Midas Capital Share Discussion Threads

[steve_wilson] 19/10/2006 17:23

Sadly despite recent good news the directors have not managed to inspire confidence in enough institutions or investors to buy shares in MDS. History has shown a few sells have faltered the S.P and successfully added to scepticism held by existing shareholders and by any new investor/s.

S.P decline a good opportunity that will pass by most. The directors have a finite responsibility to promote the potential future successes of Mondas plc


SJW

[mollymolly] 19/10/2006 15:18

Will,
You may be right that PR is lacking. However, I for one am very impressed with the turnaround achieved. Mondas is no longer on the sick list. It has three parts of the business performing well, it is profitable and has a solid balance sheet. That is quite some achievment and is one which Jarlath McGee and Ian Selby should be proud of.

I think it is now only time before the share price reflects the strength of Mondas' position.

[birdie4] 19/10/2006 13:50

What makes it more frustrating is the fact that only 16k shares have been traded at a value of approx £2700 and the price drops nearly 10%!!

[gac141] 19/10/2006 12:44

Will

I think we all have to remember just how far Mondas has come over the last couple of years. Share price no (I am at a loss to understand why) but as for the company they have managed to build a strong platform for growth and profitability.

They do expect to make 700k profit, which is 10x higher than any previous profit, and they are winning business in every core part of the company.

What more can they do???????

I certainly expect the share price to rally significantly from the levels today. The AGM will give the company the opportunity of updating us with the current situation in all parts of the machine.

George

[johnboy8] 19/10/2006 12:35

I think the spread puts off a lot of potential new buyers.
Some investors get well inside the spread, but many who might be interested
take one look and move on to another share with a less daunting spread.

[magpie99] 19/10/2006 12:25

In a nutshell - not the PR, not the good results

simply

Supply and demand

There are too many shares for the buyers that are out there- The continual issuing of shares has led to the problem- as simple as that.

[magpie99] 18/10/2006 17:54

This indicates to me the weakness of the SP, it did not rise even when we had such good results.

I await a 25p share price eagerly, but possibily not this year.

[mollymolly] 18/10/2006 14:44

Must admit I'm amazed that the share price has not reacted to the decent interim statement, BUY note from T&G and director buying.

Mondas is in its best position ever, but still we languish.

[magpie99] 18/10/2006 12:51

No sign yet that we are approaching the 25p level - 2 more months to go before Christmas and I am counting down.

I believe the resistance level is 20p and we have seen no sign yet of being able to convincingly maintain the level.

Some comment in the weekend press that tech stocks could be in for a revival soon.

The share price is still around the same level as when the new management took the reins 2 years ago.

I reckon if HSBC rolled out globally with CAPS then we would break 20p and flirt with 25p. Magpie ( The only person to predict the share price would fall to 10p some years ago- In fact it went lower to 7-8p, those people who sold must be very sad now)

[gac141] 12/10/2006 12:54

Yes it was a good read. Mondas has been on the end of the beating stick for a quite some time. I think it is only now that the markets will take us very seriously. The damage that was done to the reputation of the business was much more serious than anyone ever expected. The current position is definitely much much better and the business is rapidly going forward.

George

[napoleon 14th] 12/10/2006 02:48

ram - interesting piece, that.

I wonder if there is a test, computerised or other, that enables individuals to assess themselves as investors/money managers?

Could provide rational insight as to why/where decision-taking is flawed, reducing emotion-related errors leading to bad decisions!
__________________

Anyway, MDS's current state tempts me to add more.

[rambutan2] 11/10/2006 21:33

hi gac,

i agree, but only trouble seems to be that apart from a few that frequent this board, there is rather a dearth of buyers!

i'll be charitable and assume the board can't help out because they're in the process of signing a significant new contract!

i read an interesting piece on behavioural finance the other day. it's something which i, as a contrarian investor, strongly believe in. mondas will/should make a textbook example of how this science works.

[gac141] 11/10/2006 19:07

Afternoon Rambutan

It is not very much only 20k in total value. I think that once this has been soaked up the share price will recover quite well.

[rambutan2] 11/10/2006 15:23

i reckon that still approx 125k shares on mms hands counting back to day of the 13p dump.

[andy man] 11/10/2006 14:57

Every reason to expect Mondas to double in the next months. Spread has tightened expecting a rise.

Cheers
Andy

[magpie99] 10/10/2006 16:14

and the Directors are buying bucketfulls of shares

[steve_wilson] 10/10/2006 09:12

Good Morning Viney

YES. Mondas has proved it can succeed. The business is now set on a solid platform that will increasingly become a cash generator. One might consider, how much will the forecast be uplifted to next year? £1million is a little conservative, particularly if we see further evidence of automation in the CAPS sector. I discussed with my advisor and it appears that the Sales Pipeline and Sales Cycle have shortened dramatically this year for Mondas. Intuitively I sense Mondas is securely on the up.

SJW

[viney1] 09/10/2006 18:37

Mondas is vastly undervalued and is now showing obvious signs that it is becoming a very big success. It is common knowledge that the directors believe that the forecast figures from Teather and Greenwood are expected to be met and may be exceeded.

Current valuation has factored in none of the below.

Mondas make £670k-1Million
Captured one major global client with CAPS Radica V4 a world-leading product.
Blue Curve likely to achieve high earn out capability and also has a world-leading product.
Resource doubles profit on previous year. Is the biggest supplier of software in this industry in the UK.
Reminder that all parts of business are profitable
Sector average P/E Ratio of 18. Mondas Currently P/E Ratio a meagre 7



Consensus persuades us that Mondas is set to be completely re-rated by year-end and should exceed even hopeful expectations recently aired.

