Bluestar Secutech Share Discussion Threads

[the diviner] 04/2/2012 18:15

Hi Masurenguy,

Thank you for that, it is helpful.

It is near the bottom of the header. (I had not spotted it).

What is your view of the other queries?

TD

[masurenguy] 04/2/2012 18:00

The link to the company website has been in the header since the thread was set up in 2007.

[the diviner] 04/2/2012 17:47

Hi,

This company came up on a recent value trawl of the numbers because it appears, (on the surface), to be undervalued but I cannot seem to find out much about the company.

For instance; I cannot find a company website. - Is there a company website?

There is web video from iii in 2008:

That 2008 video appears to indicate that the company was really well a few years ago. – What happened? (Was it just smoke and mirrors)?

I had considered buying a few BSST shares but so far I have decided against because there is a gut feeling that there could be something rather whiffy about Bluestar Secutech. (I have no idea if there is and would welcome some input from those who have already invested their own money into BSST as to the reasons why a person should buy or hold these shares).

In some ways BSST seems to be similar to GNG in that the story looks OK and the published figures look OK but the share price just bombs over time because it is all jam tomorrow and what is happening around the company does not support the theory that the promised jam will ever arrive. – Is that fair?

I like the fact that BSST is paying a dividend but what is it being paid out of?

I am not too sure what the BSST business model is; they appear to just install video surveillance systems but they do not seem to make the stuff that they sell and once sold and installed they do not have an ongoing contract with the customer with regard to operating and/or maintaining the equipment. – Is that correct?

Last but not least is the getting paid question. – Are the payments just severely delayed or are they unlikely to ever arrive?

TIA.

Kindly advise,
TD

[bill182] 14/12/2011 10:30

Just checked the figure again....the company is owed a staggering £25m. Could be a bumper Christmas!

[bill182] 14/12/2011 10:28

A good contract win, which will be delivered in this financial year. We know the banks pay their creditors in December, so hopefully, the cash position will improve greatly!

[edmundshaw] 01/12/2011 21:39

Yup. Because they have to wait 2 years for payment from banks, they have to take out a loan, with interest, from... er... banks.

I hope they are getting interest on those debts, but I doubt it...

[stewjames] 01/12/2011 21:28

I agree edmund, but how much faith can we place in payments being forthcoming? The clients may be large banks, but that hasn't stopped them very consistently taking a year to pay up and getting worse all the time. At some point I think you have to question whether it's genuinely because of a slow payment culture or if it's because the banks themselves have severe financial issues.

Their inability to collect is so ridiculous, in fact, that it looks like it's starting to impact on operations. They may actually be running short of cash - witness their taking on a 25M loan at 6%+ interest rates. How about getting some of the customers to pay up instead of running the business like a charity?

[edmundshaw] 01/12/2011 20:44

Just shy of 18 months. These chinese banks do take the proverbial.

Still, if the second half is as good as expected, and payments are forthcoming, this will look very cheap in 6 months time.

[stewjames] 01/12/2011 15:57

Debtor days increased to 539?! You have got to be joking! How can the auditors sign off on that?!

[bill182] 25/11/2011 16:13

Although I have been in and out of BSST over the years, I am currently not invested. I sold my holdings when I was not convinced the company was doing enough to control the debts. However, with the recent profit downgrade, which I assume is due to lack of sales, perversely, this could have a positive impact on the cash position. With a current mkt cap of £9.8m, there is every possibility that the cash position will have improved on the £5m at the last results.

The interims are due next week, and with NA's of £29m, if the cash has improved, I could just be tempted to put my toe back in the water...we shall see!

[pelleeds1980] 18/11/2011 12:52

Better news today

[3800] 17/11/2011 12:32

This certainly doesn't sound good, still holding but its only a small holding for me and after todays fall is an even smaller holding
3800

[boadicea] 17/11/2011 10:13

Romeo, Romeo... bear art thou , Romeo.

(Bit of a Kwok-up here!)

[philjeans] 03/11/2011 08:02

Recent article on seven value stocks included BSST;



Elsewhere, Bluestar Secutech (LON:BSST), the Chinese security surveillance business, produced a second successive year of increased revenues and profits in 2011 on the back of increasing demand from the banking and government security markets. With net assets of £24.4 million and a market cap of £12.5 million, BlueStar scores a price-to-NCAV of 0.56. Closer inspection reveals that within the company's £29.6 million of current assets, £21.3 million is attributable to trade and other receivables – in other words, money that the company is owed. BlueStar has conceded as much – claiming that despite many of its customers being banks, it normally takes it many months to get paid. It is a similar story at another Chinese business software company, Geong (LON:GNG) which, with net assets of £17.9 million and a market cap of £7.89 million, has an NCAV of 0.48. Pre-tax profits and margins improved substantially last year at GEONG as the implementation of a software-as-a-service model took effect. Total current assets came in at £23.2 million, within which trade and other receivables totalled £4.8 million and accrued income – amounts due from customers on the achievement of milestones but not yet invoiced until completion of the project – totalled £11.4 million. High Accounts receivable (or cash not received from sales) can be a red flag on company accounts, and combining that with the opaqueness of foreign listed AIM stocks accounts can make the risk in these stocks high.

[longsight] 26/9/2011 13:29

Unusual RNS

[philjeans] 23/9/2011 10:23

Building nicely - looking very cheap.

[edmundshaw] 23/9/2011 09:04

Another nice little contract. Around £1.6m for the two in August & September at today's fx rates.

[philjeans] 06/9/2011 14:18

Yes - it would seem so.

Very good news.

[gelp] 06/9/2011 14:08

CIM DISCOVERY FUND LIMITED, BOUGHT 3,000,000 SHARES, 4.12%
A fresh investment from Jean R. Perrette?

[zangdook] 02/8/2011 16:42

I don't know if these are possible markets for BSST. (I have no position, sold out long ago.)

[saucepan] 20/7/2011 11:25

Yes, I am pleased with results, too.

[bill182] 20/7/2011 11:16

The most positive thing for me, is the improvement in cash from the half year report, which at the year end is circa £5.5m compared to £2.8m at the interims. With net assets of £29m compared to a market cap of £14.74m, the share price is trading at a very large discount.

[edmundshaw] 20/7/2011 11:14

Yes.

Dividend also up 3.6% considering the witholding tax, though the headline rate is lower. (witholding tax => higher cost for the co and also recoverable for UK tax payers so yield up.)

Nice and reliable, low PE, with good prospects.

[philjeans] 20/7/2011 11:08

Yes - no obvious flaws there - save the large amount in debtors again. They've commented on it and I don't imagine they'll lose any to bad debts, considering the clients.

Excellent value down here - and with a nice yield now.