Hi,
Paul has sent in comments on four companies, which I've pasted below.
Graham
Cloudcall (LON:CALL)
Share price: 84.5p (+10%)
No. shares: 20.1m
Market cap: £17m
Update on Bullhorn Strategic Partnership
(PS: at the time of writing, I hold a long position in this share)
Looks a bit of a non-announcement. We already know that Cloudcall (LON:CALL) has a close relationship with Bullhorn. So announcing that it is expanding that to cover Bullhorn's US operations is no great surprise. Actually I thought this was already the case.
No financial details are given, and no comment is made about overall company performance versus market expectations. Therefore this announcement goes into my mental dustbin.
eg Solutions (LON:EGS)
Share price: 49p (+20%)
No. shares: 22.7m
Market cap: £11m
This reads positively, with a strong H2 performance now in the bag (for year ended 31 Jan 2017);
Trading in the second half of the financial year has been strong, generating record revenues for the six months of not less than £5.69m (H1: £2.50m) and yielding adjusted EBITDA of over £2.0m (H1: loss of £0.89m). Cash at the end of the period was at least £2.40m.
Accordingly, the Board anticipates that the Company's financial results for the full year will be in line with market expectations on revenues of not less than £8.19m and an adjusted EBITDA of over £1.20m.
Mind you, it's only in line with expectations, so therefore in theory should be neutral for the share price.
A few comments from me;
1) EBITDA means nothing for software companies, as it excludes the costs of capitalised development spending. So I would want to see what the proper profits are.
2) This company tends to operate with large lumpy contract wins (licences). So performance has tended to yo-yo between good & bad half years. Therefore I wouldn't get too excited about one strong half year. There's no way of knowing if this stronger performance is likely to continue, or not.
3) The controversial CEO has been the big winner financially from this company in the past,…
