Financial Objects Share Discussion Threads

[liarspoker] 21/6/2007 09:09

Nice timing of your entry GHF. :O)

[glasshalfull] 20/6/2007 17:13

"astute"

Liars, Tole, Diogenes, WJ etc.....
I'm sure there are quite a few who would agree with me ;-)


Kind regards,
GHF

[glasshalfull] 20/6/2007 17:09

Thanks Tole, noticed it was harder at getting inside the spread.

Took a few nibbles at this and NBI today :-)

Regards,
GHF

[diogenesj] 20/6/2007 17:01

Only astute thing I did was to take your advice, Liars. :-)

[liarspoker] 20/6/2007 16:34

Glasshalfull - 20 Jun'07 - 14:24 - 450 of 452


Thanks Liars.
Noted a few astute investors in this :-)


Yes, I like Tole & DJ too. :O)

[tole] 20/6/2007 16:33

Well done G...timing excellent as ever...seems to have turned today with all MM's turning blue :)

Edit - Very kind Liars - likewise with yourself :))

[glasshalfull] 20/6/2007 14:29

I forgot to add one other negative.......

A BUY recommendation in the Investors Chronicle on 23/3/07 - when the share price was 72.5p :-)



Financial Objects' (FO) shares are currently flying, and rightly so. That's because the company has successfully melded together three businesses that, individually, were not big enough to win sizeable contracts but that, as one operation, can and do. This amalgamated business now offers banking, wealth-management and risk-management software, which is primarily used to provide sophisticated credit-rating systems for the energy market - indeed, it won a major contract from Shell late in 2006 for energy-trading desks in Houston, Singapore and London.

Another key factor is that FO keeps costs down by employing half its staff of 300 in a wholly-owned development centre in Bangalore, southern India.

So, encouraged by a resumed dividend, it's now clear that FO is heading for higher profits in 2007 - one clue is a year-end order book up from £10.4m to £13.1m. As a result, brokers expect turnover to grow to over £21m and pre-goodwill profits to grow from £2.4m to £2.8m.

Note that last year's results included a jump in goodwill amortisation from £361,000 to £978,000, although post-tax profits benefited from a £893,000 tax credit (nil).

Financial Objects' shares were rated good value when we last reviewed the company's results, but they're now a buy.



Regards,
GHF

[glasshalfull] 20/6/2007 14:24

Thanks Liars.
Noted a few astute investors in this :-)


Kind regards,
GHF

[liarspoker] 20/6/2007 14:15

Welcome aboard GHF. :O)

[glasshalfull] 20/6/2007 14:13

I also note that the recent energycredit win with Statoil at the beginning of June has yet to be flagged up on the board.

A very nice coup.




Statoil selects Financial Objects' energycredit solution for credit risk management across global energy trading operations

Financial Objects solution set to streamline processes and raise credit risk capabilities for Statoil


London, 4 June 2007 – Financial Objects, a leading provider of software solutions for banking, wealth management and energy, today announced that Statoil, a top 10 global energy company from Scandinavia, is to implement its energycredit solution. As a worldwide implementation, the Financial Objects solution will enable Statoil to manage credit risk across all of its energy trading operations. Installation began in April, and is expected to go live by the end of the year.

Statoil's decision to install energycredit, as a new tool for the administration of credit risk was driven by the need to provide increased levels of functionality throughout the Statoil Group. Statoil was also experiencing increased trading activity across global operations with an increasingly diverse counterparty landscape. energycredit was identified as being able to handle these demands and, importantly for Statoil, had a proven track record of successful implementation in its key markets.

The energycredit solution will expedite infrastructure requirements for a 'borderless' Statoil in respect of energy trading. Support levels, stability and security conforming to Statoil's internal standards were deemed critical, as was the ability to seamlessly integrate existing commercial systems using standard technology. The levels of stakeholder accountability also required a sophisticated solution that would accurately and comprehensively capture, measure, monitor and report the company's credit risk exposure on an enterprise-wide basis.

"energycredit should enable us to improve efficiencies through the automation of our credit risk management processes," said Björn Sandmoe, head of corporate credit, Statoil. "We chose energycredit from Financial Objects as it is a tried and tested solution, has a documented client base in our key markets, and is able to ensure 24/7 global support."

The solution is being deployed in Statoil's head office in Stavanger, Norway and will be used in other group trading offices, specifically in Singapore, Connecticut (US) and London.

