Safecharge Share Discussion Threads

[trentendboy] 17/9/2016 08:58

Pay debt coming down with cash generation.They could easily borrow to but SCH or issue paper of course

[johnv] 16/9/2016 22:56

Could pays swallow sch, at the moment sch is a £371m company, how much would they have to pay. Remember that pays already has debt of £385m .

[trentendboy] 16/9/2016 20:57

It is also cash processing.SCH big customers include the PTEC customers like ladbrokes and the real big boys.PAY then control a larger share, can keep brands but improve margins

[melf] 16/9/2016 17:50

TEB, what merchants did you have in mind? I thought PAYS was an available option on all the worthwhile gaming sites.

[trentendboy] 16/9/2016 15:18

Had to buy a few more - with a yield of over 3% it is nuts to have the money in the bank.

With the TO possibility this could also provide decent capital gains

[trentendboy] 16/9/2016 15:09

anyone could be positioning here for a TO.

I cannot help thinking that the best fit would be for Paysafe to buy SCH as soon as possible to cement and capture the majority of the gaming sector and get entry into some seriously big customers.

[johnv] 16/9/2016 15:07

Some large trades

[silverfern] 16/9/2016 13:50

trading activity today

[penpont] 13/9/2016 15:07

From today's IC

The decision by payments specialist Safecharge International (SCH) to launch its own platform appears to have been a smart move. Safecharge Acquiring, as the service is named, ended the period to 30 June with 80 customers, meaning it processed more than 10 per cent of the group's total transactions. This had the beneficial impact of reducing the cost base by roughly $1m (£754,000) and so pushed cash profit margins up 1.4 percentage points to 32.1 per cent.

Safecharge has also launched tailor-made payment solutions for companies, including gaming giant Paddy Power Betfair (PPB), its first airline client in Israel's national airline El-Al and Sun Bingo. The group has also widened the number of services it offers existing clients and highlighted casino and bingo group Rank (RNK) as one which now used a "significantly broader" range of services from Safecharge. It further cemented its strength in the gaming sector, too, by improving its partnerships with gaming technology firm Playtech (PTEC), Bede, Bit8 and SBTech. The group said it would in the coming months be investing to build its sales teams to quicken the pace of its entry into the airline, retail and gaming sectors.
Analysts at Canaccord Genuity expect adjusted earnings per share of 21.8¢ for the year to December 2016, compared with 18.7¢ in 2015.


IC VIEW:
The large rise in the dividend was a "positive surprise", according to Canaccord Genuity, and with cash on the balance sheet which could be used for acquisitions alongside the potential for improved margins, the shares' 15 times forward earning price tag still provides value. Buy.
Last IC view: Buy, 262p, 11 Mar 2016

[johnv] 13/9/2016 10:11

Chances are Gervais Williams will be taking all the sells.

[silverfern] 13/9/2016 08:56

45,000 shares equates to nothing - £120k of market cap. Coverage over the next couple of weeks should move this north

[rivaldo] 13/9/2016 08:23

Given such excellent results I can only assume that traders have over-reacted to the comment that growth is expected to be "more moderate" in H2 this year. Given the solid progress in H1 that isn't a problem for me, and there's still time for growth to pick up anyway.

Worth noting that the cash pile is now up to effectively £100m...

[ali47fish] 13/9/2016 08:17

anyone can explain what the share price is doing this morning

[trentendboy] 13/9/2016 07:29

Strong results and 75 percent is very aggressive.Could be very strong returns

[rivaldo] 13/9/2016 07:28

Yep, excellent stuff - the dividend is way ahead of forecasts, and EPS is ahead of most forecasts at first look too.

The outlook couldn't be better:

"The Group enters the second half with a strong pipeline, benefiting from a number of significant new client launches and with our Acquiring Services performing ahead of expectations. Management are confident of growth prospects into 2017 and beyond"

[silverfern] 13/9/2016 07:17

Results and news - nice. 75% EBITDA will be paid in dividend. Should mean at least 15-17 cents per annum or 11-12p - at 300p that would still mean at least 3% dividend. Strong results

[crazycoops] 12/9/2016 16:04

Nice to see SCH have held up today - a bad day for the wider market. Let's hope there is a positive reaction to the over performance we expect to be announced here tomorrow.

[johnv] 12/9/2016 15:45

Another cash generator is PHTM

[trentendboy] 12/9/2016 09:11

3.8 percent yield for such a cash generator is remarkable given the bank rates available

[rivaldo] 12/9/2016 08:30

Gervais Williams has plugged his recent investment in SCH in another new article:



"Williams concluded his comments with the remark that, ‘The capital raised from selling companies in the last month has been invested in a series of new holdings such as....Safecharge in July.’

....Safecharge is a £396 million market cap company with a yield of 3.8 per cent that reported a profit of £22.7 million for the year to the end of December 2015."

[trentendboy] 11/9/2016 19:45

SCH and PTEC are closely linked. This is an Israel run firm, hence its network.The dividend yield is excellent and aggressive. One of my best investments and as PTEC are growing great guns do not underestimate it.I agree these companies and plus are undervalued now. That means they are cheapAll comes down to your risk preferences

[crazycoops] 11/9/2016 16:40

Another reason for the discounted valuation (perhaps) is the controlling interest of Teddy Sagi's investment vehicle, NorthernStar Investments. TS is a London based Israeli billionaire and founder of PlayTech. One has to take a view - I'm long SCH

[adamb1978] 11/9/2016 14:25

Hello

Haven't look at this before and liked what I initially saw, until I then saw that the CEO and COO were Israeli and it was regulated in Cyprus. Does anyone have a split by country of where the companies employees are located so that its easier to understand where this truly is an Israeli company?

Reason for asking is that in the last couple years I've owned PLUS and XLM (still own XLM) and both have traded at massive discounts compared to where you would ordinarily expect for a company with their fundamentals....and the reason for this is that there is a certain smell factor with overseas Israeli companies. XLM has recently started to break out but still suffers a massive discount, and PLUS only ever go to perhaps 12x - 14x from memory before the regulatory problems caused it to implode.

SCH looks similarly cheap to me on fundamentals (ex cash PE of perhaps only 12x - 13x, nice yield, growing very strongly etc) but I'm starting to think that that solely because of the location, rather than that the market hasn't noticed it - the mkt cap of £400m means its too big to be flying that much under the radar. You could easily argue that, if this were solely a UK company, it would trade on 25x - 30x perhaps higher, so low 20x ex-cash PE, which means there is a 40% Israel discount...which is probably around the penalty which PLUS and XLM have suffered from.

Can any confirm to me the Israeli % of employees so that I can confirm my assumption for the discount?

Thanks

Adam

[rivaldo] 09/9/2016 06:56

Nice - the stock market legend Gervais Williams has recently been buying into SCH via his Miton Group:



"‘We haven’t made a lot of changes; cash-generative companies with good potential for dividend growth are still very important for us.’ He points to London-listed online payment operator Safecharge as one share he has snapped up since Brexit: ‘The share price was decimated even though the company has $100 million in cash.’"

[trentendboy] 05/9/2016 15:14

Usually a good sign when results come forward - sometimes corporate action related to boot