powlert, I've similarly added some more here to take advantage of the artificially low share price due to the overhang. At some point this will turn and shoot back up quickly to 70p'ish. |
Added some more. At some point this has to be considered self harm! |
They didn't have the feel of a procurement department based on the questions asked. Certainly seemed like an investor of some description.
Yes, on balance positive. A couple were from people who used to work at Sycurio, which actually displayed quite an interesting lack of knowledge on the industry. Maybe not surprising. Nothing in any of the transcripts that would surprise those of us who've followed this company for a while.
If they're not even considering a buyback then it almost feels like negligence, candidly. Someone needs to just do a tender for Canaccord's block to remove the overhang! |
Hi Powlert
Thanks, thats interesting about expert call transcripts. PE is one obvious cause for those. Potentially also procurement teams at a large systems integrator perhaps - they can sometimes diligence a partner in a similar vein to how you look at an acquisition if its a long term relationship.
Did anything jump out from teh transcripts? Were they on balance positive?
I don't disagree on the buyback point. I might email JB floating the idea.
Adam |
Getting down to around 1.5x CY25 revenue here. Absolutely wild. I know management have grand plans for using their cash for M&A, but to not start buying back stock at these valuations is crazy. You're not going to get a better deal out there than buying your own company at 1.5x revenue. |
Interesting. Thanks. |
I have access to some of the expert transcript services, like Tegus. Interestingly, in the last few weeks a bunch of calls have been done on PCI-Pal (four in the last month, no record of any previously).
Ordinarily, companies the size of PCI-Pal almost never have these calls done as the economics don't work for a small fund manager (if your fees are only a million, you can't afford to spend a few grand on calls for every stock you look at). This is the reserve of large cap stocks.
I wonder if PE is sniffing around and doing their diligence. |
Had a look at Zoom. Recent, found this. Pricing & Pci compliance mentioned!
Number 11
Pal mentioned, here! |
I've added a little more here. I think there is broadly a little disappointment that PCIP don't ever really beat numbers. Results are always a bit of a non-event. Also general selling across UK small cap and no buyers exacerbates things. Nonetheless, this thing is simply too cheap. Should sell to PE at >4x revenue at some point, while revenue should compound at 15-20% (I know James says 20%+ but I have started to discount this idea).
Some good chatter on the LSE board that some big contracts might come through the Zoom partnership at some point soon. |
Doc, I agree I'm not sure why it has dropped so much recently, perhaps a big seller wanting to adjust things before the end of the tax year. However, it gives a cheap entry price for new investors. Unfortunately I don't have any spare cash to take advantage of the opportunity. |
I’ve added a few this morning. Not sure why it’s dropped 35% in a month. A few 25k sales this morning seemed to trigger todays drop, hopefully they are done. |
Directors should be filling their (car) boots here! |
Also depends on what they're licensing structure is - enterprise, per seat, per call, per transaction etc. Otherwise I don't see that AI is a threat to them - perhaps its even an advantage if it speeds up customer interactions and more going through their platform? |
They talked about that on the call. Currently chat bots are a very small % of payments but they're integrating with all of them. They've previously said they're indifferent as to whether the payments comes via chat bot or traditional call center. |
Are these guys making use of AI, I am reading that AI will mean far fewer call centre operators will be required which would result in less demand for these services? |
Meanwhile the CFO's options don't fully vest unless the share price triples. Shows what the board think the company is worth. 6x ARR would be a very reasonable valuation to expect in a takeover. |
Agree, its nothing company specific at all.
Mr Market is risk off at the moment stemming from all the nonsense in the US and fears that tariffs will cause a recession. And if investors are in risk-off mode, small caps will always get hit.
Lots of my positions are down over the last month or so as a result. Little you can do - as long as they're trading well, as PCIP are, thats the main thing |
Nothing in particular caused it. It's just UK small cap for you. There's a permanent selling pressure due to constant outflows and few new buyers. Just a waiting game until the stocks you own get acquired. |
Anyone see the investor meet? Unfortunately I just missed it. Company presentation can be found here (vid will upload later)
hxxps://www.investormeetcompany.com/meeting/review-of-interim-results-and-prospects-15/presentation.pdf
Cant really understand what has caused the 20% slump over the last few weeks, I've had a few like it - its been a very tough time for several of my holdings |
Yes. ECK was bought at 4x sales I think and PCIP is growing much faster than them. |
Looks positive; certainly no negatives in there.
Valuations is around 2.4x Jun-25 ARR or perhaps 2x TACV. Given they're now profitable and still growing nicely, that is far too cheap |
Record ACV in 1st 6 months of £1.9m increasing to £2.7 at end of Feb |
"This is an exciting time for PCI Pal as we continue to evolve our plans to best capitalise on the opportunity in front of us. Given the progress being seen in the business, supported by our strong sales pipeline, we are confident in the outlook of the Group as we continue to deliver against our objectives." |
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