Electronic Data Processing Share Discussion Threads

[mach100] 26/1/2014 18:43

Actually looks a pretty sound balance sheet with no net debt and a diverse range of customers. Nice to see you here sbob. You timed your exit of Braemar Seascope well. I exited on results and it is sub 500p now I think. I am looking to get back in at 450pish there if it falls that far. I will certainly be keeping an eye on EDP. Looks interesting although I am presently looking for oversold stocks which will rebound and I don't think EDP falls into that category.

[mach100] 26/1/2014 18:30

Good I can be the first to post at last. What is this company all about? Do you know, Mach? No, not a clue. Name sounds good and the chart looks like a staircase.

[feedthegoat] 15/1/2014 14:42

bit of action at last recognising the value on offer

[tmfmayn] 23/12/2013 13:45

I would be hesitant subtracting all of the cash from the Mkt Cap to get an EV figure. There is £2m of deferred income (upfront customer payments) on the balance sheet, which could theoretically be handed back by EDP to clients. There is also a £1m pension deficit that may one day absorb a material lump sum from the cash pile. My EV would be cash plus surplus property less deferred income less pension deficit.

I looked at EDP this time last year and again today here:


Not quite a rating of 2, but 8.3 is not bad. Needs some top-line growth now to re-rate. Happy to hold in the meantime!

[topvest] 17/12/2013 22:01

Yes, pretty steady results. Be nice to see some real top-line growth and expansion here as the core business is pretty robust. Happy to hold.

[wjccghcc] 17/12/2013 13:10

You're right gunner. Apologies EI - I should read it more carefully too. Adding a comma might have helped!

So R&D of 940k of which 822k is expensed in the income statement and 118k capitalised.

Anyway, including the 1.4mm sale proceeds of one property (but ignoring the second property that is now being marketed) gives net cash of 7.1mm. I calculate their free cash flow as 875k giving an EV/FCF of just over 2. Makes them the cheapest stock I can find on the market using the EV/FCF measure.

Or course, realising value depends on them giving us back some of the cash but the 5p special divi this year is a good sign that they're happy to do it.

[gunner_ni] 17/12/2013 13:02

WJCCGHCC
I think that line from the RNS is a little ambiguous and that £940k is the R & D figure. However only £118k of this was capitalised:
"Our total R&D expenditure increased to £940,000 (2012: £914,000) of which £118,000 was capitalised as required by IAS 38. The remainder has been expensed in the income statement."

[essentialinvestor] 17/12/2013 12:34

Right, clearly I should have read rather than glanced.

This is the first share I bought, back in 1992 from memory, I was still a
teenager at the time - the market cap was similar to Sage back then.

[wjccghcc] 17/12/2013 11:29

Actually, that 940k is their cash operating costs + R&D.

" .. our day-to-day cash operating costs including product R&D which increased to GBP940,000 from GBP914,000 during the year."

[essentialinvestor] 17/12/2013 10:26

Apologies, it was the R&D figure of £940,000k that I looked at.

[wjccghcc] 17/12/2013 10:10

Huh? Cashflow statement shows 235k capex on tangibles and 6k on intangibles. Where do you get 1mm from?

[essentialinvestor] 17/12/2013 09:41

Edit

Total director pay in the context of the pre tax also stands out IMV.

[arthur_lame_stocks] 17/12/2013 09:28

These are dirt cheap IMO, give it a year and the market cap will be almost all cash with the profitable business thrown in for free.

There are some value funds on the register now so we might see some action here.

[wjccghcc] 17/12/2013 08:58

If you add in the 2 properties (1 sold, 1 for sale), they have net cash of 7.4mm vs mkt cap of 9mm. Hopefully should get another large special dividend next year as well.

[topvest] 30/5/2013 20:10

Yes, the underlying business is at least holding it's own in a difficult market. They could do with putting their cash to some use by buying a new product or something to grow the top-line.

[richjp] 30/5/2013 16:27

I have held these for years so today's news is pretty good.

If they can afford to pay a special divi that suggests that the regular divi is safely covered so definitely a hold for me.

I suspect that the shares may be tightly held, but they might sell out one day for a nice little premium.

[topvest] 30/5/2013 11:09

Yes, looking good here.

[roddiemac2] 30/5/2013 10:38

A very healthy special dividend ( not for the first time since I have held these )

The building sector should improve from here. Government directives on new housing will ensure this.

[roddiemac2] 21/5/2013 11:35

feedthegoat

I have held for a similar period, and last added in September 2011.I did sell during the dot com. bubble, and bought back later. with that exception, the share price performance has been unexciting, but dividends have more than made up for that.

This is a carefully run business with piles of cash. They may well make an acquisition at some stage.

[feedthegoat] 21/5/2013 10:56

thanks good spot,hoping for a bit of action after 20 years plus holding

[roddiemac2] 20/5/2013 23:03

feedthegoat

Since Herald Investment held 13.81%, I think we can assume that Boyles Asset Management have bought Herald`s holding .

Boyles Asset Mnt. --see below

Welcome to Boyles Asset Management, and thank you for your interest. Our fund was launched in May 2013 and is inspired by the Buffett Partnerships of the 1950s and 1960s. We believe in pay for performance, and have structured our fund so that incentive fees are dependent on strong and enduring performance for our investors. Our philosophy is deeply rooted in value investing and it is complemented by a patient, long-term mindset and investment process. Our investment mandate is broad, though we operate with a particular focus on the equity of small and micro-capitalization companies. We participate in markets both in the United States and in select international territories. We look for investors that appreciate our approach and share a similar belief in the appropriateness of a long-term focus.

See also boylesasset.com

[feedthegoat] 20/5/2013 12:31

13.81% BOLES ASSET MANAGEMENT
what's going on here?any thoughts

[nick rubens] 21/12/2012 15:30

EssentialInvestor "Nick, if you are still around "

Yes, EDP shares are like my arms and legs, i've had them since I can remember! lol

Still holding these.