Globaldata Share Discussion Threads

[dasv] 15/9/2009 09:56

not impressed - though I guess like all other companies they've been through a recession too. Administrative expenses are just guzzling their profits.

So despite broker forecasts for 2010, 2011 looking rosier, at present they are over-valued. I might consider buying some at 124-156p (active targets on daily point and figure) I suppose.

2010 will see them making money on the world cup (the implication in the statement - less money in 2009 because of no summer football).

6 months | 6 months | |
ended | ended | Year ended
30 June 2009 | 30 June 2008 | 31 Dec 2008 |
Revenue | 18,009 | 12,228 | 28,037 |
Administrative expenses | (10, 677) | (6,728) | (14,205) |

[davidosh] 15/9/2009 09:29

Yikes ! Basic and diluted eps came out at just 1.6p so you can see why those digging deeper than the headlines may have been worried into selling. There is probably far better value elsewhere on pure fundamentals but at least the confidence for the future is shown by increasing the dividend.

[kenbachelor] 15/9/2009 07:27

It looks like a 1p increase in the divi and a 21p fall in the price of each share. Somehow I don't feel too good about that!

[scburbs] 15/9/2009 06:40

Indeed it will. For every £10,000 you hold the increase is worth £4!

DATA continues to perform strongly, but given the company buys contracts I am not sure it is appropriate to just focus on the adjusted eps (excluding amortisation of contract acquisition costs). Whilst DATA seemed to have persuaded people to ignore it, basic eps is flat.

[kenbachelor] 15/9/2009 06:27

The 25% increase in divi will be very handy.

[investory] 09/6/2009 09:06

Did anyone see the recent brokers note from Investec? Extract below:

28 May 2009, United Kingdom

DataCash Group
Support Services

Buy 261p
Potential upside 25%
Target price 325p

New world order

We believe Datacash is ideally placed to become one of the world's leading
providers of online payment services. The group is well invested, has
excellent quality KPIs, a broadening range of services and is building a global
capability. With net cash, no pension issues and the enormous opportunity
that the e-commerce market offers, we reiterate our Buy recommendation.

Key points

�� Structural growth. There is increasing evidence from a range of brands that
consumers are using the internet for a widening range of products/services.

�� Growing value-add. Datacash, with an increasing focus on new services such
as fraud protection and currency conversion, is moving up the value chain.

�� Net cash. The model is highly cash generative and we forecast net cash of
£18m at December 2009, rising to £31m in 2010.

�� Size of the opportunity? Consider the global nature of e-commerce, the
potential number of users, the increasing range of products/services offered and the speed of development. Then translate that into the need for online payment services. We believe the opportunity is multiples of Datacash's valuation.


There are some favourable multiple comparisons with its most obvious competitors internationally – Cybersource (US) and Wirecard (Germany).

Price has fallen since this note.

[scburbs] 02/6/2009 20:43

Davidosh,

I am still short here, although closed some at £2.10-£2.20. I have been short here for a long time and DATA has outperformed my expectations, particularly with the way it managed to replace the lost US gaming profits very quickly.

Still looks very highly rated so holding the balance of my short position. However, danger is that DATA takes advantage of cheap prices for acquisitions to buy profits and then those profits get rerated to DATA's rating. Overall though it looks too expensive to me and my position is also a long hedge rather than a core short position, although it doesn't really move with the market.

In this sort of industry people buy contracts so I suspect an element of DATA's amortisation charge should be included in the eps assessment which makes them look even more expensive than they do on adjusted eps alone.

[davidosh] 29/5/2009 08:34

Apologies for announcing here but I have just gone short as a hedge to my longs at £2.60. It looks to be turning down and the valuation is very stretched IMO. New CEO etc and going into a possible difficult period for any company downside looks big. Any comments ?

[kenbachelor] 06/3/2009 09:07

Sorry folks, but I sold 5,000 yesterday and when I tried to do the same this morning, my broker rang to tell me that if I keep doing this I will smash the market. I didn't know it was that fragile!

