Fd Technologies Public Share Discussion Threads

[swiss paul] 13/5/2016 23:35

Thanks Davy - will raise a glass tonight to your leadership and growing my savings from shillings to pounds.
Aye ye boy.
PS let us know what your up to next as I need some retirement money

[moorsie2] 13/5/2016 10:18

We now seem to be consolidating in the 18 -18.20 range before the results come out on Tuesday

Lets all hope for a great update showing not just sales growth but profit growth at least similar and market penetration and confidence over new contracts and new markets..

[johnroger] 10/5/2016 10:41

Make that 1820 Moorsie2
Lovejoy4 is yet to respond to my question!

[albanyvillas] 10/5/2016 10:23

KNOS bit like FDP = consulting with software

[moorsie2] 10/5/2016 10:21

Ok 5 trading days to results and we now have 1813 as a purchase price

Will be an interesting 5 days

[moorsie2] 06/5/2016 19:48

So today sees 1800 being paid for shares - over 21,000 of them

I can see this moving on further before the results..

[swiss paul] 02/5/2016 19:11

He recently dropped a message on the fool (Wexboy) but for some reason doesn't comment on FDP - except for the posting above

[moorsie2] 29/4/2016 13:23

I suspect that we will see the first 18+ buys going through now this afternoon

[moorsie2] 28/4/2016 15:05

I appreciate your input Lovejoy - but if you are so interested in shares and investment then why become a member here just a few days ago. And why FDP first??

Just curious...

[mach100] 28/4/2016 15:04

You are quite welcome here Lovejoy4 from my POV. I love contrarian views myself. I won't credit you with the ability to send tis back to £11 with your postings :) The share price has climbed since you posted and Kx has proved its value. Moorsie has been invaluable here and made some great calls here including when the seller was cleared here. Your analysis will also be useful when the accounts are published. Are you Irish like me? I didn't twig until after I invested that they were Irish.

[lovejoy4] 28/4/2016 14:42

No agenda, intention is to provoke some debate, I'm just urging some caution, momentum works both ways.

Personally prefer to do a 'deep dive' on financial statements rather than rely on broker reports - a little like insisting on viewing a house in person rather then buying off the back of a fancy brochure from an estate agent IMHO.

Will post on other companies in due course, however threads on other Irish companies seem to be dormant or non-existent unfortunately.

Waiting on sidelines until the next annual report is distributed, good luck to all involved in the interim.

[mach100] 28/4/2016 13:29

£17.92 paid today which is an all-time high since I have been following this. Considering we slipped below £17 to £16.99 on the bid today I can't help but feel underlying momentum is very strong. Can we test/breakthrough £18 before the holiday weekend? Buying demand is perky today so unless sellers are tempted we may very well test new highs.

[mach100] 28/4/2016 10:25

I never shoot the messenger because I find he is unable to bring me any more messages. he probably has a point about some of the acquisitions but Kx certainly proved its merit yesterday. If he has an agenda he at least laid out his post clearly so I think in response it is only fair to play the ball and not the man. We are still above 1725 I think on the bid even after our recent run up and we may pick up steam going into the results. No reason for me to jump ship yet but am mindful how much this can sink as well as rise.

[moorsie2] 27/4/2016 22:11

Interesting that Lovejoy just joined as a member on 26th April and has not posted anywhere else on advfn or on any other subject...

Why now?

agenda???

[swiss paul] 27/4/2016 21:35

Lovejoy - no position - but a strange breed.
First post on ADFVN 26/04/16 and coming in with such a strong argument I must admit places some alarm bells.
So what's your end game in this then. Is you a good fairy come to warn us?

I await your forensic interpretation of the forthcoming results. In the interim can I ask what other company's you hold?

[mach100] 27/4/2016 15:46

Afternoon Moorsie. Someone also paid 1740 for 10000 this afternoon so while our new poster and resident antiques dealer fan has raised some intriguing points, someone with deeper pockets than me sees value at this level.

We have gone through £16 and just today £17 at some speed. It is worth noting I feel that arguably the last sell was at 1.45pm of 22 shares- even that 62 share trade may be a buy as it is under the bid so investors are still piling in.

We already know results are going to be excellent, today's tie up will hopefully add quite a lot of extra business. If so we may not be up with events yet.

A share split might also draw in new investors who baulk at paying almost £18 for a share. This would help liquidity and temper these large swings in the share price Although I accept there is a common wisdom that share consolidations/splits don't usually work in the investor's favour.

