Market's view on Netcall
Published on April 2024
- Stock watchers observe that despite Netcall’s strong performance, it is under-reported and not engaging sufficiently with shareholders, especially in terms of news releases regarding new contracts.
- There are discussions about resistance at 100p due to stale holders selling, alongside optimism that upcoming financial results may outperform expectations due to strong first half earnings.
- Concerns are raised about the company’s communication strategy, particularly the infrequency of updates on new contracts.
- Positive feedback is given regarding the company’s solid earnings, debt-free status, and significant cash reserves, which position it well for future operations.
- The recent acquisition of Skore Labs Limited is highlighted as beneficial, expanding the company’s technological offerings and aligning with industry trends.
- Discussants note institutional demand for the company’s shares and an increase in stock holdings by the chairman and CEO, despite sales by older non-executive directors.
- The change in CEO is mentioned, along with speculation about the company’s strategies for using its cash reserves and improving shareholder relations.
- Stock watchers are critical of the perceived lack of focus from senior management on maximising shareholder value, despite the company’s operational success.