Patsystems Share Discussion Threads

[woodcot] 03/6/2010 12:02

bg23, we got the answer for some of yesterdays transactions.

Kabouter Management LLC manages "Kabouter Fund II" 5725000 shares of Patsystems are held in Kabouter Fund II.

I think it good news, a fund manager building up their holding. Looks as though they bought the 1.7 million at 24p.

Woodcot

[bg23] 02/6/2010 17:06

woodcot, you are probably right, although a cross of a trade wouldn't realise a capital gain/loss for tax reasons.

i think it more likely that the mm's are/were working an order and looking for matching business rather than themselves taking a prop position.

the only other possibility is that the company is buying its own stock - they did have the permission to buyback 5% on certain proviso's - although as I was unable to download the agm doc from the website and didn't attend the agm, I don't know if that capability still stands.

i expect we'll find out one day.........

[woodcot] 02/6/2010 15:41

bg23

I don't think they're sells, someone/company crossing the stock may be for tax reasons.

Again if they were sells the stock would be marked down a lot more than 0.5p. Plus I don't believe the MM's would even take that amount of stock on their books unless they had a buyer sitting in the wings for it.

Just my opinion.

Woodcot.

[bg23] 02/6/2010 14:08

mmmm, thats the thing with this stock, there always seems to be another seller ?

i thought things were looking ok and half expected the stock to go better, but sellers have come out of the woodwork, approx 1.4m gone through at 24p.

still i suppose the upside is that there will be less sellers around once these weak (?) sharholders have got out and that at least there is someone buying in size !

given yesterdays news, its obvious the company is winning business.

another rns due?

[woodcot] 01/6/2010 16:27

Thanks for the information bbd2.

There is a steady flow of positive announcements/news from PTS.

[bg23] 01/6/2010 12:21

intersting announcement, thanks for posting.

it shows the scaleability of the company offering in entering agreements that allow a regional broker/bank to access all international markets via the companies client base as well as the competitiveness of the company and its products in being able to acquire new clients in competitive tender.

i'm not sure of the size of the derivative market in total of the region although the local index future was certainly one of the highest volume markets a couple of years ago.

it also increases the natural hedge of the business model, further diversifying away from the developed market into emerging financial centres.

overall, pretty encouraging i'd say

[bbd2] 01/6/2010 11:23

Terra Futuros Partners with Patsystems
Chicago - 1 June 2010
After an extensive review of available electronic trading platforms, Patsystems is pleased to announce that it has been selected by Terra Futuros CM S.A., a BM&FBOVESPA brokerage firm in Sao Paulo that specializes in financial futures and commodities such as coffee, sugar, soybean, corn and live cattle.

Terra Futuros will use Patsystems new ASP hosted facility in Sao Paulo for North to South and South to North order routing and execution. Patsystems will provide Terra Futuros with low-latency connectivity to CME Group, eCBOT, ICE and BM&F, the derivatives segment of BM&FBOVESPA. By leveraging Patsystems XLink technology, any Patsystems' client who wishes to trade BM&F products can do so via Terra Futuros.

Terra Futuros will use Patsystems front-end trading platforms, Pro-Mark and J-Trader, both internally and for distribution to its clients. All trading activity will be monitored by Patsystems well established pre-trade risk management technology.

Francis Palmgren, Director of International Trading of Terra Futuros CM S.A., said:
"Terra's rapid growth, expanding global client base, and increased client interest in Brazil, requires the best solutions for electronic order delivery and execution in local Brazilian markets. By partnering with Patsystems, we're able to offer our market-leading execution services to Patsystems global client base, both buy-side and sell-side, via one of the largest trading networks in the industry, We're also able to expand our reach to growth areas throughout Asia, Europe, and the US."

Sean Barry, Managing Director and Officer, Patsystems, said:
"Patsystems is delighted to partner with Terra Futuros. Our flexible front-end, API and global connectivity offerings are ideal for Terra Futuros as they look to grow their business both domestically and internationally."

