Brady Share Discussion Threads

[aishah] 26/10/2013 21:52

Yes, that's why Techinvest rec'd them. Substantial re-rating expected as more contracts come through. dyor

[techno20] 26/10/2013 21:28

Pleasing to see coverage in this weekends FT.....

"Shares in Brady, the commodities trading software provider, climbed 13.7% to 70.5p this week after the company reported a contract win for MAG Commodities of Switzerland. Panmure Gordon initiated coverage with a BUY rating and 90p price target - saying that, after a 40% fall from the October shares' 2012 peak, much of the bad news on contract deferrals had been priced in"

Won't do any harm.

I remain surprised that the recovery has not gone further. If I am reading the Edison report correctly, Brady has signed in recent weeks its largest two contracts In history - Yet we are still down over 30%. Further upside likely IMO as the recovery is recognised, especially if, as Edison suggests, more contracts are on their way.

Techno.

[techno20] 24/10/2013 23:55

Just spotted Edison have issued a report today. Summary statement is below...

INVESTMENT SUMMARY

Highlighting the H2 momentum and increasing deal size, Brady has announced four new significant contract wins since it posted its H1 results in early September. At that time we reported that the group's record pipeline included three very substantial deals, which had taken longer to negotiate than expected, and this resulted in some anticipated FY13 revenues slipping into FY14. Two of these deals have now been signed. On Wednesday Brady announced its largest contract win to date, with an unnamed global metals trading company. This follows the group's previous largest deal, announced in September, with Standard Chartered Bank. Earlier this month the group also announced a Power Scheduling contract win, indicating the Energy division is regaining momentum, and today it announced a deal in the agricultural trading space. These deals underpin our FY14 forecasts. We also note that Q4 is the group's busiest quarter and we expect further contract wins to be announced in the coming weeks. Hence the stock continues to look attractive, trading on 9.3x our maintained cash-adjusted FY14 EPS.

[techno20] 24/10/2013 23:41

Dipped my toe in yesterday at 64p on the back of the lack if response to the rns. Was planning to make a quick exit, buy Wasn't expecting another contract so fast! Expect momentum will build as recognition of the recovery spreads. Suspect we'll see 80p pretty fast.

GLA

Techno

[jakleeds] 24/10/2013 10:24

2.5 million traded, including a one million buy.

Could move up a lot further, even from here.

[sammy_smith] 24/10/2013 09:58

LISTEN: Brady (BRY) - Significant new contract

Click the link below to listen

[aishah] 24/10/2013 09:37

Hotting up.

[cottoner] 24/10/2013 09:04

Large trades @ 65p (buy) currently going thro.

[owenski] 24/10/2013 07:21

Brady intersts me, but have to agree with Woody and Puffins comments, the figures here are not compelling. Its getting some contracts but what that will mean in terms of full year results I dont know. I'm inclined to think that 40p max is fair value here at moment. I also think the div increases have been unattractive. No doubt the share price will rise today lol

[jakleeds] 24/10/2013 07:18

Another contract win.

[aishah] 23/10/2013 14:06

This is what TechInvest said in their last issue:
"The shares could undergo a substantial rerating once large deals in the pipeline are signed"
Std Chartered followed by today's significant win. Keep'em coming. dyor

[jakleeds] 23/10/2013 07:19

Major new contract win. I'm still not back in yet though.

[woodcutter] 20/9/2013 08:17

you have a point there puffin on oheads. I'm a fan of BRY obviously, as a past holder. I nearly bought in when it dropped to 70p last time but i feel uncomfortable with the risk/reward at present and would rather wait until it shows some signs of stability in ohead and share price

Good luck if you're holding.

WC

[puffintickler] 18/9/2013 10:07

Hi Woody

Thanks for posting your thoughts.

I guess it comes down to where the extra overheads have come from. If it is indeed a lack of control, then you will be proved right. Equally it could be due to increased sales effort that has not yet been converted into sales.

It is a question of investment style. Pure numbers I have to agree BRY is not compelling.

[woodcutter] 16/9/2013 19:30

As a past holder thought i'd have a brief review based on the share price drop, with a view to possible purchase but have to pass i'm afraid.

Considering H1 results, despite the gross margin increase from 58% to almost 63% and the increase in revenue by 23% for the comparative H1 period the increase in o/heads is 51% excluding the previous period exceptionals. Even with the £2.2m cost reduction program, if it had been included in this H1 at £1.1m, the oheads would still have increased by 33%.

With the operational gearing as it is then sales will need to increase considerably (or o/heads be reduced further) in order for ther to be sustained growth in eps.

Untill they can demonstrate they've got o/heads and selling expenses under control then it's too high risk reward for me. And i can see why the insti's are reducing their holdings

Woody

[tiger20] 16/9/2013 10:12

Blackrock reduced their holding to below 7%

[puffintickler] 12/9/2013 11:31

bookbroker

Perhaps he wanted a stake increase but did not have the cash to hand? It is possible he has some cash coming in later that he planned to invest but wanted to grab the low price on offer now. We will see.

[puffintickler] 11/9/2013 08:16

Two stake increases of 60 K£ by Directors is a strong indication that the price here is indeed too low at 61p. I have just tripled my modest holding to make it a bit more substantial.

[puffintickler] 09/9/2013 15:18

trewinney

There has always been a large amount of goodwill and intangibles on
balance sheet, recent acquisitions will obviously have increased it. This is not news and will not prompt a sudden price fall just because the results confirm it.

[bookbroker] 09/9/2013 13:42

Find it difficult to reason with notion that directors responsibilities involve spread betting on the performance of the cos. shares as seen by Patrick Brazel's opening gambit today!

[trewinney] 09/9/2013 13:38

Think the reason for fall is large amount of goodwill and intangibles on
balance sheet.

[puffintickler] 09/9/2013 11:03

It looks like the fall is overdone to me. Prospects are good; annualised savings of 2.2M to come in second half, transition from up front payments to rental have hit the comparitives for the relevant period, 1st half is the poorer of the two. The price may fall further but should recover in time. I have bought back in a modest toehold anyway.

[togglebrush] 09/9/2013 07:10

Interims out:- Paul Fullagar, Chairman of Brady plc, commented:

"The Group has continued to grow revenue and signed a number of significant new licence and service deals in the first half of the year in what have been very challenging commodity markets. Business has been signed at a slower pace than anticipated with an impact on the results for the first half year and the 2013 outlook. Although markets remain tough, I am pleased that the Group has a growing pipeline and is in advanced negotiations in relation to several very significant new contracts, the revenue from which is expected to flow in 2014 and beyond. The Group's major focus is to secure these and other deals in the second half and to continue the momentum in the Brady Energy business following its reorganisation. I look forward to a busy second half and reporting further new client wins in due course. The increase in recurring revenues to GBP8.5 million is very positive and the increasing client base provides excellent opportunity to further grow the business. We continue to retain a strong balance sheet position, with a healthy cash balance and no debt."

[nedelcu77] 24/8/2013 10:25

9 th of September as per latest trading update