Avisen Share Discussion Threads

[tsmith2] 20/3/2011 18:22

cammy3 - where's that from?

[cammy3] 20/3/2011 16:08

Business and technology consultant Avisen (AVI) has sold its subsidiary Inca Software in a a deal worth £8.65 million.

The AIM-quoted concern has clinched a deal with IT consultancy Logicalis to dispose of Inca Software, a provider of IBM business analytics products, through a cash payment of £7.3 million and the the assumption by Logicalis of net liabilities worth approximately £1.35 million.

Avisen remarked that it intends to use the proveeds from the Inca sale to 'further invest in the Group's remaining business divisions' in particular to 'aid the launch of its next generation SaaS storage analytics solution'.

CEO Marcus Hanke noted that the cash received from Logicalis is equal to '62 per cent of Avisen's current market capitalisation' and that it represents an 'excellent return on investment' from Avisen's perspective, adding that it will provide Avisen with an 'excellent platform' to create 'significant long term shareholder value.'

Following the announcement shares in Avisen have climbed two per cent to 6.25p. A significant change to Avisen's business, the cash should help it focus on its core activities. We currently rate the shares as a speculative buy.

[cammy3] 19/3/2011 13:43

The Times

*Deal of the day:* Traders nibbled at Avisen after its £7.3 million sale of Inca Software, which resells IBM's software.

That left the AIM Company, which commands a market value of barely £14 million, with £10.5 million in cash to develop its data storage business, itself expected to return profits after tax of more than £1 million this year. Shares rose 2.6% to 6.28p.

[the big fella] 17/3/2011 14:31

Yup, but I think it sums the bull case nicely.

[tsmith2] 17/3/2011 14:06

hopefully breaks the backs of the doubters..and we get a much belated re-rating

[someuwin] 17/3/2011 11:50

From the link above...


"Avisen - nil brainer

March 17, 2011

We are buying more Avisen today. This is such a nil brainer at c6.5p ( tipped originally at 3.625p eight months ago). The company has just sold its Inca unit for c£8.5 million. I reckon it now has net cash of c£10.5 million. Its Storage Fusion division is non core and although operating at breakeven could ( and will I reckon) be sold for £3-7 million. So lets call net cash and assets for sale £13.5 million.

The main Avisen business which remains is growing at 20% per annum and should generate a pre-tax profit (ex Inca) of c£1.3 millioon this year and has heft tax losses. So put that on a PE of 10 and add in the cash etc and we get a sum of the parts valuation of £26.5 million. That is c12p per share.

Now I reckon we are lowballing the sale value of SF and that a PE of 10 for a business growing at 20% per annum is harsh. So that 12p i very much base case. But you can see why we are gorging for the SF t1ps Growth Fund at 6.5p."

[stuart14] 17/3/2011 11:11

They only bought inca last year. These guys need to find a story for the Co and stick with it. One minute they're buying everything Cognos, then it is Cognos South Africa, then they sell the SA business. Now the U.K business?

Back to SaaS and Storage, but cashed up.

[pabloiom] 17/3/2011 11:04

Latest comment from Rivington Street Holdings/JPJShare.com

[argy2] 17/3/2011 10:49

tsmith2

What were borrowings ahead of this sale?

[ibrahim1962] 17/3/2011 10:45

Story on Avisen

[solarno lopez] 17/3/2011 10:18

London boys getting out after the leak yesterday

[the big fella] 17/3/2011 09:05

Looks like all those in the know were here for a short term trade.

[solarno lopez] 17/3/2011 08:36

lets hope somebody makes a bid for this near cash shell

[tsmith2] 17/3/2011 08:31

Over the half the market capitalisation is now CASH!

+ Profitable and cash generative

+ more significant contracts wins in fairly short order..

Never looked in better health..

[someuwin] 17/3/2011 08:01

Excellent news here. I thought it would never happen.

[solarno lopez] 17/3/2011 07:56

it was well leaked and there for all too see.

[tsmith2] 17/3/2011 07:52

ARGY2 - agree with you, even when small caps fell back in the afternoon this held up well..not that I am complaining.

Great news and management have done very well..

[argy2] 17/3/2011 07:41

Certainly well leaked. Bishopsgate are the PR people I believe. Hmmm

[silver herring] 17/3/2011 07:38

Looking at yesterdays price action, it sure looks as if the Inca deal was known by a few in advance eh?

[cammy3] 17/3/2011 07:31

What a deal - I take it all back Avisen 8m cash 7.3m plus assumption of 0.7m debt. Cannot believe this. back to 15p

[tsmith2] 16/3/2011 21:23

climbed above moving averages..

[raldo] 16/3/2011 20:04

A substantial rise today and no chatter???

[the big fella] 28/2/2011 20:58

I certainly got in around 4p, but nothing to do with anything he said as I do not subscribe and never have. Tip sheets not really my thing.

[tsmith2] 28/2/2011 18:56

from the snippet I got from a mate its "not very long at all" for either a trading update or news that Storage Fusion had been sold.

lets hope we get both in quick succession - could well see us motor towards 10p..

[standish11] 28/2/2011 18:33

Well the shares are up on his tip so can't complain although some will of course.He believes that a re-rating will occur when Storage Fusion is sold or on upbeat trading news and his money is on not having to wait long.