Forum Topics RUL RUL 1H FY24 Results

Pinned straw:

Added 9 months ago

Totally don't get the SP reaction on $RUL at open this morning. As @Chagsy reported yesterday evening, the result is fine.

I am still in accumulation mode for $RUL, so will be picking up some "cheap" shares this morning.

Disc: Held in RL and SM



BkrDzn
Added 9 months ago

It might have something to do with them better disclosing that the recent earnings upgrade is a function of a client terminating their subscription agreement. ARR down but the termination payment is fully recognised now.

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UlladullaDave
Added 9 months ago

That was a bit cheeky to not disclose it last year. A client paying a termination fee and RUL calling it subscription revenue and letting the market make ARR inferences about that revenue.

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mikebrisy
Added 9 months ago

@BkrDzn - I thought that was covered on 13th November? Yes, the disclosure was a bit opaque (and therefore raised questions which we discussed here) but the materiality and therefore its non-recurring nature was understood.

Still, I'm not complaining, volatility provides option value, so I am happy about that. :-)

I got a nice little order in at $1.78, which is below the level they've been buying their own shares back. So, yay me!

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UlladullaDave
Added 9 months ago

Nah they banked extra revenue in FY23 related to a client terminating a service contract but they didn't disclose that until today when explaining why subscription revenue went backwards.

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mikebrisy
Added 9 months ago

@UlladullaDave Fair enough. You are right.

13

Mujo
Added 9 months ago

I get the impression they are just a bit inexperienced not malicious in any of their disclosures.

16

afrowest
Added 9 months ago

Could this morning's price movement simply be put down to "buy the rumour sell the fact" as YTD price range has been ~$1.66-~$1.77 with fairly consistent volume and then Wed/Thur volumes increase and price goes from $1.77 to $1.94, and then they report after market closes (never do like but at least it wasnt friday) and whoever was buying on Wed/Thur (maybe factoring in a better result) decided to dump on the open.

Do have large holding in SMSF and will continue to hold

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