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  1. #21
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    Totally agree with all you so sagely have said--re OCL-- Therelifeafter40

    Couple of observations though which are not actually negative.
    (1) Stock is quite illiquid--and takes courage and patience to pick up--in dribs and drabs..

    (2) Tends to go up with the mood of traders following the MYO-Reckons, Oaktons and Tech One's of this world--although aprt from MAYBEeee...arguably reckon, none are on a par with OCl.....-- of course, IMO.
    (3) Seems no matter how many NEW contracts OCL wins--they seem to slip under most Investors Radar--insto's cannot get any bec. of volumes I s'pose...much of OCL is tied up with the directors...
    (4) Have to look up when OCL traditionally releases their Full Year accounts--possibly late August like a lot of similar small caps---and then it will probabl;y be re-rated BIG TIME north in my opinion --fingers crossed !!
    (5) Must be something Bloody Good about their Offering--for as you do say;thereslifeafter40...OCL DO win a disproportionate amount of NEW major Government/Blue Chip Data Mgt IT contracts.

    Cheers

    Robbo

    PS As I write this, happen to notice that Technology One--TNE--has just announced a 30% Increase in Profit from last year--which is also a record profit for TNE--unaudited at this stage...which is possibly a good sign for OCL results too, as it is of course in same sector--

    Robbo.

    quote:Originally posted by thereslifeafter87

    I just picked up about 5000 of these in the last week or so.

    Very interesting stock.

    The company provides document retrieval and database solutions to large corporates and government departments. It operates all around the place, including contracts in NZ, Aus, and Scotland. It is constantly announcing new large contracts to the market that it keeps winning in a competitive tendering process.

    It was a dot bomb (check out the chart from listing), but over past 2 years has performed well.

    This company has a forward PE of 18 (assuming no growth in earnings in the second half), with extremely high earnings growth over recent years. This includes a Return on Equity of over 50%

    I originally placed it on my watch list about six months ago, and took more interest in it recently when I noticed the price had doubled.

    It has a large free cashflow that it can reinvest in growth.

    My one concern is whether its revenue is of a repeat nature. It states on its website that it earns fees from the sale of software, initial consultations, and ongoing maintenance. However, it doesn't break down the percentage each contributes to revenue.

    Directors hold 125 million of 135 million shares, and have been buying from the end of last year to current date (there is one sale notice only). This small free-float means that when the price moves, it will move rapidly - like ATR.

    I think this is a fantastic company that will continue to grow
    earnings. I see it as being on a forward PE of 14-15 once second half growth is taken into account. A re-rating of the company could put it on PE's as high as 30.

    Comments?

    Robbo

  2. #22
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    Woohooo.......

    Flying now...

    Up to 75c!

  3. #23
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    quote:Originally posted by thereslifeafter87

    Woohooo.......

    Flying now...

    Up to 75c!
    3 entities buying a total of 25200 shares (5200 of those at 75c = $3900) with a 5c BID/ASK spread ... Id hardly qualify that as "flying". Too much focus on just price?
    If 1 person were to sell that many shares, it would collapse back to 63c.
    Now if Gerry has posted that ... he would have been landed on!
    Cheers

    TheKiwi
    www.infobahn.co.nz

  4. #24
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    Kiwi,
    I was referring to the increase from around 60c to 75c over the course of a week or so.

    The stock is illiquid, so any buying will put upward pressure on it.

    I'm still picking an excellent result coming up.

    I will also inform eveyone if/when I sell my holding to avoid allegations of ramping and deserting the ship.

    But I will continue to ramp (read post details, snippets, info, opinions about) companies that I think are great buys.

  5. #25
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    Yeah, I'm with you on OCL ---

    tends to follow the USA Nasdeq overnight of course--esp the IT sector--Now wish my exposure was larger--but at least I'm in there I guess--unless there's news/announcements...I'm truly expecting really great numbers this reporting--and like you I'm genuinely not ramping will stay in past $1.00 for sure--the historical year on year earnings and return on capital and return on assets, are just too GOOD to avoid...Also their "contract wins" have been regular and consistent and first class this lst 6-9 months IMO,

    Cheers,

    Robbo----
    quote:Originally posted by thereslifeafter87

    Kiwi,
    I was referring to the increase from around 60c to 75c over the course of a week or so.

