Cybit Share Discussion Threads

[sanity] 08/10/2009 23:05

I agree the news is full of potential, during the tech boom this sort of potential would make shares rocket. Cybit was floated for £20M and was solely Cybit limited making a loss and was only about potential. Now it is also made up Amatics, Thales Telematics, Blue Finger, OxLoc, Track24 and Integra Telematics as well as numerous contract wins. Yet the company is now worth half of the floated value and has returned over £2m in profit last financial year. Today only actuals move SP, though based on the above, the company should be worth closer £50M. Am I RAMPING? Yes! Or is it the London Pride this evening?

[cheshiremoggie] 08/10/2009 22:24

I'm glad you're suitably moved FFP. Let hope the share price finally gets the right idea.

I've been slowly been buying more over the last few months and I could certainly do with a return to the previous trading range of 40-60p.

CM.

[ffp] 08/10/2009 20:29

Well I thought CM's post above was good enough news. Buy a few more, top up...

[sanity] 08/10/2009 19:36

Share Price appears to be at a crossroads. There are few sellers and limited buyers. Just need a little good news to push this forward now to the next level.

[ffp] 08/10/2009 19:24

CM> the thought of that gave me goose bumps,

[cheshiremoggie] 08/10/2009 18:47

Nice one orange1 but you missed an interesting bit on the bottom of the link :

All vessels greater than 24 metres in length will be required this year to electronically record and transmit logbook data on a daily basis. The same requirement will apply to all EU fishing vessels greater than 15 metres in length from 2011.

The UK fishing fleet of circa 6,500 vessels.

I assume a lot of the EU fishing fleet will be fitted with Bluefinger systems. Are there any competitors?

CM.

[orange1] 08/10/2009 11:50

BlueFinger launches Web-Delivered Electronic Catch Reporting System

Will help fisheries authorities to minimise illegal fishing, monitor quota compliance, comply with international regulations, and conserve fish stocks
For high resolution images to accompany the story, please click here or here
BlueFinger, the Marine subsidiary of Cybit, the UK's leading online Telematics Service Provider, has launched Saffire-ERS, a commercially available electronic catch reporting system to assist authorities to record, report and process catch-related fishing data in accordance with international fishing regulations. The accessibility and visibility of this information provided by BlueFinger's Saffire-ERS is designed to aid authorities in their efforts to reduce illegal fishing and proactively manage stocks.

Saffire-ERS enables authorities to paperlessly manage the large volume of data generated by recording the whole process of catch to sale including species, landings, transhipment and sales. This contributes to the management of conservation and sustainable harvesting of fish stocks in an increasingly global regulatory environment.

"Maintaining sustainable fish stocks is the goal for all international fisheries authorities at the moment, and any tools that help increase the accuracy and accessibility of data can be key to success in this effort," commented Steve Jones, Director of Specialist Tracking Solutions at BlueFinger. "Saffire-ERS enables authorities to automate many key reporting functions, which enhances reporting and visibility of information not only nationally, but internationally across different jurisdictions. This is essential in this global battle to combat illegal fishing."

The system went through initial trials leading to full implementation by the UK's maritime authorise managed by DEFRA and already allows for data sharing with neighbouring states and regional facilities, including the Community Fisheries Control Agency Data Centre in Vigo.

The web-delivered database and logging system is an extension of BlueFinger's Fisheries Vessel Monitoring System, which is deployed in over 20 nation states around the globe to protect Exclusive Economic Zones and fisheries. The software development of Saffire-ERS is an extension of the monitoring services BlueFinger already supplies to the commercial fisheries market.

Steve Jones continued: "The benefits of the solution are that fisheries authorities can do away with many cumbersome paper-based processes and time taken to assimilate and analyse data. This makes reporting more accurate and easier to administer. This new level of reporting will not only help cut illegal fishing, but will also create more visible verification for legitimate fishing organisations, which can get a fisheries authority seal-of-approval for their catch."

About BlueFinger
BlueFinger is a specialist provider of Vessel Monitoring Systems. The BlueFinger designed database will hold full catch and sales records of every vessel over 15 meters in length and make this data available 24/7 via any web-connected PC.

BlueFinger's provision of ERS and real-time access to catch reporting by buyers, sellers and authorities is managed by DEFRA on behalf of the Marine & Fisheries Agency, Marine Scotland, the Department of Agriculture in Northern Ireland and the Welsh Assembly Government.

[cheshiremoggie] 08/10/2009 10:57

SLL - yes I agree the acquisitions have been very well thought through.

