# ALU - Altium Limited



## HRL (6 December 2007)

Can't find anything about this crowd on ASF so will crank out a new one...

Discovered Altium (ASX: ALU) yesterday in my endless search for better than average returns without too much volatility.

Altium is a Sydney software company that creates software for a wide range of applications ranging from car dashboards and washing machines to medical devices and space satellites.  Their client list is a who's who of international bluechips (BMW, Boeing, Bosch, HP, IBM, Canon, Nokia, Sony, Philips etc.)

After a long period focused heavily on R&D they have recently bolstered their Sales & Marketing departments with some new hitters to start chasing new business in addition to growing existing.

EPS expected to increase 194% for FY08 (from 1.2-3.6) and a further 61% for FY09 (3.6-5.8) and overall outperforming their sector for at least the next 3yrs.

The analyst report I read says the underlying intellectual capital is significantly higher than the current share price (89c) reflects and if they hit their FY08 targets then $1.50 is a better representation.

There's a load of reports and other info on their website for anyone interested... http://www.altium.com/AboutUs/Investorinformation/


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## lclfze (20 October 2013)

*Re: ALU - Altium*

I've had this for slightly over ten years.  Could have sold out for a good return after a few years (would have 150% profit) but hung on while it went to 8c in 2011, now back up to $2.60 after they sacked the founder (and CEO I think) and focussed on core operations.  Pretty good return if I sell now.  Anyone got any thoughts?


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## Nortorious (25 November 2014)

*Re: ALU - Altium*

Another stock I have entered using the same strategy as other purchases such as VOC, CTD, API etc.

Bought in just under $3.15 and watching to see how this progresses.

Doesn't look like there is much of a following here for this stock (last post in 2013). Will post up charts and what I see when I can access my charts.

See the relative strength with this versus the overall market as fairly positive. Market is a bit sketchy so need to see what happens with it and also how individual stocks behave either way...


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## helpme (17 February 2016)

*Re: ALU - Altium*

Why did Altium drop >7% this morning when it just announces a set of great results? Revenue growth, profit growth, dividend growth. 

http://www.asx.com.au/asxpdf/20160217/pdf/435308px1k1z00.pdf


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## fanger (17 February 2016)

*Re: ALU - Altium*



helpme said:


> Why did Altium drop >7% this morning when it just announces a set of great results? Revenue growth, profit growth, dividend growth.
> 
> http://www.asx.com.au/asxpdf/20160217/pdf/435308px1k1z00.pdf





Maybe the market was expecting more. Although my broker is only showing this on a P/E of 5.9


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## helpme (18 February 2016)

*Re: ALU - Altium*



fanger said:


> Maybe the market was expecting more. Although my broker is only showing this on a P/E of 5.9




I wonder why is the market so demanding on this particular stock. What did the market see?


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## VSntchr (18 February 2016)

*Re: ALU - Altium*

My take is that the market factored in some short term $$ from the recent partner deal. 
On the investor call yesterday management downplayed the impact of the deal in the short term and stated it will not affect the $100m FY17 revenue goal they have set. Hence some of the optimistic money that found its way to ALU on the announcement of the deal is now re-treating.
I don't see this as a continuing problem and the overall result was pretty strong.


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## fanger (18 February 2016)

*Re: ALU - Altium*

The only thing I don't like about this stock is Roger Montgomery keeps talking it up. The night before ALU reported he was on the radio singing the virtues on this stock which makes me worry.


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## greggles (19 June 2018)

Steady as she goes for Altium Limited. Increasing revenue, revenue growth, EBITDA margin and share price. I had no idea ALU was going to be such a winner.


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## bigdog (22 August 2018)

Great result give great big increase currently up 28.13%






For the 12 months ended June 30, Altium achieved revenue growth of 26% to US$140.2 million and a 34% increase in net profit after tax to US$37.5 million. While this is a slowdown from revenue growth of 30% and profit growth of 51% in the first-half, its profit result sits just a touch higher than the Bloomberg consensus estimate of US$37.4 million. This strong profit growth led to earnings per share of 28.8 U.S. cents (39.19 Australian cents) and allowed the board to declare a final dividend of 14 Australian cents per share. This brought its full year dividend up 17% to 27 Australian cents.

I do not hold


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## notting (22 August 2018)

And the mother of all shorter destruction, short of a take over!!
No selling and desperate covering ALL DAY!!


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## barney (22 August 2018)

Serious one day rise for a $2.8 billion Company


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## greggles (19 February 2019)

Another great result for ALU and another substantial share price gain. Here are the details from their Half Year Results to 31 Dec 2018 announced yesterday:






Fantastic result all around. Today saw a huge gap up, opening at $31.39 and currently trading at $32.39. Hard to believe this was around $2 back in 2014. Has any ASX listed company of similar or larger size performed better in the last five years?


