Rapidcloud Share Discussion Threads

[eric76] 25/9/2013 07:35

Yes they are i believe, with the 60% weighting to the 2nd half they should be looking at over 12m rm for the full year. believe they grew revenue c. 67% 2nd half last year so they seem to know what they're at with guidance imo.
Haven't noticed any press on them today but DNA has a piece on the falling sales of servers to sme's in asia as they're busy taking up the cloud instead.
All seems on track imo just they have remained under the rader with most the uks cloud talk still concentrating on the likes of coms and atuk.

[backno] 24/9/2013 08:03

These numbers are better than expected aren't they? The profit to cash is good and the cash balance building - got to think the final results dividend can only be on the higher side.

[eric76] 24/9/2013 06:22

Looking very good here. Only just waking and reading but terrific growth figures, reckon we have quite a sector star here imo. Could well become a stockmarket darling if they keep these levels up.

[philo124] 24/9/2013 06:16

Interims out.

[tech] 16/9/2013 13:16

looking good today and results out soon

[fardistanthills] 12/9/2013 20:55

Take it everyone has noticed the RNS re the date of the interims: to be out 24th September - and there will be "a briefing for analysts on the day at 9:30am at Walbrook PR's offices, 4 Lombard Street, London"

[sos100] 09/9/2013 10:38

looks like it could go even higher today..

[tech] 09/9/2013 08:48

Very nice article, good client list and a 25% growth rate

[monkey puzzle] 09/9/2013 08:43

Look at that!

[philo124] 07/9/2013 11:58

Thanks both; good read and glad I'm in for the interims. This could be a very good long term hold rather than a good short term trade.

[eric76] 07/9/2013 10:08

thanks bene449 will have a read, thought the rise yesterday was a bit swift even for rci.
Have repasted the link so its easier to follow.

[bene449] 07/9/2013 09:43

hxxp://moneyweek.com/penny-sleuth-this-aim-stock-plugs-you-into-southeast-asia/

[bene449] 07/9/2013 09:36

Apparently, there is a big article in Moneyweek about RCI. Might explain the rise yesterday.

[tech] 06/9/2013 14:16

looking good today

[el1te] 03/9/2013 18:39

eric - Probably not, but looking back, cash at December was £560k with receivables of £430k and Revenues of £780k. I recognise that at least for the meantime there are negligible taxes on the profits so on reflection it could stack up assuming a relatively low amount of OPEX/CAPEX was made during the period and most receivables were claimed (which seems to fit the payback days outlined). I'll edit that out.

[philo124] 03/9/2013 18:10

The Allenby note is worth dipping into; eps and cash flow forecasts- they have an index to the 44 pages.

[eric76] 03/9/2013 18:03

Thanks el1te good researching, re the cash position jumping after Dec Allenby stated pg 17 of their note that RCI had invoiced some particularly large projects in Dec, not an accountant myself but perhaps that would account for it?

[el1te] 03/9/2013 17:39

Hi Guys,

I have been doing some preliminary research on RapidCloud today, mostly from their Admission document, and I'm not entirely convinced on the company, so won't look further yet. Nonetheless some points from the document (for those who don't want to trawl through or are new) are as below in no particular order. I'm sure investors here already know most of this - also recognise this is more of the technical and financial stuff rather than actual company operations.

