|Workplace Systems Intl
||EPS - Basic
||Market Cap (m)
|Software & Computer Services
Real-Time news about Workplace Syst. (London Stock Exchange): 0 recent articles
|broomsticks: Thanks for the welcome battlebus2
It probably sounds perverse but I am not sure that I want Workplace Systems to do very well at the moment, I feel that if it does it may stick out like a sore thumb and as things are at present with the world economy that's an invitation for the share price to get hammered. imo
Sorry pun not intended.|
|mudbath: The accounts were reassuring,indicating that WSI hopefully is about to generate those additional revenues so necessary to justify the current market cap.Should revenues rise by £2.4million in the current year,generating a net profit of say £2million,then this would underpin the current valuation,even though achieving such an increase in scale will be no shoe in.Should it become evident that this target is however a stepping stone for further significant rises in revenues and profitability then 30pence per share could become the platform for a further rerating.A sound if unspectacular investment then.
The firework display could of course arrive at any time should WSI shed its independence.
The current share price performance bodes well,particularly as it remains possible to sell large quantities of stock within the rising price quote.|
|mudbath: Although the WSI share price presently looks becalmed,the MMs' are happy to take 100,000shares within the spread,so it's not too illiquid.
IMO,the next 12 months are when WSI must announce vibrant progess in revenues.
We might of course see sector consolidation within this timescale,in which event its game over.
The cautionary trading update was however particularly deflating for me and the SP, when compared to their earlier update eulogising over the "dramatic increase" in the take up of their SaaS solutions.
Broomsticks,you were not too far out with your 12 pence projection.My view is that the forward looking statement,accompanying the prelims,will move the WSI S.P. into the 17pence ++ region.|
|mudbath: WELL WORTH revisiting the last issuance from WSI just 6 weeks ago when it advised investors that the company was seeing a "DRAMATIC INCREASE" in the take up of its SaaS retail WFM solutions.
Equally well worth remembering is that 90% of the "DRAMATIC INCREASE" in revenues will translate into bottom line profitability and CASH.
WSI shares remain a total buy in my book,as there is every reason to believe that those revenues could ultimately increase to £20million( and beyond),translating into £9 million profits(for starters) and a potential market cap of circa £100million.
A share price of between 30/70 pence beckons then,with the prospect of much more to come.
All imo;yet I could not be more confident that WSI is an outfit with everything running in its favour.
12 months down the line the ZULU men will be picking up on WSI as it starts to address their criteria.Shame then(not)that they will need to pay possibly four fold for the privilege.
WSI is then a ZULU DAWN company.(As I might add is PUR)
Not long at 13.5 pence then and thats FOR SURE!!
|mudbath: Funny thing,that when the WSI share price succumbs to a little profit taking/orchestration,interest waines.
Remember that Workplace celebrate their quarter centenary in 2011.
The Directors will want it to be one of stellar achievement.
The S.P. should mirror,if not anticipate the impending positive announcement flow.
A rapid retracement to 16 pence as a precursor to new highs imo lies ahead.|
|mudbath: Amazing,that despite the relentless rise in the WSI share price,we have seen vitually no input/interest being demonstrated by new posters/investors.
Rather like the film title,"There's SOMETHING ABOUT MARY",it seems there's SOMETHING ABOUT WSI that doesn't quite make the necessary connection.
I suppose that to a cursory glance its attractions are far from obvious...
currently that is.|
|mudbath: broomsticks;the man to appreciate at WSI is the CEO(fortunately)Barnaby Quinn.
Just the type of man the Americans like and a shrewd cookie to boot.After making his name with Sherwood,Quinn moved across to SSPH(though not as CEO)where he was instumental and successful in reorganising their insurance software division,focussing on SaaS type offerings and on building recurring revenues.After a similar time to that which he has been at WSI, revenues did indeed surge and SSP then succumbed to a buy out,rewarding patient holders with a swift 300% share price gain(see now defunct SSPH thread).It was Quinn's presence at WSI that persuaded me to build a significant stake,and whilst revenues are taking a while to build,it is significant that % recurring revenues are already moving ahead ,whilst the impending surge in actual revenues moves ever closer.
Still a buy(imo) at 14pence.
I hope ALL do indeed justify your faith.WSI have been one of two shares portfolio since December 2009 and whilst the share price has not yet reflected WorkPlace's progress and HUGE potential,it does seem that current and future revenues are about to surge towards a higher paradigm,which should in turn propel the share price through a lengthy succession of new highs.WSI,unlike ALL has not(yet) issued new equity,nor does it have the slightly worrying(to me)aspect of UK government contracts;although the ALL share price does give due weighting to these factors.
As ever,only time will tell in both cases.
|mudbath: Good to see the WSI share price at last reflecting a glint of our company's exciting potential.The Wal Mart contract,in place for only part of the financial year,enabled North American revenues to move ahead from £561,000 to £1,535,000 and transformed the previous years loss on NA operations of £671,000 into a profit of £547,000.It would not be a such a giant step for N.A. revenues to multiply threefold from here, taking an 18 month view.Hopefully this improvement will run alongside a recovery in European income streams and from new global revenues once the proposed multi-lingual software is released.Such a scenario would see net profitability surging towards, or even surpassing £3million,with the distinct prospect of much much more to come.Profits in this vicinity allied to a continuing vibrant business pipeline would firmly underpin a 30pence share price target.Where the current share price stength will take us is as yet an unknown.Personally I would be heartened if 14pence were reached over the next two/three months.
We might all yet be surprised,on the upside,by the scale of the recurring revenues which WSI are about to generate from forthcoming OnLine and Task Management contracts.
|mudbath: Chartists might be aware that the WSI share price has recently decisively moved above the smothed oscillator incorporating a range of moving averages.A very bullish happening for those with an analytical leaning.My reading is for a sharp increase in the S.P. into double figures.
By the way,here is a link to the CEO's video.Its 6 months old but still interesting-particularly Barney Quinn's performance related options over 10% of WSI.
Looking at comparables:-
Allocate (ALL) is very similar to WSI,specializing on the healthcare sector.ALL's latest T/O was 15.5 million yielding a net profit of £1.83million and eps of 6.8pence.ALL is capitalized (@75pence) at £33.5million.
WSI,not being cushioned by NHS spending fared worse,yet projections for the current year are net profit of circa £1million.
On comparisons therefore WSI should trade at a M/Cap of at least £19 million or a share price of 13.5pence,coincidentally my short term target.Progress by WSI towards matching or exceeding ALL's profits should see the share price moving up dramatically.|
Workplace Systems share price data is direct from the London Stock Exchange