Venture Life Share Discussion Threads

[apad] 22/2/2018 09:14

ps
ARC
Time Price Qty Type Bid Offer B/S Total Buy Total Sell
08:59:58 61.0000 3,142 O 61.0000 65.0000 Sell 0 6,142
08:49:03 63.0000 3,000 O 63.0000 65.0000 Sell 0 3,000

[apad] 22/2/2018 09:10

ARC.
New customer reported in two product descriptions - probably the same one.

No comment on the huge drop in net cash generated from operating activities. So, presumably for some reason I haven't been able to define from a quick first glance.

apad🤔

[janeann] 22/2/2018 07:16

very simple and acceptable update from arc; & plenty of cash in the bank.;

Highlights:
-- Turnover increased by 9% to GBP1,213,776 (six months ended 31 December 2016: GBP1,115,232)

-- Profit before tax increased by 10% to GBP237,581 (six months ended 31 December 2016: GBP216,270)

-- Annual run-rate of recurring revenues at 31 December 2017 increased by 13% to GBP2.43 million (at 31 December 2016: GBP2.15 million). Net cash of GBP2,663,935 as at 31 December 2017 (31 December 2016: GBP2,089,855)
-- Trading in line and on track to meet management's full year expectations

Richard Last, Chairman of Arcontech Group, said:

"Arcontech's ongoing investment in product development and enhancement, coupled with the flexibility provided by its strong balance sheet and high level of recurring revenues, supports the Board's confidence in the Groups long term future and its ability to meet the challenges in its business environment. Although we remain mindful of the long and unpredictable sales cycles we often face and the challenges this brings in predicting the timing of contract wins, the Board expects results for the full year to be in line with expectations."

[woodcutter] 21/2/2018 19:06

I bought in here some time ago on the basis that the business looked a good prospect and the spike down on the chart brought some reality back to the share price I ultimately sold around break even taking the decision to look again when the share price settled, in the main because of the financial position.

Well I'm not sure if it's settled though a double bottom is a good sign. The real issue for me is very similar to investors champion and my reason for selling remains. The growth in sales and EBITDA looks great but the balance sheet is very weak and it's generating no cash to support the working capital requirements. They could do with trying to reduce the receivables.

The fact they did a presentation to potential bond holders in November tells you all you need to know.................they are running out of cash and will need to do a placing at some point imo. There's a lot of loan note debt. Maybe the directors don't wish to be diluted and can't afford to have a share placing but that's needed imho

I may be wrong and the next results will give us a better impression of the cash position but @ H1 with only £1.3m of cash on the balance sheet and nearly £8m of costs to come in the second half (granted some of that will be trade creditors) it looks stretched to me.

Looks to be a lot of money tied up in working capital too.

woody

[mozy123] 21/2/2018 14:06

Hes creaming 0.5% off a huge wad of AuM. Why does he need to pick good stocks?

The outflows at the moment must be hurting tho.

[11_percent] 21/2/2018 13:10

Woodford has lost it.

[hydrus] 21/2/2018 12:31

Yes another disaster. His reputation is now visibly damaged - I've noticed the slow to react press talking about his recent below par performance (sometimes whilst still referring to him as 'star fund manager')

[apad] 21/2/2018 11:48

Odds Bodikins, AA is another major Woodford stock.
apad🤔

[apad] 21/2/2018 09:30

"Samsung has provided confirmation that iPhone X sales are way below Apple's estimates for the much-hyped, tenth anniversary special."

[rp19] 21/2/2018 09:27

As a partner organisation since 2007 my thinking was that FFX should be well placed to know about IT/comms compatibility issues. It's a good marker to have though - be worth looking out for exceptional IT costs further down the line.

[rp19] 21/2/2018 09:27

* Post repeated, apologies.

[apad] 21/2/2018 08:31

Is their knowledge about the acquisition special, RP19? I imagine that they know all of their competitors well.

