Software Circle Share Discussion Threads

[zangdook] 11/10/2010 16:37

For those planning to hold - CBI did a compulsory purchase on remaining stock after their tender. Don't know if these guys will do the same but it's worth bearing in mind. Same price but extra delay.

[davidosh] 11/10/2010 16:23

I have picked up another 75k at 7.24p as well. Naturally I will be tendering them at 8p and although there is always an element of risk until the cash is back in your account. However this does look like a reasonable risk/reward scenario for a 10% return that annualised must equate to nearly 60% yield so worth the gamble.

Fingers crossed and will help me to feel better about the fact that I was expecting to see 12p plus from this investment within a year when I first bought in June.

[gazza102] 11/10/2010 15:32

Question - people that are buying are they doing so to sell their shares at the tender price of 8p.

Why are the shares not nearer to 8p to buy?

[stewjames] 07/10/2010 13:58

kappa3, I meant it's nuts to be selling in the market instead of tendering.

[gazza102] 07/10/2010 13:05

Just tendered my shares - Roll on the 3rd Decemebr for my money

[kappa3] 06/10/2010 08:03

If we don't sell at this low offer than we loose everything as the shares can't be traded

[stewjames] 05/10/2010 21:10

gazza, I agree. It's nuts to be selling unless you're really, really desperate for the money.

[gazza102] 05/10/2010 15:57

Zangdook - 7p into PMHL maybe 8p but not guarenteed.

I take it the MM's will sell your shares to the tender offer at 8p they bought cheaply from you for a nice profit!

7p to 8p - 14% rise for 2 months waiting.

[zangdook] 05/10/2010 14:19

A very disappointing timetable here. By comparison CBI opened its tender on June 11, closed it on June 25, held its EGM on July 6 and handed over the cash on July 14. I know SFT need a court hearing, but couldn't they have got it together a little faster? No wonder the share price is falling.

[zangdook] 05/10/2010 13:29

oops, I missed that RNS, thanks for pointing it out.

People sell now rather than wait two months for the cash.

I suspect if you put 7p into PMHL today you'll have more than 8p worth come Dec.

[boadicea] 05/10/2010 13:01

SelfTrade have sent a message which can be replied to by secure mail etc by 5pm on 14th Oct.
BSL usually take a day or two longer to notify.

[gazza102] 05/10/2010 12:52

I think you need to look at the RNS. 1st December is the settlement date - correct me if I am wrong. Votes need to be in by 22nd October.

So why are people selling? 1p on a small amount I can understand but on 250,000 shares i don't.

[zangdook] 05/10/2010 11:27

To get cash now. The tender doesn't even have a date yet - it could be months.

[gazza102] 05/10/2010 11:18

Why are people selling in the open market at a lower rate when the tender offer is 8p?

[stewjames] 04/10/2010 19:51

Contact your broker and ask them.

I've had accounts with 3 different brokers and all of them would usually contact me in such cases without prompting. Sometimes they did need chasing up, though.

[gazza102] 04/10/2010 16:43

Anybody know what I need to do to sell at 8p. My shares held are in a nominee account. Thanks in advance.

[muxdapanza] 17/9/2010 16:34

Once the High Court and the votes have gone through successfully the bid will be set at 8p by the company through the market makers

I don't know how long that process will take.

[zangdook] 17/9/2010 16:23

Sage

If that's so, it might be worth rejecting the tender and holding on? But then they wouldn't be wholly owned within China...

I'd sell mine now if the bid would get a bit closer to 8p.

[the_doctor] 16/9/2010 20:04

You may be right S&O, it's all too odd IMO

[sageandonion] 16/9/2010 19:56

I think that there is more behind this offer than meets the eye.

From memory I recal that a large portion of Sinosoft contracts are PR China Govt contracts, I also recal that they recently purchased another software company in order to qualify for more govt contracts that were only available to that company because they were wholely owned within China. I remember thinking at the time that it was strange as now that Sinosoft had bought them then surely that would disqualify them from those same contracts.

I believe that this whole episode has been "arranged" in order to take Sinosoft back into private Chinese ownership where it can win further PRC Govt contracts without having to worry about foreign ownership and AIM rules about declaring business activities to the wider world.

Once they are back in Chinese hands then you can bet that the contracts will role in and they will be back on a winning path. They have come to AIM raised finance at a relatively high initial offer price off the back of a PRC Govt contract and then things have gone downhill ever since. The PRC Govt pulled the plug on the Export Tax digitisation rollout which would have secured Sinosoft had it gone through to completion in the way that was planned.

Beware of investing in China, sure there is money to be made but the risks from shadey dealings are high. In future if I want an investment in an emerging economy then I will stick to India, Singapore, SA, Africa, etc and avoid the Communists.

[the_doctor] 16/9/2010 07:38

'a prolonged period at current operating loss rates or losses widening further.
I'm comfortable calling the business a failure in either of those scenarios.'

well, I'm also considering a scenario in which wider economic weakness pushes SFT into a prolonged loss, but the business could be a success when things then improve.
Spending too much of their cash now on things they have no need to spend on, wipes out that shot at making it.
Most companies are trying to conserve cash, particularly those that foresee a period of challenge

They're actions therefore strike me as odd. Maybe the trading wasnt quite as difficult as they made out? Would be handy if they could knock the share price down and buy a load back on the cheap?

'a little extra risk'
I see where you're coming from, but IMO it makes the risk much greater

[stewjames] 15/9/2010 19:06

the doctor, I am indeed only looking at it succeeding or failing. There's a reason for this - adding it up, the only ways they end up needing the cash they're planning on using for the tender offer is a prolonged period at current operating loss rates or losses widening further.

I'm comfortable calling the business a failure in either of those scenarios.

OK, I grant you there's a small likelihood they need the cash *and* it would have been enough to turn the business around *and* they're unable to secure funding despite the evidence a turnaround is viable, but IMO the chances of this confluence of events is negligible. The move makes plenty of sense from the point of view of the major shareholders. It significantly improves their potential reward for only a little extra risk. (Which doesn't mean retail shareholders should reject the offer - they don't get the same benefit since their risk is considerably heightened by a delisting)

[zangdook] 15/9/2010 16:05

A sceptic might wonder if they wanted to take it private on the cheap and orchestrated the whole thing.

[boadicea] 15/9/2010 09:58

We should probably try to look at SFT with eastern logic.
Their problem, perhaps, is not (in their eyes) that they wrongly gambled in fx but that they failed and got caught. Honour now dictates they should fall on their knife rather than apologise and carry on.
So, shut up shop on AIM and surrender 8p (which approximates to the share price before the debacle emerged.).

[the_doctor] 15/9/2010 09:05

Stew

They are making an operating loss at present

things dont have to get worse, they could remain disappointing, in which case SFT would burn through its cash

'in which case the business will have failed and all the cash will be doing is prolonging the death throes'

you seem to look only at it succeeding or failing.
However, on the way to either of those outcomes takes time and possibly money

my point is that having more cash could allow it to get to later success, whereas not having enough could mean that it runs out on the way there

I find that strange.