Geong Share Discussion Threads

[muddystone] 15/11/2013 15:27

When they said the trading update was early November they did mean this year didn't they?!

[sir rational] 13/11/2013 14:59

Friday 3.30pm? lol

[marth] 13/11/2013 13:40

'Early November' is running out...

[sir rational] 12/11/2013 15:55

I can't really see anything much deeply wrong with the CFO news. You hardly expect the CFO to do the grunt work; and the number of clients is contained & manageable (ie when a CFO might be called upon to telephone or visit a client).

Probably just a way to keep him happy with his lot at GNG and allow him to get some more money.

In my last MD job (overseas division of FTSE100 co) we country heads used to get most of the work done by about Tuesday lunchtime then try and work out ways to fill the rest of the week ;-) - I guess GNG CFO is really only 3 days work a week in any case.

[sir rational] 12/11/2013 14:51

Always been leaky as a sieve lol

[boobly] 12/11/2013 12:41

Yes , I`m also watching .
Very curious RNS , departure of a CFO would normally see the departure of many shareholders , but to accept split responsibilities from their CFO is really strange .
I wonder if GNG is simply going to be sold ?

[illtud] 12/11/2013 12:32

What about the RNS on the 14th of October saying that the Co. could see no reason for the increase in the sp?

We also seem to have a double top forming.

How confident are people, really, that the share price will go up on the next TU?

This is on my watch list but I think I'll wait and see.

illtud

[rivaldo] 12/11/2013 12:25

IMO the share price could easily return to 40p-50p extremely quickly. A 40p price would be a £15m m/cap, still well short of the level of receivables and taking no account of the core and profitable (to date) business or the cash on the Balance Sheet. However, for this to happen:

(a) receivables will definitively need to be shown to be improving
(b) GNG must show it's winning contracts again as per the recent SaaS wins
(c) the CULS must be partly or wholly repaid early, which some of us have been pushing for and which I'd hope/expect to happen any time from say December onwards.

On the current £3.9m m/cap, any sign of (a) and/or (b) from the imminent trading statement and then interims could see a sizeable upwards re-rating. But as I've said before, H1 is by far the weaker half for both PBT and cash flows, so positives should be bonuses rather than "expected".

[eacn] 12/11/2013 11:34

Not an RNS to induce confidence. The last thing GNG needs is a part time CFO, and yet the buying continues.

Technically the share price looks capable of gapping up to 20p. However, unless someone somewhere knows something that the market doesn't, I struggle to understand why buyers would want to drive the share price to those levels.

We are due a trading update and then in December the interims, which may or may not resolve the matter. If there has been any progress on cash collections, or if the company announces the commencement of a buy-back then the current share price rise may prove justified. In virtually any other scenario I would expect it to be a case of "buy the rumour, sell the news".

[sir rational] 12/11/2013 11:04

I'll stick up a chart later guys, certainly looking very good chartwise but I'm stuck in PC World whilst the while you wait service gets done ;-)

[fillipe] 12/11/2013 10:21

I take that GNG must feel they are on the right track now and out of "intensive (people time) care".... sufficently so for the CFO do to do a bit elsewhere. I think that if things were dire at GNG then any further workload for the CFO would have been a no-no.

f

[rivaldo] 12/11/2013 09:04

Well, today's is just one more bizarre RNS to add to the previous ones. Another question to ask GNG about when we next meet or talk to them.

Presumably the CFO's duties re this other appointment are pretty small-scale, but one would hope that it would be the "vast" majority of his time would be spent on Geong (or is it "Gong"?!) rather than just the "majority".

Hopefully this is a cue for the trading update pretty soon....

[eric76] 12/11/2013 08:40

Breaking out again this morning. Good to see before the update.

[jtcod] 12/11/2013 08:40

That chart looks interesting

[rivaldo] 12/11/2013 08:33

Another buy at above the published offer price just reported - almost 19k shares at 10.5p compared to the 10.25p published offer price.

And interesting amounts of trades and volumes too.

[sir rational] 11/11/2013 16:06

And another 50K.

Time to get in for the TU, rumour it's going to be a cracker in GNG terms lol

Ie the slide has stopped and receivables trend has reversed.

[fillipe] 11/11/2013 15:03

Some chunky trades in GNg recently....mostly buys.

Including a 1x50k lot taken @ 9.9p 1453hrs.

f

[sir rational] 11/11/2013 14:57

Support certainly looks pretty solid, always a good sign when a new base is formed on the way back up.

[rivaldo] 11/11/2013 14:46

Interesting trade just reported - 235,515 shares bought at 10.1p (above the 10p published offer price).

[rivaldo] 11/11/2013 09:32

Moving up again today.

With around 60p per share in receivables, I believe that enough of these will be collected over time to make GNG a very worthwhile investment from here. Remember that a large proportion of these debtors are due from IBM.

More to the point, after all this time I believe that the tipping point for collection of these debts is getting close, or at least a lot closer.

Importantly, we know from BSST's reporting of exactly the same problems specifically as regards cash flows from the local banking sector that collection is not a company-specific but an industry-specific problem.

The H1 results won't imo be anything spectacular - we know that H1 is by far the weaker half as regards both trading and cash flows - but if GNG can continue to report progress as regards winning fresh SaaS business, as per their latest trading statement, then this will further aid cash flows and the prospects for H2 onwards.

[sir rational] 09/11/2013 23:20

That still means we're looking at 30-50p minimum if EACN is right in last para

[sir rational] 09/11/2013 23:16

Thanks EACN for post

[eacn] 08/11/2013 23:13

corrientes,

I am afraid that in China company accounts are not to be relied upon: reputable auditors are regularly hoodwinked; and, official documents, such as bank statements, are often contrived or fail to reflect the true position.

Geong is a case in point: the company's profits for the last five years have relied on annual increases in accrued income, which the company has mysteriously been unable to collect; the company appears to maintain healthy cash balances but has none-the-less seen fit to issue convertible loan stock on onerous terms to raise further funds.

I have visited the company in China, and have met with both the CEO, the current FD and his predecessor, both in China and in the UK, on a number of occasions. From these meetings I have concluded that the former FD was not in a position to vouch for the accrued income position and that the CEO was not prepared to confront the issue since it would involve an unacceptable loss of face. The current FD is the CEO's man and cannot be relied upon to give an independent view of the matter.

Having said that, I suspect that a reasonable proportion of the IAAS accrued income is collectable and will indeed be collected at some point, provided that there is no change of control. That view would need to be revised if the CULS are converted.

The CEO is desperate to been seen to make a success of the business, but quite possibly lacks the discipline to realise that ambition. In my opinion the company should wind up the IAAS business, collect such IAAS debtors as they can and focus upon sales which lead to a more predictable cashflow. I have challenged the CEO to do just that, but to no avail: he is not prepared to accept the loss of face entailed in such a course of action.

I remain invested because my position is too large to trade. I remain of the view that over the medium term there is a reasonable possibility that an exit opportunity will arise: either because evidence of collection emerges; or, because the board procures an exit for AIM holders.

In either event returns are unlikely to be spectacular unless you have invested when the share price is / was in single figures. For such investors the upside may be considerable, but the wait may be long.

[sir rational] 08/11/2013 14:59

Somebody's nibbling