Patsystems Share Discussion Threads

[bg23] 11/9/2007 12:23

wasn't me!!

:-)

if it was, expect an announcement in the next couple of days.

they may not even have been buys, a cross between holders? or a broker trade? not sure, don't have access to the codes here.

[coroon2] 11/9/2007 12:12

Was that ION buying?
Two trades of 1.5m @ 27.1p.It seems to be the price they like to buy.RNS soon.

[eacn] 06/9/2007 12:38

bg23, I completely missed the 13.08.07 RNS re: ION so my post 506 is wrong.

I am at a loss to understand why Brandes, CA and others have not had to issue RNS's.

I reckon ION must be close to 15% now, since there has been steady selling over the summer and the price has remained stable, despite the market turmoil, suggesting continued buying support.

The Tamesis holders must be due to get their stock sometime soon and perhaps we will then see some further action.

32% free float outside the top ten holders is quite reasonable for an AIM stock and certainly gives ION plenty to work on.

[bg23] 05/9/2007 12:10

in addition, the website also lists the following:-

Percentage of Securities not in public hands.
14.56%.

is this tamesis and directors holdings?

so there is a free float available outside the above of only 32% of the companies share! doesn't seem a great deal, does it?

[bg23] 05/9/2007 11:42

been away for the summer, back and rested.
thought i'd do a bit of catching up so was going through the website looking for news.

i cam across the register of reportable shareholders - it looks like it has undergone a bit of a change.

the following was listed here on the 13 march by baz:-

SEDAF Holding SA 15,389,600 9.38%
AG Edwards & Sons 13,937,500 8.49%
SG Asset Mgmt Client PF/UT 11,458,322 6.98%
Brewin Dolphin Clients 9,778,100 5.96%
Credit Agricole (Suisse) SA 7,151,227 4.36%
Rathbones Special Situations Fund 8,000,000 4.87%
Merrill Lynch Bank Suisse SA 6,600,000 4.02%
Herald Investment Trust 6,400,000 3.90%


whereas as the following is a list of news known to the company on the

Substantial shareholdings
On 20th July 2007, the following holdings of 3% or more of the issued share capital of Patsystems plc were known to the Company:

Beneficial owner, as notified to the Company Number of shares %


ION Trading UK, . 20,151,191 12.21%
Sedaf Holdings SA 15,389,600 9.33%
Brandes Investment Partners, LP 13,687,500 8.29%
Brewin Dolphin Securities Ltd. 8,607,897 5.22%
Rathbone Investment Management Ltd. 8,000,000 4.85%
Herald Investment Management Ltd. 6,400,000 3.88%
Credit Agricole Indosuez (Suisse) SA 6,231,727 3.78%
Standard Life Investments Ltd. 5,387,000 3.26%
Marlborough Fund Managers Ltd. 5,005,000 3.03%


now we know that ion announced a 14.03% holding mid august, but where are the other announcements??

that said, the most important thing in the above is , in my opinion, the presence of brandes partnership with 8.3% of the company!!!!!!!!!

a known value investor.

the other thing is that the above hold in excess of 54% of the entity?

aside from that, things seem to have been fairly quiet on this front over the summer, aside from the results, there doesn't seem to have been any real news, or comment.

was there anything in the papers following the results?

[eacn] 23/8/2007 12:27

If the 1.2M were taken by ION they would now hold 12.93%, which is just below the 13% threshold, and therefore, not reportable.

[eacn] 23/8/2007 12:10

Well no RNS so either the 1.2M didn't take ION over a % boundary or someone else bought these shares.

[eacn] 20/8/2007 15:43

The trade type 'X' indicates a riskless principal trade between two non members suggesting that a private shareholder may have sold to ION.

If this is the case then this provides clear evidence that ION are now canvassing major shareholders directly, as suggested in earlier posts.

Roll on September.

[eacn] 20/8/2007 15:32

1.2M shares went through at 27.5p at 10:13. Looks like a further ION purchase.

[maddox] 17/8/2007 12:25

Spec,

Now look what you've done 0.5p down - you had to say something didn't you!

[archa] 17/8/2007 09:26

Third of a page article about PTS in this week's issue of 'Shares' magazine. Doesn't tell us much of what we didn't already know but does make reference to the possible beneficial effects that should flow to the company, given the current attitude amongst financial institutions to 'risk aversion'. Buy is still the current stance, not surprisingly.

[diogenesj] 17/8/2007 00:22

Shhh... :-)

[spec12] 16/8/2007 17:45

holding up extremely well this one. v surprised. (hope that's not the kiss of death)

[bbd2] 16/8/2007 10:03

Patsystems Plc Opens Hong Kong Office - Changes Announced To Asian Teams
14/08/07

Following a substantial growth in the region's derivatives industry, Patsystems plc is pleased to announce the opening of a new office in Hong Kong. The move follows the appointment of Barry White to the position of Regional Director Asia Pacific, and subsequent changes to the Asian team structure and location.

The decision to establish a permanent office in Hong Kong is based on the considerable interest and prospect opportunities for Patsystems in the area. Hong Kong has shown substantial growth within the derivatives industry, over the past three years. Currently, Patsystems has seven customers with offices in the region, and now provides connectivity into Hong Kong Exchanges and Clearing Limited, HKEX. This office will be managed by Allison Nam, Senior Sales Manager

In addition to this new development, Patsystems is pleased to report further changes in the area. Barry White, Regional Director Asia Pacific, will be moving from Sydney to be based permanently in Patsystems' long-established Singapore office, and Grant Lowden will move from our London office to Sydney, to become Patsystems Sales Manager Australia.

