Getech Share Discussion Threads

[discodave4] 04/11/2015 14:31

Net tangible asset value per share is 15p.WHI forecast eps 1.7pTP 17pGLDD

[cockerhoop] 04/11/2015 14:12

DD4,

As per my question in 1329

Do you have evidence in the results for your statement in relation to GTC?

'Using clients cash for services not yet delivered as a means of beefing up cash position is misleading.'

I agree the net cash figure is £3.7m with approx £1m of borrowing (secured against freehold) to be repaid over the next 4 years. In addition there is the £980K (reduced from expected £1.55m) contingent consideration which may have to be paid depending on performance of ERCL.

[discodave4] 04/11/2015 13:43

Ps£3.7m at best.DD

[discodave4] 04/11/2015 13:41

BBNet cash is more like £3.7m. They have new borrowings of £1m.net tangible asset value per share is 15p. Assume you cannot do basic arithmetic as seem unable to confirm what it is.DD

[rcturner2] 04/11/2015 12:37

bb, they need the listing to issue shares, re the acquisition for example.

[bookbroker] 04/11/2015 12:26

This co. is better of in private hands it would appear, small cos. with niche offerings really do not need the scrutiny of the stock market, it's whether the board and major shareholders would support this, they've seen their holdings take a hammering, would this not be a sensible move!

[bookbroker] 04/11/2015 10:26

I have another holding in Thal., but I am more comfortable to know that these two cos. have sufficient cash to see through this downturn in exploration, as long as the management are acutely aware that preservation is the watchword, that I am confident off rather than chasing business that is simply not beneficial to the bottom line, nonetheless if you are going to participate, then what is the point in being in business, both cos. have experienced managers who understand the ebbs and flows in what is becoming as about as challenging an environment that they can possibly remember!

[bookbroker] 04/11/2015 10:12

The net cash position is £4.7mln., the trade and other receivables are invoices that have been billed to customers at year end were £4.25mln. payables at £4.65mln., if you assign no value to ERCL, then fair enough the NAV will be far lower than the current share price alongside and likewise no value to Globe,etc, which would be writing off all goodwill and intangibles, but that would not be a fair representation of GTC. Admittedly they issued a large number of new shares to purchase ERCL, which would reduce the NAV., however it comes back to the valuation they placed on the purchase price at the time, maybe they overpaid, time will tell!

[cockerhoop] 04/11/2015 09:51

DD4,

Can you point out where you've seen the increases in 'Accruals and deferred income' that you allude to as I can only see 'Trade and Other Payables' on the liabilities side and was waiting for the AR to clarify?

[discodave4] 04/11/2015 08:54

bookbroker - 09 Oct 2015 - 11:12 - 1276 of 1327 - 0"if cutting back on staff is necessary then so be it...."

[bookbroker] 04/11/2015 08:30

I think you are correct in the PR., however it's all about spin with every co., we assume that the sector is weighed down by cutbacks in expenditure, but the element of receivables is what you should appreciate, we are talking about NOC's, so they should be accounted for, I discard intangibles as a means to rate a cos. net worth, but much is based on conjecture and how the market sees this, otherwise they would be laying off staff to conserve capital!

[discodave4] 04/11/2015 08:23

Net INTANGIBLE asset value per share?, give you a clue, it starts with one and ends with 5.August everything rosey, Nov profit warning. Misleading / poor management.GLDD

[bookbroker] 04/11/2015 08:11

Intangibles relate to the ERCL takeover, on the basis of earn-outs, these will not be enacted unless performance criteria met, nonetheless it is purely a carry value, however if the acquisition is to earn its bacon they will be recorded, but the value is in the advice, like many service businesses, I still believe that the oil and gas business is going through a structural weak patch, but Getech has a significant and vital product!

[discodave4] 04/11/2015 08:07

BBSuggest you find out yourself how to derive net tangible asset value.You clearly haven't a clue - take a look at how they have increased profits on the accounts, take a look at how goodwill and intangible assets have increased!.Good luck. Pity you do not have the ability to take on board an opposing but factual view of your investment.DD

[bookbroker] 04/11/2015 05:52

As WHI hadn't a clue on the forecast for 2016, they are not in a position to make any forecast, bunch of amateurs!

[discodave4] 03/11/2015 22:35

Net tangible asset value per share 15pWHI forecast eps 1.7pSay PE of 10, TP 17pDD

[bookbroker] 03/11/2015 21:30

One must remember that this co. is currently valued now at net assets, poor outlook or not, this co. is undervalued!

[yump] 03/11/2015 20:52

Just revisiting the trading statement from earlier:

"The Company also notes that although three major contracts with NOCs were announced during the year to July 2015, only the Sonangol contract (announced in September 2014) generated income during the year. The Company anticipates that all three clients will generate significant income in the coming year."

[bookbroker] 03/11/2015 17:49

This is a crazy price for a co. that has a fantastic product, and nearly £5mln on its balance sheet, having said that we are where we are due to the complete lack of visibility over the next 6/8 months, and today's weak statement. Nonetheless this co. has been here before, but in a much weaker financial position, still the market can be harsh and this is reflected in the current share price, having said that the net assets of this co. are not far below where we are, this will be largely ignored as forward revenues are what the market is interested in, not history, however if as a contributor to exploration cos. in the oil sector principally it will be only when the wash has been taken out of the excessive inventories and production that exists in the oil market, I'm sure that a conservative management are aware of this , and let the industry take its natural passage, at least time is on this cos. side!

[cockerhoop] 03/11/2015 16:20

RCT,You do open yourself up for it by saying you sold everything oil related 12-18 months ago whilst you CR were buying PRES and GTC within the last 12 months and calling PRES a classic Phillip Pullman 3 year hold as late as May this year.

[bookbroker] 03/11/2015 16:15

Just checkin pal!