Eleco Public Share Discussion Threads

[chrisdgb] 30/4/2021 08:17

150p here we come.............

[edmonda] 30/4/2021 07:48

Reads very nicely : revs +9%, PBT +21%, very cash generative (£7.9m net cash at end March)
Exec Chair says 'well on track' to match mkt expectations for FY, with a 'compelling' market opportunity

[brummy_git] 30/4/2021 07:38

Terrific update from Buildtech software developer Elecosoft today.

All the news & commentary here

www.linkedin.com/posts/paul-hill-a5994116_elco-covid-activity-6793784441954213888-qewF

[thelongandtheshortandthetall] 30/4/2021 07:26

We can safely that is a positive trading updade.
I was a little surprised to see SL wrote the comment.
Who is the boss? No.1?

But great update.
20% rise in profits for every 10% rise in revenue going forward would do me nicely 😊

[ansc] 29/4/2021 09:57

Unable to get an online quote to buy ANY this morning but Market Manipulators willing to take 10k off me at 115p ... perish the thought!

Something afoot?

[petewy] 28/4/2021 19:58

This non-confidence happened about a year go with some tipster who slammed Elco.
Now internal bickering so I cut my holding in half(bought in at 44p moved to SYS)

[ansc] 28/4/2021 18:41

At close of play, other than Mr Craig fighting to save his skin (directorship), it looks like 'much ado about nothing'. The Market Manipulators managed to make a few extra quid, of course.

[ansc] 28/4/2021 12:36

Market Manipulators haven't a clue of what's going on so have resorted to their usual defence tactic of widening their spread ..... I'm as much in the dark as they are!

[smithie6] 28/4/2021 09:42

ah
& ignoring the options & bad perf. of the chairman of the renumeration committee

the 2 big shareholders clearly are not impressed by S.Lang otherwise they wouldn't have called for a vote to de-elect her.

------

personally I'm 99% sure that SL & KC will either step down before the vote or be voted out

& be replaced by ppl with good/solid experience that can be useful to ELCO; I don't see that neither SL or KC have much experience/skills in
- being a chairperson of a listed software co. (for SL) (was she on the bod because Kettley knew her ??)

- being chairman of a renumeration committee, the options awarded have been very badly thought out imo, ok, not thought out at all (for KC)


------

options
personally I would like to see listed cos have to comply with rules. There appears to be advice in existence (usually ignored) but the only rule appears to be phps a max. % of the co. in 5 years & <10 % in 10 years; & that 'rule' gets broken.

imo options should require
- shortest time for exercising, 3 years in the future, (broken for SL)(to encourage medium term decisions/growth with solid foundations which is what big shareholders need; they can't sell say 10% of a co. on a spike for winning 1 contract)

- must then hold the shares for X time after exercising, or can only sell half in 1 year or something.

- must buy/hold shares equal to the options they have, or 50% or something.
(if an exec. dir. owns 0 shares but lots of options he might direct his decisions so he makes money from those options ( high debt, high gearing, = high risk) rather than making 'solid' decisions.

- options can often have a function to help retain key staff, without having a monthly cash cost to the co. & options should include conditions for that. ie. if you leave you leave your options behind.
SL being able to immediately exercise options breaks various principles for options imo

=====

I don't claim to be an options expert but the raft of new options issued (& with very lax unusual exercising conditions incl. immediate exercising & a) to e) perf. targets !!, meet any of them, not all of them !) that have been issued & the 4 RNSs since 1st June 2020 for exercising of options makes me think that things have been out of control.
& the responsables are K.Craig & S.Lang. ( the 2 big shareholders seem to have similar views & immediately called this meeting after the annual report being published)

so, imo they should walk. :-)

======

I have no shares, but I have in the past.

[gilesy] 28/4/2021 09:15

usual snouts in trough disclosures in annual report
only founder director should get share options , employee directors should get a salary and performance based bonus only
pigs might fly ........

[thelongandtheshortandthetall] 28/4/2021 08:59

Could be a coup.
JH ousting SL lol

[smithie6] 28/4/2021 08:52

btw

imo the 2 big shareholders that called the special meeting are imo clearly very annoyed/upset about this

it looks like it took them just a handful of days after reading the accounts that they call for a vote to phps remove the highest exec. of the company !!!! who has only been in the job for a short time

& the chairman of the renumeration committee, the person behind the flood of options being given to the exec. chair & with unusually favourable exercise conditions ("a,b ,c ,d &.....e" !!).