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## barney (19 February 2019)

Amazing!  Around a $4 Billion Company after todays close


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## kenny (22 February 2019)

Expanding EBITDA Margins are hard to find in an established business. Anyone care to suggest an entry point given the nosebleed ratios?


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## barney (22 February 2019)

kenny said:


> Expanding EBITDA Margins are hard to find in an established business. Anyone care to suggest an entry point given the nosebleed ratios?




Way out of my jurisdiction this one … but given the $4.4 billion market cap and the steep chart, I'll be happy to congratulate those who are in, and keep watching from the sidelines


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## galumay (22 February 2019)

The sort of business you back the truck up to in a proper market crash!


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## kenny (24 February 2019)

galumay said:


> The sort of business you back the truck up to in a proper market crash!



I agree, @galumay but where do you pull the trigger when the fundamentals like Price to Sales (20?)  or (inappropriate for fast growth co's) ones like PE which is over 65 are so far beyond peers and the rest of the market? Say we looked at Revenue Multiples as a comparator. It's around 19 .

The China growth story as it captures pirated licences over it's paywall will drive revenue growth alone.
I like to think the recent steep rise is in part due to "irrational exuberance" by FOMO buyers, @barney


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## galumay (24 February 2019)

Well, as I say, in a proper market crash!


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## Ann (24 February 2019)

This is an article from a few days ago, may still hold some interest. Always nice to see a photo of who people are.....

*Former refugee now worth $300m as his obscure tech firm soars*
_
A former refugee who came to Australia without a word of English is now worth $300 million after shares in his software company Altium soared to a record high on the back of a bumper half year result.

The stock, which traded below 10¢ in 2011, closed 20 per cent higher at $32.56 on Tuesday after the company reported a 24 per cent rise in revenue to $US78.1 million, and a 58 per cent increase in net profit to $US23.4 million, led by strong growth in China.

The obscure tech company, now worth more than $4 billion, has been a remarkable success story for the man who transformed it into a star tech stock: Chief executive Aram Mirkazemi, who came to Australia in the 1980s as a refugee from Iran and couldn't speak English. More....._


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## galumay (24 February 2019)

Good find, Ann. A salient reminder that our prosperity is built on the back of our multicultural immigration.


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## Zaxon (24 February 2019)

Ann said:


> _The stock, which traded below 10¢ in 2011, closed 20 per cent higher at $32.56 on Tuesday after the company reported a 24 per cent rise in revenue to $US78.1 million, and a 58 per cent increase in net profit to $US23.4 million, led by strong growth in China._




Altium has certainly been an excellent company.  The takeaway message I get from this is to trade less.  Find good companies and hold them for years.


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## Ann (24 February 2019)

Zaxon said:


> Altium has certainly been an excellent company.  The takeaway message I get from this is to trade less.  Find good companies and hold them for years.




Hi Zaxon, this is related to your comment elsewhere about the like button. I gave you a like because I agree with your thoughts but had there not been the lazy option of a like button I would have responded to your post above by saying....

I have been a long term holder of investments as that is what suited my limited time to trade and that is what was comfortable for me and it certainly made money. Now I have retired I have more time to sift through stocks and spend time charting, reading business news and commenting here a lot more. I am now working into a different trading style of short term trades. Could be a few weeks, could be a few months but I am still thinking of trading in and out of a few good stocks. I am not sure yet, I may be no good at trading shorter term, time will tell.

I think it all comes down to what works best for each individual trader.


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## Zaxon (24 February 2019)

Ann said:


> I am not sure yet, I may be no good at trading shorter term, time will tell.
> 
> I think it all comes down to what works best for each individual trader.




For sure. For some people, they can achieve their best possible outcome through trading. For others, they find good quality stocks like ALU and hold them long term.  Your personality type and skill set heavily influence what the best approach for you might be.


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## Ann (24 February 2019)

Zaxon said:


> For sure. For some people, they can achieve their best possible outcome through trading. For others, they find good quality stocks like ALU and hold them long term.  Your personality type and skill set heavily influence what the best approach for you might be.



What is your comfort zone Zaxon?


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## Zaxon (24 February 2019)

Ann said:


> What is your comfort zone Zaxon?




I hold stocks from several months to several years.  I consider myself an investor more than a trader, but I'm not buy-and-hold either.


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## Ann (24 February 2019)

Zaxon said:


> I hold stocks from several months to several years.  I consider myself an investor more than a trader, but I'm not buy-and-hold either.