I view it as something of a land grab and although it is described as "earnings enhancing", I expect that office processes will become more expensive as their systems are merged over time.

My three new puppies are interesting.
ZOO is getting very fat, IDEA is thriving, but ARC is not putting on any weight (I suspect because it is hardly traded and there is no news).
With the caveats posted previously this could present good opportunities in ARC until there is news that the company is growing organically - not low risk though.

apad

[rp19] 21/2/2018 07:48

FFX - the bought company and their processes are well known to FFX, so that should help.

[apad] 21/2/2018 07:37

FFX buying a company with a large turnover and little profit - economies of scale argument.
More of this likely.
Talk of cross-selling - but two computer systems. Mmm.

SDX refused to go up on drilling success - be interesting to see if the same applies to today's failure :-)

apad

[apad] 21/2/2018 06:39

UKOG's inevitable car crash looks like ruining last year's 'Stars' performance.

Mattjos leaving everyone for dead and janeann a good second :-)

LLOY will dominate the news today - good luck red.

apad

[apad] 20/2/2018 09:15

The Value approach is one of several approaches.
I don't sign up to one approach as it may be very suitable for one company in one context, but entirely unsuitable for others.
"Horses for Courses" and creating ones own approach by picking metrics that suit your own personality and experience is what I favour.
A 'Value' invester would have never bought Amazon, and never will.

Still one does value a free book.
apad😊

[someuwin] 20/2/2018 09:14

Northland Capital today reiterates BUY and 94p target.

[thelongandtheshortandthetall] 20/2/2018 07:51

Seths 'margin of safety' is availabe online for free as a pdf.
Good read.

[discodave4] 19/2/2018 23:02

hTTps://www.investegate.co.uk/athelney-trust-plc--aty-/rns/annual-financial-report/201802160700028733E/ The Chairman's statement from ALT financial report was flagged on stocko as a good read, here's a snippet (for APAD!):"Let me start this paragraph with a quote: The single greatest edge an investor can have is a long-term orientation. So said the shrewd Seth Klarman in his book (Margin of Safety, Risk Averse Investing Strategies for the Thoughtful Investor) written over 25 years ago and still a great read. Private investors think themselves at a great disadvantage compared with the professional fund manager, who has access to considerable resources as well as by-the-second information about companies and markets. But many fund managers are incapable of thinking beyond a year and some not even beyond a quarter. This hands a great advantage to the thoughtful investor who, ideally, should do as little as possible whereas the majority of fund managers are incentivised to do things to show their bosses and clients that they are doing their job and deserve to keep it. There is a saying that time in the market, rather than timing the market, leads to a satisfactory end result. The less you chop and change your investments, the fewer mistakes you are likely to make. By following the simple rule of doing as little as possible, the private investor will tend, over the long term, to avoid many pitfalls that damage those unable to sit still. Remember, while you may be doing nothing with your money, that does not mean that your money is not doing anything for you."DD

[apad] 19/2/2018 17:28

Just seen a program talking about Nike's plan to sell direct through an app.

Another threat to brick shops and another example of going directly into a brand, rather than an internet shop.

apad😎

[hydrus] 19/2/2018 17:05

That finish might be a breakout for ZOO. Funds still buying I reckon.

[redartbmud] 19/2/2018 15:57

Much like PTSG then.
Damp squib with no wick:-)

red

[apad] 19/2/2018 15:26

TSTL interims tomorrow - 5% of Stairway.
Some activity ahead of the results.

US revenue will still be a long way off and the process is costing half a million a year.

Not expecting any fireworks.

apad

[redartbmud] 19/2/2018 14:15

janeann

No doubt, but they have milked the action:-(

A profit is a profit.

red

[janeann] 19/2/2018 13:05

red surely the share price at the time the options were granted was pretty near to the 15p so not really an issue?

CLIG - decent update, good overview of the state of affairs and a very decent dividend.

LTG looking very perky - added twice as many as I wanted this am by mistake and sold half for a 35 quid profit 2 mins later. Bizarre.