||EPS - Basic
||Market Cap (m)
|Software & Computer Services
Real-Time news about Xploite (London Stock Exchange): 0 recent articles
|lplp: Busy with other stuff, just had a quick look at the announcement, can anyone tell me why the share price is not just under the offer price, have I missed something?|
|desi99: can anyone advice if i should accept the tender offer or are we expecting a higher share price than 50p|
|lr4850: Why "Good News" Can Smash a Share Price
Penny Sleuth - The Penny Shares Expert | By Tom Bulford
Why "good news" can smash a share price Looking beyond the headline figures All eyes are on Xploite's next deal Dear Reader,
Today I want to follow up on something we looked at earlier in the week... as an example of why you need to be a little careful when buying shares on account of apparently good news.
On Tuesday Penny Sleuth drew attention to an intriguing deal struck by IT consolidation company, Xploite (ticker: XPT). To remind you, it announced the sale of its Anix subsidiary for a net £28.5m. Given that Xploite closed its last financial year in October with net debt of £0.2m, this deal should leave it with a cash pile that exceeds its £21m market capitalisation.
And yet, despite this, the share price of Xploite has slipped back by more than 20%. This puzzles the Penny Sleuth! Why has the reaction not been more favourable?
Possibly the impact of the deal has simply been overlooked. But in fact there has been some quite hefty trading volume in Xploite's shares so investors do seem to be forming a collective view. So let us look at the situation in a little more detail.
Looking beyond the headline figures
At the end of October, Xploite did indeed have net debt of just £0.2m. However, included within its balance sheet were long-term borrowings of £5.7m, short-term borrowings of £2.2m and cash of £7.7m. Given that Xploite had net current liabilities of £6.5m, the cash was clearly earmarked to pay immediate bills, rather than being available for long-term investment.
Since then there have been a few other significant changes. A further item in the end of year balance sheet was a deferred consideration for past acquisitions of £3.1m. This related to the October 2007 purchase of Itheon Limited, for which Xploite paid £3.5m at the time, with a further £3.5m contingent upon Itheon's performance. According to the Annual Report £2.2m of that was paid in December with a further £970,000 payable at the end of this year. So that is £2.2m that has left Xploite's bank account to which we must add the £3m that Xploite spent on the acquisition of Blue River Systems last December.
Even so Xploite should still have over £20m of cash and for a company with an avowed strategy of 'acquiring, consolidating and developing innovative, high growth businesses in the IT services market place', that is a pretty good position to be in.|
|lr4850: They've already recently said that current trade with SF is not as good as expected.
"Storage Fusion has had a slower than budgeted
start to this financial year, and is unlikely to achieve the Board's original
expectations for the year although the pipeline remains strong."
Therefore, IMHO not looking good for tomorrows the share price??|
|robmc100: I will add to my stake of 100,000 and agree that underneath the various deals MM have taken no account of the value of Storage Fusion which in perspective has potential to up the share price 50%. It stands to reason that a 'substantial deal flow' would be expected which in effect should push the share price currently undervalued higher.|
shame current share price not reflecting this optimism.|
|manners2: the level of debt was surprising to me as well but this still looks like a highly undervalued propostion. £31.5 - £3m = £28.5 cash recieved
then if you pay off the debt = 28.5 - 7.6 = £20.9m cash.
there are 39.5m shares in issue....just the cash is worth 0.53p! i.e current share price.
then if you factor in storage fusion c.£10m? and potential upside of aquisition your looking at a MIN. price target of 0.78p!|
|lr4850: Hi all.
Can anyone take a stab about what a sale of Anix of £30/£40 million would be worth to the share price?
Interim results are due 26/6; would this be delayed by this offer? Hope not. I would like to see what Anix contributed to the company and then make a decision as to it's sale. Other sector specialists have said that selling now is the wrong time as it wouldn't realise its full value in these difficult times.?|
|hubshank: if they continue to grow their EPS, then the share price will follow, who knows where it will go, only time will tell.|
|lr4850: Here's Mr Smith on delisting:
Alternative Investment Market (AIM)-listed resellers have voiced fears their shares have become severely undervalued following another week of stockmarket turmoil.
Last Monday, the UK's main index plunged by 2.7 per cent, the biggest drop since mid-August when the subprime crisis first came to light.
With AIM's 149 tech stocks struggling to attract the attention of battle-scarred investors, onlookers are predicting several could follow in the footsteps of managed services outfit InTechnology, by announcing plans to delist.
Ian Smith, chief executive of AIM-listed storage reseller Xploite, said recent independent analysis from Edison Investment Research found its share price is undervalued by 50 per cent.
"There are a load of small tech stocks listed on the AIM and eight out of ten of them are hacked off with where they are," Smith argued.
"The whole subprime nonsense has had a damaging effect on stocks and many small cap companies are now significantly undervalued.
"We are okay as we have a lot of headroom in debt financing, but if a company decided to raise money in the City right now they would be doing a disservice to their shareholders," he said.
Scott Fletcher, chief executive at Plus-listed reseller ANS, said: "The credit crunch came and went, but it is back again and it appears to have hit the stock market hard in the past week. It is frustrating when you are running your company well and profits are improving, but your share price is not rising."
Fletcher said Xploite and managed services outfit Computerland had been particularly badly hit.
John Hughman, senior technology analyst at market watcher Ernst & Young, agreed that small tech stocks are finding it difficult to a ttract the attention of analysts.
"I can see the pressures they face. I would expect resellers that are more focused on good cash flow and annuity business than high revenue and profit growth to look at going private," he added.|
Xploite share price data is direct from the London Stock Exchange