    The stock is illiquid, so any buying will put upward pressure on it.

    I'm still picking an excellent result coming up.

    I will also inform eveyone if/when I sell my holding to avoid allegations of ramping and deserting the ship.

    But I will continue to ramp (read post details, snippets, info, opinions about) companies that I think are great buys.
    Robbo

  6. #26
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    Its nice, really really nice when all your companies report satisfactorily.

    Its even nicer when they exceed your expectations by 50%!

    OCL's NPAT: up 156% over last year on the back of 77% increase in revenue.

    The stock is up from the 60's to 90 c today on strong volume.

    Now, only ATR left to report, and hopefully it will continue the trend created by FAN, ARP, OCL, and CCP.


  7. #27
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    Hi thereslife,

    So so glad I didn't bail out of this OCL--it was really starting to look good, BUT now god is NOT the word.

    The WORD, is Sensational numbers, AND the future is going to be excellent to, with the bridgehead OCL have now developed in the difficult to 'crack' Government tender/contract market, and the compounding(my favourite upbeat Investment CONCEPT--COMPOUNDING--it's just so potentially powerful.

    Happy Days,

    Well done on being with OCL thereslife,

    Better than another of my picks in OTI.....[}][B)]

    kindest regards,

    Robbo

    quote:Originally posted by thereslifeafter87

    Its nice, really really nice when all your companies report satisfactorily.

    Its even nicer when they exceed your expectations by 50%!

    OCL's NPAT: up 156% over last year on the back of 77% increase in revenue.

    The stock is up from the 60's to 90 c today on strong volume.

    Now, only ATR left to report, and hopefully it will continue the trend created by FAN, ARP, OCL, and CCP.

    Robbo

  8. #28
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    Robbo,
    My one concern with OCL is that 'compounding' may not work too well with them.

    In order to keep growing revenue, they need to keep winning new contracts. This isn't exactly an annuity type revenue stream.

    That said however, the company does appear to be excellent in many respects, and should continue to perform well.


  9. #29
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    Still Bullish after over 18 months with OCL--and still prepared to stand firm against some of the bears on OCL and stay true to my original predictions and truly believe we will see north of $1.10 with another 6-8 weeks or so....

    Go Objective Corp

    Regards,

    OCL...
    quote:Originally posted by davidrob

    Yeah, I'm with you on OCL ---

    tends to follow the USA Nasdeq overnight of course--esp the IT sector--Now wish my exposure was larger--but at least I'm in there I guess--unless there's news/announcements...I'm truly expecting really great numbers this reporting--and like you I'm genuinely not ramping will stay in past $1.00 for sure--the historical year on year earnings and return on capital and return on assets, are just too GOOD to avoid...Also their "contract wins" have been regular and consistent and first class this lst 6-9 months IMO,

    Cheers,

    Robbo----
    quote:Originally posted by thereslifeafter87

    Kiwi,
    I was referring to the increase from around 60c to 75c over the course of a week or so.

    The stock is illiquid, so any buying will put upward pressure on it.

    I'm still picking an excellent result coming up.

    I will also inform eveyone if/when I sell my holding to avoid allegations of ramping and deserting the ship.

    But I will continue to ramp (read post details, snippets, info, opinions about) companies that I think are great buys.
    Robbo

  10. #30
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    Robbo,
    Looks like your prediction could be on the money.. Check out the bid depth building up!

    I sold my OCL last week, as I decided I had absolutely no idea what they would earn this year, and no way of discovering that!

    If they had been valued somewhat more conservatively, I might have been prepared to take a risk, but at current levels there is just not a significant margin of safety in my opinion.

    The problem with OCL is that they may not grow earnings consistently over time, because the business relys on the constant winning of new contracts.

    I may end up with egg on my face if the share price continues to head North, but for me this is the right decision whatever the SP does.

    If I can't predict with any certainty what a company will earn next year and the year after, then I need a highly conservative valuation to justify investment.

    OCL simply no longer fits my criteria.


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