Foresight Share Discussion Threads

[envirovision] 25/10/2010 08:25

anticipates this to be the first phase of a larger project.

Wonder what the rest of it could be worth?

[interceptor2] 25/10/2010 07:46

Yet another contract win announced today, if they keep coming like this we should see forecasts increased significantly for 2012.

Contract extension with Bank of Ireland

The contract extension is expected to be worth approximately GBP300,000 in
licence fees over a five year term in addition to the current contract revenue,
plus an additional GBP375,000 in professional services. The Group anticipates
this to be the first phase of a larger project which will run over the next
year.

[simon gordon] 24/10/2010 11:04

Corporate Presentation - June 2010:



Target operating model

~Professional services – 30%

~Licence revenue – 40%

~Transaction revenue – 15%

~Support and maintenance – 15%

[nurdin] 24/10/2010 10:40

..not forgetting the IFAs.One of their biggest clients is Tenet Group who I understand are trialling their software under an intial contract.Opportunities in this sector probably dwarf any opportunities in the banking sector IMO..

[cockneyrebel] 24/10/2010 09:57

It's not just the banks Pugugly, the insurance co's too:

AXA, Pru, Aviva - all their clients.



Have a look at the clients ticking through at the bottom - interesting they have Barclays there - so it's clear they have them and HSBC out of that 8 banks.

And then there's the USA..... :-)

CR

[cockneyrebel] 23/10/2010 11:39

Worth a read of the corporate brochure imo - it's on their website. Sort of spells out what they do tho as ever it's full of 'solutions' that software co's love to use and a fair bit of software-speak that the average guy will glaze over at I suspect. But it does look interesting that it's a software that can be usesd the same oever several interfaces like interally, over the web, extranet etc. When you look at the client list they certainly look like a co punching miles over their own weight for a £28m mkt cap imo.

When you look at the cash these have, the earnings and the client base and ask yourself - 'what would another software co be prepared to pay to own this co?' you have to come up with a fig well above £28m imo.

CR

[nurdin] 23/10/2010 11:20

As it often happens,ones attention is usually taken up by the main event of an RNS but some of the key information about a company is often embedded in the Notes to the Editor usually attached at the bottom of the RNS.I must admit to not looking at it in the last FSG RNS and am reproducing it here with apologies if you have already seen it.I think its quite informative :

'Focus has delivered over 100 complex front office projects with multiple
integration points and partners to a blue chip client base including 8 out of
the top 10 UK Life & Pension providers, a number of leading bancassurers
including the likes of Hsbc and Bank Of Ireland, significant wealth management
players such as St James's Place and a number of mortgage providers. The
technology truly enables straight through processing whilst providing an
engaging client and adviser experience to submit and service business
electronically.

focus:360 is at the core of all client implementations providing a single,
agile, multi-channel technology platform. Focus has brought together three key
areas of expertise: software, consultancy and service delivery. This totally
integrated approach means clients can distribute any product across any channel.
At the same time they can maintain an enterprise-wide view of the customer value
and risk. '

[nfs] 23/10/2010 01:15

Aha good to see CR and David Dosh here-presumably WCC(02233) is still in your portfolio David?
I bought in today-good things happening and the Banks and Financial institutions are clambering back onto their feet

[davidosh] 22/10/2010 19:57

CR....One thing we do need to take into account is the lumpiness of the earnings and so FSG will probably not get a really high multiple until it shows that these contracts can be won on a regular basis or that there are high recurring revenue streams to follow each one such as maintenance and support.

That is why the latest contract with £10m potential over 5 years is so important and a few more like that and we will start to see not just higher near term eps but a high rating because of the future secured revenue which helps for when they run out of new contracts to bring in.

Another couple of decent contracts is all we need for an upgrade to forecasts and a 12x multiple IMO

[cockneyrebel] 22/10/2010 18:49

Made a new closing high today.

123p still looks potentially way too cheap imo. That would be a forwad PE of 10 and for a zulu that isn't really that demanding.

