Globaldata Share Discussion Threads

[britishbear] 08/4/2004 13:00

smarm LOL - my unworried thoughts exactly.

Also hold RTD - growth potential a lot higher with DATA (hence the higher P/E).

[smarm] 08/4/2004 12:32

I'm a holder and I don't mind worrying news or thoughts....but this simply isn't worrying news or thought.

[katylied] 08/4/2004 12:30

blender

"...but holders don't like posting worrying news or thoughts. Do they?..."

I don't know... I'm not a holder.

Incidently, as someone who has on 2 seperate occasions
designed commercial web-based payment systems,
I am not entirely in the dark on the technology
or the subject in general...

[katylied] 08/4/2004 11:48

zimbi

I was wondering... if there was some reason you
chose not to compare DC and RTD balance-sheets?

No answer required, that's
a rhetorical question.

lol

[britishbear] 08/4/2004 11:39

DDOS attacks are GOOD for DATA - very good in fact as it encourages more and more businesses to "outsource" their payments systems to a company that has the infrastructure to defend against attacks (such as multiple servers etc.).

All good news.

[zimbi] 08/4/2004 11:38

Comparison of DATA and RTD


T/Over DC 3.5M RTD 30.0M
Profit DC £.7m RTD £5.9m
Adj EPS DC 1.67p RTD 1.4p
Mkt Cap DC £34m RTD £48m
Sh price DC 78.5p RTD 17.25p
P/e DC 47 RTD 12.3

stone me

[smarm] 08/4/2004 11:33

Exactly. Looks like people are sitting around looking for things to worry about.

A further extension of Blender's question is do they have any form of business continuity i.e. if they have a fire can they use a computer elsewhere and carry on their business?

All good questions but they apply to everyone in the business. Personally I can't worry about it, DATA is a good business....profits will roll in because of IBM chip and pin deal...that's what people should focus on.

[smarm] 08/4/2004 11:15

Nasty but a business is unlikely to be made or broken by it. Attacks are defended and life goes on. So while a good point, I don't see it as a risk that in any way impacts on valuation of company.

After all, people have to use one payment system or another and they are all equally vulnerable.

You don't hold shares but perhaps you are spreadbetting them?

[blender] 08/4/2004 10:58

I've been thinking about what risks are associated with datacash. As I understand, Datacash uses a central server for payment processing. This could be vulnerable to a DDOS attack by blackmailers as has happened with many bookies. This has already affected worldpay. Will it affect Datacash? Loss of service is catestropic to a payment company. More so than a bookies due to service level agreement contracts. What could happen to the shareprice if datacash are targeted next. Maybe in the future companies will need a backup payment systems to avoid the risks of DDOS. So maybe this could help datacash? But anyway its a risk worth considering in any valuation.

General article about DDOS and blackmail


Article how Worldpay was knocked out for three days!


PS(I don't hold any datacash shares)

[smarm] 07/4/2004 19:04

I have watched this share for a couple of years, since a friend of mine invested heavily and sat back watching her investment 'disappear'. She knows the MD and he maintained througout all the 'down' that all will be fine. I think she sold out at 55p, in despair, and now look.

I have no inside info, I just know that this is an interesting proposition as they are starting to move away from customer not present to customer present transactions - chip and pin is going to be HUGE and they are already in partnership with IBM. On the back of this I finally bought.

People go on about hype etc. but ultimately you either think that a company is going to do well, in which case you buy, or you don't, in which case you pick a different share.

It's difficult to see where this can go wrong but there are no crystal balls - do your own research.

S

[prinn8] 07/4/2004 18:38

still good time to join the ride or have i miss the bus on this one?

[hosede] 07/4/2004 11:08

Snippet in the Times today under "small share to watch". Pointed out that it processed 250,000 items on Grand National - 40% more than last year.
Blender
It may turn out to be overvalued, but media interest will keep price moving along I think.Thats certainly what the chart is saying. We all do our own thing, but I buy shares (ie bits of paper - not even that now) not companies and enough hype will keep a share price moving for quite a while even if the Co. is not that great. If it does turn out to be great that's a bonus

[blender] 07/4/2004 08:46

BritishBear: Whats wrong with a quote from the Finacial Times ?
Lets not reduce this to name calling. I gave a bearish perspective and press quote and you are bullish. Ain't that great !
-------

I believe this is an overvalued stock right now. It was inflated from 70p to 82p on the basis of hype. Now that the hype has not been realised in the results, I expect the stock to sink to pre-hype levels = 70p.
At the 70p level, we already had the news about IBM. We also knew what to expect in the results (+ some speculation).

