Csf Group Share Discussion Threads

[rivaldo] 25/7/2012 08:06

Er...right :o))

Richard King's CV is rather impressive actually....

"LONDON (SHARECAST) - Richard King, a non-executive director of AIM-listed CSF Group, snapped up 55,000 ordinary shares in the firm on Tuesday, just a few weeks after the firm's full-year results revealed an improvement across all business segments.

He bought the shares at 44.75p each for a total consideration of £24,612, opening his account for a 0.034% interest in the company.

King, 55, worked at accountancy giant Ernst & Young for 35 years, most recently as Deputy Managing partner of UK and Ireland until his retirement in December 2010, according to CSF's website. He is currently Chairman of The Willow Foundation and is a non-executive director of UK-listed workforce and compliance software provider Allocate Software."

[snatander] 25/7/2012 07:58

Im not buying it

Its like dont go into a Chinese restaurant unless there are Chinese people eating inside.

Im not touching this, Richard King does not sound chinese and may be a silly man

[rivaldo] 25/7/2012 07:30

Good coverage here:



"CSF non-exec opens his account
Tue 24 Jul 2012

LONDON (SHARECAST) - Richard King, a non-executive director of AIM-listed CSF Group, snapped up 55,000 ordinary shares in the firm on Tuesday, just a few weeks after the firm's full-year results revealed an improvement across all business segments.

He bought the shares at 44.75p each for a total consideration of £24,612, opening his account for a 0.034% interest in the company.

King, 55, worked at accountancy giant Ernst & Young for 35 years, most recently as Deputy Managing partner of UK and Ireland until his retirement in December 2010, according to CSF's website. He is currently Chairman of The Willow Foundation and is a non-executive director of UK-listed workforce and compliance software provider Allocate Software.

CSF Group, a provider of data centre facilities and services in South East Asia, reported on July 4th that total group revenue in the year to March 31st rose 83.5% to RM207.96m (£42.4m) year-on-year, while pre-tax profits increased 10.5% to RM55m (£11.2m)."

[rivaldo] 24/7/2012 13:34

Director buying just announced, and in pretty decent size at that at 55,000 shares. It's his maiden purchase too....



"The Company today received notification that on 24 July 2012 Richard King, a non-executive director of the Company, purchased 55,000 ordinary shares of 10 pence each in the Company ("Ordinary Shares") at a purchase price of 44.75 pence per Ordinary Share.

Following this transaction, Mr King has a beneficial interest in 55,000 Ordinary Shares, representing approximately 0.034% of the Company's issued Ordinary Share capital."

[rivaldo] 19/7/2012 17:48

Good to see the current uptrend continuing. We have a series of higher highs on the chart now.

SteMis, there are all sorts of reasons why I consider CSFG to be very undervalued, as previously outlined.

A year of decent performance, with net cash rising to £26m as forecast, should see the share price much higher than it is now. Based on the conclusion from the last results this will hopefully be the case:

"Our trading continues to gain good market traction and we are confident that demand for our products and services will be sustained, driven largely by a combination of our own market reputation, ongoing marketing initiatives and the strong demand for data centre services in Malaysia and South East Asia. On this basis, the Board is pleased to report that CSF expects revenue and profit to be in line with current market expectations."

[stemis] 16/7/2012 14:14

Thanks Rivaldo, I got it (it was in the SPAM folder!!). Interesting read. One of the key facts for me is their calculation of full capacity EBITDA, which is £16.8 million. This is the earning capacity of the data centres when fully let (obviously CX5 isn't yet). Even knocking 25% off that for broker exuberrance, the EV of CSFG is only 4.2X. That would ignore any value in their design & development business.

If £16.8m, less 25%, seems a lot (=Rm 63m), the current contribution is about Rm 23m. CX5 just about doubles capacity and has (for B and C anyway) higher power density (= higher rental revenue).

Then of course there are future data centres.

[rivaldo] 16/7/2012 12:46

...and another 1.16m shares just traded. Good to see the share price rising on all these large trades.

[rivaldo] 16/7/2012 11:21

SteMis, yes, I e-mailed the note to you - it didn't bounce back so I assumed you must have got it?

Interesting final section of Cenkos' nopte, which suggests a 230p value for CSFG given recent sector acquisition prices:

"Valuation.

Our multiple and cashflow based valuation approaches supports a price of over c80p (comps trade on 10x EV/EBITDA). Sector deals are also very
supportive; Equinix recently paid $230m or c9x EBITDA for a local DC operator in
HK, US company Digital Realty paid £715m for Sentrum (761k sq feet) in the UK
(read-across would implies a value of c230p for CSF).

In addition, even the sectors most efficient DC players pay out c$5m per MW to build a data centre suggesting an "asset replacement" value for CSF's estate of c100p/share"

[stemis] 14/7/2012 12:06

Hi Rivaldo,

Did you get my message through TMF?