I'd have thought for the growth here, the cash and the fact it's software so added sales fall heavily to the bottom line, then a forward PE of 15 is easily achievable. Another contract win or two and the 12.2p forecast for next year could be upped sharply. A fwd PE of 15 and eps of 15p might not even be ambitious when we look at these in 6 months time imo - which woul be 225p a share. But we have to get the earnings upgrades and these have to re-rate properly - which takes months usually.

Let's see where we are and what the forecasts look like come the results in Dec.

CR

[envirovision] 22/10/2010 18:24

I must admit to buying a further 7500 of these today.

[interceptor2] 22/10/2010 18:12

Finncap has a target price of 123p, so + 36% from this morning at 90p would be correct.

Regards.......

[simon gordon] 22/10/2010 14:54

70p, must be a typo.

Nothing on the FSG website:

"Focus Solutions Group has announced its largest contract to date in aggregate, for their personnel training product, focus:progress."

[carver66] 22/10/2010 14:49

how is 70p a 36% rise from the current share price?

[simon gordon] 22/10/2010 14:33

Mentioned on Alphaville - 22/10/10:

But FinnCap does, being the house broker, and they're giving them a push this morning:

Focus Solutions Group has announced its largest contract to date in aggregate, for their personnel training product, focus:progress. We believe these contracts highlight the increasing demands on financial product vendors and brokers to adhere to the emerging business procedures and compliance requirements surrounding the pending RDR. FSG is clearly well-placed to benefit from this trend.

Forecasts and Valuation. Whilst these contracts are already included in our forecasts, we believe going forward both the frequency and magnitude of software contracts is set to increase within the financial services sector as the pending RDR (Retail Distribution Review) moves closer. We therefore maintain the downside risk to our forecasts is reducing rapidly and reitereate our fair value estimate of 70p which represents 36% upside to the current share price.

[dealit] 22/10/2010 10:29

It is not massive buying that it driving the share price, mm`s must have something large to fill I feel.

[fairenough11] 22/10/2010 09:55

am I glad I bought in the 70s even though I missed the initial spike.

Good luck.

hard to accumulate here isn't it.

[nurdin] 22/10/2010 09:35

It feels like it must admit :o)

[jakleeds] 22/10/2010 09:31

These are gonna break out massively today I reckon.

[interceptor2] 21/10/2010 22:39

Cheers CR. - They sound interesting, not familier with ZTF I will take a look.

Regards..........

[cockneyrebel] 21/10/2010 19:29

PS interceptor - I've been buying ZTF - took off today - another potential Zulu on many levels, if you allow for a slight dip in earnings last year due to the recession but then to see just a small dip was excellent imo. They make foam without the smelly chemicals - using nitrogen which is 85%+ of the air we breath. Their High Performance Polymers are growing at 100%+ and they are licensing out the process. Worth watching out for their IMS statement any day - ISA-able too.

CR

[cockneyrebel] 21/10/2010 19:21

agree interceptor - looked at these being a potential zulu a couple of years ago but never looked at it again until the recent t/s and then it clicked, the change to 360 software was the 'something new'.

a large delayed trade showed up after the close - seller done hopefully

CR

[interceptor2] 20/10/2010 14:24

Finncap forecast on 9 June 2010 were EPS 12.95p for 2012. When I first wrote up FSG at 49.5p in July these forecast indicated a per of only 3.8 for 2012. It looked to good to be true, so I held off buying to await proof that the forecasts could be made.

Well proof has certainly been delivered now in spades.

Even back in July FSG showed up as a good Zulu stock, which was how I came across them. Just shows how these Zulu checks can work. imo.

Regards.........

[cockneyrebel] 20/10/2010 12:09

Those forecasts for 2012 had only just been raised from about 7p a couple of weeks ago I think you'll find interceptor - REFs shows they have been hiked 48%. The fact they tweaked this year up a bit more was a bonus (raised 42%).

Level II firming now - suspect a seller that's been about has moved it off today but got to have sellers to fill buys in an illiquid stock like this imo or you never get the stock.

Anyway, on a fwd PE of 7.5 here for a zulu - don't get much cheaper than that for zulus and if they do beat next year as you and I suspect they still look bonkers cheap to me.

All my opinion and I hold too so I'm just as biased :-)

CR