Cornerstone Fs Share Discussion Threads

[chatchat] 21/5/2024 07:25

new thread under FIN ticker

[qs99] 20/5/2024 10:52

ah sorry and thank you very much for taking time to respond!!

[walter walcarpets] 20/5/2024 10:30

Name change today. Now trading as "FIN"

[chatchat] 20/5/2024 10:29

QS99

Company name change - CSFS now FIN

[bent banana] 20/5/2024 10:28

new ticker FIN

[qs99] 20/5/2024 10:22

No shares traded today or something I've missed?

[nico115] 17/5/2024 07:44

I'm also not selling ST upgraded to 60p and he's normally spot on. Still far too cheap

[adamb1978] 16/5/2024 19:19

They said on the recent call that they're used Finseta as the trading name and going through the process of changing various other things. I assume the delay will be with regulators given Companies House is quite quick. Then they'll change the listing and ticker. Don't know how many regulatory bodies they need to notify or get approval from I'm afraid

[goldmineralan] 16/5/2024 16:44

What's happened to the new name Finseta?

[metis20] 16/5/2024 08:13

Number of customers increasing rapidly:

803 - Dec 31 2022

906 - Dec 31 2023

over 1400 May 2024


From the website today:-

"Today, Cornerstone’s provides multi-currency accounts to over 1400 businesses and individual customers in the high-growth market for cross-border payments."



and from the annual report:

"Active customers, calculated as clients who traded during the
12 months ended 31 December 2023, increased to 906 compared with 803 for the 12
months to 31 December 2022"

[66fingers] 09/5/2024 21:59

I'm inclined to agree with Z1co, with the absence of any news over the next 6 weeks, I think the share price will drift downwards. Having said that I wont be selling as I firmly believe that over the next 3 years, shareholders will be well rewarded.

[eggbaconandbubble] 09/5/2024 17:20

Not ramping. just endorsing what the experts are saying TP. 70p.

My hunch goes along with Thompson's and those many peeps loading up right now - 60p shorter term.

[adamb1978] 09/5/2024 16:49

Would surprise me if it dropped into the 20s, though with small-caps there's always volatility between news events. I added this week and am actually considering adding further. I'm not bothered about week to week or month to month movements as I think they they have multi-bag potential. Not a chartist but sometimes the peak of a previous move acts as support, so possibly 35p here - hence my scepticism of whether we see 20s.

I'm looking for 80p within 2-3 years based on conservative assumptions. It feels like they're winning share in a large enough market and exporting their model overseas now too and therefore expanding their addressable market.

As before, I think this has multi-bag potential so wouldnt try to be overly clever by selling/buying between news events in order to save a couple pennies as its possible that those savings could be insignificant when compared to the upside.

[colinroberts] 09/5/2024 15:44

I've had a small holding here, but have sold today as I think they're going to level off at best now. It's been a great ride here for a few months but I just think there'll be a bit of a correction now. I may look again if they drop into the 20's.

[66fingers] 09/5/2024 11:45

Oliver, thanks for sharing the ST article, much appreciated.

[z1co] 09/5/2024 10:12

Nice one eggy

There's a time to ramp and a time to stay quiet.

With no Q1 trading update it's definitely best to stay quiet.For the shares to break through the 40p barrier we needed a ahead of expectations update.

You can ramp these day and night but i'm afraid you won't get much joy ,the downward trend has started until the next update.

[eggbaconandbubble] 09/5/2024 10:01

Tee hee! I was actually doing some gardening the other day but luckily not at His Majesty’s pleasure! Well, this time around anyhow!

As for ramping. I think I caught the habit off someone on this board!!

[adamb1978] 09/5/2024 09:19

It had a period of consolidation around 30p at the start of the year, so am not really fussed if we get the same in the high 30s now - some investors who have made a return leave, new investors join. I think its healthy.

[z1co] 09/5/2024 09:19

eggy

You're ramping a lot since yesterday.

Relax and do some gardening ...

[eggbaconandbubble] 09/5/2024 09:15

From Simon Thompson above.....

"The shares also offer a prospective 2025 free cash flow yield of 11.4 per cent that supports a trebling of net cash from £1.4mn (2024 forecast) to £4.2mn (upgrade from £3.1mn) by the end of 2025. Cornerstone only has a market capitalisation of £22mn, so it is being valued on a modest 6.9 times 2025 cash profit to enterprise valuation. That’s a harsh rating for a high-growth business, hence why Shore Capital raised its target price from 50p to 70p following the results,"

It can't be long before the M&M's run out of stock!

[eggbaconandbubble] 09/5/2024 07:12

Oliver - Thank you.

Simon Thompson is incredibly thorough in his research.

