Australian (ASX) Stock Market Forum

RKN - Reckon Limited

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McLovin said:
Similar arguments were made about internet banking and using credit cards online about 15 years ago. Every accounting office uses the internet to lodge tax returns, download client banking data etc. This is hardly evolutionary stuff.

The biggest risk is around the CAPEX requirements of maintaining your own code. And whether not paying royalties will offset that.

Deutsche has upgraded Reckon on the announcement and Macquarie has downgraded them. I guess no one really knows.
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Cloud Argument is no way similar to Internet banking and credit card

With cloud you basically put your data in someone else hand where as credit card and Internet banking, the banks already has that data you just use Internet

And with business it is not just your data, it is also clients data these stuff is much more sensitive than your credit card details.

I work in IT when it comes to put data on the cloud, the answer is usually no.
You lose control of your data and data is everything in business..

Cloud is good for hosting stuff that doesnt involve storing sensitive data....you can't applied a blanket cloud to everything, you look at iCloud with apple products, it is free and I myself don't use it and so are all the people I know...

I have more control of my data when it is in my hand alone

Don't care what analyst think -:) I myself won't touch any where near this price
High execution risk and maintain your own code isn't cheap and it doesn't guarantee return so need massive margin of safety.

Also do this mob owns their own data center? If not that is risky as hell running a cloud
Because you at the mercy of data centre operators you pay what the hell ever they charged else find some where else and moving data centre is Extremely complex task
 
ROE said:
Cloud Argument is no way similar to Internet banking and credit card

With cloud you basically put your data in someone else hand where as credit card and Internet banking, the banks already has that data you just use Internet
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Internet banking is putting your data on the cloud, isn't it?

ROE said:
Don't care what analyst think - I myself won't touch any where near this price
High execution risk and maintain your own code isn't cheap and it doesn't guarantee return so need massive margin of safety.
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I agree.
 
McLovin said:
Internet banking is putting your data on the cloud, isn't it?
I agree.
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Well sort off ... let see if I can explain another way..

you got a bank account right? the banks has this information on their computers regardless of you internet bank or not .. Internet bank just open another avenue for
you to bank and expose your data to data theft ... if you don't internet banking

people can still break into banks computer and steal data....anyway this isn't the issue
because most credit card and banks has insurance against fraud so it's fairly safe
I use it all the time.

Cloud infrastructure on the other hand, people want you to hand everything you got over to them......they maintain the software and data and do backup for you etc...
more reasons for them to charge you more because you lose control...

this data used to sit on your little cabinet some where or your office computers
it is now on someone servers...I don't want to do that if I got business data I don't want anyone to see I want to keep it on my computer and only I have access to it...

Once I give that away I lose control of the data, I dont know who else has access to it
and how they can use to manipulate it or against me etc...

I'm sure the cloud operators will have security and check and balance in place to safeguard it but still it is one of those things I would never give it away regardless...

but that me personally anyway
 
At $2.40 RKN is back to around March SP levels. Should we conclude that the revamped business is going well or is this just market effect - the rising tide lifting all boats?

:confused:
 
oldblue said:
At $2.40 RKN is back to around March SP levels. Should we conclude that the revamped business is going well or is this just market effect - the rising tide lifting all boats?

:confused:
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Based on that, the market thinks its going well.

If there aren't any announcements or any pieces of information released by the company to this effect, then its all just speculation.
 
Klogg said:
Based on that, the market thinks its going well.

If there aren't any announcements or any pieces of information released by the company to this effect, then its all just speculation.
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I'd like to believe that but experience shows that many significant market moves - in all markets - are often precipitated by "well-informed" buying/selling.

;)
 
robusta said:
(22nd-March-2012) I like to look at the daily losers and the 52 week lows, RKN down almost 10% today got me interested. Considering they will loose the right to distribute Quicken & Quickbooks in a few years I think they may be on the 52 week low list soon.

Not sure what % of the business these products are but I think the fundamentals of this business will change dramatically.
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In May 2012 the SP did find bottom and establish a new 52 week low before an amazing recovery (see chart below) on Friday a new 52 week low was established and that caught my interest, having a look at the 5 year chart i was surprised to see Fridays new low was in fact a 182 week low :eek: and that of course meant that i had to spend the next hour or so finding out why.