[sll] 08/10/2009 09:43

Thanks Sanity - so its Hoodless & Brennan, very interesting! Their price target of 45p also goes into the mix with Cenkos at 53p. Seems like a reasonable range to me, from where we are now, looking at EPS and a sensible PE et al. Also, and I will stick my neck out here, Cybit have an impressive record of saying what they mean and meaning what they say. They have mentioned 'dividend' aspirations quite clearly, and have commissioned the standard legal tidying up of reserves etc to at least permit one, however small, if/when appropriate. I fully expect them to deliver in this regard, too, come the end of FY2010 or FY2011. Only disciplined, profitable and cash generative companies with a reasonable continuity of EPS growth expectation should contemlate paying divs. Which of those boxes will not be ticked by this group, this year or next?

[sll] 08/10/2009 09:34

CM - its more valuable than that. They have used acquisitions wisely to add value to (or remove problems in) pre-existing operations, and not not just for scale - in terms of product, coverage, legs to the business etc. small examples: Amatics was useful in itself, but it also paved the way for the most recent 'bolt on' having established Cybit as the public authorities provider. Oxloc clearly sits well with Bluefinger. Truck24 not only offered scale & presence in the key German-speaking market, but innovative product that has been imported into pre-existing UK businesses allowing for retirement of older platforms. If one looks back at the journey here over even the last 5 years, it is actually quite remarkable.

[cheshiremoggie] 08/10/2009 01:48

The interesting thing to note (and I hadnt taken much notice of the AGM statement) is 'The current climate has resulted in a number of
opportunities for acquisitive growth and detailed evaluation of these
opportunities is ongoing.'

The company has grown well by acquisition and hopefully a bargain or two that materially enhance profitability and EPS will be snapped up soon.

CM.

[sanity] 07/10/2009 20:31

Hoodless Brennan 3rd September 2009

Cybit Holdings (CYH, 36.5p, £10.02m) AGM statement has confirmed the group continues to make solid progress and is at the detailed evaluation stage on acquisition opportunities. Our last recommendation was a Hold at 36p on 13.07/09 as we are concerned regarding the availability of finance to fund growth and the use of established tax losses that will reduce reported EPS. Even allowing for a full tax charge the group is sitting on a 5.9x prospective PER, based on £2.4m pre-tax profits. The rating does leave upside and we change to a BUY with a price target of 45p.

[andre] 07/10/2009 18:02

I am pretty close but don't have the info. on that one. I can ask around. I will let you know if I hear anything.

[sll] 07/10/2009 17:54

It seems that there are now 2 'strong buy' broker recommends for Cybit per Digital Look (via the Barclays site). We know that one is Cenkos, but I can't track the other covering (and recommending, it seems) firm. Any views?

[pedr01] 05/10/2009 09:36

Does anyone have a handle on the number of Integra customers that have come over. I can't seem to locate any information at all? Are you close to the telematics industry Andre, any ideas?

[andre] 02/10/2009 20:17

I have read that before somewhere if not here and July is not new when we are now in October. Still, something needs to put a rocket up this stock.

[sll] 02/10/2009 11:58

thanks tehart - as always, some very interesting insights shared, thanks to you. my point about a relative lack of free stock, here, seems to be feeding through to the SP, at least a bit. steve

[tehart] 02/10/2009 07:18

from July but not seen it posted here before




For years a company close to me here in Oxfordshire, Transense Technology (LSE: TRT), has been developing tyre pressure monitors. These alert truck drivers when the air pressure in the vehicle's tyres falls below the manufacturer's recommended level. Sounds like a great idea.

And yet as far as I know, Transense is yet to sell one of its monitors or earn a royalty payment from a licensee. Meanwhile, tyre pressure monitors are already standard in the United States, and produced in the millions by major suppliers.

This illustrates one problem for followers of small companies in the motor industry. The problem is that there are some massive 'Tier 1' suppliers to the vehicle assemblers. Sooner or later, these big players manage to gain control any new product. That's not to say that there aren't opportunities for penny share investors, though...

A sector with great opportunity...
One area that is very interesting is telematics. This is a fusion of 'telecommunications' and 'informatics' and involves not just the gathering of vehicle information but also its transmission to, and use by, a remote monitor.

The original purpose of telematics was to keep track on the geographical whereabouts of a vehicle. It allows fleet operators to instantly locate their vehicles and marshal them in the most efficient manner. But as with any good product, telematics has created a number of other benefits. For example, it can enable the monitoring of fuel consumption and prevent a driver from using the company van to slope off to the pub...

Telematics is an industry that has long held promise for investors, but has so far flattered to deceive. The sector has thrown up one of stock market's biggest losers of recent years - Minorplanet (LSE: MPS), which has seen its share price sink from £10 to 3.5p.

But last week two penny share companies reported results that threw renewed light upon the industry. These were Cybit Holdings (LSE: CYH) and a real tiddler that I visited in the picturesque Dorset town of Shaftesbury, Trakm8 (LSE: TRAK) .