[rivaldo] 13/7/2012 13:55

A bit more buying leading to another tick up.

On top of the 5.2p and 6.4p EPS above, plus the 2p dividends, CSFG had £11m net cash at the year end rising to a forecast £26m at the end of this year.

[rivaldo] 12/7/2012 15:07

SteMis, I've sent Cenkos' note dated 4th July to an old e-mail address I had for you at fireflyuk. If that doesn't work you'd better leave another e-mail address up for a while.

Forecast EPS is 5.2p this year for reasons outlined further up the thread, then rises to 6.4p next year, with a 2p dividend each year.

EDIT - it's just failed, so you'd better leave contact details up.

[druinsky] 12/7/2012 14:55

any oriental people selling?

[stemis] 12/7/2012 14:55

I've had a look at the company, based on the comments in the IC, and whilst it 'looks' cheap and the story is good I have some concerns:-

The business model seems to be that CSFG gets a developer to build a data centre, which CSFG designs and fits out charging the developer and recognising profit on the charges, the developer/owner then charges CSFG a lease rental on the centre and CSFG charges customers for sub-leasing it to them. This seems a different business model to Iomart.

The development of CX5 will take the capacity in Malaysia (which is the only place worth talking about) from 205,000 ft2 to 406,000 ft2 by 2014. So we can pretty much expect a doubling of rental/maintenance profits over the next few of years + any increase in prices.

A lot of the profit comes from the development of data centres (esp. CX5 in 2012). How sustainable is this revenue source? The implication in Cenkos forecasts is that this profit will fall in 2013 and 2014 (anyone got the note?)

[rivaldo] 11/7/2012 19:09

There's the other side of the transactions - 800,000 shares at 40.06p.

Things certainly looking better here now. Online certainly suggests that a pesky overhang has been cleared.

[rivaldo] 11/7/2012 13:48

Crikey, even better now - only 1,500 shares maximum available at 43p, whereas you can sell plenty at a nice premium at 43p.

Mas, there were a set of similar transactions that went through two days ago, also at 40p. Whether these are related I don't know, but it seems that some sort of reallocation of holdings is going on at the least.

[johnv] 11/7/2012 12:47

max I can get thro Barclays is 10k @43p

[masurenguy] 11/7/2012 12:38

Any idea why 99% of todays volume are all Sells ?

[rivaldo] 11/7/2012 12:27

Another 941,000 shares traded so far today...

[rivaldo] 09/7/2012 12:08

Hmmm...314,000 shares now traded and the share price up nicely. End of an overhang?

[rivaldo] 09/7/2012 09:45

Good to see a tick up on just 15k shares bought.

Also, online one can only buy 10k shares at 42p, but sell 15k shares at 39.5p, so looking reasonably encouraging.

[rivaldo] 07/7/2012 17:01

Steg :o))

Nice mention in the IC this week (and for SID as well):



"IC TIP UPDATES:

Ithaca Energy ( IAE ) shares have bounced back a little this morning on a positive ruling in a legal dispute in respect of the Jacky J03 well. We remain buyers.

Silverdell's ( SID ) recent strong run has continued with further contract wins totalling £13m, justifying the recent acquisition of EDS. Silverdell's shares have now almost doubled since we recommended them, but we so no reason to change our mind.

Asian data centre operator CSF Group ( CSF ) has issued strong results with revenues up 83.5 per cent and pre-tax profit 10 per cent better. The company is continuing to plough resources into expanding its data centres across Asia, which is why we keep them as a buy."

[stegrego] 06/7/2012 13:04

Riv,

Fund managers dumping holdings and being incredibly short sighted?

Shurely shome mishtake..

[itchycrack] 06/7/2012 13:02

Funds liquidate holdings all the time, nothing particularly unusual about it. You don't actually know why they had the holding in the first place. It could have simply been used as a hedge against another position, which has subsequently been liquidated meaning the hedge is no longer required.

Buying and selling these days does not tell you anything about WHY the transaction was made. Hedge funds pair up trades as LONG/SHORT pairs looking for outperformance so if I go LONG (buy) Tescos and SHORT (sell) Sainsburys does that mean I think Sainsburys will fall or is a bad investment? Actually no, in this scenario all I am trading on is the relative outperformance of Tescos over Sainsburys with no market risk, and no sector risk, simple as that.

[rivaldo] 06/7/2012 12:32

Already discussed further up the thread Snatander. Who knows - change of fund manager, winding down of a fund, perhaps they were disappointed with the forecast downgrade for this year, though that would seem incredibly short-sighted to me given the value here.

[snatander] 06/7/2012 12:20

why did someone dump 1.6m at 35p?