Gresham Technologies Share Discussion Threads

[amt] 04/7/2018 08:31

All very good but service revenues are peanuts so 56% of one million doesn't add up to much.
It looks like a blip though and I am expecting a blow out second half with lots of deals near to being finalised.

[gottafly] 04/7/2018 08:30

Yep brokers just tapped me up for shares at 172.50, some bargain hunting going on, just going on the headline numbers and not looking at the detail.

[gottafly] 04/7/2018 08:25

I would not be too down beat with this trading update, the surprise and hopefully good news is the acquisition of the B2 Group. If this is another B24 then this is great news and I have 'warned' before how acquisitions can take away the management focus from ordinary business and this seems to have been the case.

The promise is that any lost ground will be made up in the second half so there is a delay (due to loss of focus) and not an outright drop in performance. GHT state 'Management remains confident on the full year outlook' so they are on the hook to deliver!

I think we need to also recognise that the low lying fruit largely has gone and that GHT are bidding for bigger contracts in a very competitive landscape, this I think was the main reason for broker caution as regards the short-term future, they are bullish in the long-term though when you read their note. That said the drop in revenue can largely be explained by the (unexpected) fall off in non strategic Australian contract revenues which is also apparently set to recover.

I reckon the big positive figure here is a 56% jump in Clareti services revenues and this supports the view of some big deals to come. So if you reckon that the B2 Group acquisition is sound then this is a small blip against an otherwise very positive announcement.

Maybe it is the weather but gloomy I am not!

As always DYOR.

[double double] 04/7/2018 08:15

I wish i had some money to add more, I did say a few post earlier 2019 onwards for Clareti revenues to stand on its own and it will.

[davr0s] 04/7/2018 08:08

I'm out at the open. Decreasing revenue and the dreaded second half was enough to make me bail especially as the last update suggested all was going nicely

[barnesian] 04/7/2018 07:51

Hmmm. Buying opportunity coming up on the dip today if you time it right.

[amt] 04/7/2018 07:36

Strong second half expected. Is this the moment of take off?

[journeysend] 04/7/2018 07:14

Good rns finally spending some of that cash pile. Will add to the bottom line.

[double double] 26/6/2018 12:56

Not worried by the share price at the moment waiting for the revenue from Clareti to reach c£25m next year and then we will see the share price react.

Unfortunately Gresham acts like a old industrial business than a tech company so there is no "buzz" around it... but I truely believe once Clareti revenue reach a certain level, and it will, we will be buzzing.

Also note Gresham will be rewarding their employees in shares starting early next year.

[jadeticl3] 26/6/2018 10:29

Do you remember our competition? To guess what the share price would be at end of calendat2017. It was just below 200p. Now, 6months later,it is still just below 200p.There appears to be no action just now, but that cannot be true. When do we expect the next revelation from management? I remain confident, but I must confess it has nothing concrete to underpin such confidence!!

[double double] 26/6/2018 09:39

Only matter of weeks till we get a trading statement. I know Gresham are silent but no doubt business is going well. I would love to get more information on partners and how they are earning through them in the interims as I think they will bring home the most going forward.

I wonder if Gresham are thinking about buying back shares as they have the money in the bank and no doubt growing.

[bomber13] 11/6/2018 15:49

Given the 50% plus growth being experienced by Gresham's core Clareti software , and the investments they are currently making in new recruitment , it is perhaps worth noting HSBC's strategy update today , and its own intention to invest US$15bn - $17bn by 2020 primarily in growth and technology . Points 6 & 7 below from HSBC's RNS would seem particularly relevant to Gresham -

" 6. Create the capacity for increasing investments in growth and technology through efficiency gains;

7. Enhance customer centricity and customer service through investments in technology: invest in digital capabilities to deliver improved customer service; expand the reach of HSBC, including partnerships; safeguard our customers and deliver industry-leading financial crime standards; "

[double double] 04/6/2018 13:34

Matter of weeks till we get update they have promised us should be good and hopefully a nice little run up it. Whilst the share price has not moved, there has been some large trades last week.

[journeysend] 02/6/2018 12:09

Apparently TSB and VISA are issues of legacy systems in the financial services. I know they are doing well but Gresham should be growing much faster in this financial revolution we are in.

[qantas] 26/5/2018 10:36

Very pleased to be featured in @HarringtonStarr's top 50 #finech list alongside some other great companies!

Please do your own research..

[richjp] 23/5/2018 17:33

When Cantor Fitzgerald issued a price target of 180P for GHT in December 2016 the share price was around 120P i.e. they were suggesting an upside potential of fifty percent. I think that was a great help and that target was reached around early autumn last year.

The newer Cantor price target is 250P, an increase of twenty five percent from the current level and I am wondering if that might not be so helpful this time. Lots of PIs, myself included at times, will be looking for more than twenty five per cent over a one year period when putting money into a share for the first time, naive though that may be. I wonder if that is why there is not much new money coming in. It is just not appealing enough to new investors even though longer term it should be.

I think the 250P target is likely to be reached, but it will probably get there this year in one or two larger movements as it has done before rather than a slower but steadier progression.

[barnesian] 23/5/2018 11:09

If you haven't already seen it, it is worth looking at their Capital Markets Day presentation.

hxxps://www.greshamtech.com/hubfs/gresham_investor/CMD%20-%205%20May%202018.pdf

NB change xx to tt in hxxps

This seems to me to be a very capable company, with competent management and with many platform and industry opportunities. It has successfully integrated C24, has cash in the bank and it wouldn't surprise me if they go for more acquisitions.

I think the half year earnings release in late July will beat expectations as I suspect they manage financial expectations in order to surprise on the upside.

The market for their shares is very thin and driven by retail investors I think. Any big investments will be off market. Worth keeping an eye on RNSs on shareholdings.

[gottafly] 23/5/2018 08:24

Anyone got an update on the latest N1Singer note. The below tweet looks very positive. As an investor would be nice to have the insight mentioned, though it seems private investors are rather 'second hand'.

Mark Gibbon
‏

@GibbonHoR
May 18
More
Today we cover yesterday’s Gresham Technologies Capital Markets Day in Bristol - a well-attended event that did investors a great service in terms of offering insight to the growth strategy and the strength of the Clareti platform. We also cover the positive T Clarke AGM update.

[miti 1000] 22/5/2018 11:46

Are you the younger brother ?

[double double] 22/5/2018 10:12

If it can break 210p then a quickish rise (may/june) to 225p is very much possbile.

[double double] 21/5/2018 19:04

Gresham want to announce interim in July this year. Fintech Week is in July. Perhaps something to announce then. https://www.fintechweek.com/

[jadeticl3] 21/5/2018 17:39

Well maybe tomorrow then....

[barnesian] 21/5/2018 16:56

Not all that interesting after all!

[miti 1000] 19/5/2018 11:08

Read the N1singer note and its impressive. I am fully expecting a big rerating to higher levels this year. It looks like CTC is on course to take legacy market share. Reminds me of microgen where I piled in heavily at around 200-230 a few years ago and have reaped the rewards.