Fusionex Share Discussion Threads

[seans66] 22/1/2016 15:34

That follow up RSN did the trick then...

[seans66] 22/1/2016 15:34

That follow up RSN did the trick then...

[hawks11] 22/1/2016 12:05

Large 10p spread today which isn't encouraging.

[simon gordon] 22/1/2016 08:37

Here's the reason for the collapse:

Indie - 21/1/16:

Market Report: Stampede for the Malaysian 'big data' firm Fusionex

Concerns that the profitable Fusionex would swing to a loss this year in its push for revenue growth triggered a stampede for the Malaysian “big data” firm’s exit. The Aim-listed company, which is 46 per cent owned by chief executive Ivan Teh but is also backed by Standard Life, JPMorgan Asset Management and Aviva Investors, opened higher after reporting results ahead of expectations before crashing 117.5p, or 36 per cent, to 212.5p.

The drop came as forecasts from house broker Panmure Gordon sank in. Analyst George O’Connor predicted that Fusionex would swing from a £4.6m pre-tax profit in 2015 to a £1.4m loss this year, then return to profit in 2017. At a time when investors are steering clear of loss-making firms, the news triggered a selling spree.

Investors were also concerned by the rise in trade receivables, which the company put down to the expansion of its “partner channel network”, and it will be under pressure to collect the cash it is owed.

[simon gordon] 22/1/2016 08:31

Proactive Investors - 21/1/16:

Gorilla or marmoset: Fusionex divides broker opinion

Better than expected sales of its GIANT Big Data product sales underpinned the figures

Fusionex (LON:FXI) was subject to a keen debate after results from the ‘Big Data’ company beat expectations but the share price tumbled.

Panmure Gordon analyst George O’Connor is a major fan and believes Fusionex has the potential to be a ‘gorilla’; in the Big Data market.

The Malaysian software house increased sales by 35% to Rm77mln (£12.3mln) in the year to September, while profits rose to Rm28.4mln from Rm22.8mln.

Better than expected sales of its GIANT Big Data product sales underpinned the figures, which O’Connor said beat both his revenue and earnings forecasts.

The company recently raised £14mln through a placing, and a new GIANT product family is expected this year alongside a more channel-led sales model and wider geographic expansion, O’Connor added.

Ivan Teh, the company's chief executive, said: “The new financial year has started on a very strong note with good new wins already secured for GIANT, as announced, coupled with a very strong pipeline, and therefore the outlook for 2016 and beyond is very positive and exciting for Fusionex."

Peter McNally at Shore Capital was more cautious.

“While consensus estimates are likely to be upgraded and the company is showing significant growth, we think the shares are still too expensive.”

The earnings multiple is 34 times he said, which is compounded by the capitalisation of development costs.

“EBITDA growth is 24.8% by our calculations on a “clean” basis,” said McNally.

Panmure raised its target price to 744p, but Shore Cap’s view held more sway today as the shares fell 15% to 288p.

[broadwood] 22/1/2016 08:13

Fusionex International has noted the drop in its share price after yesterday's announcement of its preliminary results for the year ended 30 September.

The company says it understands that the share price may have been affected by commentary regarding perceived poor cash collection in the period and the directors wish to clarify the position.

Cash collection for the year was adversely affected by an increase in trade receivables as a result of the business moving increasingly to channel partners which enable Fusionex to support scalable growth and wider market reach.

These channel partners however require extended terms of trade, which is not unusual in the software industry and has resulted in this increase in receivables.

Since the year end, and in the ordinary course of business, RM23.4m (GBP3.8m) of the year-end receivables of RM28.5m (GBP4.6m) has been collected

[hawks11] 21/1/2016 20:13

18 out the lat 20 trades were buys, only small stuff. Hopefully someone will come up with a sensible answer.

[leedskier] 21/1/2016 18:03

I agree but that is Aim. Some take off like rocket others crash and burn.

[simon gordon] 21/1/2016 16:55

Leedskier,

Wasn't that crackers it got so high before on the Big Data hype when Panmure were bigging it up big style?

At 213p it's now on 24x to Sept 2016 and to Sept 2017 it's 21x.

Maybe Panmure can suck in a new wave of buyers or over time FXI will grow into their rating.

