Bond International Share Discussion Threads

[zipstuck] 28/2/2008 07:21

i THINK A LOT OF THE RECENT VOLUME IS B & B WITH A FEW SMALL SELL TRADES AND NO BUYERS

[zipstuck] 28/2/2008 07:20

i THINK A LOT OF THE RECENT VOLUME IS B & B WITH A FEW SMALL SELL TRADES AND NO BUYERS

[napoleon 14th] 27/2/2008 20:04

I have to admit, Riv., the loonies are still giving me hangovers!

Overhang or not, there's got to be a point where the chart's tide turns,
but for now they get ever cheaper...
Loony!

[njp] 26/2/2008 11:49

Incredible. Are you sure they haven't let loose the 'monkey with the pin'?

[rivaldo] 26/2/2008 11:44

The loonies are out and about today napoleon :o))

160k sold at 124p today - I'm hoping that's the end of an overhang. Should encourage buying if so.

Nowt more to say about this one. Fortunately I'm still well up on my purchase price as long-term readers here will know, but there's only so much reiterating of all the goodies on offer here you can do - evidently some institutional numpties just want to clear AIM stocks off their books at any price. Crazy.

[napoleon 14th] 25/2/2008 10:58

I'll get more if the daft loonies drive it down to 120p.

[sper] 25/2/2008 08:25

Just look at Rob Walters results today - lovely and the stock price jumping up as has also been oversold

[njp] 22/2/2008 21:22

Pretty slapdash comments from slapdash IMO.

BDI price is volatile and it doesn't take much to drive it in either direction. There's obviously been a few sells - which in this climate have a snowball effect. Still, I'm very surprised it's come off so far, despite 120p being the obviously next level after the breach of 140p.

From all that we know the company's been doing well and the price is now crazy cheap - though that's not unusual right now.

The fear is market sentiment but, as riv and sper point out, recruiters aren't doing badly and BDI is successfully broadening out beyond the sector anyway.

[penpont] 22/2/2008 14:43

thanks riv, I actually had the results date down as being somewhat later but now see its 31/3 so that does perhaps explain it! The share price weems to be bouncing back a bit so I'll monitor with a view to adding.

[sper] 22/2/2008 14:12

One important thing to remember in respect of new contracts. They are not all discretionary.

All software suppliers have to stay ahead by developing new products that link to even more products.

They create demand for new products by offereing things people need to enhance their business, either in functionality or efficiency.

They also create demand by making older products obsolete.

Some recruiters will postpone capex decisions but many cannot because older systems are becoming obsolete and they need to update.

we are also ignoring the fact that most of the big recruiters are posting good results and good outlooks and so we are at worst talking slowdown not decline. That's not enough to push back a business critical investment decision

[rivaldo] 22/2/2008 13:38

Penpont, it's been and still is the closed period :o))

Slap, the fundraising at 220p looks like a stroke of genius now!

The businesses they bought were not only a whole year ago, but were substantial businesses outside of the recruitment sector. Thus BDI actually acted to soothe any concerns such as yours well ahead of any "downturn"! Extremely smart I'd say...

BDI has been continually winning large new contracts and new users, both corporate and non-corporate, despite the top of the (mostly irrelevant) "cycle" having been passed some time ago. Just look at the RNS's. And as stated repeatedly, BDI do not have the sector exposure they did have.

Sentiment is another matter as you say. But that's not a reason to look a gift horse in the mouth. The results commentary will be key of course.

[penpont] 22/2/2008 13:24

Is there any obvious reason why directors are not buying at what look like preposterously low levels? I would consider adding if they did, but really need a confidence booster like this to reassure me...

[slapdash] 22/2/2008 13:12

rivaldo - loads of companies always say 'oh we aren't exposed to a recession' and 'we are better positioned'.... but it is rarely the case...

yes I know the company will say X,Y,Z... but in reality it has been reducing cash and raising money to buy buisnesses just before a slowdown.. how smart is that... also software and services are vulnerable...especially software which can simply have an extended upgrade cycle...

yes the past and recent trading statements are all rosey... but they will always be so at the top of the cycle....

we have seen they are winning contracts..... so a large part of their income must be discretionary.... therefore what if new contracts just dry up... also quite major acquisition and integration risks...

you could be right and this could all be sentiment... but even then that will drag the share price down...... just look at the recruitment sector...

so one to look at when things look rosey economically again.. prob not now in my view...

slap

[rivaldo] 22/2/2008 13:07

Hmmm...perhaps that's why 3 weeks ago BDI said they're trading perfectly in line with forecasts :o))

Perhaps sellers are worried about going forward. In which case, is anyone even aware that 39% of revenues in H1'07 came from outside the recruitment sector?!

Or that recurring income was 44% of sales and covered 61% of overheads? And has probably significantly increased since that date?