I am still aligning myself with your £17.50 price given my awful prediction history.

[moorsie2] 27/4/2016 15:19

Can now sell online at 17.54

I am really surprised how quickly we have risen to this point. So Mach100 your short term price predictions may prove to be more accurate than mine!

[moorsie2] 27/4/2016 13:18

21,300 shares bought in two tranches at 17.50

Good to see significant "new money" come in for these shares.

Less than 14 trading days till results released. We could see some prolonged buying ahead of that release - i.e. the old adage of "buy on speculation and sell on news"

This time last year we had very significant share price growth in the 3 weeks pre results and the few weeks after it also

[mach100] 27/4/2016 08:55

Some very interesting points there Lovejoy4! The dividend yield is quite small considering the share price And right on cue - the commentator's curse!- Kx has delivered what seems a very good tie-in. But you have laid out your analysis very well indeed and some points are inarguable. I am very bullish on the share but will wait until we get to results or just before it before looking at my position. Your flags will certainly help!

[moorsie2] 27/4/2016 08:52

By the way - I can get 17.35 to sell on line at the moment and quoting 17.80 to buy

Lot of demand here. My 17.50 sell point will be here before the end of today...

[lovejoy4] 26/4/2016 22:15

Looking at this thread I'm less than impressed with members making bold predictions about the future direction of the share price without the slightest reference to underlying fundamentals, which drives the share price in the long run. Looking through the last annual report uncovers some less than pleasant results:

They highlighted that revenue was up 19% but operating income only grew 2%, with administrative expenses up 26%. Operating margins are shrinking year after year and now stand at just 10.1% - only 188k of operating income was added last year. Net income was stated as £15,915m but £9.5m of this was a gain from an asset sale – though looking at footnote 3 this wasn’t even a cash realization, they just decided to revalue their stake in Kx so how this constitutes ‘income’ is baffling, particularly since it appears that most of that value is made up of intangibles. Adjusting the EPS downward for that ‘gain’ and it becomes roughly 30p per share, roughly what it was the previous year on a diluted basis. Shares trade at a multiple approaching 60x earnings which sees incredibly stretched.

Company likes to use a non-GAAP measure like adjusted EBITDA but this ignores write-downs in intangibles and share based payments – the former is a legitimate concern since they’re taking on debt and issuing shares to purchase smaller technology companies at vast multiples and booking the assets as ‘goodwill̵7; etc. The economic value of goodwill is questionable particularly in the technology realm where change is rampant and things become obsolete very quickly. Company added nearly £100m in intangible assets last year to the point that net tangible assets are negative £36m.

Going back to Kx, in footnote 3 they say that net profit would’ve been £17.1m had it occurred a year earlier, and so would’ve added £1.2m to the bottom line. Valuing a company that adds £1.2m per year at £80.1 seems a bit rich, particularly given that Kx seems to have exhausted its avenues within banking with regard to potential clients within banking and is now seeking clients in other sectors (little to no tangible news / contract win announcements on this topic all year BTW).

On page 54 they state that the Prelytix acquisition (which cost roughly £6m) would have resulted in net income of £15,994 had it occurred a year previous – so in effect they paid £6m for a company that would’ve added £79 to the bottom line? Let’s hope the recent acquisitions are more valuable.

It seems very strange that as a supposed growth company it pays a dividend year after year, £2.5m per year at this point – wouldn’t this cash be better spent on expansion? It could certainly be used in place of debts and share issuances – more share issuances mean more dividends must be paid – completely counter intuitive. Page 87 provides a potential answer – of the £2.5m total dividend pool the CEO received almost £1m – certainly more tax efficient than taking salary but puts his own interests above the shareholders in this case.

On a final note, shareholders buying into the ‘big data’ story need to be realistic – this is essentially an IT consultancy company with a ‘big data’ wing – around 66% of revenue still comes directly from consulting, which tends to be negatively correlated with the financial industry at large, longer term any uptick in the financial sector will see banks hiring full time employees en masse one again, which doesn’t bode well for firms flaunting temporary contactors on expensive daily rates.

Disclosure: No position.

[mach100] 26/4/2016 20:01

I better go along with your numbers Moorsie. Mine have turned out to be a bit rampy :( All buys since 1pm today and up near full ask so certainly looking perky!

[moorsie2] 26/4/2016 08:12

3 weeks today to results....

I would be happy with a sell value at 17.50 over the coming three weeks until the valuation is underpinned with real numbers and broker upgrades...