Ncc Share Discussion Threads

[rivaldo] 14/3/2017 09:03

This reads well:



"13 Mar 2017

Mark Costar , the high-performing manager of the JO Hambro UK Growth fund, has revealed the reasons why he keeps buying shares in NCC Group, despite the shares falling starkly over the past year.

Costar has long been an investor in the shares and he confirmed in his latest update to shareholders that he has been buying more as the shares have tumbled.

He commented, ‘NCC is the world’s largest independent cybersecurity consultancy and operates in an area of clear, strong and, if anything, accelerating growth. Ironically, as the company has prepared for this growth, it has invested significantly in resources ahead of delivering expected projects. In doing so, it has built up the key asset required to execute this, namely highly skilled cybersecurity professionals. Consequently, some unfortunate specific delays have left the business with a utilisation shortfall, which has become increasingly clear that it will not be able to fill in the immediate future. As a result, the company announced profits will be below expectations.’

Costar continued, ‘Unsurprisingly, investors did not take too kindly to this news. At one point, the company’s enterprise value was justified almost entirely by its unrelated software escrow business, thereby valuing the cybersecurity opportunity at next to nothing. While the events were clearly disappointing in the short term, when the dust has settled, this is very much a transitory issue in a powerful long-term story. Cybersecurity has become a critical service, it has moved from an IT decision to a boardroom decision. It has broadened out from the computer and the network to mobile, automotive, industrial equipment and indeed any device which can connect to the Internet. NCC has been investing to serve all of these areas and is highly respected in the industry, with very strong, client loyalty and engagement. In short, it is a highly valuable strategic asset. To us, this is a genuine case of growing pains in the business. As such, we took advantage of the weakness to add significantly to our position.’"

[seans66] 10/3/2017 20:39

I spoke to a senior ex-employee of NCC this week. This person felt the company despite its recent problems is fundamentally in good shape, with lots of good people. It got hooked on giving the city continuous growth which resulted in a few dodgy acquisitions particular FOX IT.

[tsmith2] 08/3/2017 15:14

Couple of very large trades reported..

[tsmith2] 08/3/2017 14:38

Looks like someone wants In and someone wants out Jiggery pokery going on

[a2584728] 08/3/2017 13:29

Bid coming circa 155p imho.

[aishah] 08/3/2017 12:38

I mentioned last month that NCC could fall prey to a bigger player. The latest Techinvest comments that "the stock now looks vulnerable to corporate action given that it is a relatively small player in a market that is increasingly being targeted by a number of larger tech stocks" They have retained their portfolio holding 9135@95.06p from May 2015).

[tsmith2] 08/3/2017 09:39

Could get v interesting

[tsmith2] 08/3/2017 09:18

a couple of IIs have been selling but someone's been more than happy to snap up

[dontay] 02/3/2017 23:44

How do you get to get slow growth in a dynamic fast expanding market? Because your too expensive! It's not just about slower growth! Far from it. It's also about an admitted 'significant erosion of margin' for what was already an admitted problem in need of attention... it is also about existing customers not renewing! And despite promises that these problems would be corrected in the 2nd half the only strategy put forward for dealing with the problems was not to bother... but to continue to buy low margin consultancies! The only way to cut cost in this type of 'asset light' business is to close down businesses and sack employees... which is what is now sure to happen. In the meantime they are going to spend more millions bringing in outside advisory consultants to help them with the review which will continue to leach away the value in escrow.

[jerseyman1] 02/3/2017 18:26

Yesterday Canaccord went from sell to hold following conversations n with Brian Tenner saying no accounting irregularities involved. Just slower growth and Escrow gives valuation equivalent to 118p per share on its own

[expletive deleted] 02/3/2017 18:17

Markth,I think you are delusional. The main reason for the share price fall is disasterous underperformance by incompetent management. The chairman and the chief exec haven't gone because of "poor comms".Sell tip in this evening's IC.

[markth] 02/3/2017 18:12

I am hearing that the business is sound but just growing at a slightly slower rate. Main reason for the share price hit is poor comms / relationship with City. Sit tight and it will bounce back strongly IMO.

[dontay] 02/3/2017 17:32

it'll be a while before the shorts leave this one. This goes all the way back to the previous CFO resigning with immediate effect last July. No reason was given but it's pretty obvious why he went! No wonder the Chairman also decided to jump ship! There is no way of knowing the extent of the pile of nasties Brian Tenner uncovered once he got his feet under the table as the new CFO. He was only appointed five minutes ago and now he's taken charge of the whole she-bang! CEO Cotton walking the plank could well be another case of an executive director putting distance between himself and further events before they become general knowledge... and could well be indicative that there is lots more bad news to come yet. The share price is way too high given the present circumstances... even half this level could easily be seen.

[staylow1] 02/3/2017 16:48

I agree. I'd like to buy back in when the chart turns and the shorts leave.

[seans66] 02/3/2017 14:05

I agree short term (ie next 3-6 months) this could get worse but long term this company is fine. I suppose it depends on your time frame. This is a good company going through a tricky period but its in a fantastic sector that is only going to get bigger.

Worst case could be a trade sale in the next 18 months but hopefully 5-10 years of growth and regular dividend payments.

[rubberbullets] 02/3/2017 13:56

Directors aint buying any

Cos they know it be a pig in a poke


Roll on 60p

[rubberbullets] 02/3/2017 13:56

Another profit wartning ere

[staylow1] 02/3/2017 12:21

Same here. I see further positions added on shorttracker also.

[igoe104] 02/3/2017 12:13

I`ve sold out this morning.

its going to take a good while to sort this out, plus I can see it dropping well below £1 mark over the coming months.

I can see more profit warnings on the horizons, plus paying off the management in the reshuffle won`t be cheap.

[a2584728] 01/3/2017 09:37

It would be nice to see institutional investors or director buying at this level, would give the market confidence.

[nearlythere] 01/3/2017 09:29

The likelihood is that the new Ceo will roll up all the bad news into one statement ( another profit warning is possible) and blame the out going CEO, although to be fair losing 600 million in market value normaly requires a team effort and I fully expect more board changes.

Whatever happens needs to happen fast, customer confidence is everything, if customers start to see NCC as a falling star then there are plenty of other companies ready to step in.

All IMO of course

[aylingd] 01/3/2017 08:44

Cotton should have resigned after the latest debacle. As he didn't I guess he has been pushed, best thing as there was never going to be any confidence in his tenure going forward.

The idea of not reporting back on the review until June would not sit well with the IIs, so I agree, we should expect some news earlier, just hope there is not further bad news to kitchen sink.

Once the result of the review is public and if news not catastrophic, at this share price, I would expect this to be in play.

D.

[masurenguy] 01/3/2017 08:15

Cotton out !

[tsmith2] 01/3/2017 08:12

Defo at behest of institutions..