Newmark Security Share Discussion Threads

[hedgehog 100] 05/12/2023 18:16

From Investing.com:-

"Newmark Security"

"57.500 +1.500(+2.68%)"

"Technical Analysis"

"Summary: Strong Buy
Moving Averages: Strong Buy Buy (12) Sell (0)
Technical Indicators: Strong Buy Buy (9) Sell (1)"




From TradingView.com:-

"NEWMARK SECURITY PLC ORD GBP0.05"

"57.5GBXD +1.5 +2.68%"

"NWT technical analysis"

"Oscillators Summary Moving Averages"

"Neutral Strong buy Strong buy"

[hedgehog 100] 05/12/2023 17:20

NWT has today closed up 1.5p (2.68%), at 57.5p (55p - 60p).

Which is a new 2023 closing high for the share, just above the 56.5p closes achieved in the spring and August.

As well as being both a new one-year and two-year closing high.

[hedgehog 100] 05/12/2023 15:14

Interesting to see Dr. Benedikt Bessman singled out from other strategic investors and renowned business angels in this investment news piece a couple of years ago:-

"FinTech SideCaps closes € 1.8 million seed financing

August 19, 2021

High-Tech Gründerfonds (HTGF), Innovationsstarter Fonds Hamburg (IFH) as well as strategic investors and renowned business angels jointly invest in the digital platform for large-volume equity transactions of listed SMEs.

Hamburg, August 19th, 2021

... Under the leadership of the High-Tech Gründerfonds (HTGF), the Innovationsstarter Fonds Hamburg (IFH), the BörseGO AG, the small cap investor Dr. Benedikt Beßmann as well as other strategic investors and renowned business angels have invested. ..."




This suggests that he could be quite renowned and influential in German small cap tech investing circles, which bodes well for his attracting other German investors into NWT.

And the very fact that Dr. Bessman has chosen to invest abroad into NWT, despite having a vast number of domestic German companies to choose from, is quite a testimony to the exceptional quality & rarity of the NWT opportunity.

[hedgehog 100] 04/12/2023 16:44

Nice to see tipster Charles Archer taking an interest in NWT today, following the recent recommendation of Dab (David Bitner):-

David Bitner says:
December 1, 2023 at 11:25 am
"Hi Charles, check out Newmark Security. They have a US division that is flying, USPs in technology and software, £20m of revenues that are shifting to re-occurring licencing which they plan to double in the next few years, enough cash in the bank and solid 25+ year track record. For disclosure I’ve increased my stake from 1% to 3% in the last 12 months."

Charles Archer says:
December 4, 2023 at 10:00 am
"Hi David, I will take a look in a couple of weeks – sounds interesting!"




Let's see what comes of this.

NWT looks to meet all of CA's positive criteria admirably ... but without the risk of a penny share punt.

CA's 8 selections all seem to be loss-making, and most don't even have any revenue.

NWT in contrast is nicely profitable, and with a potential nearer term multibagging catalyst that isn't though a speculative moonshot.

I.e. a Grosvenor Technology spin-out from NWT, in a US floatation: which not only makes perfect sense, but would follow an established NWT modus operandi.

And a GT spin-out in America would likely be a key to an immediate and immense unlocking of its value.

Most profitable shares don't have the same sort of nearer term upside, unless they are taken over, which is itself speculative and uncertain.

[hedgehog 100] 04/12/2023 08:32

30/11/2023 14:59 UK Regulatory (RNS & others) Newmark Security PLC Holding(s) in Company LSE:NWT Newmark Security Plc

"Holding in Company

Newmark Security plc (AIM: NWT), a leading provider of electronic and physical security systems, announces that it was informed on 30 November 2023 that Dr B Beßmann holds 310,000 ordinary shares of 5p each in the Company, representing 3.31% per cent of the issued share capital of the Company. ..."

[hedgehog 100] 01/12/2023 18:02

And now a brand new article just added to Grosvenor Technology's website: and it's another excellent one, this time on access control, further highlighting the cutting edge leadership of the company's solutions:-

"Insights

Card Cloning – A Real Threat to Modern Building Security

Thankfully, innovation has led to the development of encrypted solutions that provide the security that all environments can benefit from.

Chris Wrench
Senior Product Manager

One of the greatest security risks to your buildings and estates is that of card cloning. Sadly, technologies have existed for years that allow the swift copying of legacy cards and it is only becoming easier. Recently there has been a spike in card cloning using a range of devices, from specialist machines through to the versatile Flipper Zero. For security professionals responsible for access control systems, card cloning presents significant issues that seem insurmountable.̷9;

Thankfully, innovation has led to the development of encrypted solutions that provide the security that all environments can benefit from.

The Worst Case Scenario

You don’t need much imagination to consider the potential problems that card cloning creates. Systems installed to allow only approved personnel access can be circumvented – and the reasons for doing this are always nefarious. And it affects access control systems used in so many areas, from offices to university student accommodation to hospital buildings. 

It’s not the fault of the security professionals; often, those partaking in illicit access have cutting-edge technology at their disposal. However, it is the responsibility of security professionals to meet this threat with equal firepower. And that means understanding and using advances in access control credential technology to combat the issue. 

There are some security firms guilty of adopting a ‘carry on regardless’ attitude, which only serves to leave their customers vulnerable. With a solution so readily available, there’s no excuse for not adapting. So why are so many firms lagging behind?