Sounds like you ride the profits...always a good thing to do!


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## leyy (25 February 2019)

ALU is one of the stocks that I sold too early made a quick profit from $7 and sold at $10 and went gangbusters from there on.

Well done to Zaxon and all long term holders.


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## kid hustlr (22 March 2019)

This was dead for all money several months back with $20 looking like cracking and the stock to be in free fall. An incredible report and subsequent price action now makes this pretty attractive to me with $35 cracking today.

Feels 'late' to a degree both in terms of the overall market and this price action but the set up in isolation is strong and a strong close here would leave us expecting this to outperform if the market rallies


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## Cam019 (24 March 2019)




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## kid hustlr (25 March 2019)

kid hustlr said:


> View attachment 93177
> 
> 
> This was dead for all money several months back with $20 looking like cracking and the stock to be in free fall. An incredible report and subsequent price action now makes this pretty attractive to me with $35 cracking today.
> ...




whoops


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## bigdog (2 July 2019)

Motley reports
https://www.fool.com.au/2019/07/02/...it-an-all-time-high-is-it-too-late-to-invest/

*The Altium share price just hit an all-time high: Is it too late to invest?*
James Mickleboro | July 2, 2019

The *Altium Limited* share price has continued its positive run on Tuesday and pushed higher again.

In fact, at one stage the design software company’s shares climbed to an all-time high of $35.90.

When they reached that level it meant they had gained a massive 66% since the start of the year.

*Why is the Altium share price on fire in 2019?*
There have been a couple of key reasons why investors have been scrambling to get hold of the company’s shares this year.

The first is due to its impressive performance in the first half of FY 2019.

For the six months ended December 31, Altium posted half year revenue of US$78 million and profit after tax of $23.4 million. This represented revenue growth of 26% and net profit after tax growth of 58% on the prior corresponding period.

This was driven largely by increasing demand for its software across the globe and notably in China, which led to a 34% increase in Altium Designer new seats and a 9% lift in the overall subscription pool to 39,179.

Another reason for the rampant buying has been its positive long-term outlook. When the company released its half year results, it advised that it was very confident it would achieve its 2020 target of revenue of US$200 million and an EBITDA margin of at least 35%.

So much so, it is now looking beyond 2020 to 2025, where it has set itself an “aspirational” revenue target of US$500 million. To achieve this, it believes it needs to lift its active subscribers to 100,000.

At which point, it expects to be in a position to compel key industry stakeholders to support its agenda to transform electronic design and its realisation.


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## bigdog (20 August 2019)

Closed Up 2.17% yesterday prior to the half year results announcement after the close of market

19/08/2019 4:26:38 PM  FY19 Full Year Results Announcement
- click link below















Motley reported
https://www.fool.com.au/2019/08/19/altium-delivers-more-explosive-growth-in-fy-2019/

The *Altium Limited* (ASX: ALU) share price will be one to watch on Tuesday morning following the release of the printed circuit board (PCB) design software provider’s full year results after the market close.

For the 12 months ended June 30, Altium posted full year revenue of US$171.8 million and an EBITDA margin of 36.5%. This was a 22.6% increase on the prior corresponding period and means the company is within a whisker of its FY 2020 target of US$200 million revenue.

This led to Altium posting a 39.8% increase in EBITDA to US$62.7 million and a 41.1% lift in net profit after tax to US$52.9 million. Earnings per share came in 40.5% higher at 40.6 U.S. cents (59.9 Australian cents) and the Altium board declared a full year dividend of 34 cents per share.

The key driver of growth once again was its Altium Designer product which recorded a 22% lift in software license revenue to US$62.4 million and a 13% increase in subscriptions revenue to US$58.5 million. The catalyst for this was a 27% jump in Altium Designer seats and record growth in its subscription base to more than 43,600 subscribers.

This was supported by the Octopart business which recorded a 50% increase in search advertising revenue to US$17.9 million and its TASKING software licence revenue which grew 44% to US$12.3 million.

315


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## Trav. (23 January 2020)

ALU having a nice run and ATH are being made which is nice.

up another 1.72% today ($39.68) so far and happy to continue holding holding for a bit longer.


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## Trav. (31 January 2020)

ALU reached ATH of $40.19 on the 24/1 and closed today @  $39.83

Maybe taking a breather for a few days and hopefully will attempt another run at $40.

Still holding.


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## barney (7 February 2020)

Trav. said:


> ALU reached ATH of $40.19 on the 24/1 and closed today @  $39.83 Maybe taking a breather for a few days and hopefully will attempt another run at $40.
> Still holding.




Doing well Trav  … broken into new highs as you suggested  Hope I don't put the mocker on it for you.


