Gattaca Share Discussion Threads

[deadly] 08/7/2022 11:11

Hundreds of stocks are oversold, why should this be different?

[casholaa] 08/7/2022 11:04

I think it were oversold too, but I would say that as I'm underwater.

[dougmachin] 08/7/2022 10:58

What a lovely sight, GATC going up nice and steeply.
FINALLY.

[morti1] 08/7/2022 10:22

Some positive uplift recently. Hopefully more to come. No real indication as to why. I guess it might have been oversold and looking too cheap. Time will tell.

[casholaa] 08/7/2022 10:02

Not that I know of. I think it were mostly 'O' trades, didn't see it triggering any 'A' trades.

[deadly] 08/7/2022 09:50

up over 12% so far today; any news?

[blackhorse23] 05/7/2022 13:39

it was not making any profit , realistically it's revenue only 20 million not 220 millions

[casholaa] 30/6/2022 15:50

Well, yesterday, there were 2-3 almost large round number chunks of buys/sells like 90k and 40k but I still don't know why. I was waiting to see if there'd be an rns but there hasn't been. So, I still don't know why it has decided to jump. Perhaps it's nothing. No idea.

[danb45] 30/6/2022 15:44

what's with the jump ?

[casholaa] 30/6/2022 15:20

About time.

[blackhorse23] 30/6/2022 09:17

Bought more MCB today , GATA looks overvalued

[apatel21] 30/6/2022 06:59

Gattaca management have really messed up here.They failed to make money in the strongest recruitment market for years.All the other recruiters are coining it and generating huge cash profits.Only hope for shareholders is a takeover - but at what priceI'd be buyer at 25p

[davidro77] 30/6/2022 00:33

A big seller today took the price down? someone know something smelly?

[alpineinvest] 29/6/2022 16:09

Very oversold. I offloaded around 800 of these at around 253p in the last peak, but still have around 1700. Am considering it to be a long-ish term hold due to the new CEO and new action plan. Plus, UK STEM is still a strong market regardless of any possible broader downturn. Also consider, as the market turns recruiters that can go back to sales mode are going to fare better. Thats in the Gattaca DNA.

[pinemartin9] 29/6/2022 15:18

Seems very oversold to me. But a small cap in these uncertain times is a tough place to be and to invest in. When the worm turns it will be rapid. Could take a while though.

[blackhorse23] 29/6/2022 14:29

Company made looses this year & recovery plans not addressed yet so my predictions will go down meantimes until they come back with growth plans ,

[casholaa] 29/6/2022 14:27

Nada. I consider them to be a bit like a cottage-industry. Yeah, I know, it were Materna's buy's that provided the confidence to buy, you'd think he had a better understanding of where the company and was to go.

[dougmachin] 29/6/2022 14:21

Sorry Casholaa, I thought you did.

Are there any other research notes out there, more recent than 31st March '22 ??

Would be good to get some concrete info in this sea of no info.

There's some minuscule selling today. MMs know how to feed on fear of the unknown.

I still can't get my head around George Materna's buys... he followed the 222p buy with an even higher 253p buy. He wasn't even averaging down!

[casholaa] 29/6/2022 13:51

I did average down last time, now I am questioning whether to average down on the average down... hmphhh

[dougmachin] 29/6/2022 12:21

GATC is one of the most illiquid shares I own. Big moves on tiny volumes.

Maybe now is finally the time to average down...!!

[dougmachin] 29/6/2022 12:17

Gattaca plc - from Research Tree (Equity Development) - 31st March 2022

The shares appear oversold

Successful investing is all about spotting opportunities and being prepared to hold through thick & thin. Take Gattaca, the UK's largest specialist engineering/tech recruitment agency. Its shares have fallen >70% (vs c. -25% sector) from their 52 week high of 285p - principally due to January’s profit warning. There is work to be done, but even so we believe the scale of the sell-off looks totally disproportionate to the issues involved (Re temporary disruption from a major IT system implementation, staff turnover/culture, etc).

The economic backdrop remains healthy

Indeed one might argue that - despite fears surrounding the cost of living crisis, geopolitics & a flattening yield curve - the macro environment for UK staffing firms (especially STEM related) is actually pretty robust. Characterised by demand far outstripping supply, increasing salaries, low unemployment (UK at 3.9%) and plentiful job vacancies for those seeking work.

Green shoots tentatively appearing

The good news is following the recent appointment of Matthew Wragg as CEO - a highly capable & experienced industry professional with ‘sales’ running through his veins. The early signs of a successful turnaround are tentatively taking shape, with productivity levels inching up anecdotally MoM since January. Furthermore the company is “seeing encouraging trends across many of its sectors”. Sure this won’t translate into the financials over-night, yet equally we suspect patient investors will be richly rewarded in the fullness of time.

Ok, so what’s the outlook for FY’22?

Well, near term the Board are guiding to a “breakevenR21; adjusted PBT. But expect FY’23 to “deliver a return to profitable and sustainable growth”, as the benefits of higher & more productive fee-earners drive the top line. Longer term too, the fundamentals are positive, especially for Gattaca’s sweet spots of software, digitisation, renewables (eg Off-shore wind & hydrogen), electrification, defence (cyber & marine), engineering and infrastructure (eg HS2, fibre-to-the-home, Lower Thames Crossing, etc).

Our conservative forecasts still justify a 145p/share fair value

Hence in this context, we have pencilled in FY23 PBT of £2.5m on NFI of £49.1m with a 145p/share fair value. Albeit these estimates are prudent, & we would ultimately hope to upgrade as key milestones are met. Similarly, we assume the FY22 dividend will be temporarily suspended, leaving net funds (pre IFRS16) of £5.0m as at Jul’22 (excluding £10.4m of non-recourse finance).

Confident of driving future growth

CEO Matthew Wragg adding: “We are in a strong position to focus our energy once again on our STEM markets, helping our customers with their talent challenges during a period of particularly high demand. It is against this backdrop that I am optimistic for the future and excited for everyone in the team.”

[stpalm] 29/6/2022 12:05

Nobody cares Blackhorse, try and think of something thought provoking on this company. Or do you want all bb's to be places where people post their buys?

[blackhorse23] 29/6/2022 11:28

bought MCB Today , hiking coming