Touchstone Grp Share Discussion Threads

[cockneyrebel] 02/5/2007 13:47

impressive rise.

CR

[liarspoker] 02/5/2007 13:08

Watching it Tole. :O)

[tole] 02/5/2007 13:06

10k @ a 2p premium this morning pushing this one higher :)

[madmix] 30/4/2007 19:14

Hi,

I bought some on Friday. The rating here looks too low (forward PE still below 10) and with software stocks now generating a lot of interest, a re-rating might not be too far away IMHO.

(Thanks for sending me the broker note on this a few weeks ago Tole).

Cheers,

Chris

[stegrego] 30/4/2007 18:03

Jumped on board earlier too - need to add though so hoping it stays steady for a few days :)

[thefurryone] 30/4/2007 16:39

I confess that I took a small slug today too (it was me that moved the offer price not long after 2pm). Unfortunately I only got around a third of the number of shares I was looking to buy. This has led me with a dilemma: I'm keen on the medium-term prospects for TSE but if I have this much difficulty buying the stock, what kind of problems will I have in selling it?

[tole] 30/4/2007 15:57

Nice to have you aboard Nurdin ;)

Still reckon these should be nearer to 300p - A conservative broker EPS estimate of 22.4 (likelihood of being beaten imv) and on a 2008 rating of only circa 13 seems fair for their consistent track record.

Believe broker target here is still 250p - so plenty of upside for a short term re-rating now we've popped through resistance and 200p.

[nurdin] 30/4/2007 15:39

Joined you guys here today....gulp :o)

[tole] 30/4/2007 14:35

No stock about by the looks of it at the moment -
MM's willing to take 10k @ a 3p premium to the bid (10k @ 210) Cant actually get anything through online trading either.


Small write up on Hardmans April update...

TOUCHSTONE
Touchstone's trading statement showed the company continuing to make good progress. The market for Microsoft Dynamics software in particular has
done well for the company. It has increased its average contract size and is now moving up to challenge the strategic consultancies such as Axon. The announcement seems to have given a spark to the shares which are now trading above £2, but still appear reasonably rated compared to other computer services companies.

[liarspoker] 30/4/2007 14:11

All buys going through at full offer, not long before we tick up imo.

[tole] 27/4/2007 15:06

Looks like you timed your buy right yesterday Liars ;)
Volume building here today - and looks to be attempting a further break out.

Online Limit
Buy 750 @212
Sell 10k @ 205

[liarspoker] 27/4/2007 10:02

Heading higher. :O)

[tole] 26/4/2007 12:57

Yep definately beatable imv.

Just had a re-read of the broker note - Some nice pointers in the recent Hardman update which focus on the potential here. Eg its reference to the attainability of more exceptionally sized contracts and the focus on its vertical growth.

Especially the last point in its commentary where it makes comment that there has been no SUSTAINED RERATING as yet despite TSE's success in establishing a firm track record of sales and earnings growth.

Now thats what gets me more excited :) - and thats what I will endeavour to wait for.

[liarspoker] 26/4/2007 12:54

Cheaper then I originally thought. Sector P/E is 20 according to the broker notes but even if it's 15 this should rerate to 330p+ this year imo.

[liarspoker] 26/4/2007 12:33

What do you think guys. I reckon 21.9p could prove to be conservative.

Say 25% EPS growth on a P.E of about 9 gives a nice low PEG.

[liarspoker] 26/4/2007 12:31

Afternoon Jak...

:O)

[tole] 26/4/2007 12:31

Welcome aboard ;)
Looking to add a few more myself here too.

[jakleeds] 26/4/2007 12:27

Afternoon Liars...

[liarspoker] 26/4/2007 12:24

Better late then never I suppose but I picked up a small few.

[hywel] 25/4/2007 13:45

Thanks for that Tole.

[tole] 25/4/2007 12:48

More business news out today on their website -



The Irish Taxation Institute chooses Microsoft Dynamics GP from Touchstone Group


25 April 2007: The Irish Taxation Institute (ITI), the leading representative body for taxation affairs in Ireland, has gone live with Microsoft Dynamics GP from business software solutions and consultancy service provider, Touchstone Group, in an order valued in the region of £80,000. The new finance system will aid the ITI with its management reporting requirements - greatly improving the quality of its management information and allowing compliance with the impending SORP (Statement of Recommended Practice) reporting regulations.

The ITI looked to Touchstone Group for a finance system that would produce reports to comply with SORP - a reporting process which shows the source of funds and how they are invested, thought to become regulation throughout Ireland in the near future.