[scburbs] 23/2/2009 22:02

It is fair to say that DATA looks like a bit of a step up from the Freedom4 JV which was very much a start up with no revenue. Toucan was slightly bigger having been bought by Freedom4 for £26m, but still very much small fry compared to DATA. Risky move or is he the right man to step up to running a £230m market cap group?

"The Wireless Joint Venture is an early stage business, with no material revenues to date. For the year ended 31 December 2007 the Company's share of the Wireless Joint Venture is currently expected to be a loss before tax of £1.8 million. As at 31 December 2007, the Company's share of the net assets of the Wireless Joint Venture was approximately £8.1 million."



DataCash Appoints New CEO Joseph Blass

The Board of DataCash Group plc is pleased to announce the appointment of Mr
Joseph Blass, 39, as its new Chief Executive Officer from 2nd March 2009.

Joseph has previously held a number of senior managerial positions, including
starting-up and managing Toucan, a residential telecommunications company, which was subsequently sold to Pipex PLC, and most recently as CEO of FREEDOM4 Ltd, a joint venture between Intel Capital and FREEDOM4 Group PLC (previously Pipex PLC) that holds a nationwide WiMAX license and operates a WiMAX Network.

Ashley Head, Chairman of DataCash, said: "We are delighted that Joseph is
joining the Group and are confident that his experience and management skills
will be of great benefit to the Group. We are a fast growing business with high ambitions and a myriad of opportunities. Joseph has demonstrated the ability to deliver ambitious growth targets and seize opportunities in his previous roles. We are confident that he will do the same for DataCash."

[interceptor2] 15/1/2009 18:56

The trading statement was very positive, and I was ready to invest this morning, then I read the ceo is resigning to take up a position with a private equity company. With this bit of news I feel this has held the price back on what should have been a very profitable day.

[scburbs] 15/1/2009 12:30

Good trading statement. How important is the loss of the CEO?

[irvbox] 15/1/2009 08:46

Nice to hear some good news for a change!!

[woracle] 28/11/2008 11:00

Online retail is already down in USA 4% vs last Nov. First time since records began in 2001.



UK/Europe to follow I reckon and this will de-rate to a PE of about 6 or 7 along with other small caps..

[scburbs] 17/10/2008 12:29

Well that was short lived!

[scburbs] 17/10/2008 11:57

Thanks Hosede, I am pleased to say that the share price seems to have responded promptly to my complaints that it wasn't moving in line with the current bloodbath (although a rather longer wait from my initial short position during which time the world has become a very different place!).

A few directors getting itchy feet to realise some more value before it disappears or institutional shareholder also with itchy feet?

[hosede] 17/10/2008 09:48

You're well in the money now Schurbs - trouble to me was that until last few weeks the Chart was looking quite bullish - looking like it might hit new highss

[hosede] 10/10/2008 15:17

Well done for waiting Schurbs - I got bored and sold out at 305 - (short at 320)

[scburbs] 10/10/2008 07:43

All my short positions are performing well with the sole exception of DATA which continues to show very impressive gravity defying abilities with only a small decline amongst a bloodbath. Never mind, I can wait.

[woracle] 04/9/2008 08:11

Still walking on air it seems ! Solid 20% growth these days, sharply down from the 50% of old. But still priced at PE 30 this year. Wierd..

[hosede] 12/7/2008 23:05

Yes seems to be walking on air! - always a huge number of very small buys (30-50 shares) absorbing the sells - employees benefit trust maybe

[scburbs] 26/6/2008 21:23

Directors continue to be massive sellers. Amazing that this has held up so well. It has a massive P/E rating and the directors have been regular sellers.

[kenbachelor] 19/6/2008 16:45

I was expecting this to break through its prveious top, but I'm disappointed. DATA Any Idea why the drop today?