Eckoh Share Discussion Threads

[hybrasil] 24/9/2023 11:10

This share price must be due a break out.

Its been trading in this limited range for ages.

I know the UK stock market is in the pitts but this share should be trading much higher

[wjccghcc] 05/7/2023 21:17

Most software companies have gross margins above 80%, some above 95%. It's because the cost of the product itself is minimal so you really only have the hardware costs (if on prem) or the cost of cloud rental if in the cloud. However, the cost of developing the software over several years is not in gross margin, nor are the staff costs. That's why net margin is a better measure of profitability for software companies.

[trcml] 05/7/2023 19:06

correction: 80%

[trcml] 05/7/2023 18:52

Explain something, please. Unless I've read this wrong, Eckoh has an 80$ gross profit margin. Why ywuld a potential customer, doing due diligence, wantt o buy into a system/product from a company whose profit margin is such? Wouldn't eh customer shop around for a lower cost set-up or expect a substantial reduction/discount?

[wjccghcc] 15/6/2023 10:15

Adjusted EPS might be more useful as that excludes amortisation of acquired intangibles of 2.4mm. Forecast EPS is 2.0p (PBT+8%) giving a PE of 19. Beginning to look good value IMHO now they've pivoted to the US.

[nickelmer] 15/6/2023 08:43

Solid results and good to see the dividend being increased. So this puts Eck on a PE multiple of 25 at 40p. I would be interested to know what the forecast for the next year's profits is expected to be as it would give a guide as to the likely EPS and therefore the forward-looking PE. I don't know what is considered a fair multiple in this sector, 25 does not sound cheap by any means but that could obviously fall in 12 months, which is why forward guidance on next year would be so helpful to investors.

[mallorca 9] 27/4/2023 11:16

Another attraction of this one for me is that it may well be a takeover target.
Musk made a fortune from Paypal.

[nickelmer] 25/4/2023 10:23

So, maybe it was a fake downside breakout, if these get back above 41 in short time they may be in for a further nice move upwards....

[babbler] 25/4/2023 07:50

Significantly ahead. That's all you need to know.

[tnt99] 24/4/2023 20:08

Director buying must be a takeover target!!!

[trcml] 21/4/2023 15:33

NETW just receved serious expression of interest.

[nickelmer] 20/4/2023 07:42

Finally, a news release, but not a single word about sales or profits, just more hype about a new service that might be a winner, I guess at least it is some form of news but for god's sake management, investors are interested in real contract wins, cost savings and profits progress, not yet more hype about the potential for new services.

[nickelmer] 20/4/2023 06:03

Big volume suggests a large investor/institutional seller, as per my previous comments, the management need to wake up, not regularly updating investors leaves them no choice but to sell up and move on due to a lack of information on the company's prospects, no one is going to invest blindly in a business that treats shareholders so badly. Larger investors appear to be thinking the same and rightly so.

[wjccghcc] 19/4/2023 18:10

Thanks SG. Here's hoping it gets thrown out at that one then.

[value viper] 19/4/2023 17:51

Big end of day prints Seller cleared maybe

[simon gordon] 19/4/2023 17:47

W,

Here it is:

ORDER granting 56 Joint Motion to Extend Claim Construction Scheduling Order Deadline. Opening Claim Construction Brief due by 5/4/2023.
Responsive Claim Construction Brief due by 5/18/2023.
Reply Claim Construction Brief due by 5/25/2023.
Surreply Claim Construction Brief due by 6/1/2023.

If you subscribe to this site you get all the court info:



They've hired the Wombles to defend them!

-----

Carter/Ledyard - 2018:

In the U.S. approximately 4,057 patent infringement suits were filed in 2017. Roughly 90% of patent suits filed each year are abandoned or settled. Of the 300 or so remaining, two thirds never go to trial and are adjudicated on summary judgment, meaning that a Judge decides the outcome of the case before there is a trial.

The decision by the Court on the meaning of a claim term can end the litigation long before any jury trial. For example, the Court could decide on a broad definition that encompasses prior art references never considered by the Patent Examiner. Counsel for the alleged infringer then moves for summary judgment, and the Court proceeds to find the patent invalid based on its own claim construction. Alternatively, the Court could decide on a narrow claim construction which results in a claim so narrow that it no longer covers the infringing product.

[simon gordon] 19/4/2023 17:38

W,

There is another hearing coming up next month where it could be kicked out of court. There's a new judge, so not sure if that complicates the hearing. Think there will be a ruling in early June. Be perfect if Sycurio loses both in June.

[wjccghcc] 19/4/2023 17:20

Agreed.

Unfortunately the US court case isn't until late 2024 though.

[simon gordon] 19/4/2023 17:00

Hi W,

Yes, ECK are a more mature company with stronger cashflow.

It does look like ECK is going for more the security route and PCIP with payments.

From my limited reading of the market the payments side looks more dynamic with faster growth.

From what PCIP are saying it looks like they are now pushing for large enterprise customers and make mention of four of them in recent market comments. It's going to be interesting to see what they can pull in for H2. Will they go over £4m ACV for the first time?

Hopefully, the patent dispute will resolve with the upcoming American and UK court cases in May and June.

Like you say, it is interesting to watch both of them compete, let's hope they both do well. Though I'm favouring PCIP just because I think they are smarter and take bigger risks. Though that leads to more danger, eg SVB and the patent dispute.

[wjccghcc] 19/4/2023 16:50

Well rightly or wrongly, I've been buying back at 31p. I hold both ECK and PCIP and not sure I agree with you Simon regarding superiority of one over the other. They both also seem to be expanding in different directions.

PCIP have a narrower product set and are focussed on the SME market through their channel partners. They are developing new products to make payments easier/cheaper for their client base.

ECK have a broader product set, sell less through channel partners, and are focussed more on the larger enterprise market. They are developing new products to make them more secure in their customer interactions.

PCIP ARR grew 8% in H1. ECK growth in the US ARR was 16% but the flat mature UK side reduced that to 10% for the company. ECK has much better cashflow, owns the freehold of its head office and doesn't have the downside of the patent dispute. PCIP is currently more nimble so will probably grow faster as a whole.

It will be interesting to see which path is the more successful.