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## Trav. (7 February 2020)

@barney all good mate, I got stopped out yesterday and made a couple of bucks so happy with that, as I have history of watching my profits disappear when it retraces so had trail stop in place, maybe a little tight but still playing with comfort levels.

Also I don't think I mentioned it earlier but I am playing with CFD's on a few trades which also makes me a bit more cautious. Trade worked out ~ 12% gain on entry / exit price


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## barney (8 February 2020)

Trav. said:


> [ Trade worked out ~ 12% gain on entry / exit price




12% is not to be sneezed at 

Haven't traded CFD's for many years but I assume there is a holding/interest fee from memory so a quick 12% is a lot better than a higher % over a longer time frame, yes??


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## Trav. (8 February 2020)

barney said:


> holding/interest fee from memory



Yes that's something that I have to factor in during this learning process but not to bad for short term, I definitely wouldn't want to hold a stale / break even position for a few months

in this example in/out & interest per day costs = $88.18 

1 day costs below which varies depending on instrument margin


                                                                                                                     Value                Rate        Day       Amount


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## bigdog (17 February 2020)

Share price closed $42.63 was up 1.98% today (also hit an all-time high of $42.76)

ASX announcement made after the close today
17/02/2020 4:12:46 PM   Altium Announces Half Year Results & Dividend (file uploaded below)














Looking for trading tomorrow where lower end of guidance could see a sell off tomorrow!

Goldman Sachs were expecting forecast full year revenue of US$210.5 million, reported EBITDA of US$80.1 million, and reported net profit after tax of US$58.9 million.

Altium reported today full year revenue and margin guidance of between US$205 million to US$215 million for revenue and an EBITDA margin of 39% to 40% (on a reported basis) and 37% to 38% (excluding the impact of AASB16 Leases).






I hold

274


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## barney (18 February 2020)

bigdog said:


> ASX announcement made after the close today
> Looking for trading tomorrow where lower end of guidance could see a sell off tomorrow!




Announcements after the close are poor form in my book. Unfortunately your prediction was right BD.  

Looks like an over reaction but who knows.  Hit a low of $35.04 earlier but currently $36.10 (down 15%)

Not pleasant for holders but should recover given the 'numbers' aren't that bad


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## bigdog (18 February 2020)

Big Sell off today currently 1.9 million shares

Normal lower volume (349000 TO 45500) for past few days

In the first half of FY 2020, Altium reported a 19% lift in revenue to US$92.85 million and a 22% jump in EBITDA to US$36.8 million.

However, due to the coronavirus outbreak and the under performance of its Octopart business, the company warned that it is likely to land at the lower end of its full year guidance range.

Altium reported today full year revenue and margin guidance of between US$205 million to US$215 million for revenue and an EBITDA margin of 39% to 40% (on a reported basis) and 37% to 38% (excluding the impact of AASB16 Leases).












321


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## Dona Ferentes (18 February 2020)

barney said:


> Announcements after the close are poor form in my book.



agree, and the last Friday of the month is even worse







> Not pleasant for holders but should recover given the 'numbers' aren't that bad



.. but this is the problem with being *priced to perfection*


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## galumay (18 February 2020)

Dona Ferentes said:


> .. but this is the problem with being *priced to perfection*




Agree totally, there is no way of reconciling those results and guidance with the multiples this thing trades on. So to hold you have to suspend the use of maths and rational thinking and just go with the YOLO, FOMO, MOMO, whatever. It becomes a game of the greater fool.

It will work until it doesnt, then look out.


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## Dona Ferentes (7 June 2021)

Altium said it has received a formal, non binding, indicative and   unsolicited proposal from Autodesk at $*38.50 a share *for the acquisition  of 100 per cent of Altium via a scheme of arrangement.



> _The  Altium board appreciates the interest expressed by Autodesk, which has  evolved from a dialogue about a strategic partnership. However, it   considers that the proposal significantly undervalues Altium's prospects  and therefore rejects the proposal at the current price._




Altium  said it has a unique position in the electronics ecosystem and   unsolicited acquisition interest has developed in the past from   partnership dialogues with others in the ecosystem.


> _As consistent  with past unsolicited acquisition interest, the Altium board will  engage with interested parties in the context of an appropriate  valuation of Altium and it will continue to review all potential  strategic alternatives for the company,_ it said.




_Bids, any bids? Please place your bids

Up 35% to around $37_


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## kenny (7 June 2021)

Dona Ferentes said:


> Altium said it has received a formal, non binding, indicative and   unsolicited proposal from Autodesk at $*38.50 a share *for the acquisition  of 100 per cent of Altium via a scheme of arrangement.
> 
> 
> 
> ...



