Rapidcloud Share Discussion Threads

[fardistanthills] 16/8/2013 14:40

MP - I reckon so too

[monkey puzzle] 16/8/2013 14:18

Some very simple comparisons with @UK (and I mean simple ok)....

Current MCAP
@UK £20m
RCI £13m

2012 Revenues
@UK £2.2m
RCI £1.9m

Profit (Loss) Before Tax
@UK(£850)k
RCI £740k

@UK has declared it self to be cash positive for 2013, meanwhile RCI expects to have cashpile of some £2.5m by the year end.

Makes me think that this still has quite a long way to go yet in term sof market cap value?

[monkey puzzle] 16/8/2013 09:52

The Cloud really is the place to be right now....from ATUK earlier this month:

06 August 2013

Trading Update

@UK PLC (AIM:ATUK.L), the cloud eCommerce marketplace, today provides an update on trading in the 6 months ended 30 June 2013.

The Company has enjoyed strong trading in the first six months of the year, delivering growth in ecommerce marketplace and spend analysis revenue of over 100%. While the Company Formations division continued to see a small decline, overall revenues enjoyed strong growth resulting in a significant reduction in operating losses. Investment in the first half of the year to support the Visa roll-out resulted in movement into a net debt position, which has since been reversed.

The second half year has started strongly with significant cash generation to provide the funds for international rollout.

The rebranding of the operations of the business under the terms cloudBuy and cloudSell is progressing well, and we expect to launch with Visa shortly. The prospects for the business in Australia are strong and the UK Government pipeline is also looking promising with multiple engagements at the ministerial and the highest levels of the civil service.

In total, the volume of spend analysed by our systems is now over $450 billion, and we expect to gain both significant revenues from spend analysis, and convert these clients onto full marketplaces, and gain significant income from a percentage of the volume flowing through the system, delivering significant and rapid return on investment to our customers.

[eric76] 16/8/2013 06:54

Thanks cottoner, good to see some press on rci. Still felt like this one was a bit under the radar of the media even with the positive share price movement we've enjoyed since float.
I think this Raymond Chee is right too it is the concept of a cloud play in SE asia that really makes this an interesting one to hold.

[cottoner] 15/8/2013 23:26

Malaysian cloud player makes debut on London's AIM

Edwin YappAug 16, 2013

•Good start to Rapid Cloud International's listing on London's AIM exchange
•Banking on Indonesia, Thailand, Philippines for next expansion wave

MALAYSIAN software development and cloud service provider Rapid Cloud International Plc (RCI) was successfully listed on the London AIM (Alternative Investment Market) on Aug 14.

Comprising four subsidiaries – Emerge Systems (M) Sdn Bhd, Emerge Software Solutions (M) Sdn Bhd, Emerge Systems Philippines and Emerge Systems Thailand – RCI's share performance rose consecutively over two days of trading, hitting a high of £0.79 as at press time (Aug 15). Its share price closed at £0.69 or 29% higher than its offer price of £0.54 on its debut on Aug 14.

Raymond Chee, managing director and majority share holder of RCI, said the higher-than-expected debut trading price was not anticipated and that company officials only expected a 10% to 15% premium on its first trading day.

"I'm pleased with the performance of the shares on the first day of trading [when it went up 29%]," he told Digital News Asia in an email. "It clearly shows there are investors who are interested in technology companies which are involved in the enterprise cloud computing sector based in South-East Asia.

"The group has a lot of growth potential and will leverage on its initial public offering (IPO) to expand into fast-growing countries such as Indonesia as well as to expand its offices in Malaysia, Thailand and the Philippines," he added.

Established in 1999 by Chee and his cofounder Kenneth Cheng Ju Wan, RCI claims to have a scalable business with a base of over 36,500 customers, including small and medium enterprises (SMEs), government agencies, multinational corporations and large enterprises.

RCI provides a range of proprietary products, including core web and mobile site builders and e-commerce products, and also engages in software development projects for enterprises. It also offers infrastructure-, platform- and software-as-as-a-service to its customers.