The Problem with 40-Year-Old Technology

Keycard and fob technology has been around for decades, and many systems that are installed across the UK have existed for more than 40 years. And because these systems work well enough day-to-day, it can seem like an upheaval – financially and administratively – to make a change. There’s a mindset of ‘if it ain’t broke, don’t fix it’, but in this case, remaining ignorant of the risks that relying on the same basic unencrypted RFID communication presents can make you question the integrity that drives the decisions.

And we’re not just talking about the boot-on-the-ground access control companies; some of the leading names in manufacturing are guilty of pressing ahead with technology that can be breached.

Encryption and Actually-Secure Security

At Grosvenor Technology, we work with the newest systems that incorporate high-frequency communication with strong MIFARE DESFire EV2 and EV3 levels of encryption. Data is transmitted between card and reader in a secure envelope with encryption that cannot be easily cloned, and thus truly provides the access control and security that is much needed. We have a range of options to upgrade existing building door security systems from ageing infrastructure, resistant to the best attempts of even the most dedicated hacker.

With the top-of-the-range EV2 and EV3 chips, you can expect; 

Enhanced Security – evaluation assurance level 5+ certification

More Flexible Memory – unlimited simultaneous application use

Greater Read Speed & Range – varies on card type, but minimum expected distance is 10cm

Proximity Check – protects against relay attack

Of course, upgrading in this way doesn’t just improve the reliability of door security; it also brings your estate access control up to current specifications, offering seamless management over your site that includes CCTV, wireless locking, fire and intruder alarms, lift control, and properly tracked occupancy access.

Building Security for a New Era

It should be unacceptable to all of us for building security to be left open to the threat of card cloning and the subsequent easy access for intruders – especially when there is no need to do so. Contact Grosvenor Technology today to discuss incorporating the latest technology. 

To find out more about our leading access control solution, click here."

[hedgehog 100] 30/11/2023 15:00

Meanwhile, Grosvenor Technology's website has just added two articles (with minor changes) that have previously only been on NWT's website (appearing there in mid July of this year):-


"Insights

The power of AI in workforce management: unlocking productivity and efficiency

Here, we highlight some of the major benefits that AI is having on the workforce management sector and give examples of how it might help your business operations.

Ben Lagden
Commercial Director

2023 is the year of AI. Very few technologies have become so widely used in such little time. Indeed, the AI platform can claim to be the fastest-growing application of all time, registering 100 million active users just two months after its launch.

There is an expectation that the next few years will see a generational shift. A recent report from Goldman Sachs says that AI could replace the equivalent of 300 million full-time jobs but will also drive millions more new roles and a productivity boom.

To illustrate the seismic effect AI is predicted to have, a 2022 AI report by PwC valued the potential contribution to the global economy driven by AI could reach $15.6 trillion by 2030. And as much as 14.5% of North America’s GDP could be directly influenced by AI over the same period.

AI is not a new concept, of course. It is already responsible for a significant impact in the workforce management industry, in particular, aiding enterprises to optimise performance, costs and worker happiness while also achieving critical efficiencies. ..."




"Insights

Transforming Enterprise Tech: The Convergence of Cloud and Services

As an adaptable and forward-thinking business, Grosvenor Technology has quickly adapted and improved its products and services to reflect this new environment.

Colin Leatherbarrow
Managing Director

Over the last few years, we’ve seen the convergence of two leading trends in the enterprise technology world – cloud computing and service models such as SaaS, IaaS, and others.

The move to cloud infrastructure was well underway before 2020. Still, it’s fair to say that the pandemic acted as a jumping-off point for businesses which, almost overnight, were tasked with keeping distributed workforces connected and productive.

Cloud services offered the ideal solution for this sudden shift, enabling employees to access critical applications, data, and collaboration tools from anywhere, regardless of physical location. A 2022 report from Statista found that 93% of businesses across Europe, the Middle East and Africa accelerated their move to the cloud because of the pandemic. ..."

[hedgehog 100] 30/11/2023 13:17

Just added to NWT's website, an article that expands on a 9th. August Safetell article:-

"Insights
Why tailored security is the way forward"


"Importance of Customised Security Solutions: Safetell’s Approach
09 August, 2023"



Here's the part of the new article that lists the big benefits of a tailored-customised approach, including additional sections on employee training, and response planning:-

"The significance of tailored security

The forecasts are made up of generic security solutions and tailored security. Standard security solutions, while readily available, may not always be the best fit for your unique circumstances. Here’s why opting for a customised security solution is crucial in today’s business environment:

Cost-effectiveness: Generic products might be cheaper as an initial investment, but tailored security solutions can often be more cost-effective in the long run by avoiding unnecessary expenditures, optimising resource allocation, and minimising the potential financial repercussions of security breaches.

Risk assessment: A thorough risk assessment is crucial to finding the right security solutions for your organisation. It involves thoroughly examining your business’s unique risk profile, including location, industry, and past security incidents. This approach ensures precision in resource allocation, effective mitigation of specific vulnerabilities, and compliance with industry regulations.

Address specific needs: Every business has its distinct risks and vulnerabilities. A personalised security solution ensures a thorough assessment of these risks, resulting in strategies and measures precisely designed to mitigate them. Understanding these unique challenges and working with a business that understands them will help deliver the most effective and efficient security measures to protect employees, assets, and operations.

Employee training: Tailored security solutions often incorporate comprehensive employee training and awareness programmes. These initiatives equip your workforce with the skills and knowledge to identify and respond to security threats and foster a culture of vigilance and responsibility.

Compliance: Different industries and client risk profiles have specific safety regulations and standards. A tailored security solution ensures compliance with these requirements, helping businesses avoid legal and financial repercussions.