Barry White, Regional Director Asia Pacific, Patsystems, said:

"The Asian derivatives sector continues to grow and provide us with interesting opportunities, both in extending global derivatives trading solutions for our existing global customers and in attracting new business from major Asian banks and brokers. These changes to our regional infrastructure reflect Patsystems' commitment to providing leading technology to this sector."

[maddox] 15/8/2007 10:32

You could also be correct, but a reverse takeover using cash & paper offer would also be useful to them in giving them an AIM quote and market valuation. I'm looking towards an eventual consolidation in this market and there are advantages to be gained from this approach. Tamesis shareholders (who did in fact take PTS paper) may now wish to realise their investment but ION's VC backer might also have one eye on their eventual exit route, might they not?

[eacn] 15/8/2007 08:43

Maddox, I'm with Diogenes on this one. The Tamesis and founder holders will not accept a paper offer. ION have backers with deep pockets and plenty of cash.

[diogenesj] 14/8/2007 21:36

Couldn't it simply be that they are buying small amounts as they become available in a falling market to avoid forcing up the price unnecessarily against themselves?

[maddox] 14/8/2007 18:13

Having thought about the way ION are approaching this - it seems to me to suggest what their position is.

I think that that they are effectively financing their share purchases out of cashflow and whatever debt capacity they currently have available - hence the sporadic purchasing and tight pricing. This suggests an eventual all-share offer for PTS at some point, the current cash purchases reducing the dilution ION shareholders will eventually face.

Whatdayareckon?

Regards, Maddox

[eacn] 13/8/2007 18:45

So ION have finally had to make an RNS announcement, after mopping up shares in 100K and 50K blocks for weeks now, no doubt using CFDs and other derivatives to get around the disclosure rules. As I suggested in an earlier post, these announcements tend to come when ION cross 2% increments.

Further good news is that ION have upped their price to 28.5p.

This latest RNS provides further confirmation that ION intend to lauch a bid. Come September I expect to hear that they have come to some arrangement with the Tamesis holders, and possibly founder holders.

I continue to believe that ION will accumulate at prices below 30p until such time as they have a 20%+ stake. Unless the board come up with a poison pill defence or lots or positive RNS's this appears quite possible.

After that I would expect a bid if the Tamesis and founder holders agree to sell to ION. 40p remains my target price, higher if current year profits look like they are going to exceed £2.1M, lower if there are set backs.

[archa] 13/8/2007 17:38

So when do we think ION will move publicly to gobble up PTS? To prevaricate at this stage is only likely to increase the amount they will have to pay at a later stage?

[maddox] 13/8/2007 16:45

RNS Number:9808B Patsystems PLC 13 August 2007


Patsystems plc



("Patsystems ") or (the "Company")



Notice of Share Dealing


Patsystems was advised on 10th August 2007 that ION Trading Ireland Limited purchased 3,000,000 ordinary shares of 1p each in Patsystems, at a price of 28.5p per share on 8th August 2007.

Following these purchases ION Trading's total interest in Patsystems now amounts to 23,151,191 ordinary shares representing approximately 14.03% of the entire issued ordinary share capital of 165,032,336.

Yep, ION again and at a new higher price (prior to the correction). They bought in the share price dip on the results announcement. They are obviously prepared to pay more to get stock - but only if they have to.

Regards, Maddox

[spec12] 10/8/2007 12:12

I have surrendered to the global mkt sentiment and US sub prime lending concerns and gone into cash. Thes sub prime loans are wrapped up in complex derivatives transactions that even the banks are admitting they dont know how to value. The Credit Derivative mkt is worth £trillions.

We could be in for a serious mkt correction or worse. And of course everything will get dragged down regardless.

Just IMHO and capital protection is the name of the game.

Spec

[bbd2] 09/8/2007 09:56

Patsystems in a strong position
Cherry Reynard, 08/08/07 14:20

Patsystems weathered the weakness of the dollar and the yen to beat analyst expectations with a 57% rise in pre-tax profits for the six months to 30 June.
The group makes derivatives trading systems. Chief executive David Webber says the market for its products has remained buoyant as financial institutions seek more innovative ways to manage risk.

Revenue for the first half was £7.8m, up from £7.1m in the same period last year. The weakness of both the dollar and the yen against sterling knocked £208,000 off reported turnover.

Profit before tax rose 57% to £639,000. The group announced an interim dividend of 0.12p per share. Patsystems also retains a robust £2.9m cash balance.

Uptake of its Pro-Mark product has exceeded expectations. The system has more than doubled billable users since the start of the year and has now revised projected customer numbers up 25% to 500 by the end of the year.

Patsystems had three new customer installations during the period, including R J O'Brien Associates, the largest independent futures brokerage in North America. MF Global selected the group's Risk Informer system to manage all its post-trade risk margining across asset classes. Calyon Financial has extended its use of the system to cover spot and forward FX and FX options.

Seymour Pierce rates the shares a buy, believing that Patsystems has a strong position as a vendor in the booming market for exchange-traded derivatives tools and connectivity. It sees the risk products as driving growth in the medium term. It expects the group to match full-year expectations as deals announced last year come to fruition.

The shares were down 1.5p to 28.5p today. They have had a strong run over the past 12 months, rising to 32.75p at their peak from around 22p at the same time last year.

The p/e of 16.9x looks relatively undemanding for a high growth, technology stock. Currency problems are factored in and are unlikely to get significantly worse. The appetite for risk systems is only likely to increase with increased regulation of hedge funds and more turbulent markets. This is a promising growth stock.