Avisen Share Discussion Threads

[themoneymonster2] 20/8/2010 09:39

2 BUYS AT 4.5P ARE MY BUYS!

[cammy3] 16/8/2010 12:37

Level 2 not looking good - about to drop

[standish11] 15/8/2010 15:30

If TW is earning his fee he should be thanked.People should object only if he is not earning his fee I would have thought.

[argy2] 15/8/2010 14:23

TW earning more of his fee?

[someuwin] 15/8/2010 11:53

GE&CR

"Avisen, the acquisitive business management consultancy and performance software provider, released its full year results ended 31 January 2010, a period of substantial corporate development since its reversal into Z Group on 2 February 2009. During the year Avisen made five strategic acquisitions that have had to be integrated resulting in exceptional charges.

Sales revenues increased from 2.406 million pounds for the 10-month accounting period ended 31 January 2009 to 7.165 million pounds. Gross profit increased from 1.303 million pounds to 2.354 pounds million although the gross margin contracted from 54.2% to 32.9% due to the broadening out of the business activities although margins should move up again as integration benefits begin to feed through. The enlarged group reported a total operating loss of GBP3.109 million but this was struck after 1.339 million pounds of exceptional charges. Net finance costs amounted to 6,000 pounds offset by a gain on bargain purchase of 46,000 pounds which resulted in a reported pre-tax loss of 3.069 million pounds or a loss per share of 2.39p.

Since the year end the group has disposed of its non-core South African activities and completed the all share 11.4 million pounds acquisition of Xploite plc whose main operational asset is Storage Fusion, a SRA software business. The executive management team has been restructured with Ian smith, Anthony Weaver and Michael Frank all leaving to pursue other interests while Mark Battles joins as non-Executive Interim Chairman and Claire Milverton has become full time Chief Financial Officer.

Avisen started the current year building upon the successful consolidation and integration of its earlier acquisitions and the momentum was not disrupted by the acquisition of and rapid assimilation of Xploite's operating asset Storage Fusion that is now trading at break even. Nevertheless, the group is understood to be generating annualised sales of around 14 million pounds and an EBITA of around 1.9 million pounds or a group pre-tax profit of 1.4 million pounds after central costs of 0.5 million pounds and a modest net financial income from its cash balances compared with last year's recorded loss of 3.069 million pounds (see note of 30 July). Our stance is buy with a 10p target."

[someuwin] 13/8/2010 09:03

Looking to add here. I expect we will be getting a v bullish trading statement soon.

[solarno lopez] 13/8/2010 08:33

Spot on ARGY

[chrissey] 13/8/2010 02:45

well TW had the desired effect, for a while at least?

I don't really see anything compelling, talk is not action, is it?

[argy2] 12/8/2010 11:42

solarno you are wrong...it is going down currently.

[solarno lopez] 12/8/2010 08:31

Get real guys this is going nowhere for sometime to come

[cammy3] 11/8/2010 17:53

Hard to believe they still cant give us a trading update. Failed to provide one in the results despite having 5 months of the new financial year under their belt. I'm keen to get an action group together pre AGM.

[tsmith2] 11/8/2010 13:28

its from an email I received today - t1ps stable.

I'm hoping we have some sort of TU out soon as well as a broker note.

[argy2] 11/8/2010 13:03

tsmith2.....A simple answer to my question will suffice. Presumably you are cut and pasting something from t1ps above rather than quoting something the company told you?
PS..worth noting too that the share price having collapsed on them is still well below the price you were ramping at before the results.

[tsmith2] 11/8/2010 12:52

ARGY2 - why don't you have a chat with the company.

Apparently we trade on an ex cash multiple of less than 1!!!

Why corporate activity is picking up and how we play it

Corporate activity among smaller quoted companies is picking up. Every day there seems to be something new afoot. That this is happening is no surprise to even the callow youths on our team, let alone to the venerable Robert Sutherland Smith, aged 147.

