Getech Share Discussion Threads

[pugugly] 20/6/2014 11:51

RCT:. Easy to reduce cash pile - Capitalise research and development amongst otehr points or purchase more assets.

Also re "pre-tax profit for the 12 month period to 31 July 2014 which is significantly below the market expectation."

If they are significanly lower and the market comes to the conslusion (which I am tending towards) that the technology is NICE to have but not MUST HAVE and as the major potential users are cutting back on exploration expenditure then there could be a perception that ongoing revenue and hence profits will be permenantly reduced and the S cut accordingly (imo all cautions etc)

[bookbroker] 20/6/2014 11:44

Depends on upon cash flow!

[rcturner2] 20/6/2014 11:08

The latest statement said "However, with the expected cycle time to convert the sales pipeline into contracts and then revenue, the Directors believe that the Company will deliver pre-tax profit for the 12 month period to 31 July 2014 which is significantly below the market expectation."

If they made a profit in the period, how can the cash pile be reduced?

[bookbroker] 20/6/2014 10:58

It's likely that the results will look ugly, as said that cash pile for me the key, the current year is effectively history, will the market rate this co. on the present or the future, principally the next up cycle is occurring now, but the market knows the revenue is lumpy so will it take that into account in the future. This could be a nice take out at a low valuation for a research based organisation, or could it travel back to the 2012 lows in the meantime!

[cockerhoop] 20/6/2014 10:51

30,000 late reported, but sale occurred at 9.27am, price 42.25 reason for this mornings drop. Perhaps HH selling a few more?

[cockerhoop] 20/6/2014 10:42

Bookbroker,

Of their 70 odd staff, 10ish are Geophysicists, nearly 40 are Geologists with only about 20 admin staff(or which sales 8 or 9). They were looking to recruit another couple of sales staff at the time of the Leeds presentation.

[rcturner2] 20/6/2014 10:40

bookbroker, they made a profit in H1, are you assuming an H2 loss then?

[rcturner2] 20/6/2014 10:23

I have bought 10000 this am at 44p.

I think the risk/reward is very good at this price.

The current year will be poor, but going forward I think they will do well next year and beyond.

[hybrasil] 11/6/2014 09:59

may all my mistakes be like this one!

[stewy_18] 11/6/2014 08:52

The contracts seem to be getting bigger in size. It seems to me they have pricing power now the customers have used the product. If all customers signed up on the same terms, then they really are onto a winner. Easy to forget the margins here are 80%.

Contract were for £.5 million the £1.5 million and I believe this is the biggest single contract win to date.

Interesting.

[cockerhoop] 11/6/2014 08:36

I think todays contract win although not helping the current financial year puts to bed the 'rose tinted' view regarding the managements assessment of the product pipeline.

It's an existing customer expanding it's purchases. They obviously feel it's a cost effective investment and buying 3 products highlights the expanding offer that Getech provide.

It also proves that Globe 2 is a meaningful improvement on Globe 1 and encouraging that customers are signing off before the Aug 1st start of the new phase. Hopefully all 10 Globe customers will continue with the programme and we'll have a few more announcements similar to the one this morning.

[stewy_18] 11/6/2014 08:27

Great timing hybrasil :)))

You couldn't really make it up, but great news for holders.

It's going to be a bumpy ride.

[hybrasil] 11/6/2014 08:16

happy with my second purchase I will buy more today

[jakleeds] 11/6/2014 07:23

Nice contract win. I have no position though, although was tempted to buy some yesterday.

[shanklin] 10/6/2014 12:04

My concern is that if GTC had a solid base, from which additional business could be won and profits increased in future years, surely they could give us a bottom end of the range number for the outcome in the current year and make some comment in terms of the dividend.

As it is, at FY results time, GTC can give us "An previously stated..." comment, come in with a loss for the year, pass the final dividend and be significantly down on cash and then tell shareholders they need to raise cash to get through to profits in coming years.

I have no particular reason to believe this will be the case but, with an announcement this opaque, I do wonder what may be being kept from shareholders.

GLAH. No position currently but I did hold quite a lot of these until Oct-13.

Cheers, Martin

[pugugly] 10/6/2014 11:22

Been having a look at the Interims. Total comprehensive income for the year

Currency hit £90K - If this is taken into account I make the net after tax profit only £103,000 not the statutory £193,000

So "real" 1st half net eps some virtually halved to .34p per share not the .64p stated in the accounts.

Sterling I think has strengthened so currency hit could be worse for the 2nd half.

I also find the rns opaque in respect of the new contracts for $1.2M that have been signed as the lengths of the contracts are not stated hence impossilbe to determine revenue recognition over time - If all 12 month contracts OK but if these figures are spread over a longer period then opaque.

Can anyone clarify ?

[shanklin] 10/6/2014 11:05

How do we know the cash pile is not getting smaller?

[deanowls] 10/6/2014 11:05

Probably the cash pile v the market cap.

[acta_topup] 10/6/2014 10:59

Amazed that this has held up so well. why???

[stewy_18] 10/6/2014 08:32

I can only assume the results will now be terrible. It is interesting the Thalassa have not seen this perceived slow down in the oil and gas service sector. I did a comparison of the two last year (post 768 on this thread) and they both looked good value on forecast earnings. THAL went up 50% since last year and GTC halved. Shows how much I know:(

Just goes to show, without that visibility in earnings Globe and Globe II was supposed to bring, it kind of makes it uninvestable. The high margins brings reverse gearing into play when they miss their targets. It really becomes a gamble. Until they fix that, I won't be buying back. Having said a couple of big contracts and it will be back on.

Sorry about your timing hybrasil.

Good luck.

Best

Stuart

[hybrasil] 10/6/2014 08:17

I actually am going to buy more. I like the story. I like the cash.

[pugugly] 10/6/2014 08:10

RNS very much (imo) rose tinted glasses - NO real indication as to level of profit or even LOSS for year. Got to try and crunch more numbers but not enough data to get any real feel for level of profit/loss for year.

Half year was Profit before tax of GBP233,000 - So very finely balanced (imo)

Seems to be strong buying - FALLING KNIVES - MIND THE FINGERS !!!

[shanklin] 10/6/2014 08:00

Yes, sorry to hear that hybrasil.

7 weeks of their year to go and they feel unable to make any guestimate of the outcome for the current year. However, the oasis is just over the horizon provided they don't die of extreme thirst before then.

GLAH. All IMHO, DYOR.