||EPS - Basic
||Market Cap (m)
|balancer: This board has gone very quiet again though the CSY share price keeps going up.
Back last August I posted that the number of bargains a year had increased from under 500 to over 1,000 in three years.
The increased activity has continued. For the whole of April the annual total of bargains was over 1,250 and is has now been above 1,300 for two weeks. Also there have been nearly 750 in the first four months of 2006.
There seems to be a very good increase in activity, even without much news from the company.
|mctmct: Buy CODAScisys at 370p
Says Andrew Griffiths of the AIM and OFEX Newsletter
Since early 2001, CodaScisys has lost around 40% of its value, yet earnings per share over the same period has more than doubled. Either way there's an argument that some important investor relations messages are perhaps not getting to the wider world from this solidly performing business.
The most recent news from the product of a merger between the CODA accounting software business and the AIM-listed Science Systems is one of stability. Trading is in line with expectations, which are pretty high.
CODA added a record 33 new clients in the first quarter, including contract wins with Henderson Group, NovaStar Financial and Initial Style Conferences. There was also a juicy 300,000 pound contract with Four Seasons Health Care.
Demand for consultancy services is recovering across all the territories that the group operates in. And, following its acquisition in January, CODA France is now fully integrated into the CODA business. The new business pipeline is also strong.
SciSys continues to progress in the space sector, with early involvement in the Galileo Programme and several new projects underway for both on-board software and simulation. Within defence, the division has seen extensions to existing projects for development and support of systems within the Ministry of Defence.
The outlook for the division as a whole remains healthy.
And finally the Business Collaborator division made advances, with a three-year contract to provide extranet services to Thames Water and a contract with Edmund Nuttall.
SciSys is identifying acquisition opportunities that can assist its growth in the space, defence and public sectors, while CODA is pursuing a growth strategy that focuses on a broadening of its "financial intelligence" product range.
So with the group intending to grow organically and through acquisition, why are the shares so lowly rated?
The group's track record of earnings growth over the past few years would be second to none were it not for 2003, when adjusted earnings per share slipped back. But that's no reason for the slide on the chart. Underlying the record is a conservative but nevertheless ambitious management team many of whom have been with the business for many years. It is a reassuring combination for shareholders.
The most recent trading statement on 25th May confirmed that CodaScisys was trading in line with expectations. This should mean that earnings per share, as forecasted by the house broker, should come in at 31.3p for the year to December 2005 . The shares are currently trading at an excellent value 12 times prospective earnings for 2005. The group also pays a modest dividend. Some better PR might pay off, but in the meantime, get some.
Share price: 360 - 380p
|balancer: A good, solid, trading statement followed by a small rise in the share price but very few dealings. The problem with csy is that not many have heard of it.
It still looks to me like a well managed company that is achieving steady growth in turnover, profits and dividend.
As I have said before I can live with a share that increases both price and dividend by 20% a year.
|harry punter: its a good company - longer term -bid premium are not in this current share price as any built up bull position has been well and truely unwound by now --it would be very nice to see some strong investment interest start developing|
|poolie1908: Come on Harry.
The expected good results were priced in over the last few months. The only news to shift the share price was the Microsoft deal and that wasn't known to your broker until it happened.
I think it more likely that you got yourself too far in and these are poor attempts by yourself to ramp the stock.|
|harry punter: my source is very confident -he holds 150,000 -not so sure myself though looking at today,s share price behaviour|
|balancer: Hi Yogi,
This board is quiet becasue there are not many readers and even less posters.
The problem with good companies like CSY is that they are too small to get the publicity they deserve so they only have a few shareholders.
I bet that a large majority of the shareholders are employees, cutomers and their relations, plus a few friends. The general public does not know about it.
I hold because I like the 20% increase in the dividend each year and the steady increase in share price over the last two or three years (since the .com crisis). I will keep on holding so long as I believe the management can continue to turn in good results.
Looks good for the couple of years but I don't see £5 soon unless they get some good write ups in the financial press.
|balancer: There seems to have been an increase in dealings, and the share price, over the last three weeks. No annoucement from the company about any good news, nothing expected until the proper results in a couple of weeks and probably no up to date information until the Chairman talks at the agm (probably end April).
Someone must know something. Have they signed a big order and the customers employees are buying shares. I assume the csy employees are out of the market till the accounts are out.
|fse: Interesting to note the differences between 1999 and 2004.
The Turnover and profit has doubled and the share price is half !
Taking out the high and low extremes I figure we should hit 500p in a year and keep the stock on fair valuation.
I was asked if I felt they were still worth buying so my answr is yes as the price was marked down last year due to a general misconception and they have only really started to just recover the losses.
The company says its has succesfully integrated the acquisitions and that does appear to be the case.|
|balancer: Good news with a small increase in the share price. The announcement was everything I hoped for. I now hope for a statement at the agm to the effect that 2004 is looking good.
Compare CSY to SUG (Systems Union Group) also an AIM share in a similar market to the CODA division. They trade on a much higher PE but the last few announcements have reported declining turnover but heavy cost cutting resulting in an increased profit. CSY report increasing turnover and increasing profit, they pay a dividend at it is very well covered.
I am gald I hold CSY shares and not SUG.
Codascisys share price data is direct from the London Stock Exchange