[leedskier] 21/1/2016 16:43

It was on a 700p valuation some three years ago.I needed to switch some shares to cash in Q1 last year and sold my shares in FXI. It is a good company which is offering bespoke solutions to firms rather than an off the shelf generic product.Most of the clients are based in Asia, and their currencies are falling against the £.But I am not bashing it. It is a solid company, highly regarded by Microsoft and pays a small dividend.It is well supported by Panmure Gordon and their clients are probably buying at current prices. Expect it to recover from here.

[simon gordon] 21/1/2016 15:43

Wasn't this on a bonkers valuation?

How can Panmure have a 700p+ price target, the p/e would be 70x to Sep 2016.

[edwardt] 21/1/2016 15:23

suppose the capitalisation of software rather than expensing it has not gone down well. it strikes me we are gearing for growth here and you simply have to believe this will come.

[royalalbert] 21/1/2016 15:15

Who's the big seller, lots of buys ticking through.

[aishah] 21/1/2016 14:57

Panmure reitrate BUY and up price target to 744p

[kulsan] 21/1/2016 14:55

Its the biggest tree shake attempt I have come accross, watch it go back up when they they switch the rascals

[aishah] 21/1/2016 14:17

Thursday 21 January 2016
Fusionex: no hype but definitely hyper fueled

Hyper fueled Fusionex continues to rocket and as data is its fuel it is not going to run out any time soon. As CEO Ivan Teh points out, data generation outpaces data analysis. That puts the big data analytics provider in a strong and strengthening position, reflected in its performance which delvers double digit growth and profits.

For the year to September 30 2015, revenue was up 35% to RM77m but with a 28% increase to 24.9 RM, net profit was also up strongly, and both exceeded expectations. Much of the increase was due to the 2 year old GIANT product, where the customer count expanded from 12 in the previous year to 36 in FY15, ahead of the target of 30 (click here to track progress). New customers include several large and known brands, and in the UK Lotus Automobiles was a new sign up. With its profitable basis, Fusionex is a rarity in the areas of analytics and the recurring revenue business model. Teh puts this down to a conservative approach (much of its growth has been bootstrapped) without the high levels of marketing and market share grabbing investment that characterise many new generation suppliers.

He is keen to accelerate growth to capitalise on the windows of analytics and IoT opportunity so we can expect a change in the business model including something of a trade off between profit and growth as the business is scaled up. There are some exciting plans, including self service sign up for cloud customers which will open GIANT up to mid market customers, thereby greatly expanding the addressable market while reducing the cost/time to go live. Partners (who already generate 30% of revenue) also play a major part in its plans and there is a preference for global partners over those with a purely local footprint. Suppliers would do well to court Fusionex – but it can afford to be picky about who it partners with.

hxxp://www.techmarketview.com/ukhotviews/archive/2016/01/21/fusionex-no-hype-but-definitely-hyper-fueled

[saj3] 21/1/2016 13:48

Either something dodgy is going on or mm's are messing about with the price.

[sphere25] 21/1/2016 10:07

Is this another dodgy foreign based company.

GIANT, BIG DATA, INTERNET OF THINGS!

Looking at the cash flow statement, there is no free cash flow. The operating cash flow has been eaten into by a whopping increase in receivables as well as the capitalised development costs.

" Cash flow

Profit before tax grew c.25% in the financial year under review, while cash generated from operations was impacted by the increase in trade and other receivables amounting to RM28.5 million, which primarily arose due to the expansion of the Group's partner channel network and extended credit terms offered to channel partners as well as significant sales being secured in the latter part of the financial year under review. Cash collections post the balance sheet date have been significant and despite the increase in trade and other receivables, the cash position of the Group remains strong."

Is this genuine or do we have another conman at work here?

GIANT, BIG DATA, INTERNET OF THINGS!

[visacard] 21/1/2016 09:05

Share placing was done months ago.... Not really news. Hold for the long term.

[chasbas] 21/1/2016 08:53

SP down 15% despite incredibly positive trading outlook!! What going on?

[saj3] 21/1/2016 08:52

I think it's only down as they had a share placing. I have topped up any how

[jimbobjames2002] 21/1/2016 08:52

Market clearly doesn't! Absurd reaction - got stopped out.

[deadly] 21/1/2016 08:45

What would the market like at present?

[saj3] 21/1/2016 07:32

Great update lets see if the market likes it.