Safecharge Share Discussion Threads

[slipperysidewinder] 10/8/2017 12:10

Better to me in than out. We will get no warning of a Safechsrge bid or Safecharge acquiring the Asian Gatewsyshould it happen.

[johnv] 10/8/2017 11:24

As Sagi owns 68% of the company will he want to sell out?

[callmebwana] 10/8/2017 10:33

The share price has fallen below the 50 Day SMA. Spread is high.
I am sitting on my hands at the moment before I buy in.
ATB.

[trentendboy] 10/8/2017 09:45

How much of SCHs share price is already building in a bid? Will be hard to resist and the market cap here is not high enough to resist a strong bid.

Something must be going on behind the scenes. The issue is whether to load up with more SCH stock...... still seems cheap to me.

SCH should buy PAYS Asian gateway IMO


FT: Explosion in digital purchases fires up sleepy payments industry

Payments processing becomes hot sector as digital transactions soar

4 hours ago
by: Emma Dunkley

Payments processing has long been considered an unfashionable operation that quietly ticks over in the depths of banks’ back offices.But it is now emerging as a hot sector, as companies rush to take advantage of the huge growth potential stemming from the global shift towards digital and mobile transactions.Vantiv, the largest processor in the US, led the dash to capitalise on the growing trend when it made a firm £9.3bn takeover offer for UK rival Worldpay on Wednesday, fending off competition from JPMorgan Chase in the early stages.The rival approach by the US’s largest Wall Street bank by assets highlights the strategic importance of the payments processing business to incumbents and new entrants, both vying for a dominant share of future revenue. Consultants at McKinsey forecast global payments revenues will grow from $1.8tn in 2014 to $2.2tn in 2020. Philip Jansen and Charles Drucker, who will be co-chief executives of the combined Worldpay-Vantiv business, say the merger is aimed at creating a processing behemoth to exploit the burgeoning e-commerce market, as more payments are made online and via mobile phone. Figures from Capgemini’s world payments report show that the number of global non-cash transactions made in 2015 jumped 11.2 per cent to 433bn.Experts warn that competition is becoming fierce — from traditional banks as well as smaller fintech groups such as Stripe — and companies with scale are most likely to succeed. Last week, the board of Paysafe, the UK digital payments specialist, recommended a £3bn bid by CVC Capital Partners and Blackstone, as more private equity firms swoop into the sector.The Vantiv deal turns the tables on Worldpay, which was last year poised to bid for a large US rival. The UK’s Brexit vote caused sterling to weaken, leaving Worldpay, whose revenues have risen by more than 50 per cent since it was sold for about £2bn by Royal Bank of Scotland in 2010, as more of a target than an acquirer.Mr Drucker, currently president and chief executive of Vantiv, says the deal will “give us unparalleled scale” and “positions us to be the disrupter in the market”. The combined company, which will be called Worldpay, will be the largest payments processor by number of transactions globally.

“Consolidation is happening in our industry,” adds Mr Drucker. “You’re seeing it accelerate as scale is extremely important .201;. . where the opportunity is going is e-commerce and integrated payments, and that’s where [our] combination makes so much sense.”Ed Meier, a fund manager at Old Mutual Global Investors and a Worldpay investor, says “a big logical outcome” from the Worldpay deal would be that large companies “have a one-stop shop for their main payment provider”.R20;As it creates such a behemoth in the sector, one can only imagine that other larger players that don’t have quite the same product set might have to think more deeply about their competitive positioning,” he adds.Such mergers also enable companies to make significant cost savings. The combined Worldpay group is aiming to save $200m over the next three years, 60 per cent of which will be from removing overlap in their respective US divisions, although there will also be job losses, management confirms.RecommendedLex: Worldpay/Vantiv — marry in hasteThe Big Read: Worldpay emerges as a winner in the war on cashBlackstone and CVC seal £3bn Paysafe dealIngenico buys Swedish payments group Bambora for €1.5bnAnalysts say the synergies could be higher. Nomura analysts are forecasting up to $250m of cost savings, by cutting more than $100m from its US technology expenses as Worldpay US moves on to the Vantiv system. Worldpay’s UK business is still being weaned off RBS’s systems, after it was carved out of the state-backed bank as an EU condition of its government bailout.The deal expands Vantiv’s global presence, while buttressing Worldpay’s flagging US division.Analysts at Stifel describe the deal as a strategic “home run”, noting that they “see benefits from potential to expand Vantiv’s impressive success in integrated payments outside the US” and “the potential to improve WorldPay’s current US business.”Bankers, investors and analysts say the payments industry is ripe for consolidation and expect more deals to come, particularly as sterling weakness could expose other potential targets in the UK. “I’m surprised it’s taken this long,” says Mr Meier. “Technology costs are ever increasing upwards and the pace of change has been very fast. Mergers allow one to scale up, because there are large elements of fixed costs that can be amortised over a greater revenue base.”One banker says the Worldpay merger is “really all about recognition of the fact that we’re going through this tremendous evolution of the payments sector and you have to consolidate your position and get inside the network with an infrastructure provider of strength otherwise you’ll be effectively on the sidelines”.

