||ORD ILS0.01 (DI)
||EPS - Basic
||Market Cap (m)
|Software & Computer Services
Simigon Share Discussion Threads
Showing 1876 to 1896 of 1900 messages
|Completely agree Rivaldo optimistic realism is a decent axiom for life but that shouldn't mean ignoring potential issues. The high level of receivables coupled with the auditor having reservations about revenue recognition shouldn't be brushed under the carpet - the $6.7m contract has not gone at all well. There's got to be serious technical issues for it to have taken this long, I don't buy the additional extras line as the whole truth.
Put yourself in the customers shoes - he had a training requirement for the beginning of 2015, how has that requirement been met for the last 2 years and at what additional expense?
I wouldn't be quite so concerned about the Israeli contract needing to get signed off,at least they won't have invested too much resource into it.
There's not too many companies i'm negative about but I do believe that a company with aggressive accountancy practices doesn't limit suspect practices solely in the accounts.
Interesting that there are jobs available, maybe they learnt their lesson from the headcount reduction of 2015.
Anyway good luck with your investment and i'm genuinely in awe at your company specific news trawling ability which I've found helpful for a number of investments.|
|Life and investing are totally different.
The market is full of the casualties of optimism.|
|Well I'm fully out now on the back of the resilience. Hope you guys do OK. For me, once trust has been broken, holding to see what happens isn't an option.|
|That's certainly true PJ1, the balance sheet has certainly helped along with the promise of a buyback.|
|I certainly wish all my Profit Warnings reacted the same way as SIM has!!|
I do admire your optimism.
Yes they have won large contracts for their size but they appear inept at completing them. This $6.7m contract is the 1st where they are prime contractor AIUI and a 18month contract has so far taken 44months with the hope that it'll be completed in the next 12. The revenue may be recognised in 2017 but I'd be amazed if there's any profit on the contract with all the overruns and not paid for extras. As regards to follow up work would you put further business with a company that's missed deadline to such an extent?
In the midst of winning the largest contract in the companies history they were busy laying off staff in all departments, the current delays does make you wonder if the talent left the building then.
As an aside - do you have an idea of staff numbers I've never scene the figures disclosed in the AR but may have missed it.
I'll be very interested to see the extent of the share buyback.|
|Back from hols, so pleasing to see the share price has performed extremely well given the disappointing contract delay and additional costs.
SIM are a microcap who've (for their size) won extremely large government contracts. We all know what can go wrong with such contracts. so delays and spec changes are hardly a surprise, but to a company of SIM's size the effects are highly material.
The saving grace from a shareholder POV is of course the cash pile of more than $8m, plus other assets, which nicely supports the current £10m m/cap.
Even with this setback SIM will still be profitable for last year with "at least" $0.3m PBT.
Finncap have retained their 45p target price.
For this year Finncap now forecast 3c EPS, i.e 2.4p EPS, based on $1.6m PBT. Given the contract revenues now deferred into 2017 this looks highly achievable.
There will also be 0.7c dividends each year.
It's also good to see the intended share buyback programme. The timing of this will be interesting - I don't think SIM currently have permission for such buybacks, so they'd have to wait until the next AGM or hold an EGM to introduce it.|
I think others may have imagined they can see the true value. Problem is, like many companies that seem unable to be clear in what they say, probably nobody will know whether, when, or if that value has arrived, may arrive, or appears to have arrived.
For me its a case of plenty more fish in the sea and a small loss is a small price to pay for preserving capital where I now cannot for the life of me assess the risk to it.|
|Seems to be a very illiquid share|
|Could it be that others have perhaps seen the true value here?|
|Quite bizarre that the price has actually risen today - perhaps some folk are more interested in the share buy-back, than in whether they can trust statements. Quite a helpful rise as I can get rid - not exactly got a lot to sell fortunately.|
|To much uncertainty surrounding this share now for me with so many details withheld from shareholders.|
|Well something's not quite right and this trading statement doesn't really make the issues clear.
The interim's said this '... As noted on SimiGon's 2015 full year financial results, delivery under this contract has continued on a slower timetable than expected as a result of the client requesting SimiGon to provide a number of deliverables outside of the original contract scope. As part of SimiGon's drive to support all of its clients, SimiGon has been prepared to agree to these new demands and has been meeting the delivery milestones during the first half of 2016. The Company looks forward to meeting all remaining delivery milestones during the course of H2 2016....'
While the trading statement says '... The Company has not yet received the requisite client confirmations which would enable the Company to recognise all the programs revenue.', which has to mean delivery milestones haven't been met but doesn't go into any details.
The statement does go on to say '... but we are confident that all of the outstanding issues will be resolved in the coming year. This will contribute to the Company's great revenue and profit visibility for 2017 and beyond.'
By referring to the 'coming year', rather than the coming months, it does suggest to me that the issues are quite protracted.
The statement mentions also says '... and after consultation with its auditors', which does rather sound like this has been forced on the company by the auditors, which could suggest that accounting standards are too aggressive, which is a certainly something worth following up.
If the issues can be resolved, then with costs falling it should pan out as the CEO says but confidence in the management must now be dented.|
|This is the original narrative from the 2013 Finals:
In June 2013 the Company secured one of the largest contracts in its history, valued at $6.7m and expected to be delivered over an 18 month period, and thereby also opened up a major new geographical region for SimiGon. The Company has already begun to deliver upon this contract, which comprises Phase I of the customer's program, and believes there remains potential for similar contracts with this customer in potential subsequent phases
44 months later i'd suggest this contract is in serious trouble and may not be delivered in full to the satisfaction of the customer.|
|If someone would like to list the questions I would be happy to ask the CFO for his comments!!|
|Obviously not aware enough of the lowly rated share to actually say what they mean in their statements though.
If you believe this, then you've got your head in the sand:
"... the Company's great revenue and profit visibility for 2017 and beyond"
They've also mentioned problems with 'signatories' for the Israli contract, but it was won in June.
"Once the expected contract has been signed it is due to be delivered within 18 months and its expected revenue contribution has already been factored into management's expectations for the year ended 31 December 2016."
(In fact, isn't that questionable in itself. A deliverable over 18 months, but fully booked into 2016. Unless they meant part of the revenue).
"The Company has also been disappointed that procedural delays in concluding the signatory processes underlying its contract with the Israeli Air Force (as announced on 20 June 2016) have not enabled it to recognise any related revenues in the Period."
So they haven't even got the signatures for the contract where they stuck the revenues into 2016 expectations.
So are they incompetent or what ? - the what being way worse.
Nah. Either way they're not investable any more imo.
I feel sorry for the people the broker pushed shares out to. Clearly they weren't in touch.
Only got myself to blame. Looking at ambiguous stuff through cloudy glasses.|
|Its only a delay in income not a disaster and price drop too extreme.
Share buyback will help price recovery and could indeed send shares to a quite a bit higher price. Directors obviously aware share is lowly rated and at last are doing something about it with the huge pile of cash they have.|
|Nothing to do with us. It's everyone else's fault! Note to CEO's everywhere - just admit you screwed up and you'll at least still have your self respect and maybe shareholders will still trust you.|
|This guy sounds dodgy as hell.
SimiGon President & CEO, Ami Vizer, said: "It is disappointing that our financial performance for this year has been affected by circumstances that are outside of our control but we are confident that all of the outstanding issues will be resolved in the coming year. This will contribute to the Company's great revenue and profit visibility for 2017 and beyond."|
I don't think there's much point. They've already demonstrated that they are not going to inform shareholders in an open and straightfoward way.|
|An interesting set of questions if anyone would like to email the CEO Efi Manea [email protected]|