Iomart Share Discussion Threads

[gopher] 03/12/2021 22:06

Results next Tuesday & I am not confident

[simon gordon] 13/11/2021 19:26

Liontrust UK Small Cap fund - 10/11/21:

Unfortunately, the portfolio’s largest absolute share price move in October was a negative one, as Iomart (-32%) fell heavily. The company has been slow to adapt to the changing market environment in which it operates – notably the dramatic shift from private to public cloud, which was accelerated by the Covid crisis. It issued a profit warning in April and another in October, noting that customer churn remains higher than usual and revenues from hardware reselling and one-off consultancy have dropped. We actively continue to assess Iomart’s business prospects within the context of this shift.

[sphere25] 08/11/2021 15:54

IOM flirting with a key level in trying to push for a short term bounce higher, but there are automated sell orders which keep hitting the bid at these levels. It is keeping a lid on the bounce, could be a short term top too so something to keep a closer eye on.

IOM is prone to sharp moves and been a nice one to nip in and out of in the past so always worth keeping an eye on, but yes short term aside, it looks far more tricky going forward.

They had a knack of putting out little downgrade statements and then hit the market with much more of blow. It is hard to rule out another downgrade, so it's a call on where the bottom of the earnings are and whether the market value takes that all into account here?

Furthermore, if there is another warning, will the market be happy to value IOM at least back up here after it all plays out?

And if a suitor does pop up, will they value it at least these levels?

Personally speaking not interested enough at the moment (but if pushed, I'd wait for further trading update's if taking a longer term view) and paying less and less attention to fundamentals. Now mainly trying to piggy back off breakouts, volume, momentum and tips but these are all things folk will be considering.

If you look at market activity, someone has picked up 772,394 at 144.7p last Monday.

Possible signal?

Clearly that buyer must be thinking any further downgrade's (if any in their mind) will get bought up to at least that level or that corporate action will take place to at least hit that mark. They might come in and gobble up more large chunks on significant weakness.

They could of course be wrong and any ultimate outcome end up lower, but that is the tricky nature of navigating market's. Everyone has a view and makes a call.

I just try and piggyback of short term moves,and if they don't work, exit.

So more to consider here for folk, but even for us short termers, not that smooth out there. There are a few of these shares about which are flirting with key levels but not breaking out e.g. NCC, TED, RMM

Trying to find and trade the breakouts and short term bounce candidates OUTSIDE OF NEWS. Clearly the likes of TED could put out a warning on supply chain issues so have to tread carefully.

The market could eventually look beyond such statements, but what if there is another IGR out there. Rather not take the risk.

Anywho, rambling on.

I'll keep an eye on this.

All imo
DYOR

[simon gordon] 06/11/2021 17:30

There is no growth in this business as they lose business to the likes of AWS. Maybe the hybrid cloud approach will stem client losses. Acquisitions offer a way to buy growth.

EPS historic and forecast by Fincap:

-2019 18.6p
-2020 16.3p
-2021 14.4p
-2022 11.7p
-2023 11.3p

It's possible those forecasts could fall further with rising input costs like energy.

It's cheap for a reason. Suppose it can be bought for an oversold bounce with the hope they get taken out for a quick premium. Otherwise, it's a long sit and hold to see if the new management can get the top line growing.

I have little knowledge of IOMs cloud space and how much the likes of AWS are going to eat IOMs lunch but the trend in the figures above show a business in structural decline.

[farrugia] 06/11/2021 17:13

but is Katrick Technologies Ltd owned by Iomart or not? Seems not from the paragraph below. If not how can Iomart benefit from this apart from saving a bit on the electricity bill?

'Katrick Technologies has established a commercial partnership with Iomart PLC to install our prototype passive cooling technology. Installed at iomart’s Glasgow data centre in October 2021 our passive cooling system will replace two of their on-site condensers. Our partnership and installation is a world-first example in helping the data centre industry on its way to carbon neutrality. '

[sphere25] 05/11/2021 13:44

Possible quick short term bounce candidate here.

Sentiment appears to have changed (post the news yesterday) with more bullish dynamics on the order book.

Buyer beware:

This is highly illiquid and prone to erratic price moves. Often hard to buy or sell in size and it can end up at 170p or 150p in a flash.

A break of 157p and 160p COULD result in a bounce to lob into.


All imo
DYOR

[knigel] 05/11/2021 13:08

Rise baby!

[r2oo] 04/11/2021 10:07

That's a well timed on trend news release.

[scepticalinvestor] 28/10/2021 07:01

Priced for bankruptcy now. . .

[simon gordon] 27/10/2021 06:10

RCN - out with a trading update. Market flat and higher energy costs:

We expect trading for the year ending 31 March 2022 to be in line with the Board's expectations, including strong cash generation consistent with previous guidance. This is despite a continued lack of largescale IT projects and supply chain issues remaining a feature of the sector. In addition, several of our electricity supply contracts fell due for renewal during the ongoing UK energy crisis and this will add £0.5m of costs to H2 FY22 and at least £0.5m of costs to H1 FY23.

[eastbourne1982] 25/10/2021 10:25

Share price down nearly 60% since the start of 2021.

[gopher] 25/10/2021 10:10

This is my concern but I have no evidence that's the case. Do you?

[scepticalinvestor] 19/10/2021 07:38

Interesting co. Book value of what c106p ps?

[simon gordon] 16/10/2021 06:52

gleach,

Cheers! What a sad way to flip a buck.

[gleach23] 15/10/2021 20:39

SG - Scotbod's profile set up today so take with a pinch of salt

[eastbourne1982] 15/10/2021 20:37

If the price lingers at sub £2 for a while this will get taken over.

[hanilton 09] 15/10/2021 15:12

The subsector of cloud they are working in is gradually shrinking, market forces from Microsoft and Amazon. Share price now is probably right

[simon gordon] 15/10/2021 14:15

Scotbod,

Which website are you getting the shorting data from?

According to Short Tracker there is one 0.8% short position on the company:

[scotbod] 15/10/2021 13:21

I see that it's one of the most shorted stocks in the UK.That's been driving the price down but can't see it going much lower as the have regular cash flow to service dividends!

[r2oo] 15/10/2021 09:18

This is massively oversold now imo!

[abrahamtoast] 13/10/2021 13:24

I think part of the problem is that many holders of IOM, individual and corporate, are almost like a family. They still seem close to the company, and many of them bought at much less than 100p, so are still able to sell at a decent profit. The founder and long-term CEO stepped down reasonably recently, and the new guy does not exude confidence. Although the projected figures aren't great, the effect has been disastrous. The board/company needs to do something to get investors buying again.

The CEO needs to be straight with shareholders. There IS undoubtedly a reason for this drop, and the directors know what it is. Obviously they can't tell us everything, but some sort of reassurance/explanation would not go amiss, as without that, board-level incompetence looks like the most likely reason, and that does not bode well for the future.

[eastbourne1982] 13/10/2021 11:39

If the directors had loaded up with a few hundred k it would have supported the price more, their recent purchases were tiny in the grand scheme of things.

[knigel] 13/10/2021 11:09

Remember there have been recent Director purchases - surely a good sign for the longer term??!!

[8craggle] 13/10/2021 11:05

This is a brutal fall, tempting but showing no sign of slowing. Keeping my fingers out the way of this for now