Cybit's telematics systems are deployed on fishing vessels and offshore oil installations. Inevitably Health and Safety has entered the picture, in the guise of the Working Time Directive and Duty of Care legislation which both prevent drivers from spending excessive periods of time behind the wheel. Now governments have cottoned on to the possibilities of integrating telematics data into road pricing schemes.

Meanwhile, according to John Watkins of Trakm8, every vehicle will eventually be fitted with a telematics system. But he admits that while this could be within twenty years it could take a lot longer. For one thing he points out that every engine is different, and every fleet operator's management systems are different also. So it is not enough to simply put a standard black box under the bonnet. These have to be designed for the vehicle and then the transmitted information has to be integrated into the user's software.

It was its willingness to work constructively with E-On, rather than simply selling it an off-the-shelf system, that enabled Trakm8 to win a contract with the utility giant earlier this year.

Here's the real 'game changer' for telematics
But what will really change the game for telematics, in Watkins' view, is the ability to monitor not just the location of a vehicle but the condition of its engine. Every modern car, he explained, has a diagnostics system, which collects information from various electronic control units and uses this to control the running of the engine.

When you take your car for a service the first thing that the garage does is to plug its computer into the diagnostics socket, and pull off a report of the engine's behaviour. But this information can also be transmitted to a remote monitor allowing, for instance, a fleet manager to judge the condition of his vehicle engines, pick up faults early and plan the most efficient maintenance schedule.

Watkins should know because for the last decade he has with great success run Omitec, a Devizes company that helps car makers to devise ever smarter electronic systems. He was installed as chief executive of Trakm8 last September and is confident of steering it back to profitability.

I'm not looking to invest in this right now. You should beware the serious lack of trading liquidity in the shares of this £1.1m tiddler and the obvious possibility that it will save the £175,000 annual cost of a stock market listing and return to the private sector.

This does not seem to be an issue at Cybit. Last week it reported a 27% profit increase and said that its recurring revenues now cover 82% of its monthly overheads. It is also ready to buy competitors who have been hit by the recession. Cybit's shares trade on under five times earnings - evidence of the investors' mistrust in this sector, but perhaps also an attractive opportunity.

Telematics is a rapidly changing technology. It's a sector that will provide some outstanding penny share opportunities in the future. The company that creates the right product that gets picked by the giants of the motor industry will make some investors rich. I'm on the look out.

[sll] 01/10/2009 14:33

Thanks Sanity - very helpful. Your view on pricing would be mine, too, but (also absent L2, and also 'long term' by preference) I am no trading expert. The Plus insight is also very helpful, indeed. Thanks, steve

ps. - last time I checked - 75k (our sell, their buy) was still available.

pps. - no ramp intended above. I can now see that the whole picture was not available to me earlier, not having that Plus Market link. I still get the impression that there is not much free stock here, but the extent to which this share price will rise (or not) and the timeframe over which that will happen (or not) remain as ever 'clouded'.

[sanity] 01/10/2009 13:56

SLL on the Plus Market the spread is 34 – 39 vs the AIM 34-38. As I invest medium to long term I do not subscribe to Level 2 or3. Perhaps somebody can educate me here? My understanding is that the Bid and Offer/Ask Price is the lowest Sell Price (our buy price) and highest bid price (our sell price) hence the current wide spread. MM for the two markets can differ hence the variation in prices. An MM on AIM at 38p Offer is not on the Plus Market.

Now to the 75K one or more of the MM's is happy to take these shares on board, this might be construed that they have a Buyer in the wings. Which should come as no surprise? As for an explosion in price, I would not like to comment too much on. My view is that Cybit is worth more than it current £10 Million valuation and should at least be twice this value. However my opinion counts for little and the market will decide.

For interest shows the 6 of the last 7 trades are between brokers with the last trade being an Ordinary Trade of 50,000 at 38 p at 12:40 today! Interesting to see if the 75k Market Size has changed?

[sll] 01/10/2009 12:31

They (Barclays) are now accepting up to 75k back online, so anyone wanting to dump that sort of quantity online can get 35p per share. On the sell side (our buy), the Barclays online limit is still a measly 5k. I suspect this stock could blow soon. No ramp, just an observation, based on MM supply and demand indicators. Maybe one solid buy is all it will take,,,,,, or is this price being particularly restrained for some reason?? Any thoughts, anyone? steve

[sll] 30/9/2009 14:34

For what it's worth - you can only buy up to 5k online via Barclays (at 37.72p), but you can sell anywhere up to 37.5k online (at just over 35p all the way up to that level). Accordingly, it seems to me that the present pricing and published spread is a bit of a tree-shake. Trouble is - there are few, to no, sellers at this level. steve

[cheshiremoggie] 30/9/2009 09:30

lol

Can I have some please.

[orange1] 29/9/2009 23:05

That could be a quote from One Flew Over the Cuckoo's Nest.

[cheshiremoggie] 29/9/2009 22:12

Nice stuff Sanity.