[oliver_m_j] 09/5/2024 06:50

Full Simon Thompson article:Cornerstone FS (CSFS:38.5p), a challenger brand in international payment solutions, has delivered profits significantly ahead of previously upgraded guidance.The group services more than 900 small and medium-sized enterprise (SME) business customers and high-net-worth individuals (HNWI), supporting their payment needs in more than 150 countries and 58 currencies. This is done through a proprietary and highly scaleable cloud-based technology platform developed over the past five years to facilitate high volumes of transactions in multiple currencies at a limited incremental cost. The platform offers bank-grade security and fully verified transactions.The international payments market is a highly complex space that is measured in many trillions of pounds, comprising payment mechanisms from cash, cards, account-to-account transfers across physical, internet and mobile interfaces. It's a fast-growing market that could generate global revenue of $3.2bn (£2.6bn) in 2027, up from $2.2bn in 2022, according to the McKinsey Global Payments Report.To capitalise on the opportunity, Cornerstone differentiates itself by facilitating large transactions (such as property or corporate investments) for customers that fall outside the traditional transaction remit of banks. Given their cumbersome legacy IT systems, banks lack the cutting-edge technology to service these demand niches and are unwilling to invest in scaling compliance capabilities for client onboarding and ongoing transaction monitoring. Cornerstone's tailored service requires a high level of compliance support, with each customer given a dedicated account manager. The focus is on quality of service, another differentiator from legacy banks.high-growth business with high operational leverageThe board's focus has been on driving direct sales and fully commercialising the platform, while maintaining tight control over costs. Key elements have been growing the sales team and enhancing and expanding the offering, particularly through increasing the number of counterparties to broaden the number of currencies and countries where Cornerstone can transact.By targeting HNWI and SME business segments, the group is now delivering eye-catching growth in transaction volumes (33 per cent year-on-year growth), and with the benefit of a relatively fixed cost base an increasing proportion of incremental revenue is being converted into profit. In the 2023 financial year, revenue doubled to £9.6mn on a much improved gross margin of 63.4 per cent, up 2.5 percentage points. This reflects the strategic decision to manage down its white-label business and increase revenue from direct clients, which now generate 95 per cent of revenue. Active customers increased by more than 12 per cent last year, of which private clients (primarily HNWIs) accounted for two-thirds of the client base.So, with underlying operating costs rising £0.6mn to £4.4mn, and gross profit more than doubling from £2.9mn to £6.1mn, the business made a decisive move into profitability, reporting a cash profit of £1.7mn. The result was 20 per cent better than Shore Capital had predicted and reversed a cash loss of £0.9mn in 2022. The group's balance sheet strength has improved markedly, too, buoyed by £2mn of cash generated from operations. Expanding the product offeringA core element of the board's strategy is to establish a global payments network that will enable Cornerstone's customers to pay in from, and pay out to, any jurisdiction and via any payment method. While it is still early days, new counterparty partnerships have been established, which have broadened the number of currencies and countries where Cornerstone can transact, as well as expanding the business sectors that it can serve.Chief executive James Hickman is actively pursuing a licence to operate in Dubai, and hopes to expand into Hong Kong early next year. Earlier this year, Cornerstone received authorisation to operate a payments company in Canada and provide payments services to Canadian businesses and individuals. Cornerstone is also making significant progress expanding its payment method offering, having signed an agreement to launch corporate cards co-branded and supported by Mastercard for its corporate customers. In addition, a new offering, Cornerstone Solutions, provides payments solutions to clients that are harder to service, due to, for example, the sector in which they operate. This will allow the group to leverage some of its competitive strengths – such as the high level of experienced, personalised service – and open access to a further cohort of potential clients.  Upgraded forecasts and low ratingHaving upgraded its forecasts multiple times in the past six months, house broker Shore Capital is pencilling in at least 18 per cent annual revenue growth for each year in its 2024-26 forecast period. It looks a conservative assumption given that Cornerstone is delivering double-digit growth in customer numbers and increasing their revenue contribution, too. Moreover, even without any further upgrades, the combination of rising revenue on a relatively fixed cost base is set to drive gross profit, cash profit and pre-tax profit materially higher.Although analysts expect current-year cash profit to rise from £1.7mn to £1.9mn (5 per cent upgrade) on 20 per cent higher revenue of £11.5mn, it's a conservative estimate that is below the board's internal budget. Furthermore, with this year's expected increase in overheads (staff account for three-quarters of operating costs) easing in 2025, an even greater proportion of incremental gross profit will be converted into cash profit next year. This explains why cash profit could increase by 69 per cent to £3.2mn in 2025 to deliver pre-tax profit of £2.5mn on 22 per cent higher revenue of £14.1mn. On this basis, expect adjusted earnings per share (EPS) of 3.1p (2025), implying the shares are rated on a prospective price/earnings (PE) ratio of 12.4 for 2025.The shares also offer a prospective 2025 free cash flow yield of 11.4 per cent that supports a trebling of net cash from £1.4mn (2024 forecast) to £4.2mn (upgrade from £3.1mn) by the end of 2025. Cornerstone only has a market capitalisation of £22mn, so it is being valued on a modest 6.9 times 2025 cash profit to enterprise valuation. That's a harsh rating for a high-growth business, hence why Shore Capital raised its target price from 50p to 70p following the results, above the 50p fair valuation I outlined when I suggested buying the shares at 36p (Alpha Research: 'Tap into undervalued fintech growth', 8 April 2024). I feel a fair valuation of 60p is now more appropriate given that the strong momentum in customer acquisitions and transaction volumes shows no sign of abating.Please note that Cornerstone plans to change its name to Finseta (TIDM: FIN) to better align the brand identity with the comprehensive range of services the group now provides. Buy.

[purchaseatthetop] 08/5/2024 20:17

I wonder why CSFS did not mention this when he was recruited?