[interceptor2] 26/5/2010 16:55

Fair point but I would always use a chart to help me decide on where to buy, and where to set a stop/loss on all shares. If they break through the 26.2p breakout target, this would be a very bullish sign. imv.

Regards ic2.........

[bg23] 26/5/2010 16:49

no criticism, but the stock has spent 90% of the year between 22 and 24.5 with a possible break out today, consequently i dont see the use of a chart in trying to analyse this baby.

[interceptor2] 26/5/2010 14:37

Interesting to look at the 1 year chart, which has been range bound for the last year. But could we have a breakout soon, with the most obvious target 26.2p from August 2009.

If we breakout and retrace at 26.2p the chart shows plenty of future support areas of 25.5p September 2009, 25p November 2009 and 24.5p in March 2010.

Future technical action looks promising imv.......

Regards ic2........

[bg23] 26/5/2010 11:16

i see that the indonesian commodity exchange is now up and running, another feather in the cap of the company:



ICDX Launches CPO Contract with Patsystems
May 26, 2010


DATE: Immediate Release: 26 May 2010

CONTACTS:

Barry White
Regional Director Asia Pacific
Patsystems [phone]

Katherine Murray
Global Head of Marketing
Patsystems [phone]

Laren Tan
Chief Operating Officer
ICDX [phone]

Singapore: 26 May 2010 – Patsystems, the exchange technology provider for the newly formed Indonesian Commodity and Derivatives Exchange (ICDX), is pleased to announce that ICDX successfully launched its second contract, the Crude Palm Oil Futures (CPOTR) contract, on Friday 21st May. The primary objective for the ICDX CPOTR contract is to serve as the benchmark for Indonesian crude palm oil prices.

Patsystems provides ICDX with their exchange matching engine, which is a low latency, high throughput system that can process hundreds of orders per second and scale to thousands of orders. Patsystems scalable technology will allow ICDX to seamlessly launch new products as the exchange continues to expand.

In addition to providing ICDX with their exchange matching and clearing technology, Patsystems also provides ICDX with their front-end trading and order management system. This includes the award-winning front-end trading applications, Pro-Mark and J-Trader. A series of webinars and training sessions began last week to provide ICDX members and interested participants with tips and best practices for trading the ICDX CPOTR on Pro-Mark and J-Trader.

Megain Widjaja, Chief Executive Officer, ICDX, said:
"Friday's CPO launch marked a significant milestone for ICDX as it brought us one step closer to establishing the price reference point for Indonesia's local commodities, namely crude palm oil, of which Indonesia is the world's largest producer."

Barry White, Regional Director of Asia Pacific, Patsystems, said:
"Patsystems not only views ourselves as the technology provider for ICDX; we also view ourselves as a true partner. We are actively engaging with the exchange members to provide education on the front-end trading applications, as well as engaging with our existing customers to provide information on ICDX."

[bbd2] 25/5/2010 15:14

Numis have a buy rating out on PTS with a target price of 32p. Anyone got access to the full note ?

[interceptor2] 25/5/2010 07:44

I brought in here earlier this year because of the strong fundamentals, and must admit wasn't aware of the situation with ION. So I'm happy to hold for future growth prospects.

But when I look at the increasing takeover activity in the undervalued small cap sector in the last few months, leads to a conclusion that I would expect a takeover approach sooner rather then later.

[hybrasil] 25/5/2010 05:22

Yesterdays lack of trade - a mere 200k shares - shows how the private investor has been decimated by the markets.
A shareholder who has been buying consistently for some years ION is surely not going to be content with a 30 % holding.

[glasshalfull] 24/5/2010 23:03

HB update

Recommendation: BUY

Patsystems (PTS, 23.5p, £43.75m)

Patsystems (PTS, 23.5p, £43.75m) AGM statement confirms the continued strong start to the new year, boosted by double digit growth in the existing Asian client base being complemented by the addition of Bursa Malaysia. We maintain our BUY recommendation with a 30p price target.