There seems to be a fundamental shift occurring in the accounting industry with new cloud based player Xero kicking heads and taking market share while MYOB and Reckon are playing catchup, Reckon's old partner Intuit will be launching a cloud product in 2014 as will Reckon and MYOB.

Reckon in particular are in a real transitional phase with the Intuit relationship at an end and the transition to subscription rather than outright licence sales, perhaps an opportunity for a low cost entry, perhaps an opportunity to buy into a sinking ship :dunno: i will certainly watch with interest.
~
 

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At last my 3 week old buy order was completed today, impatience got the better of me and i moved my bid up from 2.01 to 2.04 resulting in me having a 2.04 parcel to add to my 2.01 parcel from 3 and a half weeks ago...interesting to see a bottom forming over the last 3 and a half weeks, have noticed 3 or 4 times how the sellers simply were outnumbered by buyers, however not so today.
 
Well done, S_C!

RKN up another 6c today and sellers looking thin on the ground. Not a lot of volume - but then it's not normally a heavily traded stock.

Disc: I hold a small parcel.

:)
 
Not happy with this business, I'm not an investor but have been using their software for the last three years. Recently purchased an Apple computer only to discover the software is not compatible and will probably never be.:mad::mad::mad::banghead::banghead::banghead:
 
robusta said:
Don't think it will do the trick for me. looks like it's aimed at businesses with no provision for investments. I may have to start again and loose all that history.
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Have a look at this http://www.sharesight.com.au/pricing/

Free portfolio for less than 10 holdings. Or $25 per month for 3 portfolios and unlimited holdings.

I especially like the auto features... auto broker email forward, auto dividend etc.
 
From this morning's "Markets live".


10:04am: Back before New Zealand's Xero was a noisy but fast growing upstart and when $2 billion sounded like a lot of money to pay for MYOB, Reckon was the accounting software sector's great hope for small cap fund managers.

The theory was always that Reckon, which provides desktop and cloud-based business management software under the Reckon Accounts brand, would be acquired by its then-$US20 billion United States backer Intuit.

That all fell apart when Reckon stopped distributing Intuit's Quicken/QuickBooks products in February 2014 and eventually bought back the US giant's 11.5 per cent equity stake later that year.

Since then, Reckon has faced life on its own. Its shares have traded at and around the $2 mark and more attention has been directed at its noisy - and sometimes quarrelsome - rivals Xero and MYOB, which are now both worth more than $2 billion.

Brokers have flicked the stock into the "hold" basket and small cap fundies have started digging elsewhere.

However, the AFR's Street Talk column understands Reckon's hasn't gone unnoticed by at least one potential suitor. The company - headed by straight-shooting chief executive Clive Rabie - has a steady recurring revenue stream and is working on the rollout of an online model, Reckon One.

Sources said Reckon had been approached by a private equity or trade player in recent times and the company had turned to Macquarie Capital for some advice and defensive support. Aside from MYOB and Xero, Wolters Kluwer Australia's CCH could also run the ruler over Reckon's assets.

Perpetual Investments would loom as a key voice in any deal. The fund is a long-time supporter of the stock and retains a 15 per cent stake. Other major backers include UK-based Highclere International Investors, which also holds stakes in Australia's Webjet and Orotongroup, along with UniSuper and Rabie, who owns almost 10 per cent.

None of these investors would be expected to part with their stock for much less than $2.50 a share, which would value Reckon at almost $300 million.

Interestingly, Reckon had independent expert Grant Thornton value the business 16-months ago when it selectively bought back Intuit's stake. Grant Thornton valued the company at $2.05 to $2.15 a share, which represented about 6.5-times one-year forward earnings before interest, tax, depreciation and amortisation.


Read more: http://www.theage.com.au/business/m...ac-returns-20151018-gkc95c.html#ixzz3oxtAFWQg
Follow us: @theage on Twitter | theageAustralia on Facebook
 
52 week high

Rumor seems to have some legs?

I bought back at 1.90 as it was really cheap had the potential to grow. Estimated FV to be around 2.50
 
ThirtysixD said:
52 week high

Rumor seems to have some legs?

I bought back at 1.90 as it was really cheap had the potential to grow. Estimated FV to be around 2.50
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I "reckon" so!

Too many articles to that effect in the AFR in recent times for there not to be some fire with the smoke! The latest I saw, though, had one of the potential buyers, a British company, apparently deciding not to proceed with an offer.
 
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