Or that the corporate, non-cyclical side is increasing nicely, and that BDI's products actually save money and increase efficiency - not bad attributes in a downturn.

Or that BDI are tied up with the leading agencies in the world for the next few years on multi-million pound contracts, which presumably are likely to be renewed given the difficulty in changing systems?

Or considered that BDI are in an ideal position as a cash-generative global market leader to profit in a downturn from others' misfortune?

I can see the obvious reasons for people playing safe, but come on, let's see some sensible comments rather than "probably go under £1".....if I say it "could rebound to 175p" it's an equally worthless comment.

As GHF says, BDI is not a company fully exposed to a cyclical sector anymore. Whether people choose to see it that way is a different, and imho incorrect, matter.

Especially at this valuation - now on a historic P/E of 8.

[slapdash] 22/2/2008 12:39

trouble is who wants to buy a company supplying the recruitment sector... no one... so stock only falls... this will probably go under £1.... also could easily have a major profits warning...

slap

[glasshalfull] 21/2/2008 18:49

robow.....wash your mouth out !!!
No need to antagonise.

Looking excellent value again.
The market are predicting a severe drop off in revenues as occurred 2001 (see link to my write up in 2005 when they were 100p).



However, BDI are a far different proposition now and have focused on building a significant recurring revenue stream.

No position as yet but I'm sure there are quite a few of us watching this very closely.


Regards,
GHF

[robow] 21/2/2008 16:59

at least PP is not haunting this thread

[boadicea] 21/2/2008 16:49

Maybe mm's are expecting good news soon so taking the opportunity to give it a good shake and hit some stops.
I still have a reasonable holding but top-sliced it around the 220p mark to add to my RCG. I would top up again now but spare cash is all in ISA/PEP accounts so it means transferring some eligible shares into them to free up cash for AIM stocks.

I like the balance sheet (as shown graphically in advfn 'Fundamentals' which may be out-of date) where it appears that discounting the intangibles the substantial equity then remaining is roughly equal to the cash and near-cash.
There aren't many AIM stocks that offer profits, cash flow, dividends and healthy reserves to this degree.

[robow] 21/2/2008 16:14

thanks for your updates Rivaldo. Seems a no brainer at this price. CGT and AIM status could be an issue

[lomax99] 21/2/2008 14:51

Glad I sold out of these around £2.00, have been keeping an eye on these and they are almost back into buying range!

[rivaldo] 21/2/2008 14:30

Down almost 5% on just £70k of shares traded!

There are some shares where nutter sellers inexplicably sell down at any price, until the overhang finally clears and the share price rebounds instantly by 25% upwards. I suspect this is one of those cases - a nutter institution/VCT has decided to clear BDI off its books as it's too small a holding to be meaningful.

Nothing else can explain this, when BDI has 44% recurring revenues, world sector leadership, a P/E of 7, probable net cash, major contract wins with Michael Page, Hays, Manpower etc locked in for the next few years, global expansion etc...

It's a conundrum :o))

[rivaldo] 15/2/2008 07:38

A bit more detail on the Vaco contract win here:



"Bond International Software secures $1.5 Million contract with placement firm Vaco
14/02/2008
London Stock Market-listed, Bond International Software has signed a major new contract worth $1.5M with consulting and executive placement firm Vaco. Based in Maryland Farms, Tennessee, Vaco partners with clients on critical projects and strategic talent acquisitions in the areas of finance, accounting, technology and administration staffing. Vaco will use Bond's flagship software, the Adapt Recruitment system, replacing Winsearch throughout its North American operations, to become the front-end recruitment system for its 800 employees across 18 offices throughout the USA.

According to Vaco's CEO, Jerry Bostelman, an exhaustive review of all leading staffing software vendors was undertaken during the past 12 months. The decision was based on Bond's overall ability to deliver functionality, technology and the proven capability to implement successfully. Mr. Bostelman went on to say that, "Bond's flexibility to mimic our processes and capacity to add new functions made them stand out from the competition. It is important that we will not have to change the way we work to accommodate the new software."

Bond International's chief executive, Steve Russell, comments, "We are delighted to be able to work with a top-flight, fast growing company like Vaco, particularly in the face of strong competition from Bullhorn and VCG. Following on from our recent multi-million pound win at Michael Page International a few weeks ago, this contract highlights that US and international businesses are continuing to take decisions on major software implementations. The lights are on and the doors are open for business in the US as well as the UK."

Bostelman commented further that, "Bond were able to deliver a completely hosted, integrated desktop solution removing the need for us to have a large expensive IT department and all the associated hardware, and instead allowing us to focus on what we do best – partnering with clients on critical projects and strategic talent acquisitions in the areas of finance, accounting, technology and administration staffing!""