For its financial year ending 2012, RCI recorded an EBITDA (earnings before income, taxation, depreciation and amortisation) of RM4.3 million on the back of RM9.4 million in revenue.

It also recorded a compound annual growth rate (CAGR) of 25% between 2010 and 2012, while its income as a percentage of sales grew from 5% in 2010 to 39% in 2012, according to company filings.

Chee (pic) said that the higher-than-expected share price on the first [and second] day was bolstered by the company's positive cash flow, zero debt and the anticipation of paying a regular dividend to its investors, something that many investors in the AIM market look for.

When asked what were his near-term expectations in the coming months, Chee said he expects his research and development (R&D) team to continue to develop relevant web-based applications for its enterprise customers.

At the same time, Chee said RCI would also be actively looking into the possibility of strategic acquisitions within the region in order to complement its organic growth of its business in South-East Asia.

According to company documents, the AIM listing has raised approximately £1million (before expenses), through the placing of 1,851,948 new ordinary shares at £0.54 per share.

The placing was arranged by Allenby Capital and First Columbus Limited and the number of ordinary shares in issue immediately after admission was 17,368,971, giving RCI a market capitalisation of £9.4m, the company said in a statement.

Company documents noted that the purpose of the IPO was to fund the growth in RCI's business, and that the net proceeds of the placing will be used for geographical extension and expansion. This includes Indonesia, where the group does not yet have a local presence, as well as in Thailand and the Philippines.

Additionally, funds will be used to enhance RCI's group sales and marketing teams, fund its investment in innovation and R&D, infrastructure expenditure and working capital purposes, the company said.

RCI counts amongst its customers Deloitte, BAE Systems, Canon, AmAssurance, AmBank, the Securities Commission of Malaysia and the Companies Commission of Malaysia

[cottoner] 15/8/2013 23:17

Founded in 1999, RapidCloud grew to having a base of over 36,500 customers from small and medium sized enterprises, government agencies, multi-national corporations and large scale enterprises, such as Deloitte, BAE Systems, Canon, AmAssurance, AmBank, the Securities Commission of Malaysia and the Companies Commission of Malaysia.

RapidCloud and its cloud computing business is part of the Malaysian Economic Transformation Programme (ETP). The Government of Malaysia regards cloud computing as one of the key drivers for socio-economic growth and as such has included it in several Government plans and programmes, such as the 10th Malaysia Plan ETP, MSC Malaysia Cloud Initiatives for SMEs and the National Broadband Initiative to increase national broadband penetration rates.

[fardistanthills] 15/8/2013 23:00

I didn't hear the conference call myself Raysor and would be interested to know what you found unconvincing? My guilable enthusiasms often need reigning in! (Thanks for the link too.)

For what its worth, and based solely on Allenby's listing document, the things that initially impressed me, were the academic and technical abilities of the top team and their persistence in getting to where they are, profitably and with good cash generation. They seem to me to have a very strong 'cloud offering' - comprehensive platform suite, ISO rated and savy enough to grow it all technically in whichever direction cloud computing goes. They have already shown they can extend their reach beyond Malaysia and are clearly confident they can develop successfuly into other SE Asia countries. They seem to be an ambitious bright bunch (of computer nerds?) who could scale this up into a sizeable business. Basically I am here on gut instinct!

[raysor] 15/8/2013 21:12

I initially thought this was just a company jumping on the cloud bandwagon and wasn't convinced after a conference call before the IPO. Not so sure now but the share price has rocketed anyway. This is the second successful placing by Allenby in a row. You have to be careful when talking about the cloud as it has been around for ages (the internet is basically in the cloud), in fact since the 1950's but, I believe the exciting part of cloud computing is its ability to connect a multitude of users in different locations sharing resources and communicating with each other as if they were in the same room. It has got a name but don't ask me what it is. There are of course some major players involved: IBM, Amazon,VMWare but there must be opportunites for niche players like RapidCloud (and, of course, Iomart).
You might find this thread of interest.

hxxp://www.shareworld.co/index.php/forum/forum/topic/13/273/1/190/

[molatovkid] 15/8/2013 14:37

Bought a few in my pension yesterday. Cloud computing looks like the thing to be in going forward and off a low valuation this could be another IT super stock.

