Paysafe Share Discussion Threads

[bwana4] 07/3/2017 13:33

The hiring of two new appointments are a hint to the share holders, I am of the openion
there will be an announcement in a short time period of M/A activity. AIMHO.
ATB.

[shanksaj] 07/3/2017 13:30

Ihatemms, nurdin, Arthurly, If only I had done accountancy or read some decent books on why cash balance variation does not affect EPS.

In the Results the difference between Adjusted Fully Diluted EPS and Statutory Diluted EPS is noted in Note 3. It looks to me as if a lot is thrown into Note 3: does Note 3 look reasonable to anyone with more accountancy training than me (all 3 of you, it looks)?

Putting in an (Adjusted Fully Diluted) EPS of 42 cents and exchange rate of 1.22 $/£ gives EPS 34.4p sterling.

Converting the reported debt $280m to sterling at 1.22 $/£ gives £229.5m debt.

Total number of shares is 484,146,569.

Debt per share is £229.5m / 484,146,569 = 47.3p.

With share price at 411p "total cost" is 411p + 47.3p = 458.3p.

458.3p (TOTAL COST) / 34.4p (EPS) = 13.3 PE.

For a company in a good line of business like Paysafe that sounds cheap to me. No matter what the growth rate will be next year, hopefully there is a decade of growth to come.

With assuming 10% (company guidance of "low double digit") organic growth in $1bn is an extra $100m before tax revenue. Most of this, after tax, should fall to the bottom line?

There will also be lower debt repayment cost because of lower overall debt.

The debt should be paid off roughly by summer of 2018?

So, all assuming no more buying other companies, and assuming no big giant is going to take out Paysafe, at PE of 13.3 it looks good value even on modest assumptions.

If they don't do any deals this year I would hope for a maiden dividend in the finals for 2017.

[johnv] 07/3/2017 13:12

Weird, how it's settled down now at 410p

[lomax99] 07/3/2017 13:05

That'll be to co-incide the conference call with the news of a US based acquisition... (lol!)

[ch1rp] 07/3/2017 12:52

And counting......

[eh9] 07/3/2017 12:48

1hr10mins....

[f1araway] 07/3/2017 12:43

Ch1rp,According to EH9, "Blue by time of conf call"!!!&,():!!!

[ch1rp] 07/3/2017 12:24

Often the share price goes up the day after the news. Good day tomorrow then!

[wolfhound1] 07/3/2017 11:31

CMO+CIO+2 NED with Technology, Pharma, Personal Consumer Product expertise - all appointed within a short timeline of each other - nuff said

[kuss1] 07/3/2017 11:27

Still fantastic results. Hard to find anything better in the market. Should be £6 at least. And for sure there will be acquisitions coming. Even without them Pays can be sure of lower digit organic growth which is great in itself. And margins now over 30%! Pays always upgrades as has been said.

[nurdin] 07/3/2017 10:58

ah yes...misread that...fewer shares in circulation rather than any impact on profits.

[arthurly] 07/3/2017 10:54

nurdin - profits the same but less shares so EPS rises.

[trentendboy] 07/3/2017 10:48

could have been algo trading that see the newspaper "below expectations" and sells and so do the other algos.

Could well be blue.

Missed the spreadbet chance early this morning. It was clearly something odd going on

[nurdin] 07/3/2017 10:45

No impact on eps ihatemms...

[ihatemms] 07/3/2017 10:43

Shanksaj - the buyback would have no impact on profits - just cash balance and eps

[nurdin] 07/3/2017 10:43

Dont think the buy back costs would be written against the P&L account,more likely the costs were met from cash reserves and/or the credit facilities.So impact on balance sheet rather than P&L account...but I could be wrong.

[malcolmmm] 07/3/2017 10:35

The buybacks helped the share price recover so better than a dividend in that respect.

[shanksaj] 07/3/2017 10:24

Paysafe bought just over 700,000 of its own shares in the buy back up to 31/12/16 at very roughly £3.50 each, or about £2.5M cost, or $3m (results announced in dollars).

Not a really relatively significant amount, but this would have been taken off the profits.

[eh9] 07/3/2017 10:22

If you search on google for news in last hour and London south east it is an item and quotes the analysts alongside incorrectly saying operating profit below expectations (but that bit was just a journalist)

[rhatton] 07/3/2017 10:20

EH9, have you a link to those notes if possible mate? Thanks

[steptoes yard] 07/3/2017 10:15

thanks nurdin and Bruce

[eh9] 07/3/2017 10:14

Berenberg and UBS seem to be saying cash conversion ahead of expectations

[bruceylegs] 07/3/2017 10:08

Short tracker for anyone interested:

shorttracker.co.uk/company/GB0034264548/all