Ft Cesg Discussion Threads

[james 2] 17/6/2008 09:54

explorer see post #199

[explorer88] 17/6/2008 09:24

GHF / Orb1t

Can anyone advise me of CESG's cash position before or after the £1.1m has been paid for INFA?

[0rb1t] 16/6/2008 21:31

I see China Eastsea are also listed on the Frankfurt Borse:



Does anyone know the significance of this? Is it like the Berlin exchange that was used for shorting or does it mean that these shares can be bought in an ISA?

It does describe the Market Segment as "Open Market (Regulated Unofficial Marke..." on the website.

[0rb1t] 16/6/2008 21:22

China Eastsea Business Software initiated with "buy"
5:37a.m. - Seymour Pierce
LONDON, June 16 (newratings.com) - Analyst Zhining Xu of Seymour Pierce initiates coverage of China Eastsea Business Software (3FR) with a "buy" rating. The target price is set to 60p.

In a research note published this morning, the analyst mentions that that the company is expected to continue to witness top and bottom line growth of 50% per annum, given its strong presence in the government, telecom, and power sectors and projection of rapid growth of China's IT outsourcing market over the next decade. China Eastsea Business Software's future growth is likely to be supported by the increasing number of high-quality customers, the analyst adds.

[glasshalfull] 16/6/2008 17:59

Thanks for the welcome orb1t.
Reassuring to see that Seymour are also bullish on the stock.

Results should confirm they are on a PER of 6, or possibly a touch lower.
But the strong cash generative qualities of the company and forecasted increase in net cash (discounting acquisitions) of £1.6m in the year ending Feb 2008 ; £2.7m in 2009 & £3.7m in 2010 (per Evolution 3/3/08 note) is the real kicker.
Coupled with the fact that they also had a strong net cash position of £3.4m as at 31/08/07 (interims) provides further compelling evidence of the apparent undervaluation.

Of course we will be able to assess the company further in a few weeks when the growth and market opportunities should be more apparent.

Regards,
GHF

[0rb1t] 16/6/2008 13:51

hi tish, unfortunately I am not going to be able to make the AGM this year as I no longer live in England. There hasn't really been much news to talk about. Hopefully that will change!

[t1sh] 16/6/2008 13:44

orbit tks i just wasnt sure as ive not ever seen you post there. i understand that you attended the agm last year as well any thoughts towards going this year?

anyway best of luck here for you

[0rb1t] 16/6/2008 13:34

Yes still invested in TAIH. Hopefully results soon. Was it jayne who said she was doing a barn conversion? Probably busy then.

[t1sh] 16/6/2008 13:27

orbit you still invested in taih sorry o/t, also you seen jayne 130407 about recently

[0rb1t] 16/6/2008 13:13

I think the only thing GNG did wrong was to assume that all projects were going to be completed on time and then make a trading update too early. GNG has had a lot of growth this year which will be reflected in this year's results.

PS. It's very unlikely this will be repeated with CESG as they gave their trading update 2 1/2 months after the end of the financial year end.

[james 2] 16/6/2008 13:09

Orb1t I don't suppose you have a copy of the Seymour report ?

Thanks

[capt bligh] 16/6/2008 13:01

This seems like a really good little company, but the GNG shaky reporting experience is a bit worrying, also are the Chinese going to get so fed up with their underperforming share price and de-list? Still, I believe the story, and I am long here results soonlets see what happens. These days a quiet board is a good board imv.

[0rb1t] 16/6/2008 12:55

Seymour Pierce have started coverage of China Eastsea (CESG) today with a buy recommendation and a target price of 60p. That's 150% higher than the current price!

[0rb1t] 13/6/2008 18:54

Hi GHF, welcome aboard!

I agree the company has developed a long way since it listed on PLUS. The acquisition of Beijing Huashen Huizheng System Project Technology Ltd (BHH) gave them access to government and power industry contracts followed up by the recent acquistion of INFA Group which focuses on power and telecoms. Along with their existing leading position in Petrochemical arena they are gaining sufficient critical mass that will enable them to successfully win larger contracts. Also important here was the fact that they achieved SEI CMM Level 3 during the year which is an internationally recognised process acreditation that is often required by customers.

I am also impressed by the company's communication and willingness to answer any questions.

[glasshalfull] 13/6/2008 16:43

I should add that David Tsui, CFO, reaffirms the company's intentions to release results later this month.

A Notice of Results will be issued in due course.

Regards,
GHF

[glasshalfull] 13/6/2008 16:24

Orb1t - Thanks for producing a v informative thread.

These have been on my watchlist for a while and I've been quietly accumulating since the "ahead" trading update.

Having looked through a number of the announcements over on PLUS the company have been successfully delivering for a while now.
Decent looking B/S & operating in a growth market/sector.

Probably on a current PER of 6 (based on 4p EPS) for the year ended Feb '08.

Nice to see quite a few other esteemed investors have come to the same conclusion :-)

Regard,
GHF

[arthurly] 04/6/2008 15:55

GNG still my biggest holding but sold 20k yesterday at av of over 80p and put them in this. Managed to get 40k in one on line lot yesterday but I think 10k is online limit now.

[0rb1t] 04/6/2008 10:54

Hi capt, I hold Geong as well! The company had probably got ahead of itself but I think the long term story is still good.

[0rb1t] 04/6/2008 08:54

LOL! In a couple of weeks CESG should be annoucing earnings of over 4p making a historic PE of 6. Compared to GNG which is still now on a historic PE of 17 I think the downside here should be limited.

[buffin] 04/6/2008 08:41

A few of them were mine. Let's hope geongitis isn't catching.

[0rb1t] 04/6/2008 08:23

Another busy day yesterday with 150,000 shares traded. On PLUS this share was lucky to get one trade per week!

[masurenguy] 03/6/2008 09:55

Hmmm....50K Sell @23.5p - is London Asia still disposing of their residual shares ?

[0rb1t] 02/6/2008 19:59

Another 0.2% of the company bought today. Can't be much of the London Asia stake left now.

[buffin] 02/6/2008 09:46

5? Extortionate!

:)