Despite the high multiples the offer is pitched at. My gut tells me it's an opportunistic bid once Autodesk realised the company was being slow to re-orient into a post-COVID manufacturing world. The two had been in discussions about a strategic partnership so Autodesk would've seen behind the curtain.


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## Dona Ferentes (16 July 2021)

One view:



> _June and early July saw several proposed acquisitions/price reactions which in most market conditions would be seen as madness. In technology, Altium refused a takeover bid of around US$3.9bn from US peer Autodesk. The company announced expected revenues of between US$190 to US$195m and  EBITDA margins a little below 40%. At 20 times revenue and 50 times EBITDA on already very high margins, it is fair to say the cash payback Autodesk is expecting will be a little longer than that for [value propositions]. _






> _Assuming, as management do, the future is extremely bright and market  dominance awaits, allowing revenue to double and margins to be at least   maintained, the price may reduce to only 25 times EBITDA once achieved. A handsome return of 4% will then be available should this profitability be maintained in perpetuity. Whether Altium is a quality company (a term increasingly used by investors to justify paying exorbitant prices)  is not the key issue. It is the inherent uncertainty of the distant future and the extremely limited protection which these prices offer against the chance it is not as rosy as projection .... _



When Will The Music Stop?
Martin Conlon from _Schroders Australian Equity fund_


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## Miner (19 July 2021)

Dona Ferentes said:


> One view:
> 
> 
> 
> ...



Music stopped today after announcement for a meeting and price slumped.
Trading is under pause for a while but no trading halt.
Probably a hidden secret leaked and Asx has summoned a please explain.


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## Miner (30 August 2021)

Another surprise (?) or expected reaction from market on ALU result.
Is it a norm now that all (?) stocks being hyper sensitive and capturing higher than published performance factored into price ?
Do not know and surely some or many of us already know on this forum























Since I posted the query on ASF, looked around what others tried to explain and found this one from Motley (not that I follow their recommendation but try to read between factual data published.
Looks like the crash was from the rejection of Auto Desk - I thought this was an old news - did I read a stale news ?
Who has forgotten Motley's ramp up on NXL not long ago ??


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## Miner (30 August 2021)

Miner said:


> Another surprise (?) or expected reaction from market on ALU result.
> Is it a norm now that all (?) stocks being hyper sensitive and capturing higher than published performance factored into price ?
> Do not know and surely some or many of us already know on this forum
> 
> ...



OOPS- The MF report extract I posted earlier was published on 19th July. I was too quick but looks like it is not too far to slump by 14% today 30 August again .


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## Dona Ferentes (26 November 2021)

Dona Ferentes said:


> Altium said it has received a formal, non binding, indicative and unsolicited proposal from Autodesk at $*38.50 a share *for the acquisition of 100 per cent of Altium via a scheme of arrangement.
> 
> Altium  said it has a unique position in the electronics ecosystem and unsolicited acquisition interest has developed in the past from partnership dialogues with others in the ecosystem.



Altium was criticised by shareholders and analysts for rejecting Autodesk’s suggested offer of ‘around $40’ per share (which eventually became $38.50 and then a rumoured top up to $40) in May and June?

The Autodesk approach saw Altium shares leap to a then high of $37.80 as hedge funds and punters poured into the stock in hopes of a contested bid or higher price.

Autodesk wanted Altium to add its software and other design products to its huge suite of CAD (computer aided design) products.

What they didn’t bank on was the immediate rejection by Altium directors and managers and the hard line maintained in the face of pressure from those punters and others for the company to negotiate with the American giant for a higher price and deal. 

Autodesk eventually dropped the bid in mid-July and walked away. Altium shares dropped more than 11% to a low of $31.47 the day Autodesk’s decision to walk was announced but after that slide they picked themselves up and peaked on 19 Nov at an all-time high of $43.18. 


> Altium’s CEO, Aram Mirkazemi, told the AGM the company was on track to achieve its guidance in FY 2022: _“We are set to achieve our fiscal 2022 guidance of 16-20% revenue growth and we are powering our growth engines of CAD, Cloud and Digital Bridges to not only dominate but to transform the electronics industry.”_




And Autodesk? This week, its shares slumped after it barely met third quarter guidance and produced a weak outlook. The shares slid 17% at one stage (and well below the levels when it pitched for ALU). Autodesk is priced at 100 times earnings.


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## peter2 (22 December 2021)

Liking *ALU* now that price is once again near all time highs. Price has been trapped in a large range since Covid selloff. Price has also regained the pre-Covid high after knocking back AutoDesk's bid.


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