"The energycredit solution will benefit both Statoil and its trading counterparties as it enhances and streamlines processes," said Roland Jones, managing director for the Energy division at Financial Objects. "A significant global energy corporation such as Statoil has stringent demands on its credit risk systems and needs exacting management capability. This new system will be ready to go live before the end of 2007 and will raise Statoil's credit risk capabilities to a new level, benefiting all its energy trading divisions."

Regards,
GHF

[glasshalfull] 20/6/2007 14:10

Hi,

I've been giving this a long hard look over the last month.
Appears to be a be on a very undemanding rating with excellent prospects, especially for their growth estimates in the energy sector.

Here's my quick synopsis.


Positives


*EPS of 6.3p pencilled in for the current year - single digit PER ratio

*Net cash of £2.8m as of 31/12/06

*Excellent cash generation which covered cost of acquisitions in 2006

*Good order book visability - £13.1m noted in Full year result announcement

*Increasing margins - Inc forecasted from 11.5% to 12.5%

*£11m of tax losses to carry forward (a company presentation notes this is worth 7p per share)

*42% recurring revenues

*Both AGM statement and May update indicate "positive start to the year"

*energycredit solution recently won several industry awards

*Development centre based in Bangalore, India - significantly lower costs

*Acquisitions over the last 18 months have opened up several markets to the group and therefore mitigates risk of being reliant on one sector or product to a certain extent



Negatives

*Banking market mature (accounted for 55% of 2006 revenues). Only forecast to grow at 5% this year. Throws off cash though

*Licence sales - lumpy revenue stream to a certain degree (although somewhat mitigated with the high level of orders at present)

*High growth Energy Sector may soon have major US player Sunguard as a competitor (per March Edison update)

*Share price has risen from circa. 40p in last 12 months - up 50%. Rise in part reflects 2006 results showing EPS approx. 1p higher than forecasts and buoyant outlook. More up with events but with better outlook, it may now command a higher rating IMHO.


Conclusion

I believe that FIO offers an extremely good value on a risk/reward basis and as such have been buying stock recently.
I happen to think that the company will exceed current estimates for the year but even on current estimates see 25% upside from here, placing FIO on a very reasonable PER of 12.


Kind regards,
GHF

[zipstuck] 20/6/2007 10:59

Fullagar has just invested £600000 in Brady of which he has just become chairman

[upside potential] 07/6/2007 11:03

seller done at 58p, hence the mark up ?

[upside potential] 29/5/2007 13:10

clearly a seller around holding the price down

[liarspoker] 23/5/2007 07:56

Welcome aboard DJ. Just look at those chart indicators. RSI dragging on the ground and the MACD looking to turn. :O)

[skyship] 22/5/2007 17:06

A combination of Chart & stoploss sellers - always provides a good top-up oppotunity for longer-term holders. Unfortunately no cash in either SIPP or personal trading a/c & nothing ready to sell, so could only buy 5000 @ 57p.

Indicators now well oversold so expect a sideways consolidation before moving ahead again later in the year.

[diogenesj] 22/5/2007 16:37

OK, Liars, you talked me into it. Had a few. :-)

[liarspoker] 22/5/2007 15:12

Yes, and it reads very well imo Tole.

A copy is on the way to you.

[tole] 22/5/2007 15:02

Edison have a summary update dated 13/3 also.

[liarspoker] 22/5/2007 14:29

If you have any broker notes on this could you forward them to me Tole ?

TIA

250K sell probably dropped the price and drove out a few small investors when they saw the price falling. Shares were recently sold to institutions so I figure any shares the departing chairman wants to offload will go to institutions too.

[tole] 22/5/2007 14:25

Well done Liars - also had a small nibble earlier - hopefully nothing unexpected concerning the recent fall - reminds me a bit of CCT's recent price action whereas here filling the gap at 55p perhaps.

[liarspoker] 22/5/2007 14:20

I think that these are too cheap at these levels. Single digit P/E and chart indicators dragging on the ground. Plenty of cash and trading going well. 250K T-trade hopefully flushed out the seller. Bought a few. :O)

[upside potential] 22/5/2007 12:21

oh thanks nice : "correction", of course it is ! but why ?
corrected to a sub 10 pe with a positive outlook. looking good no ?

[nicedude1976] 22/5/2007 12:08

Not weird at all, this is called a correction, very natural and could expected (i did at least). I myself may be temtped to buy if they fall still a bit lower. Regards.

[upside potential] 22/5/2007 10:57

perplexed still here, institution reducing ? trades are too bitty though - looks like pi sellers from the sizes ? something's gotta happen soon for sure imo - bounce or a reason for the sales ! wierd.