Response planning: Customised security solutions are often designed with security response plans, tailored to the unique risk profile of your business and outline specific, step-by-step actions to be taken in the event of security breaches. With a detailed response strategy, companies can minimise the potential damage from security incidents and streamline their recovery processes, ensuring business continuity.

Effectiveness: While generic security solutions may provide a basic level of protection, they often fall short when addressing specific vulnerabilities. Personalised security solutions excel in precisely identifying and mitigating these identified risks.

Integrations: Recognising that many businesses already have established security systems and infrastructure in place, customised solutions prioritise seamless integration. Our approach considers your existing security framework, smoothly integrating new measures without causing disruptions to your ongoing operations.

Scalability: In today’s dynamic business landscape, change is a constant. A bespoke security solution is not just about addressing current needs; it’s also about preparing for the future. Customised security solutions offer scalability and adaptability, ensuring they can grow and evolve alongside your business."

[hedgehog 100] 29/11/2023 18:47

NWT's website has been updated nice & promptly for the new 'significant shareholder' yesterday:-

"Shareholder Information

Newmark Security plc currently has 9,374,647 ordinary shares of 5 pence in issue.

Directors Shareholdings

• Maurice Dwek – 19.8%
• M Rapoport – 12.81%
• Marie-Claire Dwek – 0.53%

Other significant shareholdings

• Mrs S Reid – 10.96%
• Thalassa Holdings Ltd – 9.92%
• Lobbenberg J P Esq – 3.31%
• Mr & Mrs D Bitner and Son – 3.07%

The percentage of shares in issue that are not in public hands is 44.1%
The Company’s shares are not listed on any other exchanges or trading platforms
The Company is subject to the UK City Code on Takeovers and Mergers
No shares are held in treasury
There are no restrictions on transfer

Last update: 28 November 2023."

[hedgehog 100] 28/11/2023 17:37

Recent Share Trades for Newmark Security (NWT)
Date Time Trade Prc Volume Buy/Sell Bid Ask Value
28-Nov-23 16:06:32 54.00 2,000 Buy* 50.00 57.00 1,080 O
28-Nov-23 14:51:24 54.00 240 Buy* 50.00 54.00 129.60 O
28-Nov-23 14:04:54 53.72 5,000 Buy* 47.00 54.00 2,686 O
28-Nov-23 09:21:51 53.09 5,000 Buy* 47.00 54.00 2,655 O
28-Nov-23 09:06:20 51.80 5,000 Buy* 47.00 52.00 2,590 O
28-Nov-23 09:05:16 47.35 2,000 Sell* 47.00 54.00 947.00 O


Today's NWT buying has resulted in a 3p (5.94%) rise on the day, closing at 53.5p (50p - 57p).

That's actually the highest NWT close since mid September, and sets up a more bullish short term chart pattern, with a higher low and higher high.

And going further back, both the one and two year NWT chart patterns are also looking bullish.


One-year:-




Two-year:-




The Bitners are just 6,385 NWT shares above the 3% notifiable limit, and I wouldn't be surprised if they added more before NWT's interim results In January.

Though of course they won't have to notify this while they're below 4%, which gives them quite a bit of leeway.

[hedgehog 100] 28/11/2023 16:56

28/11/2023 14:00 UK Regulatory (RNS & others) Newmark Security PLC Holding(s) in Company LSE:NWT Newmark Security Plc

"Holding in Company

Newmark Security plc (AIM: NWT), a leading provider of electronic and physical security systems, announces that it was informed on 28 November 2023 that Mr D Bitner, together with his wife and son, have increased their holding in the Company's issued share capital to 287,624 ordinary shares of 5p each, representing 3.07% per cent of the issued share capital of the Company.

For further information:

Newmark Security plc Tel: [phone]
Marie-Claire Dwek, Chief Executive 0070
Officer www.newmarksecurity.com
Paul Campbell-White, Chief Financial
Officer
Allenby Capital Limited Tel: [phone]
(Nominated Adviser and Broker) 5656
James Reeve / Liz Kirchner / Lauren
Wright (Corporate Finance)
Amrit Nahal / Tony Quirke (Sales &
Corporate Broking)

About Newmark Security plc

Newmark is a leading provider of electronic, software and physical security systems and installations that helps organisations protect human capital and provide safe spaces seamlessly and securely.

From our locations in the UK and US, we operate through subsidiary businesses positioned in specialist, high-growth markets.

We foster an open and inclusive work environment amongst our c.100 employees, serving hundreds of blue-chip customers.

Our product portfolio consists of Human Capital Management and Access Control Systems providing both hardware and software and physical security installations to various sectors.

Newmark Security plc is admitted to trading on AIM (AIM: NWT).

For more information, please visit: hxxps://newmarksecurity.com/

Safe. Seamless. Secure"




So a new 'significant shareholder' to add to NWT's website, for the first time in years:-

"Shareholder Information

Newmark Security plc currently has 9,374,647 ordinary shares of 5 pence in issue.

Directors Shareholdings

Maurice Dwek – 19.8%
M Rapoport – 12.81%
Marie-Claire Dwek – 0.53%

Other significant shareholdings

Mrs S. Reid – 10.96%
Thalassa Holdings Ltd – 9.92%
Lobbenberg J P Esq – 3.31%

The percentage of shares in issue that are not in public hands is 45.2%
The Company’s shares are not listed on any other exchanges or trading platforms
The Company is subject to the UK City Code on Takeovers and Mergers
No shares are held in treasury
There are no restrictions on transfer

Last update: 3 May 2023."




