Logica Share Discussion Threads

[robwt] 29/3/2010 00:47

Selborne....It is odds on the Conservatives will be back in power on May 7th. Even if it is a hung parliament or Labour get back in, I think IT will benefit as the need to outsource will grow.

As you say Logica is international, look at IBM, Cap Gem etc, they aren't doing badly are they.

[selborne_edge] 26/3/2010 12:11

Its worth remembering that Logica is an international company and this should protect it when the 'new' government starts to impose savings measures. Many European countries (notably Germany and France) are already beginning to emerg from the recession and this should help Logica.

All the political parties are also emphasising the 'efficiency savings' which will be made and of course this should help companies like Logica. The recent rise in the share price is also very encouraging.

[a0502162] 25/3/2010 12:45

Harsh............ but fair!

[selborne_edge] 25/3/2010 12:34

Today's rise has been most encouraging; it may be that Logica is emerging from doldrums. You could say 'and about time too'. We can but hope.

[selborne_edge] 24/3/2010 15:53

Thanks very much robwt. I had not seen that report

[robwt] 24/3/2010 11:02

Selborne...I was talking to a IT analyst last weekend. He is bullish on Logica and e mailed me the link below, it is a few weeks old but if you haven't already seen it you might find it interesting.

[a0502162] 11/3/2010 11:08

Of course we are assuming that BAE still has enough cash left to buy who ever having been stuffed for $400m by the US!

[selborne_edge] 10/3/2010 21:19

robwt - Sorry I did not respond to your request in the ST 'Logica Recommendation' but when I came to look, the recycling bin had been emptied. It also occurred that the recommendation may have been the Daily Telegraph and not the Sunday Telegraph.

[robwt] 10/3/2010 15:53

Back in August 09 there was talk of BAE seriously looking at acquiring an IT company in the short to mid term. That was six months ago and the rumour is still circulating in the City. Logica keeps coming up as a target, do not hold your breath but it could be true.

A bit from the report on 12/08/09

BAE Systems, the UK-listed defence group, is looking to expand its security capabilities outside the defence space and could make a move for an IT based company, sources familiar with the defence and technology sector said. The sources named several companies including UK listed Logica as potential targets.
BE: Last month, Anthony Zinni, chairman and interim chief executive at BAE Systems, said the company would broaden its security businesses further beyond the Defense Department with a focus on areas where it already has expertise, such as intelligence, energy and information management technology. Following his comments, BAE announced it had won a USD 325m US contract for managed IT services with the US Treasury.

BE: A spokesperson for the defence group said it continued to look for organic and acquisitive opportunities across its home markets and four global initiatives – "one of which is security," he said. BAE sees significant opportunities in through-life support (also known as Readiness & Sustainment), government security and cyber warfare technologies and power management, said the spokesperson and a source familiar with BAE.

BE: Two banking sources speculated the UK listed defense giant could bid for Logica whose operations in the public sector account for 30% of the company's overall revenues. A third banker said that BAE would likely target an acquisition in the low single digit billions and Logica's market capitalization of GBP 1.65bn would fit with this scenario.

BE: The first banking source and the third agreed that BAE could either acquire the whole of Logica and sell on the non core divisions to an Indian IT company, or simply take out the divisions it required. "Logica holds sensitive defence contracts with the UK government and would only divest its public sector arm to a UK or US group," the first banking source said. In the past BAE has targeted companies that are no more than 15% non core, noted a fourth banker.

BE: A deal could happen in the short to mid term before Logica surrenders tie-up initiatives from international players, particularly Asian IT groups, said the first banker who is familiar with Logica. He said that Logica will be ready to sell off its global operations in the next 2 to 3 years, once its public unit is safely divested to a "government-friendly" strategic partner
BE: There's a bit more, but if you want it you can buy a DealReporter subscription.

[a0502162] 10/3/2010 11:20

Well if it did some of you guys just might break even!

[trendfloor] 10/3/2010 10:57

AND


09.03.10 :+3, (124.3) Evolution Securities raises Logica to buy from neutral, and lifts target price to 150p from 100p. Says the company has a circa 8% 2010 free-cash-flow yield and cyclical lead indicators started to turn positive in 4Q09. Adds that the new target price of 150p represents 23% upside from current levels. "We see Logica as a strong late-cycle play that is defensive on valuation, cash generation and forecast grounds," adds Evolution.

[robwt] 10/3/2010 10:36

Thanks Trendfloor, very useful.

[trendfloor] 10/3/2010 10:30

Breakout from a TA cup and handle formation. share price could really take off from here.

[a0502162] 10/3/2010 10:04

Oh dear me Rob, if you didn't ask for it you wouldn't get it.

Next time you want to fantasise about just how wealthy you were and what a fantastic and knowledgeable guru you are then do it private. That way you won't get found out.

It's your board so you carry on with it.....................I'm sure you'll you will be left in private!!

[a0502162] 10/3/2010 08:37

And Rob promise you won't say.................."fill your boots 130p here we come".........................now that is inane and childish isn't it!!

[a0502162] 10/3/2010 08:29

OH come on Rob, where's the fun in that................your such an easy target.

[robwt] 10/3/2010 08:20

AhOle, why do you feel the need to post inane unfunny posts. I had hoped we had seen the last of your twisted childish drivel.

If you want to be helpful, find the Sunday Telegraph link recomending LOG. That way you might come across as a useful contributor and all round good egg.

[a0502162] 10/3/2010 07:44

I would think it said "Buy Logica"!

[robwt] 09/3/2010 16:31

Hi Selborne, I din't see Sunday's Telegraph. What did it say in its buy rec.

[selborne_edge] 09/3/2010 10:32

There was a recommendation in the Sunday Telegraph to 'buy' Logica shares. Today's rise may be connected to the ST item.

[selborne_edge] 25/2/2010 20:40

Thanks robwt. As a Telegraph reader, I had already read that item. I do hope you are right. It is interesting that 68% of Logica's business is in the public sector.

[robwt] 25/2/2010 16:07

Selborne, Rome wasn't built in a day and in my humble opinion Andy Green is doing pretty good. The results were ok, nothing to fret about considering current economic conditions and don't forget, a good CEO should not be over bullish at a time when we have all seen how the mighty have fallen. I believe Green to be a good CEO who will put Logica back into the FTSE 100.

I was fairly confident we would have been 20p higher by now and firmly believe that Logica is good value. Read the link and keep faith.

[a0502162] 25/2/2010 07:59

True, they certainly need to do something.