Ideagen Share Discussion Threads

[welsheagle] 05/11/2012 20:13

From November's 'Company Refs', when price was 20.1p:-
a/ Prospective PE ratio of 11 (based on two broker forecasts, one recommending as a 'corporate buy').
b/ Forecast growth in eps of 19.9%.
c/ Average forecast eps for 2013 of 1.63p.
d/ Turnover up from £0.38m to £2.25m in last two years.
e/ Cash per share of 0.97p.

[stegrego] 02/10/2012 16:18

This was in a top teaid all cap tips in Shares mag last week.

[euclid5] 02/10/2012 15:43

finnCap's target price has been upgraded to 20p based on a consistent multiple of 6x EV/EBITDA .


seems they have hit this TP today

[stegrego] 29/8/2012 12:41

I quite rate Octopus if its one of their funds buying. One of about 3 outfits that I trust to make decent investments.

Knew I should have got more of these...

[attrader] 29/8/2012 12:12

Great find GHF , and thanks for sharing on this thread. I looked into this yesterday night and decided to buy. Seems to be good timing :)

[woodcutter] 29/8/2012 11:01

Yes ghf very good news. Indeed with the increases in volume recently i figured something was happening so i topped up and doubled my holding.

WC

[glasshalfull] 29/8/2012 09:27

What a lovely quiet thread...especially with IDEA breaking out to new highs ;-)

Good news this morning on two fronts.

Firstly news of a contract extension:-



"...three year contract extension with Service Birmingham worth £220,000 on what was previously an annually renewable contract."

and also the news that Octupus Investments have now moved above the 3% threshold:-



I believe that IDEA has continued to trade strongly in H1 2013 and therefore confident that they will beat this years forecasts...if so then we are looking at a share that would still only be on a PER 8 - 10 with strong b/s and lovely recurring revenue base with potential to capitalise & develop on US business opportunities.

Regards,
GHF

[glasshalfull] 14/8/2012 18:08

Wc - Good to see you join the party.

Growth Company Investor tip for Ideagen



Ideagen SPECULATIVE BUY
27/07/2012 Ben Jaglom

Compliance software specialist Ideagen (LON:IDEA) continues to win ground in a niche market.

The AIM newcomer – which joined the junior market this July from PLUS – declared adjusted pre-tax profits of £1.08m (2011: £490,000) on sales of £4m (2011: £2.25m) for the year to April. EPS stood at 1.26p (2011: 0.93p) while cash of £1.5m was reported.

Fellow compliance play Proquis was purchased by Ideagen in a deal worth £3.2m, with the company also enthusing that the year to April had seen a contract win with the US Department of Veterans Affairs expected to be worth $10.6m over five years.

In an interview with Growth Company Investor, chief executive officer David Hornsby remarked that the company's focus will be on markets in North America, noting that it was interested in winning contracts in areas such as nursing. He added that the company was also making an effort to 'consolidate its position in the UK market'.

Analysts at finnCap are forecasting pre-tax profits of £1.7m (EPS: 1.6p) on sales of £5.8m for the year to April 2013.

While it is still early days on the junior market, Ideagen's steady growth is highly encouraging. Speculative buy.


Ideagen

Market cap: £12.5m
PE Forecast: 10
Share price: 16p


Regards
GHF

[woodcutter] 07/8/2012 15:20

GHF

I've taken a small punt, will monitor closely over the coming months.

Wc

[glasshalfull] 03/8/2012 17:54

IDEA were tipped in yesterday's "Shares" Magazine.

They are even more bullish than finnCap's 20p price target and moot a more realistic 25p target.

Regards,
GHF

[glasshalfull] 03/8/2012 17:50

Firstly, that's the header updated to reflect current shareprice, results and forecasts...plus the first forecast released for 2014.

Also worth mentioning that net cash is forecast to be sitting at £1.8m at the current year end and then move to £3.1m during the following year.

woody - I've just read TheMachine's post and clearly we have an industry expert in our midst, so I'll defer. My own view is that they are building an all encompassing product offering and targeting businesses in highly regulated industries. I'm led to believe that their US opportunity is huge and fully expect them to add further bolt-on acquisitions to further increase this product set and remove a number of their peers as they recently did with Proquis.