Combined with the recent Thalassa Holdings indication that they will be holding their NWT shares (after top-slicing this spring), then the shares demand-supply outlook for this quite illiquid stick is now looking nicely bullish.

Retail shareholders can be a bit 'shy' about moving above the 3% holdings limit, so if someone does so the likelihood is that they will be buying even more at some point.

[hedgehog 100] 19/11/2023 11:10

From Hargreaves Lansdown "Investment Times", Issue 156 - autumn 2023:-


"Why you shouldn't 'bet against Uncle Sam'

The data behind Buffet's wisdom on the American tailwind

Ziad Abou Gergi
HL US fund Manager

The biggest decision an investor must make is where to put their money.

When it comes to making that decision, Warren Buffert's annual letter to shareholders of Berkshire Hathaway from 2022 offers some sage wisdom.

In it the 'Oracle of Omaha', as Buffett is known, states "we count on the American tailwind, and although it has becalmed from time to time, its propelling force has always returned."

Buffett notes that in his 80 years of investing "I have yet to see a time when it made sense to make a long-term bet against America."

While Buffett's patriotism is admirable, does the data back up his conclusion?

US stocks are top of the hill

US stocks have consistently outperformed their global peers for decades.

Researchers at Arizona State University, Hong Kong Polytechnic University, and Tulane University looked at the performance of almost 64,000 individual global common stocks between January 1990 to December 2020.

The researchers measured how much shareholders saw their wealth (in US dollars) increase from holding a stock, instead of holding less risky assets like US treasury bills.

They calculated that, of the 63,785 companies that issued common stock in the January 1990 to December 2020 period, net global wealth creation was $75.7 trillion.

Interestingly, the wealth was highly concentrated in a handful of companies.  Amazon, Microsoft, Apple, Alphabet and Tencent accounted for 10.3% of global net wealth creation in the same period.

Four out of five companies that created the most wealth were American.  Added to this, 35 of the top 50 wealth creating companies in this analysis were also those based in the US.

Unsurprisingly, Apple ranked first, generating wealth of $2.67 trillion.  Microsoft was also a top wealth creator over the sample period, to the tune of $1.91 trillion.

The analysis suggests that wealth created by investing in the stock market is largely attributable to only a handful of mostly US-based stocks.  It also tells us that successful stock selection can help your performance as an investor.

Of course, hindsight is a perfect science.  Back in 1990, no one could've predicted how large, global, and profitable Apple or Microsoft would become.

Individual stock selection is extremely hard to do.  Perhaps a more useful interpretation of the results from this research is that the top global stock market performers over a 30-year period were predominantly from the US.  And that it supports having a broad exposure to US shares as part of a well-balanced diversified portfolio. ...

American stock market resilience

Interestingly, the sample period for this research includes episodes of social, economic, and political upheaval for the US.

Since 1990, the US has been engaged in armed conflict including the Gulf War and the war in Afghanistan.  Its sovereign debt AAA rating was downgraded in 2011 and again in 2023 by two major credit ratings agencies.

There have also been four US government shutdowns.  These happened in 1990, 1995-1996, 2013 and 2018.  During the 2013 shutdown, Standard & Poor's, the credit rating agency, said that it had taken $24 billion out of the US economy.

This is only a small sample of the upheaval faced by the US in recent decades. However, US stocks have navigated these challenges well.

Born in the USA

So, why has the US been at the top of the shares leaderboard?

There are structural issues that give the US an advantage over other countries.

For example, seven US universities are in the top ten Times World University Rankings 2023, including Harvard, Stanford, & MIT.  These institutions attract high-quality talent both domestically and from abroad, and this leads to high levels of innovation and economic dynamism.

The US stock markets are the biggest in the world and the US dollar dominates international finance as a funding and investing currency.  In fact, the US dollar was involved in nearly 90% of global foreign exchange transactions in 2022, which makes it the single most traded currency in the foreign exchange market.  Bottom line?  It's hard to avoid the US when it comes to financial markets.

That said, while structural factors are important to traders, they're not the whole story.  So too are fundamentals.

One way to measure how well a regional stock index is performing is to look at its return on equity (ROE).  Return on equity is used to gauge both profitability and how efficiently the companies in the index generate their profits.

For the last 10 years, the US has consistently had a higher ROE than the UK and Europe.

This suggests the US Index has been better at converting equity into profits, and it's managed to do this on a consistent basis.

It's worth noting, European and UK indices have seen their ROE improve in recent years, while the US index's ROE has dipped.  However, the US' ROE is still above its UK and European counterparts.

The future for US shares

The most potent argument to avoid US stocks and instead favour other global indices is 'mean reversion'.  This is a financial theory that suggests asset prices and volatility will eventually revert to their long-term averages.

This mean reversion theory would suggest that US shares have enjoyed such a long period of outperformance that they're ripe for a sustained downturn.  This would allow other indices to play catch up.

That could well happen.  But, as long as the US is one of the world's biggest economies, companies based there could continue to prosper in the long term.

However, while the US is an important part of the global financial system, investors need a well-diversified portfolio that also includes regional diversification.  This is the best way to shelter your portfolio against unexpected events. ..."

Chart on page 24: "Comparative ROE for UK, US and European blue-chip indices."  ;[%s 'estimated' from chart; extracts]

2012 - 2022

"US blue-chip ROE"  C. 21% - c. 32.5%

"UK blue-chip ROE"  C. 2% - 15%

"European blue-chip ROE"  C. 5% - c. 12.75%

"Source: Bloomberg, 31/12/2022"


"HL US FUND

The United States of America makes up over half of the global stock market.  Is it too big to ignore?"

