Netcall Share Discussion Threads

[effortless cool] 16/8/2010 10:46

1,365,356 sales is why! Ouch.

[spaceparallax] 16/8/2010 10:40

Sp looking weak this morning - any ideas why?

[clocktower] 13/8/2010 15:18

Pointing out any directors history ( as long as it it true and correct) only ensures that all possible investors are fully informed fully and canot every be considered anything other than fair comment.

[lbo] 09/8/2010 14:49

Online chatroom rumours under scrutiny



Two UK-listed companies have launched investigations into rumours spread in online investment chatrooms, highlighting the influence of bulletin boards on the smaller end of the London stock market.

Online bulletin boards such as ADVFN and iii attract thousands of posts each day from a dedicated audience of retail investors fiercely debating their portfolios

[empirestate] 05/8/2010 22:21

could get interesting here once that seller has cleared out, worth keepin em peeled

[lbo] 31/7/2010 10:35

Netcall join with Telephonetics VIP to deliver a wide and compelling suite of contact centre and enterprise communication solutions

[clocktower] 29/7/2010 11:34

Bounce it may Giantpeach2 but how long before it sinks as TPH did and the host of other AIM companies that Mike Neville has been associated with?

How many successfull stories are there compaired to those that failed?

With the amount of companies he has been associated with the odds he is likely to have some but he seems to have done very well out of some - like MNT etc.

[giantpeach2] 15/7/2010 11:57

should bounce from here!! more buys getting it going.

[effortless cool] 09/7/2010 08:31

Merger vote in favour at both companies and placing at 19p confirmed.
Not exactly doing wonders for the share price so far.

[clocktower] 28/6/2010 14:09

Lots - Effortless Cool - and if you research other threads of the companies that he has sat on the boards of, and his history you will see the reasons. In addition to MNT - WTV try CPN as well and loads of others if you want to do a little reasearch. You will see the reason the likes of BluPrince posted what he did.

Also beware of any AIM companies that issue loan notes to major shareholders.

[effortless cool] 26/6/2010 13:24

Clocktower,

Do you have any specific complaints against Neville?

EC

[clocktower] 26/6/2010 12:08

BEWARE any investor: Look at Mike Nevilles history on the boards he has sat on imo. MNT - WTV for example to name but two.

Cut from another thread:

BluPrince - 24 Jun'10 - 11:49 - 3163 of 3164

Oh Dear another Mike N and James O Partnership

[effortless cool] 21/6/2010 16:07

=================
Update 26/5/2011
=================

Position closed.
£10.1k profit
73.9% IRR

I was disappointed with the last set of results. Top line fell short of my expectations, mainly due to the original Netcall business, and bottom line was also worse than I expected. I was also concerned when one of the directors that came from TPH sold his entire (substantial) holding in March.

20p or thereabouts looks fair value to me, at the moment.

Good luck to continuing holders.

=============================================================================

Netcall (NET) looks to be an interesting proposition. It specialises in "innovative communication solutions" which really means introducing clever technology to call centres.

The company listed on AIM and had an undistinguished history until the current CEO, the splendidly named Henrik Bang, was appointed in 2004. Between 2004 and 2008, Bang has sorted out the balance sheet and taken the company to consistent profitability, but hasn't done much for top line growth.

Things seem to have stepped up, however, with the appointment of Michael Jackson (not that one) as Chairman in March 2009. Jackson founded Elderstreet investments and is also Chairman of Sage. In fact he has been the Sage board for 23 years and seen the company grow from a small cap to FTSE-100 membership.

Since Jackson joined, Netcall have started using their strong balance sheet to drive acquisitions in its fragmented marketplace. First, they bought Q-Max, a private company, for £2.5m in October 2009. Now, they are stepping up a further gear with a recommended acquisition of Telephonetics (TPH) for £10.6m announced in June. Alongside this acquisition, Netcall announced a placing to raised £4.25m. The placing price is 19p per share, about 40% higher than the share price at the time it was announced. Both the placing and the acquisition are conditional on the shareholders of NET and TPH voting through the takeover.

The scale introduced through these acquisitions has the potential to dramatically improve Netcall's results. For the year to June 2011, I am forecasting EPS of 2.1p. I believe this is prudent because: (a) it does not anticipate any acceleration in top line growth arising from cross-selling opportunities on the significantly widened customer base; and (b) it only anticipates small reductions in the cost base from rationalisation.

There is risk here. Firstly, the takeover may not go through. In that case you are left with shares in "old Netcall". I'm forecasting EPS of 0.7p in that case. Secondly, the integration may not be managed well, although it would seem a relatively simple job.

I see this as a good chance to get in at the start of this growth story, and am looking for a total return of at least 100% over the next four years. I hold 86k shares at an average of 14.14p.

Update 27/09/2010
----------------------------

Points to note (good and bad) from the full-year results:

- The 5% revenue increase was entirely due to the Q-Max acquisition. Underlying Netcall revenue was down 23% from 2008/09, although H2 was marginally ahead of H1.

- Gross margin was 91.3%. But H1 gross margin was comparable to previous years at 89.3%, versus a vastly improved H2 gross margin of 92.9%.

- Operating costs were 66.5% of revenue. But H1 operating costs were comparable to previous years at 71.6% of revenue, versus a vastly improved operating cost ratio of 62.5% in H2.

- Bottom line profits were hit by an eye-watering £916k of acquisition costs, mainly relating to the acquisition of Telephonetics which completed after the year-end, and £150k of amortisation of acquired intangible assets. These are non-recurring costs.

- The balance sheet is debt-free and the group holds net cash of £4m, post the Telephonetics acquisition and associated fund-raising.

Next year's results will depend critically on the performance on Telephonetics, which was a much bigger company than Netcall. However, the H2 improvements in gross margin and operating cost ratio give an indication of the potential economies of scale. Although revenue performance this half was disappointing, we may start to see the benefit of synergies from cross-selling arising next year.

The available cash leaves the group well positioned for further acquisitions.

I have improved my model and am forecasting the following for next year (including 11 months of Telphonetics):

H1: Revenue £7.05m, pre-tax profit £1.55m
FY: Revenue £15.35m, pre-tax profit £3.15m

With a normalised tax charge, this gives EPS of 1.87p per share. I am targeting a share price of 22.5p, based on a PE ratio of 12.

For comparison, Evolution is forecasting profits of £2.4m and earnings of 1.39p per share.

Update 26/2/11
-----------------------

I have increased my holding to 150,000 at an average of 13.8p.

[spaceparallax] 07/6/2010 16:04

The recent share price dip is simply a reaction to the over-optimistic placing pps attached to the recent news.

[effortless cool] 02/6/2010 20:42

Strange price behaviour today, given the way this surged when the announcement was made yesterday. I took the opportunity to add 16k at 14.2p.

[tiltonboy] 02/6/2010 20:22

Institutions happy to pay that price for the stock. You might get £10k worth at 14p, but not £4m worth. I bought some more at 15p yesterday, and very surprised to see them down today.

[killieboy] 02/6/2010 18:23

Can anyone explain what is going on with this one because I no longer understand these share price movements and I cant invest in something I dont understand? A placing at 19p when the share price is 14 (Am I being stupid or something!!)

[tiltonboy] 01/6/2010 15:23

Now, that's how to do a placing!!!

[giantpeach2] 14/4/2010 11:04

some nice buys, i wonder if something leaked!!!

[leyton2] 14/4/2010 09:47

Nice rise this morning

[leyton2] 07/4/2010 09:09

Need some newsflow to stop this downward drift

[killieboy] 23/3/2010 15:10

Yawn......yawn......yawn