Bond International Share Discussion Threads

[rivaldo] 10/7/2007 09:59

Applecore, funnily enough that post presents exactly the reason why BDI is at the cusp of a major re-rating at some point. Yes, it is the world leader for the supply of software to recruitment agencies - but its corporate side is booming and repositioning BDI away from any dependence on the recruitment cycle (the latter misconception being perhaps why its P/E is so ridiculously low).

As it happens the sector continues to boom anyway, but if and when it doesn't BDI will be protected by its fast-growing corporate client base (Easyjet, Flybe, Knight Frank, Hamptons are just the recent client wins) along with its moves into complementary sectors via Strictly Education, Gowi etc.

Another set of strong results to 30/6/07 should do the trick. I'm assuming that both organic and acquisition-led growth will be far greater than the relatively much smaller negative dollar effect for this period.

[applecore2] 09/7/2007 16:53

Summary of Share Mag tip: See full version above (1283)
Bond International Software is a world leader in supplying software to recruitment agencies. It recently saw an 18% fall in its shares. That's presented a 'super buying opportunity' for a high-quality company with major growth prospects. Generating cash, paying dividends and with a sub-sector rating, investors should consider the stock a a buy (stop loss at 151p).

[rivaldo] 06/7/2007 12:58

New article here FYI from Tim Richards about recruitment processing - come on BDI let's see this buying get the price back over 200p....

[rivaldo] 05/7/2007 14:04

Going up again (I mean the share price capa).

I thought these quotes were very acceptable:

- EPS of 17p this year for a P/E of just 11.4
- recurring income nearly covering overheads (all-important for software companies)
- trebling the American business
- announcements of more international contracts are "expected"...

[capa] 05/7/2007 13:11

Good stuff indeed, thanks for that Rivaldo

Anything from Nuts you wish to share?

capa

[rivaldo] 05/7/2007 12:55

Capa, who needs the top shelf - the covers of Nuts and Zoo are all you need these days :o))

I've nabbed the Shares Mag tip - read and enjoy, there's some useful and intriguing snippets....

"It is exactly 20 years since chief executive Steve Russell bought Bond as a near start-up for just £30,000. Today it is worth £57 million and his 19% stake is valued at £9.5 million.

But Russell, unlike so many of his peers, has no intention of selling out. His vision is to make Bond the international No.1 supplying all the IT needs of
recruitment agencies and moving into the human resources arena.

Bond commands 24% of the UK market and 7% of the much bigger but fragmented US market already and the target is to more than treble the size of the American
business by 2016. Bond is also expanding into important Far Eastern markets through its Australian operation.

The other big target is increasing recurring revenues so that it covers
the company's annual running costs. Last year UK income covered 72% of overheads and could reach 100% by 2011.

The shares rocketed to a peak 227p a couple of months ago when the excellent annual results for 2006 were announced showing profits up 46% on sales 26% ahead. Profit margins rising from 22.3% to 24.7% was also great news, as was
impressive cash generation that boosted the balance sheet figure
to £8 million, although all this has since been invested on two new
acquisitions; Gowi Group and Strictly Education.

Winning its largest ever order from Manpower in the US – worth £6 million over five years to provide front office systems through 4,400 offices in 70 countries – was a great coup for Bond's hot selling Adapt administrative software system.

Bond is talking to various other international recruiters about buying the system and announcements are expected. Over £3 million was spent developing
the current version of Adapt. Bond invests huge amounts of money continually improving its various software suites – spending rose by £600,000 to £2.6 million last year.

The company has a good record with acquisitions as EZaccess and eEmpACT illustrate. The aim is to follow the business model of accounting software giant Sage (SGE), buying privately-owned software companies on low ratings
and then selling software products across the enlarged customer base.

The current year has seen last year's strong growth continue with no sign of the staffing industry peaking. Bond is also selling more and more software to the personnel departments of companies to maintain staff records of social
security, national insurance, pension and salary. Profits could
reach £5.5 million this year, with EPS close to 17p, slashing the PE to
under 12 on a low tax rate."

[capa] 05/7/2007 10:13

Take a box to stand on Rivaldo, those top shelves are getting higher :-)

capa

[rivaldo] 05/7/2007 10:10

Stegrego, if you feel at liberty to post the entire BDI tip narrative please be my guest. Otherwise I'll be forced to skulk around a newsagents wearing a disguise with a pen and notebook, and you wouldn't want that would you....

[rivaldo] 05/7/2007 08:00

Thx Stegrego, BDI now confirmed by Citywire as one of their two main tips of the week. About time too! The current P/E is ridiculous imo. Time to get back to 230p.

[polzeath] 05/7/2007 07:30

Stegs - Shares Magazine tip?

[njp] 05/7/2007 05:22

Nice to see some recognition of the value here. It's certainly compelling enough, though I'd say it's more an 'investment' than a 'play'.

[stegrego] 05/7/2007 00:08

Shares Play of the Week

'The recent 18% fall in the share
price is a super buying
opportunity for a high-quality
company with major growth
prospects. Generating cash,
paying dividends and with a subsector
rating, buy the shares.'

