Safecharge Share Discussion Threads

[igoe104] 28/12/2016 16:29

Capricious, I`ll probably jump back in to jlg in the next couple of months when funds come available. but i believe they will be more upside in inse and sch, especially at these levels.

[eastbourne1982] 28/12/2016 14:15

I think the trades at £2.0540 are buys, I got a quote to buy at this price last week, many of the trades showing as sales are in fact buys imho.

For the record I don't own any yet however I am lurking.

[rivaldo] 28/12/2016 13:42

Only around £40k traded today in a series of small trades, so completely immaterial.

The other way of looking at it is that the selling is being absorbed into the market without a problem, and at a nice premium to the bid price.

Which rather suggests that there's a larger buyer in the background taking on that stock.

[capricious71] 28/12/2016 11:46

Igoe. I'm holding JLG. I think it's a long term winner but it's gone up nicely in the last year so I understand why you sold.

I'm considering SCH but looking today, almost everyone is selling.

[igoe104] 22/12/2016 19:28

YEP sold off my JLG holding, and split it two ways.

INSE and here.

The value was too tempting, with both .

[rivaldo] 22/12/2016 14:05

Good to see you buying in igoe. Have to agree about the value here.

I'm surprised the price has stagnated following the trading statement (or indeed bounced in the same way as PAYS). I may buy some more before the results, so in a way I'm hoping that the price doesn't rise before then despite my position in SCH already being slightly overweight.

[igoe104] 19/12/2016 13:27

just purchased a load of these, look good value at these levels.

[rivaldo] 16/12/2016 08:33

We can deduce that the amount involved must be material since this warranted a full RNS rather than an RNSNON.

It would be nice to know the full details, but I guess confidentiality and all that...plus as a private company Nayax probably have their own reasons for not wanting implied valuations to be out there.

[crazycoops] 16/12/2016 07:55

What size is the minority investment and how much are SCH paying?Grrr... it does drive me nuts when companies don't provide this info. Maybe it will come out later via some broker coverage.

[rivaldo] 16/12/2016 07:25

Good news today with a new strategic investment - Nayax are pretty sizeable:



"About Nayax

Nayax, a global IoT platform for unattended payments, telemetry and management tools, uniquely developed for the retail market was established in 2005. Over 200,000 devices are using Nayax solutions worldwide, in more than 45 countries. Nayax's line of innovative products allows unprecedented marketing opportunities and capabilities for unattended machine operators to engage with their consumers. Point of sale options are flexible in order to enable future-proof cashless payment options from around the globe, including mobile payments, credit cards, QR codes, Nayax's proprietary Monyx wallet app and other social wallets. Nayax's solutions are compliant with all automated machine protocols and are plug-and-play with all machines. Nayax's goal is to bridge the gap of the unattended market and to transform point-of-sales into a 24/7 neighbourhood store. www.nayax.com"

[trentendboy] 13/12/2016 16:32

Yes, the PAYS effect obvious. Good dip buying opp

[melf] 13/12/2016 15:54

Just bought back in. Looks like a nice discount today thanks to PAYS.

[rivaldo] 13/12/2016 12:30

Couldn't resist, so topped up with a few.

[rivaldo] 13/12/2016 12:10

Getting even harder to resist....no doubt some nervous nellies looking at the Paysafe chaos and translating across here, when PAYS' problems are basically Paysafe-specific as regards China exposure etc and have been well-known for years.

[trentendboy] 12/12/2016 20:26

It is a mad yield. Hard to resist...

[crazycoops] 12/12/2016 16:42

Not until or unless Tedi says so!

[johnv] 12/12/2016 14:44

If this does not start moving soon, we will get taken out.

[rivaldo] 12/12/2016 10:57

Shore Capital issued their latest forecasts on Friday. They are:

- this year : 15.76p EPS, 13.95p divi
- next year : 17.23p EPS, 15.02p divi

Next month SCH will therefore be on a current year P/E of just 12.7, with a 6.3% dividend yield.

And with £100m+ of cash representing almost 30% of the m/cap!

[slipperysidewinder] 11/12/2016 15:51

The recent Barclays research paper predicting slower growth in 2017 for the payments sector had no doubt affected the share price here.

[rivaldo] 07/12/2016 12:35

SCH are nominated in the Security category to win an International Gaming Award:



"Payment and Security

There are many more award categories being represented at IGA 2017, with payment and security being two extremely important ones. Paysafe and Safecharge are leaders in payment"

[rivaldo] 05/12/2016 07:19

Good summary of why this investor would buy SCH - and it doesn't even mention the £100m+ cash pile.....



"Why I'd buy Safecharge International Group Ltd over Monitise plc
By The Motley Fool Dec 2, 2016

Payments services provider Safecharge(LSE: SCH) has released an upbeat trading statement today. It shows that the company is making good progress with its strategy and is on track to meet full-year guidance. It also provides clues as to why it's a better buy than Monitise(LSE: MONI) at the moment.

Strategy progress

Safecharge's strategy to win tier 1 customers is progressing as planned. In new verticals, it's now processing and acquiring European card transactions for Nayax, which is a solutions provider for the unattended machine industry. This includes vending machines in over 100,000 locations worldwide. In traditional verticals, Safecharge has higher quality revenue after tier 1 client wins such as PaddyPower Betfair and Sun Bingo. This should provide it with greater stability and resilience, while also boosting its growth rate.

In new markets, the company is now operating in Italy, Romania, Portugal and Poland. This increase in geographic diversity reduces the company's risk profile, while also allowing it to access potentially higher rates of growth over the medium term. And with a new office in Singapore as well as expansion within the travel and airlines market, the outlook for the business is very encouraging.

Looking ahead

Safecharge is forecast to record a rise in its earnings of 28% in the current year, followed by further gains of 12% next year. On their own, such strong growth rates have the potential to improve investor sentiment. However, when combined with a price-to-earnings (P/E) ratio of 14.7, it equates to a price-to-earnings growth (PEG) ratio of 0.7. This indicates that there's a wide margin of safety on offer, which should lead to substantial share price growth in future years.

In addition to growth and value appeal, Safecharge also has excellent income prospects. It yields 5.5% from a dividend that's covered 1.2 times by profit. Alongside its high earnings growth rate, this indicates that there's scope for a brisk rise in dividends.

Relative appeal

The payments services market is relatively broad and highly competitive. One operator within the mobile payments space that has enjoyed success in winning major clients is Monitise. Its mobile banking platform has been popular with customers and consumers alike. And the bad news? The company hasn't been able to turn a successful product into a winning business model.

For example, Monitise remains lossmaking and is forecast to be in the red in the current year. While it has the potential to turn itself around in the years ahead, Safecharge is the company that's performing well now. As such, it offers a much lower risk profile than Monitise, as well as clear catalysts to push its share price higher and a generous, well covered yield. As such, I'd buy Safecharge, but would avoid Monitise."

[rivaldo] 02/12/2016 16:28

The share price rise today says it all. The fundamentals have changed - now we know that SCH will be in line with forecasts, whereas previously there was a touch of uncertainty.

Now the market has certainty.

[slipperysidewinder] 02/12/2016 15:35

No new tier 1 customers mentioned apart ftom what we already know.

We were told about all the others mentioned earlier in year even Nayax.

Profits still in line with expectations. Nothing has changed fundamentally. They have just reworded the outlook statement that put a downer on the share price in the interims.

[johnv] 02/12/2016 14:38

Tier one customers?, I assume these are FT100 or top notch companies