showing the same effect.
Perahaps the digital/e-commerce boost of past months has run its course for the time being.
In contrast, some tecnical hardware companies which are generally on much lower ratings have been showing revived interest.

[septimus quaid] 20/10/2021 10:17

Double agree,

The share price built itself up over the middle of the year and probably got ahead of itself with a temporary decline setting in during early May 21.

A recovery was then staged up to the release of the full year results on 15/06/21 (presumably in the expectation of something sparkling). However, these results were, for want of a better word, "lame".

I was thinking that, as a mainly IT based business model, ECK would have "thrived" under Covid.

Anyway, as above, lets see what next week's update brings?

Otherwise, the interims should be out late November

[nickelmer] 20/10/2021 07:17

Agree with Boadicea, the market seems to be starting to value Eck as a company with no growth, however, the company did state that growth would return in the following year so let's hope an update is a positive one that shows a faster return to growth.

[boadicea] 19/10/2021 19:26

This has become one of the laggards in my portfolio in recent times. The market has decided (correctly on current evidence) that its premium growth rating was unwarranted.

An update should be expected in the next week (25th or 26th). On the basis of their comments at mid year, previous expectations ought to be exceeded - Why? - because the economic recovery they forecast to provide an improvement for next year has arrived faster than their apparent assumptions.

In the circumstances one would expect them to be able to upgrade their flat forecast for the current year to March '22. It might arrest the share price decline if they can.

[nickelmer] 06/10/2021 14:49

If you read the recent RNS's one long term investing institution has reduced its holding whilst another has increased its stake

[rbdraper] 06/10/2021 07:44

I am still holding and considering buying.. It does appear however that a major investor has reduced their holding significantly which is worrying. It might take a RNS from the company to spike up the price. Let's hope it is optimistic.

[boadicea] 30/9/2021 17:33

I have not rated ECK as a buy (purely personally) for some time as progress and margins have been unexciting. It is encouraging to see that Lion Trust have chosen to add to an already substantial holding and would be interesting to know their reasons which will no doubt be medium to long term. At least it confirms my decision to hold.

[nickelmer] 21/7/2021 08:58

If the price continues to be flat then the chances of an opportunistic bid certainly increase. Buying in the next 12 months
would be good timing ahead of the rapid growth that the company
forecasts for next year, they also have a strong cash position to
help any would-be buyer. Possibly a larger company in the USA looking
to add to their portfolio in a niche area.

[septimus quaid] 10/7/2021 13:55

I wish someone would get on with it and make a takeover bid

[rabbrooks] 10/7/2021 12:08

ECK is worrying most investors it would appear. Should we be really ,really worried?

[septimus quaid] 04/6/2021 12:42

Indeed, there was a weird, low-ball trade went through near COP yesterday which had the effect of depressing the baseline for today's opening (i.e. exaggerating today's increase):

03/06/21 16:08 64.2 200 128

[boadicea] 04/6/2021 10:28

Results are due within a week or so. Possibly some punters taking out options, or perhaps something's leaking.
Best to take querky auction results on thinly traded stocks with a pinch of salt and anything outside market hours. Set your monitor to mid-price and follow that imho.

[techno20] 04/6/2021 08:39

Anyone any idea what’s going on here? Strange moves yesterday and this morning. Tiny volumes.