Regards,
GHF

[themachine99] 03/8/2012 14:03

IMHO.....There are lots of generic document management companies (which offer a vanilla document repository) around however Ideagen have more robust document control which allows genuine out of the box adherence to industry rules and regulations (often based on ISO). The real value is the integration of the document with other processes/requirements such as training/competency, audit, incident reporting and corrective action...much of this is based around what was British Standards (BS) which has now evolved into ISO standards...ISO IS BECOMING MORE AND MORE IMPORTANT AS COMPLIANCE KICKS IN.....this is why a tiny british software company can win large deals in the US. The big Document Mangement companies do not have the inherent rules logic or the additional modules to support the requirement without lots of bespoke customistaion

[woodcutter] 30/7/2012 14:49

GHF

I just googled document control and compliance systems and there's a lot of companies out there doing this kind of work. Is there anything you think sets idea apart from the rest. I have to confess i didn't go into detail on the finances of any of those listed in my search but was more than surprised and the number of companies.

I normally like to find businesses which offer something which has more barriers to entry, otherwise it becomes a very cost driven business.

I had the same feelings about dotd but felt their product was superior to others (based on website browsing which is probably not that effective but at least gave some comfort) so i bought into that story.

I used to hold shares in dicom now kofax which is much bigger entity and has been around a lot longer principally in document capture. i sold after taking profits, i kind of felt that as it was one of the inital movers in the market and others would arrive and make it more competitive, which i think has happened.

So i guess that's my question really, what sets them apart.

Woody

[interceptor2] 29/7/2012 22:55

GHF, Thanks for the update on Simon, like you I was shocked to read his post and his obvious despair. The week before I had just re-read Free Capital, and his section in the book. Apart from similar styles of trading, what hit home for me is that he is the same age as myself, both leaving school in 1979. And we are both self taught investors having read more or less the same investment books.

Lets look forward to many more investment exchanges with Simon in the future.

Regards ic2...

[glasshalfull] 29/7/2012 22:37

Woodcutter, ic2...thanks for some company on this thread ;-)

O/T - I know that Simon Gordon appreciates everyones kind wishes and I'm sure that he will take comfort from the high regard in which he is held. Miracles do happen and I just hope that Simon is able to battle through.



In respect of Ideagen versus Access Intelligence as an investment proposition I have posted my thoughts on Access Intelligence (ACC) and Northland's reduced forecasts for them on the ACC thread. It may be accessed via the undernoted link.



Movong onto IDEA it is clear that they are building momentum with their maiden AIM results coming in slightly better than forecast. The fact that recurring revenues now cover 90% of the fixed cost base and they are delivering strong cash generation despite the growth augurs well for the future.

They are clearly looking to capitalise their offering in the US healthcare market & having expanded their product portfolio and geographic reach during the last year they look inexpensive on a prospective PER 10 given the growth opportunities available.

Regards,
GHF

[interceptor2] 27/7/2012 18:45

Not a stock I hold, but I did notice that GCI covered them yesterday, it looks like a positive write up, so might explain any increased transactions. As I don't subscribe I can only see the first few lines below.

Compliance software specialist Ideagen (IDEA) continues to win ground in a niche market.

ic2...

[woodcutter] 27/7/2012 16:34

GHF

Looked back at your posts on dotd (which i'm in now) and picked up this one too. I think your comments regarding acc are very much in line with my own views now when comparing these two. idea are clearly ahead at this time and the more i look into these the more i like them, will let you know if i make a purchase.

off topic

i picked up the sad news about simon gordon and although i never knew the chap i picked up many of his posts around the threads and he seems a very well read and competant investor, always polite and informative. Such a sad story, hope he manages to get through this with some level of comfort.

Woody

[glasshalfull] 24/7/2012 08:36

Ideagen is currently off the radar but I don't think it'll take long for investors to switch onto the growth story emerging here.

Lovely cash generative qualities, recurring revenues, strong cash balance and growth 30%+ in earnings...with significant opportunies for growth in the US Healthcare market.

Interested to have confirmation of the brokers targets for the current year, which were for EPS of 1.7p prior to the statement today.

Regards,
GHF

[drw1] 24/7/2012 08:10

Operating cash flows for the year ended 30 April 2012 were strong with cash generated by operations of GBP1.26m (2011: GBP0.06m

[sharetips] 18/7/2012 14:43

see www.brokerlink.co.uk

[glasshalfull] 09/7/2012 22:14

Ideagen tipped in last weeks "Shares" mag.

They indicate that results could be "forecast-beating" & rate them a speculative buy.

Regards,
GHF

[themachine99] 04/7/2012 17:06

see some positive movement today, look forward to the results

[glasshalfull] 04/7/2012 09:57

Lewis, I've updated the header with product suite and also details of net cash.

Net Cash - £1.167 million (at 31/10/2011)

All RNS announcements accessible via Investegate under ticker IDGP with any new releases available under ticker IDEA.



I'd imagine that preliminary results will be out prior to the end of July.


Regards,
GHF

[lewis winthorpe] 04/7/2012 07:39

Glass,

Thanks for the pointer, what is the cash in bank situation? debt?

Thanks,
L.