Now with a bit of overreaction and market disappointment, and we should make my buy price. Just waiting for the shorttermers to get out of this one.

Good luck all.

[britishbear] 07/4/2004 08:09

Very poor deramping effort Blender

The chip and pin is a potentially MASSIVE market and working with IBM is pretty much as good as it gets. Why did IBM choose DATA? Because they are the best in the UK and are way ahead of the game.

Increased costs in 2004 will quickly be over taken by revenues and profits for the next however many years.

[zapa] 07/4/2004 07:23

Profit-taking sent DataCash 4.25p lower to 78.5p after the credit and debt card settlements specialists posted in line full-year results. Pre-tax profits came in at £735,000, compared with a loss of £391,000 in the previous year. Brokers expect positive news flow from DataCash in the year ahead as it continues to expand its customer base, which includes Boots, B&Q and Homebase

From the Independant.

[blender] 07/4/2004 05:08

Higher costs and more competition = Datacrash ! Still looking for sub 70p.

Found a fairly negative quote from FT:

"The company said it had joined forces with IBM and other partners to offer a card fraud processing package for mid-tier retailers but this would result in higher costs in 2004 and was not expected to generate revenues until 2005.

David Pannell of Durlacher said: Datacash's core activity market could be subject to increased competition over the next two years. "

[appollo] 06/4/2004 16:01

Hope this cheers you up it should help to underpin the price

at 15:10pm
06.04.04 :Numis Securities repeats its 'buy' rating and 100 pence share price target on Datacash shares in the wake of today's numbers. The broker pointed out that Datacash's full year results came in broadly in-line with expectations, with its net cash position also as expected at 1.55m driven by minimal working capital requirements. Numis added that with a 'highly scalable model' and a cost base that can readily accommodate new clients with virtually no extra cost its forecasts for Datacash for 2004 and 2005 look secure. The broker said it expects news flow from Datacash to be ongoing, considerable and highly positive in the coming months. Earlier today, Datacash PLC reported a move in to pretax pre-exceptional profit in the full year, and said 2004 has begun well, with good prospects emerging in the travel and ticketing markets. For the year to December 31 2003, Datcash posted a profit of 735,000 stg before tax, exceptional items and goodwill, against a loss of 391,000 stg in the previous year. In its initial post-results comment, Investec pointed out that Datacash's headline full year result marginally beat its 735,000 stg forecast. The broker noted that Datacash's progression from losses into profits is a reflection of the continued growth in on-line transactions at existing customers and good expansion of its customer base, particularly with High Street retailers and on-line gaming companies. Investec pointed out that looking forward it expects a continued expansion of Datacash's customer base and strong growth in the 'cardholder not present' market to support its forecasts. The broker repeated its 'buy' rating on Datacash shares, noting that at current levels it believes the stock fails to reflect the growth in on-line payments and the potential that the firm's recent IBM collaboration offers.

[cordwainer] 06/4/2004 11:38

BritishBear - see you back on the thread in five years then ;-)

[cordwainer] 06/4/2004 11:24

Stripping out the exceptional items looks like an underlying loss to me, even with the huge tax credit.
Can someone explain to me how they came to overpay so much tax ?

[gazzabutty] 06/4/2004 10:13

Morning all, Good set of results, happy to hold.

[britishbear] 06/4/2004 10:06

Katy, fair comment - for a short term buy I would go PDT above DATA although long term they have similar merits.

Given I tend to make buys on the basis of being a 5 year hold DATA remains a firm hold.

[katylied] 06/4/2004 09:57

I agree, 70p may not be reached. There is little history of significant pullbacks. Most holders seem quite content. However, a long time now before the next formal update. Any extended absense of news and interest may yet decline. Might get interesting during the summer doldrums, meanwhile time to look elsewhere. All a question of (infinite) patience really.