[hedgehog 100] 18/11/2023 17:22

"Delivering confidence in business intelligence

When managing people and their data, you need to know that your devices are up to the job. With leading global businesses trusting Grosvenor Technology to manage and maintain even the most sensitive data, you can be confident that your tech can support operational control needs.

The enhanced reporting and analytics that our HCM devices provide allow an organisation deeper insight into the aspects of their business that support strategic growth."




For Grosvenor Technology to be partnering with such large and impressive HCM companies as it does, both in America and elsewhere, is a testament to GT's immense quality, reliability, and trust. Trust they're earnt over a few decades now.

And the fact that they're a British company must also be an advantage in their American expansion.

Americans tend to view British hardware as a mark of quality ... rather like we Brits view Swiss watches, Belgian chocolates, etc.

In addition, Americans are likely to be very careful who they entrust their sensitive data to: so the British-American 'Special Relationship' will clearly help in this regard, whereas a Chinese company for example might well encounter far more reticence.

[hedgehog 100] 17/11/2023 12:01

Another compelling new innovation from Paycor:-

"Paycor Introduces Innovative Solution for Managing All Types of Workers
Last Updated: November 16, 2023 | Read Time: 4 min

Paycor unveils modern HCM functionality for streamlining workforce management across diverse staffing solutions

CINCINNATI, Nov. 16, 2023 /PRNewswire/ — Paycor HCM, Inc. (“Paycor”) (Nasdaq: PYCR), a leading provider of human capital management (HCM) software, today announced new HR functionality enabling leaders to better manage their complete workforce, including independent contractors, seasonal workers, volunteers and more. With this cutting-edge addition, Paycor empowers its customers to efficiently manage individuals, regardless of who initiates their paycheck. By consolidating the complete workforce within a single platform, leaders can seamlessly handle billing, generate workforce rosters, and enhance team engagement.

In today’s dynamic market, there’s a surging demand for non-traditional work arrangements. This growing category of workers has become increasingly common in many key industries, and includes nurses, contractors, temporary employees, seasonal workers, and volunteers. In fact, according to McKinsey’s American Opportunity Survey, 36% of respondents, or 58 million Americans, are independent contractors, an increase of 9% from seven years ago. Non-traditional employees are typically managed through agencies that directly pay workers and subsequently bill the employer. With this new functionality, Paycor is streamlining processes for leaders to effectively manage their entire staff.

“Paycor is focused on making the management of workers more efficient so leaders can focus on key elements that drive business performance and employee development,” said Ryan Bergstrom, Chief Product Officer at Paycor. “Paycor customers will be able to easily manage their complete workforce from hire to retirement, receiving greater insights and allowing for more accurate reporting and billing. As a flexible HCM provider, we are committed to accommodating all types of workers that our customers leverage in an ever-evolving workforce.”

Whether overseeing operations or maintaining compliance-related records via a comprehensive Forms and Document library, Paycor has enhanced its HCM suite to provide comprehensive support for all worker types, enabling customers to gain a holistic view of all workers within their organization.

To learn more about all the features available in HCM Cor, visit Paycor.com/HRSolutions.

About Paycor

Paycor’s human capital management (HCM) platform modernizes every aspect of people management, from recruiting, onboarding, and payroll to career development and retention, but what really sets us apart is our focus on leaders. For more than 30 years, we’ve been listening to and partnering with leaders, so we know what they need: a unified HR platform, easy integration with third party apps, powerful analytics, talent development tools, and configurable technology that supports specific industry needs. That’s why more than 30,000 customers trust Paycor to help them solve problems and achieve their goals. Learn more at paycor.com."




Paycor HCM (NASDAQ: PYCR) and Grosvenor Technology: two HCM leaders, combining together in a leading HCM partnership:-

"Paycor & Grosvenor Technology: A Powerful Pair
... “ ... The Grosvenor Technology team is an amazing partner. The collaboration and communication as we worked on the development of our software was great. ...” ..."

[hedgehog 100] 15/11/2023 17:01

Paycor's 2023 Annual Report contains some useful material on the Human Capital Management (HCM) sector:-






Here are some extracts:-


"The Evolution of People Management

Over the last 30 years, the demands of people leaders and people management strategies have significantly evolved in response to shifting demographics, employee expectations, and technological capabilities. As a result, the importance of people management has been elevated from a payroll-centric cost center to a highly strategic function focused on talent management as a critical component of business competitiveness.

In the 1990s and early 2000s, HCM systems focused on moving paper-based human resources (“HR”) processes to software-based processes. The initial benefit was the elimination of paper trails, but there was limited focus on modernizing the work. In the mid-to-late 2000s, the emergence of SaaS brought a focus on improving the old paper processes that had been converted to software. Numerous point solutions evolved to tackle each of the key HCM functions. This led to greater system fragmentation, an overcomplicated user experience, and increased costs. At the same time, the separation between work and life began to blur, driving an increased need for employee engagement tools. HCM became a strategic business function and the tools to support it are now mission critical for companies.

The novel coronavirus pandemic (“COVID-19 pandemic”) further reinforced this strategic shift as the HR function proved vital to companies striving to maintain morale and productivity for both remote workforces and essential employees. Following on the heels of the pandemic, the “Great Resignation” forced companies to evolve their people management practice yet again, creating a need for employee engagement in every industry, including blue-collar fields. These evolving demands have accelerated the trend of modern HCM technology replacing manual processes and outdated systems with strategic platforms that surface business insights, enabling leaders to make data-driven decisions. ...

