Kewill Systems Share Discussion Threads

[tratante] 19/7/2010 07:44

interim statement says they are still in discussions. Could be going for more than the first indicative price of 1.30

[gerardp] 17/7/2010 16:46

Looking at the share price has the takeover collapsed?

[man overbored] 16/7/2010 21:13

LOL!

The bidder was rumoured to be FedEx or UPS ( I forget which) way back when - 2000 or so - when the share price reached an EPS multiple so huge that it put most dotcoms to shame.

A solid outfit, but it is taking too long for it to be a trade suitor this time - probably a US PE house, in my opinion.

[erpguru] 16/7/2010 21:00

Small cap boutique Revera Asset Management says party like its 1998... buys 1.0 pct / 936,000 shrs.

[erpguru] 12/7/2010 22:25

Kewill AGM July 28th, the bidder is revealed or gone...

[erpguru] 08/7/2010 19:25

Withholding information makes no sense, unless it's an inside bid.

[gerdmuller] 02/7/2010 11:56

How long is it now? Must be 6 weeks and still no name. I just don't know why more information is not forthcoming. How much management time is being wasted on this bid which clearly undervalues the company?

[erpguru] 02/7/2010 10:21

Adding Consona Corp to suspect bidder list. PEs: Battery Ventures / Thoma Cressey. Hope not, Kewill can do better alone.

[erpguru] 23/6/2010 05:47

@GerdMuller hear-hear

[gerdmuller] 22/6/2010 12:03

These takeover situations are just getting more ridiculous.

At 130p why is the company still talking as it is clear that the position of the company has not been better for many years. They are getting through this tough climate very well and they have cash for growth and acquisitions.

As stated above the price may fall in the short term if talks fail but that may just present an excellent buying opportunity.

So I would say they should tell the mystery company to either sharply raise the offer price or stop wasting management time on this derisory offer.

[gerardp] 22/6/2010 08:47

From today's Independent :

Our view: Buy

Share price: 118p (unchanged)

Kewill provides services to businesses that need help streamlining their supply chains. The group sells software that simplifies logistics management, from sourcing to compliance and finance issues.

It announced prelims yesterday which showed a slight rise in revenues, up 6 per cent to £56.3m, of which 62 per cent were recurring. At the same time operating profit rose 30 per cent to £2.6m. The dividend was also increased 10 per cent to 1.1p a share.

The company has new products, has targeted new regions and continued to win contracts. It thinks that as legislation becomes more demanding, its systems will become more crucial, and a return of international trade will help.

The investment case is complicated by a bid, after it was approached in May with a deal worth 130p a share. It is worth picking, however, even though the price is likely to fall in the short term if the talks break down. Buy.

[gerdmuller] 21/6/2010 16:01

Kewill (KWL)

We have been treated to a surprisingly strong one year plus rally in Kewill over the past 15 months, particularly when one considers that the shares were not held back by the May setback for the stock market as a whole. The position now is that while there is no end of day close below the blue 50 day moving average at 107p one would be looking for a new leg higher for a test of the 2009 price channel top as high as 145p on a two to three month timeframe.

Not sure what this guy is on about but this was from UK Analyst today. Maybe too busy looking at his charts to realise they are in takeover talks.

[erpguru] 21/6/2010 15:25

Full year pre-tax profit almost doubled. Chairman ends...

Preliminary Offer Approach

The Company announced on 14 May 2010 that it had received a preliminary approach
at an indicative price of 130 pence per share. Talks are continuing and the
Company will announce further updates as appropriate. Shareholders should be
aware that there is no certainty that an offer will be made.

Richard Gawthorne
Acting Non-Executive Chairman
18 June 2010
Financial Review

[erpguru] 18/6/2010 08:55

KWL fair value about 180p

Price to Sales ratio 1pct 1.8, SaaS to revenue ratio (prob) 50pct. NetSuite PSR 5.8, SRR 100pct. Squaring up comparable ratios:

NetSuite PSR 2.9 (using Kewill 50pct SaaS Ratio). Thus Kewill = 1.1 under valued on price to sales.

Squaring up valuation. Kewill @ 2.9 PSR = about 1/3 more per share. 180p

[pandjb] 17/6/2010 20:05

Market still pricing as though the bid is not serious. CEO is hiding behind 'corporate governance' rules and doesnt plan to say anything until results update around 21st June(?). I disagreed with him.

Its not against the rules to say if the bidder is carrying out due diligence (that would suggest they are serious), neither is it against the rules to say if they think the price offered represents fair value or if it seriously undervalues the company.

Personally, 140 will do me fine (but 160 would be better ;o) ). This company has languished below the quid mark for so long that a 40% premium looks about the right - certainly its a reasonable premium. If it undervalues the company then Nichols should get off his ar$e and start telling us that is the case.

Waddya think?

[gerdmuller] 17/6/2010 13:39

Into week 5 now and still no sign of what is going on. Much the same as the TFC bid which took 5 weeks before details emerged. That one is looking more and more like a done deals at a very low price.

Although I do hope this one is not going the same way.

PE is active in this value range and KWL fits the PE bill. So if they offer management a good deal then they will probably succeed as institutions rarely put up a fight but just want a fast buck.

[erpguru] 14/6/2010 18:57

Kewill hits SaaS sweet spot, acquires Benelux

[erpguru] 12/6/2010 04:32

Outside bets...

CDC (Chinese PE).


Epicore (clever defensive move to stave off Elliott hedge fund)

[erpguru] 12/6/2010 03:51

Likely PE companies...

Francisco Partners, bulk up RedPrairie.

Golden Gate Capital, bulk up Infor.

[gerdmuller] 08/6/2010 14:58

Looking on IG it now cost over 130p to buy these now. Up 7 percent.

[gerdmuller] 08/6/2010 14:49

Well something seems to be happening today, now sure what though. Maybe tomorrow will bring more news and we will finally know the bidder. It may be another PE company putting in a low bid. USD is high against sterling so the opportunity is there to get hold of a good growth story at a cheap price.

[the_doctor] 07/6/2010 10:13

'with management seemingly being bought off by the PE firm with the offer of more shares in the newco'

sad

[gerdmuller] 07/6/2010 10:03

Looks like the same tactics as for the TFC bid keeping everyone in the dark for as long as possible. But at least we know the price here. In the case of TFC the bid at 47p ended up as being far lower than anyone has anticipated with management seemingly being bought off by the PE firm with the offer of more shares in the newco.

So we shall see if management cave in on this one as well or they actually battle for a good deal for shareholders.

[erpguru] 02/6/2010 22:53

Hedge Fund jollies, BlackRock added and shorted. Where to now?

[erpguru] 28/5/2010 09:54

Fund managers piling-in. Looks to be heading higher.