Paypoint Share Discussion Threads

[alun rm] 13/6/2005 16:00

Having read the results I decided to top up on shares in this company. Today's dip was an invitation to buy! The numbers look very good and every single retailer i talk to about the paypoint product has a happy smile when they tell me how popular it is.
I agree with Simon on this one, this stock has a very rosey future and the current share price represents very good value.
When you consider that most of the institutions are still not in on this one and stock is hard to get ahold of, all it will take is for one or two of the funds to start buying and this baby will start on an upward spiral.
Next stop, the AGM in July.

[omalaha] 13/6/2005 14:42

Yes I agree,good results,good growth, good div, you can't complain about this lot. I can't understand the sellers this morning, don't they like companies who raise the div? I'm presuming there will be support short term at 245p.

[growthhunter] 13/6/2005 14:12

Thanks Simon

[simon gordon] 13/6/2005 13:33

GH - 2006 EPS forecast has been lifted from 14.9 to 18.1, due to a lower tax rate. The DPS was forecast at 7.2 and this will probably rise as well.

The forward P/E is 13.48 @ £2.44.

With a 5.2p dividend in July and forward dividend from 7.2p up to maybe 9p.

If you can find a better value, yielding growth stock (with strong balance sheet) and a decent NMS please post it.

For me this is a brilliant, Growth at a Reasonable Price, stock.

Plus the 2006 EPS forecast is still in it's early days and has potential to rise with upgrades.

[simon gordon] 13/6/2005 12:22

O - If I knew the likely scenario I would be posting from my yacht in the South of France.

Whereas I am posting from a chilly North Yorkshire.

[growthhunter] 13/6/2005 12:22

The results released today look good. Little feedback on here. What do people think? Are we going to get any movement in the share price soon or is it going to be a long haul. What's the best that could happen in the 12 - 24 month time horizon. I would be interested to hear other's thoughts.

[powwow] 13/6/2005 12:06

Quickmind, maybe you do not understand their biz model.

why bother when most people are happy to walk in the shop and hand the cash over. cash is king as they say and thats what paypoint do? How would they do it over the phone.. They would not be interested in using credit cards as that requires a margin to be paid already to the card aquirer.. They lose . They make money. Paypoint have lots of providers who ever they are signing up. For each transaction they process (cash), they charge a fee like the credit card companies. It's that simple.

I take you knew this ?

[quickmind] 12/6/2005 21:50

I'm wondering why Paypoint doesn't offer (landline) telephone payment solution for e.g paying council tax bills.

[omalaha] 12/6/2005 17:51

Simon, think you missed out LIKELY SCENARIO, which would be.....?

[simon gordon] 11/6/2005 09:21

WORST CASE SCENARIO

- Profits stagnate.
- e-Pay gains share.
- Alphyra start price war to claw back share.
- Transport ticketing flops.
- Make a terrible takeover.
- Dividend stagnates.
- Big clients defect.
- Share price £1.50 - M'kt Cap. 100m.

WILD CARD
- Nuclear terror attack.


BEST CASE SCENARIO

- Cashflow enables rapid growth.
- Make a brilliant takeover.
- Transport ticketing rockets.
- Dislodges e-Pay from the big four.
- Branch into other areas of electronic transactions.
- Shareholders enjoy juicy dividend increases.
- 2007 - Share price £5.00 - M'kt cap. 335m. FTSE250.
- 2010 - Share price £10.00 - M'kt cap. 670m.

[amberspyglass] 09/6/2005 08:25

took profit on recent purchases. very easy to sell. must be big buy orders out there.

[omalaha] 08/6/2005 20:01

Well it's another example of how impressive PAY management are at getting out and finding outlets for their product. I can think of more than a few other companies who could take a leaf out of their book-and unfortunately I own shares in some of them. Cheesed off I did'nt have funds to top up at lunchtime.
Excellent research as usual Simon.

[simon gordon] 08/6/2005 12:23

Interesting:

[omalaha] 08/6/2005 11:32

Thanks simon. Slightly more selling than I thought, I may be tempted to top up.

[simon gordon] 08/6/2005 10:53

2006

EPS - 14.9

DPS - 7.2

Forward P/E @ £2.48 = 16.64

[omalaha] 08/6/2005 10:50

Simon, did you ever find that 2006 eps forecast?

[simon gordon] 08/6/2005 09:39

Just some thoughts:

£2.18 - good value.

£2.50 - reasonable value.

£2.75 - fair value.

£3.00 - popular value.

£3.50 - glamour value.


S - track record.
W - minnow.
O - balance sheet.
T - competition.

[omalaha] 08/6/2005 07:11

Might be a few holders tempted into profit taking, although there was'nt that many people bought in at sub 230p, so don't expect to see much. It would be foolish anyway, as there won't be any opportunities to get back in.

[amberspyglass] 07/6/2005 18:28

two more jumps and we are at £3.00

[omalaha] 07/6/2005 15:16

and it has! Quicker than I thought, this stock is in a hurry!

[simon gordon] 07/6/2005 12:29

all the way to the bank.

[omalaha] 07/6/2005 11:39

Nice to see the management of a stock doing all the right things. Looks like some of yesterdays sells were buys, Amsvecap 75k. I still think 245p is where the share price should have been regardless of news/results and expect it to advance further.