FoggyIsle.XYZ | Market's view on Accesso Technology Group

Accesso has a modest number of shares in issue, around 40 million.
The company’s stock is noted as surprisingly illiquid given its market capitalisation of approximately £260-270 million.
Peel Hunt recommends buying Accesso stock, setting a price target of 1035p, citing the addition of ShoWare SaaS ticketing suite in the UK as beneficial for the company’s equity story.
Shore Capital suggests Accesso stock has a 50% upside, highlighting the company’s potential from focusing on high-quality revenue streams and a promising market opportunity across various venues and geographies.
Concerns are raised about Accesso’s financial management, specifically relating to a £2.1 million finance cost despite the company holding net cash, suggesting that the borrowing cost should be lower.
There is a discussion about the 10% interest rate on company debt, with different calculations provided by stock watchers based on financial documents.
Questions are raised regarding Accesso’s need for expensive debt when it reportedly holds significant net cash, especially following a covenant breach due to unexpected growth in an entity not included in the original loan security.
The use of cash for acquisitions is debated; it is noted that Accesso paid $38 million for VGS, which is expected to provide a 10% return on capital.
Concerns are discussed about the amortisation rates of development costs, with some stock watchers calculating a significant reduction in future amortisation expenses, suggesting this could impact profit before tax positively in the coming years.
Accesso’s presentation at the Mello Results Show Webinar is noted, indicating ongoing efforts to engage with investors and stakeholders.
Frustrations are expressed about the challenges of being a shareholder, with one stock watcher stating that shareholders bear all the risks while others reap the benefits.