Regards
GHF

[glasshalfull] 24/5/2010 22:58

Here's the Edison flash note:-



Current Market cap £45m

2010 est. PTP £4.8m / EPS 2.4p / Net Cash yr end forecast at £12.3m.
Therefore current year PER and if taking into account the strong cash generative qualities and removing the expected yr end cash balance would bring this down to a PER 6 or 7 (too late for detailed calculation). Far too cheap...but as mentioned in the thread, it looks like ION are the only suitor.

Regards,
GHF

[dm1066] 24/5/2010 14:09

Don't have a copy of the note I'm afraid but it's mentioned on Citywire.....

[bg23] 24/5/2010 12:40

can you post the note or a link?

i'm not sure it would have any bearing on the timing or actuality of a move by ION, but i have seen a couple of references in the press recently regarding TA associates investment companies realising investments, but the topup purchase by ION does show a financial capability/availability of cash given that they hold approximately £14m in pats and a holding of +25% of FFA - both are essentially dead money to a privately financed company given that there is no balance sheet consolidation available, and thats a lot of cash to have tied up for to long to a return hungry Venture capital financed company.

i think they will bid, but the timing is un-guessable. ION have set out their stall as consolidator and are, with their shareholdings above, keeping other parties out of the game.

PATS company doesn't have a small shareholder following as evidenced by the 2 trades this morning, and its fairly tightly held by long term investors. so any deal when /if announced is likely to be a done deal and presented to shareholders as a fait accomplis.

as i said on the FFA board a while back, the only reason for continuing to hold the shares is that you have faith in the current management and are therefore looking to benefit from further growth whilstbeing happy to take the dividend. if you are expecting a sharp markup in the share price because ION are going to bid, its probably a long wait and there might be better places to have your cash.

[dm1066] 24/5/2010 11:55

Interesting to see ION adding to their holding again. Wonder if they are finally thinking of making their move? (Mind you, I've been wondering that for the last 3 years!). Also just received note that Numis have a Buy and 32p price target for Patsystems.

Anyone on this BB going to the AGM?

rgds

dm

[bg23] 24/5/2010 09:42

relatively positive tone to the very brief statement this morning, although it would have been good to have had a more expansive commentary from the company.

ION has announced that they bought the 2m shares last week, now hold 29.45% - probably funded the purchase through dividend income.

given edison's/market eps projections, I'd expect the share price to be improving rather than continuing sideways. its would be very easy to justify a 30p price given the companies cash generation and business mix, there is no premium in the price for the expected move by ION to take PATS under its wing.

new business wins might get the share price moving, but the only game in town apprears to be when ION decide consolidation time is right

[woodcot] 24/5/2010 09:35

ION purchase another 2 million PTS shares, they are now just under 30%.
Will they bid? And if so how much?

[interceptor2] 24/5/2010 07:39

The AGM statement has a good solid tone and management seem confident of future growth. I like the geographic spread which is ideal with stong growth in Asia, Asia 37%, USA 30%, Europe 33%.

I could see PTS as a takeover target this year.

[glasshalfull] 24/5/2010 07:16

Edison have 2.4p penciled in for the coming year and 3.1p for 2011.

With their strong cash generative qualities, large net cash balance and recurring revenue nature of the business they deserve to
be on a higher rating.

Regards
GHF

[glasshalfull] 24/5/2010 07:11

On track. Nice strong AGM statement.




At the Company's Annual General Meeting to be held later on today, Richard Last, Chairman of Patsystems, will make the following statement:
 
"In our annual results announcement for 2009 I stated that we entered 2010 "with a strong sales pipeline, a number of well qualified and well progressed sales prospects to new customers and the opportunity for continued growth from our existing customer base".
 
"I am pleased to report that 2010 has started as strongly as we expected with the addition of Bursa Malaysia to our client list, good progress on several other sales prospects and continued double digit growth in our existing Asian client base.
 
"Results to the end of April are in line with our expectations and this underpins our belief that 2010 will be another strong year for Patsystems."

[interceptor2] 19/5/2010 23:08

4 million shares traded today, could be another RNS soon?