Eg Solutions Share Discussion Threads

[gearstick5 fusebox] 04/7/2007 12:22

This is another stock held by Loverat/Lord Butterstock... yet another disaster. Stockpicking was never his strong point...

[finmac] 27/6/2007 16:38

Dear All,
You lot still here, you must be very seriouse about getting your money back some day.
Regards
Finmac

[robsy2] 27/6/2007 13:25

I'm with you Pre.I am betting that they have something interesting and that last year was a blip. I think that they can get back on track and open up new markets. The are in the business of helping companies manage back operations more efficiently. From waht I have seen over the years this is a good business area and they seem to have good products. I see nothing untoward here. Now I am repeating myself see previous post! They have to do it of course so there is risk but I see the share price as protected at this level by the recently approved share buy back scheme.

[pre] 26/6/2007 12:43

A reminder of the recent RNS..recovery on the cards imo, dyor:-))



EG Solutions sees strong H2 than H1; names Paul Bird FD


LONDON (Thomson Financial) - EG Solutions PLC, which named Paul Bird as
finance director and company secretary from Sept 3, said it is making steady
progress in strengthening the fundamentals of its business and expects a
stronger second half than the first half.
In an statement ahead of its AGM, the IT software and services company also
said it has recently won a "significant" contract from South Africa's Standard
Bank.
No other details of the deal were provided.
EG Solutions said the current year is one of operational transition, margin
recovery and improvements in profitability, adding that it has cut its cost base
following a strategic review.

[e-mail]
kal/bsu/ejp

[pre] 24/5/2007 08:53

Nice tick up...this could be a very strong recovery play imo....

[robsy2] 24/5/2007 08:34

Bit of a messy thread! I quite like the look of thsi one and have just taken up a small position the 10k purchase is mine.here are the reasons why.

Background:
EGS provides software that helps companies manage finace companies mange their back office processes more efficiently. It has a lot of big blue-chip clients in the financial sector eg HBOS , co-op , Morgan Stanley ,in the UK and is expanding in Scandinavia and South Africa.
Fallen from grace?
Floated may05 on aim at 85p, to raise money to expand and revamp their main product, it rose to 169p and is now just off a low of 41p.
They had a bad second half of the last year to 31.01.07 because they expanded but didn't get the sales they were hoping for .They also discovered an accounting error (not too serious, new FD has been appointed) and they spent 800k in the P& L account for product enhancement.
The company has 49 employees; MD owns 8.8million of the 14.293m shares (fully diluted).mcap of £6.5m.
EPS to 31.01.06, 4.4p, strong balance sheet with 2.43m cash .Cash generative with fat margins and good income visibility. Net Assets per share of 15p, which is not bad considering they don't capitalise their development costs. The company has institutional support F&C etc own 21% so it has a small free float of around 15%.
Why I am buying?
I am betting that this will rise quickly because;
• What happened last year was blip.They are winning clients.
• Their offer is interesting; they do not charge a client for their software unless they demonstrate agreed tangible improvements. On this basis, over the near 20 year history of the company, they have only ever not been paid for their work twice.
• They have improved sales 20%+ per year for each of the last 5 years excepting the past 6 months. I am betting they are now back on track.
• If they get back to where they were year end 2006 we have eps of 4p. This will allow them to pay dividends of 1.8p, interim 0.6p plus final of 1.1p.
• This puts the shares on a prospective per of 8 with dividend income of 3.75%.
• I feel that is a low target, it could be a lot better than that and they have the money to do the share buy back.
• The company has declared a progressive dividend policy.
• The owner used to take all the profits (circa £1million a year in 2005) as salary, now she is on a 150k a year salary. She will be looking to get money out of the business through dividends.
• On 9th June they have their egm, where they will seek approval for a share buy-back of up to 10% of the capital.
• It would make sense with the share price at this level to do that. This will create demand for this unloved share.
• With a positive trading statement on 9th June this will bounce back quickly in a tight market. The main problem may be getting stock.
If they can improve earnings 20% a year for the next 2 years they will be back on track, so we are looking at year-end 31.01.08 of 5.28p and 2009 of 6.33p., giving a prospective per of near 100p at per 15. This is well below the historical high and way above the current share price So the upside is double your money in 18 months with divis of 4% a year.
DYOR etc etc May 2007

[fidelmaestro] 17/5/2007 19:48

LOL.

why am i not surprised at seeing Lord Butterstock / Loverat creating this thread and tipping this at near 80p, and then no sooner is this thread created in order to ramp it.....watch it plummet near 50%. The guy picks more dogs that battersea dogs home. What a muppet.

[pre] 27/4/2007 08:30

see share price is recovering....bizzare drop in share price yesterday

[pre] 26/4/2007 15:20

This looks totally bizzare...fall in share price ...buying opportunity..

[bridggar] 26/4/2007 08:58

Erm, or not perhaps...

[pre] 19/4/2007 21:25

Nice positive RNS..new produced launched which has been well received ....this should help lift the sp:-)))

[k123] 19/4/2007 10:04

Thanks FINMAC,
I hope you are right.

[pre] 21/3/2007 09:11

results out tomorrow..should see some peeps buying ahead...any positive news will see these spiralback up rapidly imo, dyor:-))

[pre] 15/3/2007 15:22

nice rise....more to come ahead of results:-)

[mooreatupton] 15/2/2007 10:16

Good Grief! You still on the payroll Jaknife?

[k123] 15/2/2007 07:40

Finmac-I am in,and thank you.

[magic tony] 09/2/2007 18:56

LOL

Agreed - this is a total dog!