ALU - Altium Limited

[HRL]

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/

 

[lclfze]

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?

 

[Nortorious]

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...

 

[helpme]

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

 

[fanger]

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

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

 

[helpme]

Re: ALU - Altium

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?

 

[VSntchr]

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.

 

[fanger]

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.

 

[greggles]

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.

 

[bigdog]

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

 

[notting]

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

 

[barney]

Serious one day rise for a $2.8 billion Company

 

[greggles]

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?

 

[barney]

Amazing! Around a $4 Billion Company after todays close

 

[kenny]

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

 

[barney]

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

 

[galumay]

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

 

[kenny]

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

 

[galumay]

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

 

[Ann]

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.....