- Over 36,500 customers with the larger ones including Deloitte and BAE Systems regional companies. Several contracts signed with MNCs in Singapore
- Large amount of recurring revenues although not overly reliant on any particular client. 12 customers speak for 33% of total group revenues
- Strategy is to initially sell low value web hosting and other serivce before upselling the higher value services
- 3 sales offices in Asia. Mostly focused on Malaysia and relatively newer ventures into Thailand and the Philippines
- Cloud computing global revenues forecast at $25.4bn in 2013, growing to $47bn in 2015. During this same period, Asia Pacific revenues will more than double from $2.5bn to %5.6bn
- In Malaysia alone the Cloud Computing market is 197.9m RM. Dorecast to grow to 299.6m RM by 2015
- Possible side-strategy is to acquire complementary businesses should an opportunity present itself. Funding through cash flows or equity. Equity would be preferable imo because the stock is illiquid - reference Naibu Global (LSE:NBU) that has seen volumes pick up since a recent placing
- Strong focus on R&D with emphasis to exploit tablet/smart phone market in the future, but this market is not as developed and European/North American ones yet
- Subscription based business model sets it apart. Positively, 24/7 assistance is also a plus point
- 3 main competitors: Anise, FREE NET and SKALI Group (also subscription based). Many other competitors that are local/international
- Strong industry outlook for the region backed by the technology lowering capex, good ease of use and Malay govt initiatives. Issue of potentially poor security remains an issue for all companies
- Most 2012 revenues SaaS. Just less than 26% came from IaaS
- 66% of the revenue came from website building and hosting. Ecommerce initiatives performing well
- Company describes itself as a 'one-stop shop' for providing SaaS, IaaS and PaaS. Also does marketing for clients through google adwords etc.

- Between 2011 and 2012, revenues grew 16.4% to £1.83m
- Pre-tax profits grew to £738k
- Over the same period, Post Tax profits grew by 19.7% to £710k
- There is a worry for H2 2013 and results thereafter because Emerge Software Solutions' 100% tax exemption will end in November and cannot be redeemed. A quick search suggests that the subsidiary will draw tax of 25% if it brings in profits of £97.9k
- In the 5 (not 6) months after Fy 2012, Revenue was booked of 3.97m (unaudited) which is £780k. This is up 48% Y.O.Y. No pronounced seasonality, but higher revenues tend to occur in H2
- Trade Receivables of £430k. Payables of £300k, but a fair amount for dividends
- Last reported cash and bank balances of 8.11RM or £1.59m
- £0.583m net proceeds from the placing supposedly bolsters the cash balance up to £2m. Some of this will be spent on moving to a new Malaysian office with the rest plus operating cash being used to expand into Indonesia and for working capital

- 'Group's companies in Thailand and the Philippines is starting to gain traction'
- 11 management and 57 staff
- Rapidcloud International (Umbrella company) holds 100% in Emergy Systems, Emerge Software Solutions and Rapidcloud Asia Berhad. Owns 49% of Emerge Thailand and 40% of Sharksurf Philippines
- Managing Director Raymond Chee on a £47k/annum salary with a discretional £200k/annum equivalent bonus

Hope that helps and feel free to check out my site where I review other companies

Not entirely convinced on RCI yet and there are quite a lot of risks. My instincts tell me to hold off even though I clearly had enough interest to start looking!

El1te

[philo124] 03/9/2013 14:02

Topped up @ 79p, will be back over £1 soon enough.

[eric76] 03/9/2013 12:11

Agree on that FDH. Interims are due out before the 30th Sept according to their website. If they can show growth has continued apace then these should be well bid imo given the discount to their general peers such as coms etc.

[fardistanthills] 03/9/2013 11:59

Surely not enough yards of chart to go on just yet? I really do wonder how applicable charting mumbo jumbo is to a small company like RCI. Pretty illiquid and at the whim of very variable, often tiny, trading volumes. Anyone investing here should be thinking of future potential, not present minutiae! Much more interesting for me will be the half year report - due sometime this month?

[kendonagasaki] 03/9/2013 10:52

74 level confirmed. Test for 5 days. Any drops set in bid orders from 65p upwards. This still only equates to fair value as share price has not tested.

[eric76] 03/9/2013 08:28

Valid points though and takes all opinions to make a market I suppose.
Have picked a few up on this retracement myself and may add again if theres any further weakness. They've dropped c.60% from their highs which is quite a move and just down to lack of news since their float imo.

[philo124] 03/9/2013 06:30

Thanks for those words of wisdom.