[slipperysidewinder] 04/8/2017 14:13

The compsny and its merits have no control over the spread.

[trentendboy] 04/8/2017 14:08

The spread is usual in shares with limited free floatMoves fast enough to compensate but I can see your point

[jgoold] 04/8/2017 13:04

For me this, and the 3.5% spread, is enough to make me go somewhere else.

[nod] 04/8/2017 12:00

Teddy Sagi controls SCH as he own Northenstar (did I spell it right?).The impact of this is very similar to Playtech in its early years, where the share price largely moved up and down within quite a wide trading range.With a small free float of shares any demand pushes the price up strongly. Similarly, modest selling on concerns (usually external) had a significant impact on the share price Only when Sagi sold a significant proportion of his holding did Playtech start to rise. However, each time he sold a stake the shares would fall and then take six months to recover as these shares were acquired by investors. The impact of Sagi's sales reduces each time but due to his massive holdings it lasts many years. It is still having an impact on PTEC even though Sagi is now down to 6.6%

[mortimer7] 04/8/2017 11:40

I bought in to Safecharge yesterday.
Good divi yield. Last update indicated it's taking "slightly longer" than expected to harness revenue growth from 'tier one' clients. Subsequently share price dipped but very quickly recovered upon realisation that this revenue will eventually be recognised.

Obviously a key consideration is Northernstar's stake (68%). My take on this is:-
If you are so worried about it, don't invest. If not take a punt and accept you have no influence over their actions regarding the company, just tag along for the ride.

[slipperysidewinder] 04/8/2017 11:38

And they didnt have 100 mil burning a hole in their pocket.

[slipperysidewinder] 04/8/2017 11:37

NPT were in big trouble.

[lomax99] 04/8/2017 11:20

They sure did at NPT, and look who was the major shareholder there! (step forward Mr Sagi, and take a bow).

[slipperysidewinder] 04/8/2017 11:08

Is is a concern but the same spplied to playtech and nobody got screwed.

[crazycoops] 04/8/2017 10:38

Yes, that is a concern and one that stops me going seriously overweight in SCH because everything else here represents a strong investment case.

[jgoold] 04/8/2017 10:05

It doesn't concern you that one small set of investors completely controls the fate of the company and may be in a position to screw the minorities?

[slipperysidewinder] 04/8/2017 10:03

The as their strategy at Playtech.

Treble the share price over time and then sell at a profit

[jarega85] 04/8/2017 09:53

To make money

[jgoold] 04/8/2017 08:47

Looking to buy here but concerned about the large holding of Northenstar. Anyone know what there strategy is re SCH?

[trentendboy] 02/8/2017 09:16

One reason I have been buying more here than anywhere else is the yield.The article above shows clearly the 4.9 percent forecast yield.With such low interest rates this is impressive on any metric.Then there is the potential capital gain and TO possibilities.What is not too like? The key is the tier 1 customers coming through with expected growth. Be nice to see more sign ups in this area as well

[igoe104] 02/8/2017 07:49

10 of the best-quality companies on AIM.

[trentendboy] 31/7/2017 16:59

Yes, slow rises which is odd as it usually flies on volumes like that.Some institutional positioning is my guess.Anyway wanting to bid is trying to buy in the market ahead of a bid.Be interesting to see if there are any ownership RNS' in the next week.

[rivaldo] 31/7/2017 15:07

Up today on decent volumes at almost 700,000 shares traded. Hopefully setting itself up for more new highs.