Electronic Data Processing Share Discussion Threads

[tmfmayn] 20/4/2016 15:59

richjp, I have a holding but am not buying any more because if there is no sale and the business remains independent, we are back to square one with what has been, in revenue/profit terms, a rather stagnant performer over time.

I am hoping Boyles and the other two funds that hold a combined 28% of the stock will ensure a cash sale is concluded and we can all move on from this 'value' investment. With the offer-price at 75p, you need a cash bid at 82.5p for a 10% return. If no sale occurs, the bid-price may fall back to what it was pre-RNS -- 64p, down 15% from 75p.

[nevik2] 20/4/2016 15:31

Upto you, my opinion if I already hag a sizeable holding I would probably pick something else. Just my 2p's worth.

[richjp] 20/4/2016 14:47

I have a holding here which has built up over the years as I have had the rather decent dividends automatically reinvested.

The recent RNS makes it clear that the company may well be sold so I am wondering whether or not to have a punt and buy a few more. I doubt if they would have mentioned the possibility of a sale if they thought one could not be achieved.

The spread however is very wide at 68 - 75 which is a bit of a deterrent, but even so there may be say a reasonably quick ten per cent profit in it.

[richjp] 20/4/2016 14:45

TMFMayn,

So there is. Thank you for that.

[tmfmayn] 20/4/2016 11:54

Richjp, there is another Thread on the EDP ticker that is (slightly) more active

[richjp] 20/4/2016 11:40

Hello, is there anybody out there?

I have a holding here which has built up over the years as I have had the rather decent dividends automatically reinvested.

The recent RNS makes it clear that the company may well be sold so I am wondering whether or not to have a punt and buy a few more. I doubt if they would have mentioned the possibility of a sale if they thought one could not be achieved.

The spread however is very wide at 68 - 75 which is a bit of a deterrent, but even so there may be say a reasonably quick ten per cent profit in it.

Any thoughts?

[arthur_lame_stocks] 18/4/2016 16:07

Fair points TMFMayn. I guess stripping out the costs of the board and the listing costs that there may be a premium to be had here in a public to private move.

[tmfmayn] 18/4/2016 15:54

A bidder may be looking at culling central costs. In particular, the board earned £400k last year. Stock-exchange charges, broker fees etc may all disappear as well. Could all make a difference on a business that reported only a £377k operating profit last year.

Also, a rival software supplier was bought by a (now-ex) EDP customer the other year. So another customer buying EDP might make savings, too, to justify a premium.

Well, let's see anyway.

[arthur_lame_stocks] 18/4/2016 15:39

I can't see there being much of a premium myself, it looks fairly valued to me at the current price.

[tmfmayn] 18/4/2016 15:28

Hopefully a cash bid at a decent premium!

Seems to me the trio of North American value funds on EDP's shareholder register have had enough and stirred up some long-awaited corporate action. Well done them.

[cwa1] 18/4/2016 15:11

Interesting to see where this takes us.

[sharetrader3006] 18/4/2016 14:14

RNS possible sale of business?

[roddiemac2] 22/3/2016 11:48

The AGM will start at noon today. Will they have concluded the sale of property for £1.2 m which importantly will generate cost savings of £35,000 a year? it also raises the question ---is it not high time they did something , in their line of business , with their money? The fact that they have not done so to date infers either extreme caution on their part, or that they are operating in a shrinking market ( which I doubt ). They have been sitting on a huge cash pile for far too long.

Were the various surplus to requirements properties in fact property investments in disguise, as a poor alternative to investing in and growing the business. If so, this surely indicates lack of adventure. They said in their Finals " Our new product offerings have already been well received by customers and should provide us with good opportunities over the coming year "

[roddiemac2] 03/3/2016 23:00

Once referred to In the Chronic Investor as that boring little company that never does anything with its money, either they are operating in a shrinking market and there are no suitable takeover targets , or they are too conservative and will never make that leap. I spoke to them about this a couple of years ago, and was told, with little enthusiasm, that they are always on the look out . I might try again.

I agree the managers here need a bit of a kick. Perhaps the problem lies with the chairman.

[tmfmayn] 02/3/2016 15:24

Exciting times :-) As well as the dividend, I have wondered if there have been any whispers of the trio of North American funds (combined 28% holding) starting to agitate the board. I suspect this business could improve its profitability significantly if it were taken private and listing costs, broker fees etc were removed from the cost base. I think the managers here need a bit of a kick generally as revenue has now been stagnant (or worse) for years. At least there is that 5p dividend while we await any possible developments.

[cwa1] 02/3/2016 15:11

Hmmmm. It's alive! And the day befoe XD to boot. Not a coincidence, I suspect. Pick up the 3p today and next year's already mooted dividend of 5p gives a total of 8p in a year's(and a few days!) time. On the purchase price of 72p that's a yield of over 11% to start with. OK, the share price should come back by some, or all, of that but if the company shows any sign of health it might well not-or even improve. Worth a punt I feel.

[cwa1] 11/12/2015 07:31

Busy board!

Prelims out:-

[essentialinvestor] 18/12/2014 10:45

Look at the revised pension deficit.

I have been cautious here previously and continue to keep that view,
all IMV only, DYOR.

[topvest] 17/12/2014 08:08

Well I've sold my few today for a tidy profit. No point hanging on here to see yield but a steadily deteriorating trading position. They can't grow the top line and have admitted that next year will see further pain. It's a business in a slow decline. Will keep on the watch list to see if things change.

[mach100] 06/12/2014 12:34

I know it paid out 375000 in August as a special divi. EDP had 5.5million cash at 31st March. Anyone know where the 600k was spent between April 1st and August.

"We have a strong, debt-free balance sheet with cash balances of £4.54 million at 6 August 2014 after paying the special interim dividend."

Very good yield and debt free it must be said.

[topvest] 14/9/2014 20:20

On a solid dividend yield with a 5p annual dividend. A bolt-on acquisition is needed, but not at any price. They run this company pretty well.

[roddiemac2] 17/3/2014 18:42

Hello pat,

Sorry, I don`t often look in here ( because I am comfortable with my investment )
I would be surprised if they drifted , but don`t expect fireworks. Years ago I recall The Chronic Investor calling EDP" the company that never did anything with their money " That was before the credit crunch. I think it fairer to say they have been wise to be patient, but it would be good to see them acquire another business :about now would be good timing.

My holding was bought between 2001 and 2011: all held in my ISA. I held them before the dot- com bubble but took very good profit when the shares got caught up in the fever. I remember Katy Potts at Herald saying she was unable to offload then, because of poor liquidity.

[patviera] 27/2/2014 22:14

Hi Roddie
My mate bought 50/ at 82.5
With property and cash this is valued at 1 x cashflow
dirt cheap
Im a buyer at 75p...could we drift?

[roddiemac2] 27/1/2014 10:14

Mach100,

EDP " supplies advanced technology software solutions for the Merchanting/Wholesale Distribution Industry, e-business, application hosting and Sales intelligence Solutions together with a comprehensive range of customer support and education services."

This is a very conservatively run company, with cash at the interim stage of £5.9m. The question is ,will they use some of this to expand the business , or will they return cash to shareholders , as they have done before ?

There is some reason to believe that house building will increase . EDP supply software to builders merchants , and so that area of their business could improve.

Last year there was an interim management statement was on 15/2/13

The shares have been very illiquid for a long time.

[spob] 26/1/2014 19:45

just looking at this atm

no charts on the other thread