Complex Regulatory Environment

The ever-evolving regulatory landscape continues to place a burden on small businesses. Businesses are forced to navigate thousands of new and continually evolving federal, state and local tax codes and industry-specific labor laws. As a result, demand has increased for HCM platforms that enable them to maintain a robust compliance framework and abstract the complexity of regulatory changes, such as responding to special employee leave provisions.

Growing Importance of People Analytics

In recent years, businesses have begun to appreciate the value they could derive from stronger data analytics capabilities. SMB leaders are increasingly willing to invest in data-driven decision-making tools to improve their business performance. An IDC survey found that analyzing data and employee engagement had the highest level of third-party investment. In addition, a survey by Gartner showed that 64% of participants ranked improvement of reporting quality and people analytics as their main HR objective when evaluating HCM solutions. SMBs have a particular need for all-in-one solutions considering their unique capacity constraints, such as single person HR departments and limited in-house legal and information technology (“IT”) support."


"Limitations of Existing Solutions

The vast majority of SMBs still rely on legacy solutions to fulfill their HCM technology requirements. These product offerings are typically provided by national and regional payroll service bureaus or in-house solutions built on top of generic enterprise resource planning (“ERP”) systems. In addition to these legacy solutions, advancements in cloud technology have led to the emergence of other competing SaaS-based HCM offerings. Both legacy and other competing SaaS offerings possess significant limitations in addressing the full HCM needs of SMBs. These limitations include:

• Incomplete HCM Solutions Lacking in Product Breadth and Depth. ...

• Lack a Unified Approach. ...

• Difficult to Integrate with Third-Party Systems. ...

• Lack Robust Analytics Capabilities. ...

• ‘One Size Fits All’ Approach. ...

• Difficult to Use. ...

• Not Designed for People Leaders. ..."


"Our Market Opportunity

We estimate our current annual recurring market opportunity is $33 billion in the U.S. and we expect the opportunity to grow as the number of SMBs increase and we continue to expand our product portfolio. To estimate our market opportunity, we identified the number of companies in the U.S. with an employee count between 10 and 1,000. Based on data from the U.S. Bureau of Labor Statistics released in January 2023, there were approximately 1.3 million businesses with between 10 to 1,000 employees, totaling 60.8 million employees within our target demographic. We then applied our $45 total list PEPM rate as of June 30, 2023 for our full suite of products including Cor HCM, Workforce Management, Benefits Administration, and Talent Management to derive our current total addressable market opportunity of $33 billion."

[hedgehog 100] 09/11/2023 16:18

Paycor HCM (NASDAQ: PYCR), a major North American partner of Grosvenor Technology, announced its first quarter results yesterday, after close of the US markets.

The results exceeded Wall Street analysts' expectations, and the PYCR share price is currently up 7.54% today, at US$19.19.

The strong performance and healthy demand being reported by PYCR clearly bode well for GT's ongoing expansion in the North American market, where GT earns the majority of its revenues.


"Paycor Announces First Quarter Fiscal Year 2024 Financial Results

November 8, 2023 at 4:16 PM EST

• Q1 Total revenues of $143.6 million, an increase of 21% year-over-year, while expanding margins

• Q1 Recurring revenue of $132.7 million, an increase of 16% year-over-year

• FY’24 revenue guidance of $648 - $654 million, an increase of 18% year-over-year at the top end of the range

CINCINNATI, Nov. 08, 2023 (GLOBE NEWSWIRE) -- Paycor HCM, Inc. (Nasdaq: PYCR) (“Paycor”), a leading provider of human capital management (“HCM”) software, today announced financial results for the first quarter fiscal year 2024, which ended September 30, 2023.

“We had a strong start to the year driven by a continued healthy demand environment for our modern HCM solution that powers people and performance,” said Raul Villar, Jr., Chief Executive Officer of Paycor. “We are delivering compelling value, empowering leaders to enhance business decisions, attract and retain top talent, and achieve their organizational objectives.”

“During the first quarter, we continued to invest in differentiating our platform while expanding margins over 200 basis points year-over-year, demonstrating the scalability of our business model. We see a significant opportunity to invest in additional solutions that will increase the value of our HCM suite to our customers and increase our future PEPM opportunity.”

First Quarter Fiscal Year 2024 Financial Highlights

• Total revenues were $143.6 million, compared to $118.3 million for the first quarter of fiscal year 2023.

• Operating loss was $23.4 million, compared to $33.4 million for the first quarter of fiscal year 2023.

• Adjusted operating income* was $15.9 million, compared to $10.4 million for the first quarter of fiscal year 2023.

• Net loss was $20.6 million, compared to $29.1 million for the first quarter of fiscal year 2023.

• Adjusted net income* was $12.8 million, compared to $8.2 million for the first quarter of fiscal year 2023.

*Adjusted operating income and adjusted net income are non-GAAP financial measures. Please see the discussion below under the heading "Non-GAAP Financial Measures" and the reconciliations at the end of this press release for information concerning these and other non-GAAP financial measures.

First Quarter and Recent Business Highlights

• Unveiled an Embedded HCM Solution, enabling technology partners to integrate Paycor’s award-winning HCM suite into their software platforms. Our industry-leading interoperability engine expands our go to market approach and the mutually beneficial business model provides a premium HCM offering in the market for technology partners.

• Introduced a generative AI Analytics Digital Assistant, powered by Visier. The innovative offering empowers leaders to quickly and easily consume people-focused analytics in a conversational chat interface.