[illiswilgig] 28/4/2021 07:28

Well thats interesting!

An RNS this morning as Mr Craig buys 90,000 shares for around 100k.

Very defensive? And accompanied by a statement of his demonstration of his confidence in the company prospects.

Good that he's bought them eventually. Inexplicable that he should not have wanted to demonstrate his belief when the shares were lower in price and even better value?

cheers

[smithie6] 27/4/2021 18:48

there have been 4 RNSs since 1st June 2020 for

Exercising of options

& the 2 big shareholders who have put forward resolutions for voting might rightly feel that too many new shares are being given out or printed due to options being exercised, &/or with useless performance targets & that might be one of the reasons for them calling the special shareholder meeting.

[brummy_git] 26/4/2021 15:33

BTW, I suspect Smithie6 is a guy called Dexter Burt. He threw rocks at Eleco 2 years back, & released a big research report claiming the shares were only worth 45p.

hxxps://www.share-talk.com/dexter-burt-ciphersense-research-unique-perspective-on-micro-to-small-cap-stocks/#gs.z5rtoj

[illiswilgig] 26/4/2021 14:42

Somebodies unhappy?

RNS today to requisition a general meeting..... focusing upon the remuneration report and remuneration committee......

I am never a fan of high levels of free share handouts....so it will be interesting to see where this goes....as long as it does not interfere with the operations...but I see that the CEO and CFO are not mentioned in the rns which focuses on Ms Lang and Kevin Craig - who appear to have their snouts in the trough......?

General Meeting Requisition........

Eleco plc announces that it has received a requisition notice (the "Requisition Notice") pursuant to section 303(1) of the Companies Act 2006 ("Act") requiring that the board convenes a general meeting of shareholders for the purposes of considering and, if thought fit, approving the following resolutions, which in the case of resolutions 1 and 2 will be ordinary resolutions and, in the case of resolutions 3 and 4 will be special resolutions:

Ordinary Resolutions

1. That Kevin Craig stand for re-appointment as a director

2. That Serena Lang stand for re- appointment as a director

Special Resolutions

3. That each director of the Company shall retire from office and stand for re-appointment as a director at each annual general meeting of the Company following the date of this resolution.

4. That the Remuneration Committee Report contained within the Company's Annual Report and Accounts 2020 at pages 37-41 (inclusive) be approved.

The Requisition Notice has been delivered by JM Finn Nominees Ltd and Fiske Nominees Ltd, two of the Company's shareholders, who in aggregate hold 11.1% of the Company's voting share capital.

The Board is considering the content of the Requisition Notice, which it intends to respond to in accordance with the requirements of the Act. In the meantime, the Board would advise shareholders to take no further action at this time.

A further announcement will be made in due course.

[brummy_git] 21/4/2021 05:46

I'm staying long ELCO. Investment case is simply too strong

[thelongandtheshortandthetall] 20/4/2021 21:26

It'll come good IMO.
The drop is probably in hope of shaking out holders - well that sounds good anyway. Might be true :)

[ansc] 20/4/2021 18:38

The share price dropping like a stone over the last two days yet the Market Manipulators refused to even give me a quote (to buy 5k) online this afternoon ... ridiculous!

[ansc] 19/4/2021 18:35

12.5k shares sold today and the share price is marked down 4p, supply and demand working well once again!

[ansc] 15/4/2021 15:28

Arrived back home this morning to find the company's 2020 Annual Report on the doormat; have been a shareholder for 21 years and this one is by far the meatiest during that time ..... their first AR (I always keep my first in any company as a shareholder) contained 40 pages, this one 115!

Not being an accountant, 90% of any AR is beyond my comprehension but quickly whizzing through, one or two items caught my eye: two new names as substantial shareholders - IBIM2 Ltd (unless that's the new name of J O Capital Management who've disappeared off the list) and Tikvah Management; disappointingly, although the company has clearly enjoyed a stellar year, not one of the directors has seen fit to buy any more shares [in fact, our new 'chair' still doesn't hold any] and between them hold a measly 0.61% of the company share capital; on the other hand, 1,050,000 share options were granted to directors.

That said, I'll still be keeping hold of my shareholding