Watching closely. It has very compelling rational to buy a seriously undervalued stock

Vin

[andy man] 06/10/2006 09:02

Someone is fishing and brokers happy for stock.

Financials are v strong at Mondas and prospects are real. Still predicting 25p or more by year end.

[orange1] 05/10/2006 11:59

Hammy

Wrong address: you should be on the Ted Baker thread.

[hammy davies jnr] 05/10/2006 11:55

noice chirt.

[mollymolly] 05/10/2006 10:36

The T&G BUY note says:

"Mondas is a much-changed business now compared with 18 months ago. Credit must be given to management for accelerating and enhancing the growth profile through the acquisitions made, and the internal restructuring action undertaken. This, combined with an improvement in customer confidence within the key markets served, has resulted in significantly improved revenue visibility, an enhanced pipeline and contracting sales cycles. While the outcome for the full year is still, inevitably, tied to timing of conversion of prospects, the risk/profile pendulum attached to this stock has taken a major swing in recent months. Against this background, a FY 2006E PE of 8.2x, falling to 5.9x in FY 2007, clearly fails to reflect the underlying trading momentum.

We maintain our target price of 25p which, in our opinion, represents genuine 12-month upside potential. This stock warrants greater attention from investors interested in companies that have moved through an inflection point. "

The interim results statement said: "....trade strongly and is well positioned to achieve full year expectations".


We really have seen a remarkable turnaround. All parts of the business are trading profitably. No longer are we in the position that the target might be made if some really major contract lands. The directors expect to make the target and, in my view, there is a better chance that they will beat it rather than miss it. What is more important, it is increasingly clear that this is not a one off profit, but something that will continue in 2007. The 'global rollout' of CAPS will surely last well into 2007, Blue Curve's rate of landing contracts should at least continue, and Resource will probably grow at least 10-20%. So not only will we have a decent profit in 2006, there is a very real likelihood of growing it by the 50% forecast in 2007.


In the past we have consistently been let down by the slow take up of the Company's CAPS product. Jarlath McGee has now broadened the company so that it is not all or nothing with the CAPS product. Currently most Corporate Action processing worldwide is done manually. It is obvious that over the next few years that most of this will be computerised. Mondas has the leading product and has proved that it can implement it efficiently. It is still not clear to me how quickly CAPS will be taken up, but it is clear that Mondas is not dependant on CAPS to make its numbers. Jarlath is now, after years of slow progress, not depending on CAPS to make a success of Mondas. When CAPS does take off in a BIG way that is UPSIDE. The timing of this does appear to me, to still be uncertain, but Mondas will be around to take advantage of it when it happens.

Most investors reading this will have bought Mondas shares (at higher share prices) because of the excitement of the CAPS potential. That is still there , Mondas is in its strongest position ever to take advantage of it. What is different is that Mondas no longer depends on spectacular new sales to make its numbers. We have an exciting business which is clearly worth much more than the current valuation, but also with the potential for much bigger things still being there.

[rambutan2] 04/10/2006 22:54

also noted that we lost out in...

Companies for the 21st century

02 Oct 2006
F N picks 21 technology firms with the potential to shape the industry landscape in the new millennium.

[rambutan2] 04/10/2006 22:43

only one trade reported this week (6553 bought at 15p), and that was a late one from the previous friday!

ho humm.

in any case, i spotted this, which cheered me up - although not as much as if it had been caps!

A priority in Morgan Stanley's back office has been the automation of corporate actions processing and the bank's European equity asset servicing renovation programme, which won the award for Best Back-Office Solution.

David Pilgrim, IT programme manager for asset servicing renovation at Morgan Stanley, said: "The ability to process corporate actions and dividend payments quickly and efficiently is an important differentiator and gives us a competitive advantage."

The six-year programme was launched to renovate the business processing and systems used by Morgan Stanley's asset servicing operations. The aim is to build an integrated platform that will eliminate manually intensive functions, consolidate processing on to a single platform – which should remove the booking of election errors and better manage operational risk – and provide tighter deadlines to clients and traders. It supports the prime brokerage business, securities lending, equity financing and tax operations and controllers.

Pilgrim added: "Many of the systems that support these businesses are on different platforms, a legacy from the late 1980s and early 1990s. As Morgan Stanley grows, we are integrating these systems to ensure we have central processes that provide an enterprise-wide solution across business functions."

Since the asset servicing renovation programme began in 2000, processing times for corporate actions announcements has been reduced by a factor of four and operational staff numbers have been reduced by 10%. Payment of dividends on pay date has increased by 45%, while improvements in election flows has enabled client deadlines to be reduced from 48 hours to four.

An enterprise-wide entitlement calculator and a single source of accruals and payments has eliminated the need for reconciliation processes used by controllers. The renovated accounting has produced a simpler booking model, cutting the number of account breaks and manual adjustments by 66%.

Pilgrim said: "Corporate actions are becoming bigger and regularly involve hundreds of millions of dollars. They are also becoming increasingly complex. We have seen a flow of positions coming to us to process complex corporate actions and that is good business for the prime brokerage division. At the same time, the ability to pay on date is something you need to do to stay in the game and that is what this programme has achieved."

Renovation to asset servicing in Europe is the focus before the programme is rolled out fully elsewhere, however it has been deployed in Hong Kong and Tokyo with little process change, according to Pilgrim.