Business Outlook

Based on information as of today, November 8, 2023, Paycor is issuing the following financial guidance:

Second Quarter Ending December 31, 2023:

• Total revenues in the range of $154.5 - $156.5 million.

• Adjusted operating income* in the range of $19.5 - $20.5 million.

Fiscal Year Ending June 30, 2024:

• Total revenues in the range of $648 - $654 million.

• Adjusted operating income* in the range of $102 - $106 million.

*We are unable to reconcile forward-looking adjusted operating income to forward-looking loss from operations, the most closely comparable GAAP financial measure, because the information needed to provide a complete reconciliation is unavailable at this time without unreasonable effort.

Conference Call Information

Paycor will host a conference call today, November 8, 2023, at 5:00 p.m. Eastern Time to discuss its financial results and guidance. To access this call, dial 1-877-407-4018 (domestic) or 1-201-689-8471 (international). The access code is 13736725. A live webcast and replay of the event will be available on the Paycor Investor Relations website at investors.paycor.com.

About Paycor

Paycor’s human capital management (HCM) platform modernizes every aspect of people management, from recruiting, onboarding, and payroll to career development and retention, but what really sets us apart is our focus on leaders. For more than 30 years, we’ve been listening to and partnering with leaders, so we know what they need: a unified HR platform, easy integration with third party apps, powerful analytics, talent development tools, and configurable technology that supports specific industry needs. That’s why more than 30,000 customers trust Paycor to help them solve problems and achieve their goals."

[hedgehog 100] 07/11/2023 12:31

Paychex is listed in Christopher Mayer's 2015 book "100 Baggers":-

"APPENDIX

THE 100-BAGGERS (1962–2014)

Data Date Total Return Years to 100

... PAYCHEX INC 11/30/83 573 14.0 ..."




That appendix actually lists 365 100-baggers, one for every day of the year.

This shows that they're not that uncommon (in absolute terms) in America, where Grosvenor Technology earns the majority of its revenues.

Indeed sixty of the stocks listed are shown as actually becoming (at least) thousand-baggers.

And six are shown as becoming ten thousand-baggers (plus): which is like hundred-bagging a hundred-bagger ... turning just £100 into £1M.

[hedgehog 100] 06/11/2023 17:10

"Paychex' Billionaire Founder Shows You How It's Done

MICHAEL MINK08:00 AM ET 07/02/2020

... Forge Your Own Future Like The Paychex Founder

Seeing how life as an employee could be, Golisano founded Paychex (PAYX) in 1971. Headquartered in Rochester, N.Y. Paychex is a top provider of payroll, human resource and benefits outsourcing services. Golisano is still chairman after stepping down as founding CEO in 2004.

And true to his word, Paychex strives for high marks for employee attitude and comfort level.

"I'm very proud of that," Golisano told IBD. "Nothing makes me happier than to run into a current or retired Paychex employee and have them tell me how great it was to work at Paychex. To me, that's the ultimate."

With $3,000 and a credit card, Golisano founded Paychex. Today Paychex has some 670,000 payroll clients, roughly 15,000 employees and 100 offices nationwide. Analysts see revenue this fiscal year topping $4 billion, up 60% from five years ago. Paychex pays one out of every 12 American private-sector employees.

It all started with Golisano. Paychex shares jumped more than 17,000% from their first day of trading in the early 1980s though October 2004. That's when Golisano traded the CEO post for chairman, which he still holds.

"Tom approaches business in a humble manner, ready to listen, challenge the facts, and give people credit where credit is due," said Martin Mucci, the current president and CEO of Paychex. "He also likes to have some fun in the midst of the work."

"Tom is a visionary, said Bob Sebo, a former executive of Paychex who has known Golisano for 46 years. "Tom has great respect for employees that are trustworthy and loyal. He doesn't hesitate to recognize that trait (and) give credit to employees when credit is due."

... Strive To Focus And Be First

Golisano attributes the fast success of Paychex to having identified a huge, wide-open market with very little competition.

He also kept Paychex laser-focused on the payroll processing product initially. "We had a lot of opportunities to release other HR products, but I wanted to build a national branch network first," he said.

... Take Care In Building Your Team

In building a management circle, Golisano says he looked for people with larger ambition. He hired people willing to try to solve company issues outside of their departments.

"I wanted the goals of the company to be very specific and understood by as many people in the company as we could," he said.

"Tom's ability to keep things simple and straightforward has contributed to him being such a successful leader," Mucci said. "He doesn't like multipage documents and long-winded presentations. His approach is cut to the chase, identify the opportunity, and make your decision." ..."




NWT has strong parallels with PAYX's winning business approach, strategy, and culture, which supports the very bullish investment case here.

[hedgehog 100] 06/11/2023 16:37

Paychex (NASDAQ:PAYX) has a current market cap. of c. US$40 billion, at c. $111/share:



And it's another nice example of a 100-bagger stock in this sector: more than a 600-bagger at its current s.p.; and at its all-time high of c. $140/share last year a c. 800-bagger.

"Paychex shares jumped more than 17,000% from their first day of trading in the early 1980s though October 2004."



Paychex (NASDAQ:PAYX):-

[hedgehog 100] 06/11/2023 16:02

From NWT's latest Investor Meet Company presentation video, 26th. September 2023, Questions & Answers segment:-

Q5: "Do you expect to add new HCM software partners in the US as customers in FY 2024? Is Paychex already a customer?"

A5 (NWT CEO Marie-Claire Dwek): "We're continuing to onboard customers. We've onboarded a couple of new customers this year, and that's part of our growth project. And we're speaking with Paychex on a regular basis."




Paychex would be a huge customer-partner for NWT, but also an ideal match.

