Paysafe Share Discussion Threads

[lomax99] 18/3/2016 16:43

Updated IC comment:

Bitcoin effect helps Paysafe grow underlying sales

It can be a jarring jump from Aim to London's main market. Paysafe
(PAYS) - formerly known as Optimal Payments - has taken it in its stride and will soon join the FTSE 250. Nor was the online payments specialist distracted by its transformative takeover of US rival Skrill, which explains the sharp changes to the statutory figures. Comparable sales climbed 13 per cent in 2015.

Strong showings from two previous acquisitions drove underlying sales up 16 per cent in the key payment processing division. Revenues rose at a similar rate in the digital wallet business as it expanded internationally and began accepting alternative payment methods such as bitcoin. But growth was more modest in the prepaid segment, which houses Skrill's paysafecard business. That reflected foreign trade restrictions in Greece and the restructuring of a recent acquisition.

Management unearthed $10m (£7.1m) in cost savings from the integration of Skrill; it expects to finish most of the work by October. The 2014 acquisition of US payment processing business MeritCard, which counts Wells Fargo and Deutsche Bank among its partners, is also coming good. Prior to the results, analysts at Barclays expected pre-tax profits of $220m in 2016, giving EPS of 37¢, up from an estimated $118m and 28¢ in 2015.

Paysafe continues to diversify its customer base and capitalise on Skrill. Its shares have leapt 23 per cent since our buy tip (391p, 8 Jan 2016), but still trade at an unassuming 15 times forecast earnings for 2016. That significantly undervalues its rich growth potential. Buy.

[trentendboy] 18/3/2016 16:40

Trying to get stock ahead of the run up next week. Trigger some stop losses as they may have a shed load of orders to fill next month.

Of course there will have been pre-buying so it should all be in the price.

[old fool2] 18/3/2016 15:58

All three new shares joining FTSE 250 are down. MCS is down 2.6%, SCT is 1.8% and PAYS is down by 3.5%

[napoleon 14th] 18/3/2016 15:08

Mandeep - I believe you can PM (private message) peeps on advfn.
Never done it myself, so I dunno if you have to pay.

[le4r] 18/3/2016 15:04

I'm no expert on this, but I had understood that the trackers' mandates are generally broad enough to allow them to buy in once there's a reasonable degree of certainty a candidate will make the index... Obviously helps them achieve a better av. buy in price. Hence the price support might wane, rather than continue, as we approach D-Day. I could be wrong, but have seen that result before. Was in this share until results day. Hands-up, i got out too early - but will certainly be back once price stabilises post index inclusion (either above or below where we are today)!!GLA. P.S. Feeling a little emotional detachment right now having let this go, even if it's only temporary!

[qs99] 18/3/2016 14:21

very interesting thanks

[mandeep share] 18/3/2016 14:19

All advise taken and greatly appreciated guys.Let's see how this goes.

[pshevlin] 18/3/2016 14:16

That's if they haven't bought in already by some devious means.

[wolfhound1] 18/3/2016 14:14

Potential volumes come moday - my stab at the numers


Anyone been able to find/calcuate the total AUM of FTSE250 trackers ? I haven't been able to so will work to guestimates.

I see the likes of Blackrock are £0.9bn and £0.68bn respectively and these look to be amongst the largest

So in total I suspect we are somewhere north of £25bn which might equate to about 8% of the index held by trackers alone. So that would mean a 8% buy of PAYS 438mn shares or roughly 35mn shares - now that would be some volume come monday

below is my ready reconer depending on ftse250 tracker as a % of overall share holding

2% = £6.58b AUM = 8.7mn Pays shares
4% = £13.1bn AUM = 17.5mn Pays shares
6% = £19.74bn AUM = 26.2mn Pays shares
8% = £26.32bn AUM = 35mn Pays shares

So at least triple normal daily volumes to come if trackers only make up 2% of index ownership

[pshevlin] 18/3/2016 14:12

Looks like the yanks have a submarine!

[ralphmalph] 18/3/2016 13:56

Mandeep - if you are looking for tips, my advice to you is to take some of your profits and buy a subscription to momentum Investor or small cap share watch. You can then read at your leisure as to why they think the shares are worthwhile putting your money into.

[fourgirls] 18/3/2016 13:43

Never give your e-mail address out on here.You just don't know who anyone is.Im not sure about that comment from Flaraway regarding a gang of rampers,bit harsh really.Most people here bring some good stuff to the table.Everyone is entitled to their opinions though,but seriously don't put all your eggs in one basket mandeep share.Thats what the 'gamble' refers to.Ive read the Naked Trader books he certainly tells you to spread your risks.

[heliweli] 18/3/2016 13:38

Hope for a Yankee boost.

[the juggler] 18/3/2016 13:35

Mandeep, we.can all share our opinions with you. However none of us is able to dispense financial advice, that would be illegal without the requisite qualifications etc.

[mandeep share] 18/3/2016 13:26

F1 this is not a gamble I'm merely look for the occasional advice.

[pshevlin] 18/3/2016 13:16

I hope you don't include me in that F1!

[f1araway] 18/3/2016 13:06

Mandeep share - so you'd be willing to give your email address to a gang of rampers? Then better advice to you would to stick your money into an ISA paying a derisory rate of interest. At least you'd know exactly what to expect rather than the gamble you appear to be willing to take.

[silverfern] 18/3/2016 12:41

I sold last week (ave 404p) and so this dip is good for me to buy in. Just saying. I had 25k to sell so I got a bit nervous!

[whymps2] 18/3/2016 12:30

Shake, trying to grab a last bit of stock before 21st

[jarega85] 18/3/2016 12:30

Doesn't surprise me given we were up about 15% across a small number of days!!Hold tight, my 500p is still coming!

[heliweli] 18/3/2016 12:03

Profit taking.

[brad44] 18/3/2016 11:47

also there are plenty of forums on this site for just general chit chat on shares, pop on to one of them, you can usually cut the wheat from the chaff so to speak...

[mandeep share] 18/3/2016 11:42

@fourgirls thanks for the heads up. I funnily enough have started trading after reading the naked trader. Will look into this book. Valuable advise taken@pshevlin currently all my money is invested here. I see your plan does make sense so will look at this once I hit some profits again.

[mandeep share] 18/3/2016 11:38

@ Stuart I do agree. I think this has really tested my nerves as it has been my first venture into the stock market in January. The sheer market volatility had freaked me out lol I'm getting used to it now. I am confident in the stick it's self I think it's more my emotions taking over and worrying the stock might tank once I see I have started to make some profit. I've come back in now at 429p and looking to hold for a while.The problem I found is when it hit the resistance at 412-416 a few times and then tanked considerably. I presume some of this in hindsight was the mm manipulations?