The ITI, currently in its 40th year of operation, is a charitable body comprising 5,500 members ranging from qualified tax advisers, accountants, barristers, lawyers, students and other corporate and business professionals. The Institute works with corporate leaders, Government, State agencies, representative groups, professional organisations and the general public to monitor and influence legislation and tax policy developments in the EU and internationally. Drawing on its team of experts, the ITI also produces a comprehensive suite of taxation publications covering the full range of tax topics.

The Institute was formerly running an ageing Synergy software system and with the implementation of a new membership system over the last two years, the ITI required greater functionality and integration from its finance system. Martin Lambe, Director of Finance, Risk and Compliance of ITI, comments, "After carrying out a financial and business process review, it became apparent that our existing financial system would not support the implementation of the recommendations arising from the review. We required a finance system that would allow us to implement the recommendations contained in the review whilst also integrating with our web-based membership system and extending our online functionality." Lambe continues, "It was also paramount that the system would provide management information to the executive team without recourse to the finance function. To improve the management information it was essential to implement a system that would capture costs when goods/services were being ordered and the implementation of the business portal requisition module will address this issue."

Lambe adds, "The Institute also recognises the importance of improving the way that we interact with members, employers and the public from an administrative point of view and we hope that the new initiatives will improve these relationships, with the added benefit of improving how we operate internally. We will also be implementing additional online functionality later this year which will make it easier to register and order our services online."

Lambe concludes, "The Institute is a dynamic organisation and by investing in a scaleable product such as Microsoft Dynamics GP we can cater for any future organisational requirements."

Adrian McNay, Divisional Managing Director, Touchstone Group, comments, "This is a rapidly expanding organisation with a professional membership base that expects and deserves to benefit from the best sources of information. I believe that with the integration of the Microsoft Dynamics GP solution, the ITI can expand upon its member services and continue to be an invaluable resource, and we are delighted to be supporting them in this."

[tole] 23/4/2007 14:23

Trying to bore out sellers at the moment - MM's willing to take 10k off you 3p over BID price at 205 - whilst only letting you have 2.5k @ full OFFER 210p.

Next leg up imminent imv.

[britishb] 17/4/2007 12:55

Well, I've held these for 13 months now and it seems to be the first time there is no obvious overhang. Indeed online quotes are for 750 to buy @212p and 10000 to sell at 204p. Perhaps a buyer waiting in the wings for any last morons to cash in.

Results in June are going to show another year of stonking growth and cashflow, a miserly PE of just 11 at this price, net cash etc...all for the UK's number 1 Microsoft Business Solutions partner (the fastest growing business software etc, world's biggest software company etc etc).

Does make you wonder why the proletariat aren't buying in droves. They will when it's a fair bit higher I reckon!

[tole] 16/4/2007 11:25

Thx for the tip updates above :)

One thing I also noticed and not sure if it had been posted on here is that TSE was also a Tom Bulford tip for 2007 - might be worth adding to the header :)


Might well see an update in RHPS soon then...



Penny shares 2007: the return of the technology bull
Sector-wise, I am wary of media, where things are changing too fast to have confidence in any business model, whether to do with creation of content or its delivery. I am also wary of financials, which have had a spectacularly fat year, and of the many groups that have splurged on eastern European property. The security industry is more promising – products for both national and personal security remain in hot demand; and we will hear more about nuclear power and decommissioning old plants.

The one area I really like is IT. While the 2000 tech bull was based on hope and hype, we are now seeing the survivors prove their worth. IT is far from a luxury – it's now the cornerstone of any successful business. I especially like the software sector, where there are several great little firms that have customers who absolutely rely on them. Document management group Invu (NVU), insurance software provider Sirius Financial (SIR), and Bond International (BDI), which has world-leading recruitment software, are three of the best. Another, Touchstone (TSE), is one of my tips for 2007.


Penny shares to profit from in 2007
Touchstone (TSE, 180p)

Touchstone, a small software and computer services group, is in the right place at the right time. In 2001, chief executive and controlling shareholder Keith Birch recognised that Microsoft's vast budget and determination to get into the Enterprise Resource Planning sector would make it a major player. His firm decided to focus on Microsoft applications and is now reaping the rewards. It also specialises in a hot area of the software industry: 'Spend Control'. Until now, finance directors of large organisations have found it hard to control spending. But online ordering and authorisation can give them this control. With the Gershon Review pressurising the public sector to control spending and private firms seeing obvious advantages, Touchstone is very busy. It is expected to report earnings per share of 18.5p in the current financial year, putting the shares, which also pay a dividend, on a p/e of just ten.