And the fact that they're speaking on a regular basis suggests that such a contract win is a real possibility.

If it happens, it would be nice if it could RNSed separately, and would certainly be deserving of this (subject of course to discretion-confidentiality).


"Paychex, Inc. is an American provider of human resource, payroll, and benefits outsourcing services for small- to medium-sized businesses.[2][3] With headquarters in Rochester, New York, the company has more than 100 offices serving approximately 670,000 payroll clients in the U.S. and Europe.[4] In 2019, Paychex ranked in position 700 on the Fortune 500 list of largest corporations by revenue,[5] and the company's revenue for fiscal year 2020 is projected to exceed $4.1 billion.[6]"

[hedgehog 100] 03/11/2023 18:12

"AAII Journal - January 1997

The Peter Lynch Approach to Investing in "Understandable" Stocks

By Maria Crawford Scott

No modern-day investment "sage" is better known than Peter Lynch. Not only has his investment approach successfully passed the real-world performance test, but he strongly believes that individual investors have a distinct advantage over Wall Street and large money managers when using his approach. Individual investors, he feels, have more flexibility in following this basic approach because they are unencumbered by bureaucratic rules and short-term performance concerns.

Mr. Lynch developed his investment philosophy at Fidelity Management and Research, and gained his considerable fame managing Fidelity’s Magellan Fund. The fund was among the highest-ranking stock funds throughout Mr. Lynch’s tenure, which began in 1977 at the fund’s launching, and ended in 1990, when Mr. Lynch retired.

Peter Lynch’s approach is strictly bottom-up, with selection from among companies with which the investor is familiar, and then through fundamental analysis that emphasizes a thorough understanding of the company, its prospects, its competitive environment, and whether the stock can be purchased at a reasonable price. His basic strategy is detailed in his best-selling book "One Up on Wall Street" [Penguin Books paperback, 1989], which provides individual investors with numerous guidelines for adapting and implementing his approach. His most recent book, "Beating the Street" [Fireside/Simon & Schuster paperback, 1994], amplifies the theme of his first book, providing examples of his approach to specific companies and industries in which he has invested. These are the primary sources for this article.

The Philosophy: Invest in What You Know

Lynch is a "story" investor. That is, each stock selection is based on a well-grounded expectation concerning the firm’s growth prospects. The expectations are derived from the company’s "story"--what it is that the company is going to do, or what it is that is going to happen, to bring about the desired results.

The more familiar you are with a company, and the better you understand its business and competitive environment, the better your chances of finding a good "story" that will actually come true. For this reason, Lynch is a strong advocate of investing in companies with which one is familiar, or whose products or services are relatively easy to understand. Thus, Lynch says he would rather invest in "pantyhose rather than communications satellites," and "motel chains rather than fiber optics."

Lynch does not believe in restricting investments to any one type of stock. His "story" approach, in fact, suggests the opposite, with investments in firms with various reasons for favorable expectations. In general, however, he tends to favor small, moderately fast-growing companies that can be bought at a reasonable price.

Selection Process

Lynch’s bottom-up approach means that prospective stocks must be picked one-by-one and then thoroughly investigated--there is no formula or screen that will produce a list of prospective "good stories." Instead, Lynch suggests that investors keep alert for possibilities based on their own experiences--for instance, within their own business or trade, or as consumers of products.

The next step is to familiarize yourself thoroughly with the company so that you can form reasonable expectations concerning the future. However, Lynch does not believe that investors can predict actual growth rates, and he is skeptical of analysts’ earnings estimates.

Instead, he suggests that you examine the company’s plans--how does it intend to increase its earnings, and how are those intentions actually being fulfilled? Lynch points out five ways in which a company can increase earnings: It can reduce costs; raise prices; expand into new markets; sell more in old markets; or revitalize, close, or sell a losing operation. The company’s plan to increase earnings and its ability to fulfill that plan are its "story," and the more familiar you are with the firm or industry, the better edge you have in evaluating the company’s plan, abilities, and any potential pitfalls.

... Summing It Up

Lynch offers a practical approach that can be adapted by many different types of investors, from those emphasizing fast growth to those who prefer more stable, dividend-producing investments. His strategy involves considerable hands-on research, but his books provide lots of practical advice on what to look for in an individual firm, and how to view the market as a whole.

Lynch sums up stock investing and his outlook best:

"Frequent follies notwithstanding, I continue to be optimistic about America, Americans, and investing in general. When you invest in stocks, you have to have a basic faith in human nature, in capitalism, in the country at large, and in future prosperity in general. So far, nothing’s been strong enough to shake me out of it."

The Peter Lynch Approach in Brief

Philosophy and style

Investment in companies in which there is a well-grounded expectation concerning the firm’s growth prospects and in which the stock can be bought at a reasonable price. A thorough understanding of the company and its competitive environment is the only "edge" investors have over other investors in finding reasonably valued stocks.

... Stock monitoring and when to sell

• Do not diversify simply to diversify, particularly if it means less familiarity with the firms. Invest in whatever number of firms is large enough to still allow you to fully research and understand each firm. Invest in several categories of stock for diversification.

• Review holdings every few months, rechecking the company "story" to see if anything has changed. Sell if the "story" has played out as expected or something in the story fails to unfold as expected or fundamentals deteriorate.

• Price drops usually should be viewed as an opportunity to buy more of a good prospect at cheaper prices.

• Consider "rotation"-selling played-out stocks with stocks with a similar story, but better prospects. Maintain a long-term commitment to the stock market and focus on relative fundamental values."