Below was a commmentary from Bill Johnston while he was still at watshot.com, Bill has since moved on (as Bill has an eye for stocks that will grow over time not overnight I thinks) but now so has ACC, what was a buy at 10p is for sure a buy at present prices based on a soon to be current year EPS forecast of 0.75p which will very likely be upgraded.
Buy Access Intelligence at 10.75p March 2005
Suggests Bill Johnston of Watshot.com
Access Intelligence (ACC) reported its full-year figure on 24 February.
Knocking around on AIM since 2003 (it used to be called Readymarket) the company had originally raised about 1 million pounds, the last 200,000 pounds of which came in at 37p - and had issued just under 16 million shares to the vendors of the company known as Access Intelligence, giving the vendors of the latter 55% of the enlarged equity, and eliciting the change of name.
Access, a mere three-years old then, had been formed with the object of providing small businesses with practical advice and support. To this end it had acquired The Marketing Guild, trading for 15 years, and engaged in provision of subscription based, practical marketing advice. There were 700 subscribers. Then Backup and Running joined the little fold - as its name implies providing disaster recovery software mainly to the same market, and on the same, subscription, model. Wired Gov, with 5,000 customers paying for instant access via its website to press releases from government and public sector organisations, joined the group, sealing off the present portfolio.
The Marketing Guild operates in a traditional mode, the call centre obtaining appointments for the sale of its specialist services, and - in the main - members paying by monthly direct debit for hard copy material and access to a helpline as well as consultancy and training. Wired Gov uses the internet to distribute its tailored material to over 10,000 interested parties. Backup and Running should be better known (and may become so) offering as it does a web-based system for the backing up and storing of data at a price which even individuals should find attractive.
The business was not exactly "virtual" - in the twelve months to November 2002 sales were over 500,000 pounds - but the investment case seemed to rest on the opportunities which management action buttressed by a now open channel to the capital market would engender, for the said sales had served only to produce a near 200,000 pounds operating loss. And a falling share price elicited a statement to the effect that the board was engaged in seeking material funds in order to pursue acquisitions.
As I said the company reported on 24 February. Turnover to November was 543,000 pounds and the pre-tax loss was 341,000 pounds. Subscription-based businesses have to shoulder the considerable financial burden of sales creation up front and luxuriate (they hope) in the steady flow of revenue thereafter (which costs little to sustain). As inferred, the share price which had been misting up in the stratosphere has descended and now stands at 10.75p. But that values Access Intelligence at 6 million pounds, more than enough you might think. But it is worth fine-tuning that raw information.
The first thing to note is that the company got its funds, 3 million pounds in fact at 10p per share, and that those monies account for half of the market capitalisation. But along with the funds came one Jeremy Hamer, as Chairman and shareholder. Businessman Hamer's recent, stock market, credentials are excellent, his having been involved in Glisten (GLI) and Inter Link Foods (ITF) both first class investments ably spotted.
Of course it is the same scenario again - a company. a sector, shares, cash and a shopping list. But this time the cast list carries more conviction, for Mr. Hamer has turned in fine performances in supporting roles and will not be intending to dry up when he takes centre-stage. The shares are a buy.
American Campus Communities stock quotes
American Campus Communities stock charts
Follow this thread