An ideal long term hold....

[cottoner] 15/8/2013 10:54

Got a mention in the Mail's This is Money Market Report

Placed on AIM at 54p by broker Allenby Capital, shares of Malaysian Cloud Computing company RapidCloud closed at 69.5p following a thin trade. The £1million raised in the flotation will help fund its geographical expansion into Indonesia, enhance its sales capabilities and continue investment into research and development. Clients include BAE Systems, Deloitte and PayPal. The company intends to pay a dividend.

[monkey puzzle] 15/8/2013 09:41

Just tucked a few away into my TD ISA today.

[monkey puzzle] 15/8/2013 09:26

Eric,

I came here as my understanding is that Cloud based services are the "it thing" right now and another share I have has a CEO who is very keen to promote "The Cloud" as the future. Also, rare to find any AIM stock that pays a dividend, hopefully if the CEO here is good to word that will encourage investors. Plus, too many AIM companies just list and then send round the begging bowl for new funds through discounted placings to keep themselves afloat....I don't that happening here. In for the long term and will add as funds allow.

[eric76] 15/8/2013 09:21

You're welcome MP been a pleasure to do actually thanks to the sensible posting the threads enjoyed.
Would recommend the Allenby note above for newbies, its a long read but worthwhile if thinking of investing as they seem fairly factual in their approach too (rather than simply going for a promotional piece for their clients) and it still makes for positive reading.

[bene449] 15/8/2013 08:45

Still can't trade through my Lloyds ISA. Now in process of transferring to TDW ISA.

[monkey puzzle] 15/8/2013 08:36

Morning guys,

Nice thread Eric....sensible posters, no hype...just how it should be....thanks for setting it up.

[philo124] 15/8/2013 08:32

Bound to get written up in due course, maybe at the weekend.

[eric76] 15/8/2013 08:22

morning PHILO124, handy start to the day. haven't seen any press coverage this morning but good to see the blue continuing here.

[philo124] 15/8/2013 08:20

Morning All.

[fardistanthills] 14/8/2013 14:45

Managed to get 13k into my TDW ISA this am - although in two tranches. Interesting outfit. From listing particulars:-

- RapidCloud's revenue increased at a CAGR of 25% between 2010 and 2012. We expect continued growth as demand increases for Cloud hosted software solutions and as the Company pushes into new regions. Significantly, margins are particularly healthy and gross margins expanded from 54.1% in 2010 to 68% in 2012

- has generated sufficient cash to pay a dividend and expects to continue to do so as a listed entity. As at 31 December 2012 the Company had a net cash position of £0.6m and we forecast an end December 2013 net cash position of £2.5m.

- RapidCloud deserves, for now, to trade at around a 40% discount to its peer group which would put it on a 2013 PE Ratio of 17x and imply a price of 101p.

[cashking85] 14/8/2013 14:18

Low volume I think is due to all the brokers as you say having problems... Think once they sort this out we'll be in business

[bene449] 14/8/2013 13:03

trying to put some in an ISA with Lloyds, but they seem to be having problems because it is a new issue.

[ltinvestor] 14/8/2013 10:47

I too was interested this morning but very little free stock and the website shows 2 directors each owning 53% of the company!!There also appears to be another holding company in the background. Needless to say I didn't bother but I expect the share price to be squeezed higher due to lack of liquidity.

[monkey puzzle] 14/8/2013 10:44

I like the look of this....small holding taken today....never too sure when it comes to new issues about where the share price might go so minimising my risk for now and may add if it falls back.

[philo124] 14/8/2013 10:41

Should have bought first thing when I saw the RNS, but in now,8500. GLA.