Safecharge Share Discussion Threads

[slipperysidewinder] 02/12/2016 14:14

Nothing new. Results in line with market expectations. No mention of new signuficant customers or potencial acquisitions.

Just a rubber stamp thst everything going along as expected.

In the interims it managment mentioned that growth was expected to slow a little in the second half. This may still be the case.

Anyway, nice to see SCH bobbing along in the right direction.

[rivaldo] 02/12/2016 11:55

SCH have told us that trading is strong and nicely in line with expectations. And that there is "a strong pipeline which provides confidence for 2017 and beyond".

This is all new info. You can't ask for more from a trading update.

As for the £100m+ cash pile, the choice is likely special dividends or further acquisitions, as SCH have flagged in the past. IMO a special divi is unlikely as Sagi really doesn't need the money - only the other day he sold £329m of shares in Playtech.

[slipperysidewinder] 02/12/2016 11:49

They havent told us anything we dont already.

What are they going to do with all that money??

[lomax99] 02/12/2016 08:49

Thanks Rivaldo.

[crazycoops] 02/12/2016 08:43

Forward PER 12.5, Forecast yield 6.06%. As rivaldo points out, on an EV basis things look even better. Whether the £100m cash pile gets spent on an acquisition or returned to shareholders via a special divi remains to be seen. I suspect the PTEC move into the financial sector gives SCH a big new market to address, so maybe an acquisition won't be necessary. Either way, I am happy to hold SCH in size (5.71% of PF). Patience might be required though.

[rivaldo] 02/12/2016 08:36

Consensus EPS for the coming year is 18.21p EPS from 2 analysts - with a 13.71p dividend.

And SCH also have well over £100m net cash, i.e almost a third of the m/cap.

On an EV basis the 2017 P/E is therefore somewhere around 8.

[lomax99] 02/12/2016 08:27

What sort of PE are these now on please?

[rivaldo] 02/12/2016 08:22

Agreed - excellent year end trading statement:



This stock is cheap as chips.

SCH should be fundamentally re-rated upwards purely on fundamentals, growth and prospects for the current business alone.

And one day we will also likely wake up to a large earnings-enhancing acquisition from the huge cash pile.

I can see this being at least a one bagger from here if all goes well.

[trentendboy] 02/12/2016 08:20

Decent update. Meeting expectations but also increasing tier 1 customers

[silverfern] 02/12/2016 08:03

That set the market alight! way undervalued but we know that.

[slipperysidewinder] 30/11/2016 15:47

Maybe the unthinksble might happen and corporate activity on horizon. Lol

[rivaldo] 30/11/2016 14:43

Moving up again (spoke too soon slippery!).

[slipperysidewinder] 30/11/2016 12:20

Like watching paint dry here.

[slipperysidewinder] 23/11/2016 18:16

Big difference SR

Firstly Safecharge have their own cash snd lots if it, unlike GVC having to raise money snd facilitate a share plus cash deal. Safecharge owe nothing!

Secondly, Safecharge have no exposure to the gaming point of consumption tax that will, make no mistake eventually filter through to % net profit!

Thirdly, as far as I am aware, Safecharge is currently not under investigation. Unlike GVC!

Furthermore, Safecharge thus far havent raised any red flags. Unlike the questionable move by GVC to recruit the ex FD of WONGA!! Not exactly the best PR excercise.

[slipperysidewinder] 23/11/2016 18:16

Big difference SR

Firstly Safecharge have their own cash snd lots if it, unlike GVC having to raise money snd facilitate a share plus cash deal. Safecharge owe nothing!

Secondly, Safecharge have no exposure to the gaming point of consumption tax that will, make no mistake eventually filter through to % net profit!

Thirdly, as far as I am aware, Safecharge is currently not under investigation. Unlike GVC!

Furthermore, Safecharge thus far havent raised any red flags. Unlike the questionable move by GVC to recruit the ex FD of WONGA!! Not exactly the best PR excercise.

[srpactive] 23/11/2016 14:33

Hello all

Slippery states a transformation deal is needed, does
he mean like the one at gvc when gvc ceo bought bpty?

active

[rivaldo] 23/11/2016 09:39

Nice £45,000 buy at 219p this morning.

[johnv] 22/11/2016 20:18

The latest views of the brokers
old price new price notes

20 Sep 16 Canaccord Genuity Buy 216.50 320.00 320.00 Reiterates
14 Sep 16 Berenberg Buy 216.50 324.00 324.00 Reiterates
13 Sep 16 Canaccord Genuity Buy 216.50 320.00 320.00 Reiterates
07 Jun 16 Canaccord Genuity Buy 216.50 320.00 320.00 Reiterates

[slipperysidewinder] 22/11/2016 17:40

Surely we should outstrip forecast when one includes the Sisal deal conttibution.

[johnv] 22/11/2016 17:15

What keeps sticking in my mind , is from the interim "more moderate growth in the second half"
We have made 15m in the first, Digital look forecast is for total of 23m , so should make about 8m in the second half.
Still gives us a 26% rise for the year on a PE of 14.5

[slipperysidewinder] 22/11/2016 16:10

It is like watching paint dry here.

Wish the management would take s leaf out of playtechs book and attempt a transformacional deal.

[trentendboy] 22/11/2016 10:02

Hard to resist at these prices I must say

[rivaldo] 22/11/2016 08:55

A couple of days of rises - hopefully the tide has turned here.

With almost a third of the m/cap backed up by well over £100m cash, the ex-cash P/E must be in single figures even on the lowest forecasts for this year from Shore Capital of 15.76p EPS (with a 13.95p dividend).

[johnv] 18/11/2016 12:22

As the late Michael Winner said "calm down Dear"