With Full year results due at the end of this month this share price fall, with the only known news the recent buyout, is curious - any thoughts as to why this has taken such a tumble? Buying opportunity or time to bail
I have been keeping an eye on Netcall for quite a while to buy on any significant setback in the share price so I have now bought a small holding today at 56p. My hope is that the recent share price fall has occurred as a result of the prospects of further special dividends evaporating and market makers becoming defensive as they may expect the vendors of MatsSoft to eventually sell some of the Netcall shares they receive and may receive in the future. In other words, I am hoping the share price fall is not an indication of anything wrong with the Netcall business. I am gambling on the MatsSoft purchase being successful in the longer term and believe that the experienced management of Netcall and major stakeholder, Livingbridge, are in a good position to judge the value of this acquisition.
Looks like this purchase will allow Netcall to be quicker at bringing products and services to market, which in this highly competitive and developing market has to be seen as a good move. I have no idea if this is fair value, but why did they not use at least some of their cash rather than taking out the Loan Stock? The shares have been marketed down on thin trading so I wouldn't read much into todays price move.
But he said investors had other options to benefit from the so-called Internet of Things (IoT) , which links the growing number of smart devices such as phones, meters and cars.
Mould highlighted other IoT-focused stocks such as Netcall plc (LON:NET), EMIS Group Plc (LON:EMIS) , Marimedia (LON:MARI) and also Wandisco Plc (LON:WAND).
He added: The weak pound may tempt overseas predators to lunge for their prey. ARM is the second quoted UK firm to receive a formal bid since the EU referendum vote and sterlings subsequent collapse the other is Poundland PLC (LON:PLND), where South African retailer Steinhoff is looking to swoop.
"By StockMarketWire | Thu, 25th June 2015 - 07:46
Netcall said it is in advanced talks regarding a possible acquisition by Eckoh of its entire issued and to be issued shares on a recommended basis. Netcall shareholders would be payable with 1.25 Eckoh shares and 13p cash for each share
This would imply a value of about 63.94p for each Netcall share based on the closing mid-market share price per Eckoh share of 40.75p on 24 June 2015.
Eckoh reserves the right to introduce other forms of consideration and/or vary the proposed mix of consideration in any offer.
It is the belief of the directors of Netcall and Eckoh that the Acquisition would represent a highly complementary fit for both businesses, offering strategic and financial synergies.
Significant cost savings are anticipated to be available to the combined business from the elimination of duplicate board and public listing costs and the directors of Eckoh expect the acquisition to be earnings enhancing.
This statement does not constitute a profit forecast nor should it be interpreted to mean that the future earnings per Ordinary Share of Eckoh will necessarily match or exceed historical earnings per Ordinary Share.
There can be no certainty that any offer will ultimately be made for Netcall."
Why is it every time I back an up and coming company it either goes bust or it's acquired just when it's starting to be interesting?
Software group Netcall (NET) reported a 9% increase in revenues to 8.43 million pounds for the 6 months ended 31st December, as pre-tax profits edged up by 3% to 1.37 million pounds. The firm said that it benefitted from strong growth in new orders as well as increased revenue visibility and improving margins. Broker finnCap, which counts Netcall amongst its corporate clients, maintained its 70p target price on the back of the news. The shares slipped by 2.5p to 52.5p.
I sold up yesterday at 53.5p after reading the latest results, which were good but not IMO good enough to support the rather frothy valuation it has acquired recently. Of course it would have been better to have sold a month earlier at 59p, but as I bought at 36.5p less than a year ago, I'm not complaining!
I still have a small exposure to NET via an investment trust.
It happens. Probably just favourable comments in trade journals etc. Fundamentals look O.K. Charts look very positive. I have had this one on my watch list for a while now but never got the opportunity to do any meaningful research. Looks like my loss is your gain. Good luck.
I was thinking about KBC when I wrote the previous note ! I hold both KBC and Netcall....looked at the Netcall website last night and was mighty impressed with its presentation and the widespread usage of its technology to decrease waiting times on phone calls for hospitals and public sites for business. It is used by a large number of NHS trusts.
I think it is because it has had a hard sell by both Investors Chronicle and , I gather , Robbie alias Naked Trader, who has named it the share for 2014. KBC has also just announced a new piece of technology which can predict oil flow etc even better than previous. Need to check website for details.
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