Why, you may ask is this happening now? It is a story of buyers and sellers. Buyers, it appears, reckon that having survived the worst of the downturn, there is now some visibility of earnings and so they are encouraged to expand. And with small cap stocks - in many cases - trading on derisory multiples there are clear opportunities to buy and add value. Moreover there are now some sources of funding becoming available. The banks are, it appears, lending a little. Not a lot. But something is better than nothing. Moreover the equity markets are supporting fund raisings where there is a good story to tell - i.e. a good acquisition rather than just another bail out of a broken business plan.

But there is something else happening - a willingness of sellers to accept realistic prices. I am not sure whether this is capitulation, a desire to sell out before yet another hike in CGT or just a natural process. But whereas two years ago (the last time there were corporate buyers out in force) vendors tended to value their company's in relation to a past (always higher) share price there is now a willingness to compromise and, consequently, more transactions are being completed or at least contemplated.

History - and here we rely once again on Robert Sutherland Smith - shows that a pick up in corporate activity is the inevitable result of a sustained period of weakness in equity markets. That is the way capitalism works. If share prices fail to reflect underlying value then other mechanisms inevitably come into play. And as M&A activity starts to close the gap between share prices and underlying value then investors start tore-enter the market (on the sell low buy higher principle in which too many people always operate). The prize for those who bought low when others were droning on about a long term shift to the safety of blue chips or the death of the cult of equities or similar nonsense, is therefore clear. We note with interest that with small caps having made some gains already a report from Trustnet on 9th August that professional investors are starting to back the sector. You do not say.

So how do we alter our strategy as we enter a new cycle of the market? Well we do not. As you know, our approach to investment never changes. We look to buy shares in good companies when the values are incredibly appealing and then wait. That can lead to short term underperformance as we do not claim to be able to spot the bottom in terms of sentiment. Anyone who makes that claim is, in our view, either a fool or a liar or a chartist or any combination of the above. So we have bought into value and now wait. When we have spare cash to invest we add to one of our existing holdings where we see the greatest untapped value and carry on waiting. So in recent weeks your fund has bought more Avisen (ex cash PE of 1) in a greedy way and has nibbled at ILX, Intandem, Northern Petroleum, Access Intelligence and one we cannot mention yet.

[argy2] 11/8/2010 09:05

tsmith2

What happened to the Director buying and how come t1ps haven't moved up a % with their holding?

[someuwin] 11/8/2010 08:47

...I think so too. Looking for 10p+ in the near term.

[tsmith2] 11/8/2010 08:37

Get the feeling we could be moving up once more..

[solarno lopez] 10/8/2010 08:26

Thanks 100abc

[100abc] 09/8/2010 18:33

In my opinion Solarno called this exactly right. Before anyone makes any money here the directors have got to be able to prove they can make a profit not just forecast it. Remember they managed to post a half year profit and then a huge loss for the year. It's a big turnaround but I suspect that other than private punters no one will give them any credit until they prove the profit.

[solarno lopez] 09/8/2010 11:08

no chance at the moment

[someuwin] 09/8/2010 08:20

Once we break the slight resistance at this level we should quickly be back over 8p. Then 10p should not be too difficult.

[solarno lopez] 06/8/2010 15:42

Marcus Yeoman ?

[cammy3] 06/8/2010 15:15

Where did that chunk of shares come from - TW !

[smarm] 06/8/2010 14:30

someuwin - nope, never been to that website. Perhaps I'm confusing my websites. No matter. Thanks.

S

[argy2] 06/8/2010 13:00

Part of t1ps.com comment on Sunday...

"So why am I so gung ho and excited and buying any shares I can for the Growth Fund?
Why buy now when everyone is panicking? To paraphrase a great investor " I am buying now because everyone IS panicking" and so selling me shares at unbelievable levels.

Amazed TW hasn't bought enough to warrant some kind of holdings update after that comment.