[rivaldo] 04/7/2007 12:09

New article dated today about the ever-increasing use of Applicant Tracking Systems:



"Benefits of ATS
Toby Conibear from Bond International Software believes that the benefits of new ATS systems include:

* Improved candidate experience through system functionality and automated communications, e.g. candidates tracking their application online and automated confirmation emails being sent out.
* Reduced reliance on external agencies and reduction of general hiring costs.
* Raising brand awareness through recruitment adverts on job boards and organisations own website.
* Reductions in administration overheads through time savings due to automated processes and functionality.
* Empowering staff through the creation of an 'internal recruitment agency' giving the ability to search and match candidates, and so on, in-house rather than relying on external agencies.
* Ultimately the use of ATS systems should greatly improve organisation's chances of candidate application and so, in this very competitive area, improve the chances of hiring the best people.

Bond International Software is the market leading provider of Talent Management and Applicant Tracking software systems. They work with many global organisations including BA Connect, Matalan, Southern Water, Yell.com, Ginsters, easyJet, Yorkshire Water, Loop and Hamptons International."

[rivaldo] 01/7/2007 22:34

Hi polzeath. The trend for the last 18 months is consistently up as far as I can see :o)) BDI's value in my portfolio certainly shows a very nice uplift indeed and a lovely rising trend - I can only assume that's what you mean....

With say 18p EPS for 2007 I can see BDI at 275p in 6 months' time. Yep, BDI has dropped a bit from its highs, nowt wrong with that - the general upward trend could resume at the drop of a hat, be it news flow, institutional buying, realisation of the cheapness of the stock etc.

What the point of post 1274 is or has to do with anything at all (particularly my prior post, which was entirely factual and the first post for 4 days!) is beyond my ken I'm afraid! But it's late and I'm off to join the wife. BDI to surge tomorrow then :o))

[polzeath] 01/7/2007 18:52

The trend is your friend! Nothing wrong with BDI before you blow another fuse Riv, but we're in the doldrums if you recall :-)

[rivaldo] 01/7/2007 18:28

FYI there's a big "Recruiting" special supplement with the Sunday Times today, with:

- Bond on the front cover
- full page ad for Bond on page 2
- article on effective uses of recruitment technology on page 2 with a specific section on Flybe's usage of BDI's systems
- article on collection of personal details with ref to the law and how Bond's packages adapt across countries

All good PR.

[rivaldo] 27/6/2007 22:56

Good to see a few small nibblers in today on a bad day for the markets generally. Perhaps the excellent AGM statement and the forward P/E of just 10.8 on cautious broker forecasts will tempt some more buyers out at these levels.

Amazing how BDI always has to fight to reach the next level (share price-wise). I have no doubt it will find new highs again eventually.

[rivaldo] 26/6/2007 22:54

If it's as flat for BDI as last summer's 25% rise that'll do me :o))

[polzeath] 26/6/2007 19:47

Not just that (summer months), APPPP, but BDI share price apparently falls into the pattern of good H1 and subdued H2, regardless (it seems) of performance. Could be a flat few months coming up.

Riv - noted that BDI mgt seem to have broadened the business model somewhat.

[apppp] 26/6/2007 16:29

My comments were somewhat tongue in cheek but thanks for the tips. I'm like you have every faith in all the stocks I hold and would not dream of selling them when the share price falls due to no apparent reason. But the market certainly in my limited experience seems to act differently in these summer months.

[rivaldo] 26/6/2007 16:00

A few bargain hunters out today I see - and finally the price has responded.

Apppp, if you'd sold BDI last spring you'd have missed out on the big rise last summer which didn't really stop till this spring....and you'd have lost AIM taper relief too! Generalisations like "sell in May", "sell on results" etc always get my goat - seems to me every stock should be taken on its merits.

RCG for example - they could announce a sales win or trading statement any time now, and again sellers would have lost out on both a resultant rise and on taper relief. Better to be in than out imho, especially when the losing of taper relief effectively means you have to find another 50% or more winner just to recover the tax break lost by not holding.

[apppp] 25/6/2007 17:51

£300k buy(s) just popped up on thisismoney.co.uk but can't find the trade(s) on any other website? Someone taking advantage of the fall today.

Don't understand the fall or severity of it today - anyone any ideas why the fall was so big on so few trades?

Getting hacked off with this trading lark and I started off so well. Next year I'm ditching all my shares in April / May as I've had a nightmare since then. BDI / RCG / CART / sold TAN though - good idea that!!

[rivaldo] 25/6/2007 14:25

It's lucky then that BDI have just spent £11.6m in cash on specialist providers to the public and education sectors, thus diversifying even further away from cyclical recruitment exposure.

And that BDI have recently won multi-million pound contracts with the likes of Hays and Manpower, securing revenues for the next few years.

And that the corporate side is also winning new large clients like Knight Frank, Hamptions, Flybe etc, thus also diversifying away from dependence on the recruitment cycle.

If you want a real fly in the ointment then look at the $2 to the £ now in force. Though I don't think that will last too long.

To analyse BDI's prospects, even in the short-term, solely based on a possible future scenario which may not happen and which BDI isn't particularly exposed to any more, whilst ignoring fundamentals and the real potential going forward, seems faulty to me. Though I'm probably wrong!