Safecharge Share Discussion Threads

[saucepan] 23/12/2014 07:47

Another acquisition announced. SCH is certainly not standing still. It promises to be an exciting stock for 2015, and a further breakout today on the news?

[trentendboy] 16/12/2014 09:25

Good to see the spread narrowing a little and a cheeky rise on low volumes after a lot of small buys yesterday. This breakout could see us reach £3 if the trading statement kicks in soon

[trentendboy] 15/12/2014 19:53

The cash and dividend also give it defensive quality.

Some interesting numbers. ADVFN financials give the whole range.

[interceptor2] 15/12/2014 13:25

Ticks a fair few zulu boxes imo.

Plenty of cash and pays a dividend.

Only a three year record, but cfs/eps positive.

Relative strength is strong. (Short timeframe)

PEG is attractive as you mention Saucepan.

Some investors may think that the PER is too rich for them, at 29 for next year. But worth bearing in mind that the year end is only 2 weeks away, then the PER drops to 23.2, and that is before an further increases.

[saucepan] 15/12/2014 12:12

The Slater PEG of GVC is a surprisingly high 3.43 at present.

The Slater PEG of SCH is 0.86.

Lovely breakout here :-)

[trentendboy] 15/12/2014 12:00

What is the PEG of SCH compared to peers though? Must be higher than GVCs I suppose.

[cfro] 15/12/2014 09:15

The PEG ratio is by far and away the best measure of value for a fast growing growth share.

The PEG here is still comfortably below one.

[trentendboy] 15/12/2014 08:05

Cheapness depends on how you perceive growth prospects. OPAY is a good comparison which is cheaper on current PEs. SCH is smaller and growing quickly.

Remember they work closely with PTEC so I use SCH as a leveraged PTEC play who could also be considered cheap at least relative to broker targets.

SCH is a recent IPO so research is limited but one new customer is Ladbrokes online who of course are doing well folowing PTEC involvement.

US traded equivalents are on high multiples. As SCH grows the PE will come down.

The current rating is certainly not expensive compared to valuations for other tech companies in this area.

However, itnisnnot cheap cheap and on a higher valuation than GVC but is a lot smaller and less grey which you will understand.

I maintain the future growth rate is undervalued by the market ans little coverage is out there. As results come in this will change and others will find this small cap tech in the gaming sector.

Good question though. Not cheap but not expensive either. Spread is a little large thou like GVC and tough to spread bet

[shanklin] 15/12/2014 07:45

Having seen this highlighted on the GVC thread, have just read all the posts here.

On what basis is this cheap? Can't currently see this myself unless one expects the company to grow earnings and dividends way above market expectations.

Genuinely curious so thoughts welcome.

Thank you, Martin

[saucepan] 12/12/2014 19:13

Thanks, TrentEndBoy; helpful research :-)

[trentendboy] 12/12/2014 15:02

For anyone looking in it is worth a reminder that Numis initiated coverage in November:

NUMIS INITIATES SAFECHARGE WITH 'BUY' - TARGET 350 PENCE


Still some way to go to reach the NUMIS target

[trentendboy] 12/12/2014 14:59

A little more on what they get for the money:

CreditGuard’s audited accounts for the financial year ended 31 December 2013 show revenues of US$2.9 million (NIS 11.5 million), EBITDA of US$0.5 million (NIS 1.8 million) and profit before tax of US$ 0.2 million (NIS 0.8 million). The Acquisition is expected to be earnings enhancing for the Group in 2015.


So profitable at least but need to build and cross sell. Looks like a nice buy and the "city" like it clearly

[trentendboy] 12/12/2014 14:58

On rationale and good to see it is paid for out of cash reserves so revenue enhancing straight away

--------------------------

Consideration

The initial and deferred consideration will be financed from the Group’s existing cash resources.

Rationale for the Acquisition

Israel is widely recognised as a technology hub that has multiple online and mobile businesses. CreditGuard has an extensive portfolio of tier one customers to whom SafeCharge can now offer its technologies and international reach.

By acquiring the CreditGuard business, the Group will expand its customer portfolio which will support its push into new sectors such as telecommunications, airlines, travel, insurance and government.

CreditGuard’s technology serves multiple international card scheme members providing gateway technologies, risk management and fraud prevention, thus facilitating a white label gateway.

Commenting on the Acquisition, David Avgi, SafeCharge’s Chief Executive, said: “CreditGuard is highly regarded within the payments industry, with a solid portfolio of clients across multiple market sectors and a vast knowledge and expertise in Enterprise IT infrastructures, networks and security. This enables us to fast-track our entry into new verticals and take a strong position in the exciting Israeli market.”

Uriel Ben David, Chief Executive of CreditGuard, said: “This collaboration will play a central role in expanding CreditGuard’s technologies and services to local and international markets. We are excited to be joining the SafeCharge team who are true leaders and a respected player in the online payments space.”

[trentendboy] 12/12/2014 14:31

Could settle in the 70's for a breather

[saucepan] 12/12/2014 12:17

Nice breakout. Slater PEG still only 0.8

[trentendboy] 12/12/2014 09:45

I suspect (related to my point above) that your buys might still be enough to get the price moving (given the low volumes).

The wide spread scares a few though and spreadbetting this is brutal so you are really just getting the savy investors.

[cfro] 12/12/2014 09:43

Added a couple more tranches.

Breaking out now..

[trentendboy] 12/12/2014 09:36

One quick point - this share moves on small volumes (like GVC of old). It will make a sudden jump one way or the other. In this case hopefully upwards.

[trentendboy] 12/12/2014 08:35

Indeed - a clever little purchase all out of cash balances with plenty left over. Now hitting new highs and this is before the news has sunk it. They have a management team with a lot of experience remember and these gains are before we get a trading update which I expect to show estimates being beaten.

It is good to fine a hidden gem before the masses arrive.

-----------------

12 December 2014

SafeCharge International Group Limited

("SafeCharge", the "Company" or the "Group")

Acquisition of CreditGuard Ltd.

SafeCharge (AIM: SCH), the international provider of payments services, risk management and IT solutions for online businesses, today announces the acquisition of CreditGuard Ltd. ("CreditGuard"), for an initial cash consideration of US$8 million (NIS 31.4 million) and deferred consideration capped at US$0.4 million (NIS 1.7 million), subject to customary closing adjustments, (the "Acquisition"). The Acquisition is expected to complete in January 2015.

The acquisition of CreditGuard marks a further milestone in the execution of SafeCharge's strategic plan aimed at entering new and rapidly growing markets and sectors bringing with it a portfolio of clients from sectors including travel, insurance, telecoms and government.

Information on CreditGuard

Established in 1998, CreditGuard is a PCI-DSS Level 1 certified payment service provider, offering cutting-edge payment solutions and white-label technologies. CreditGuard's highly secure payment gateway and reconciliation solutions streamlines and leverages electronic payment processes for a wide range of businesses, from enterprises to SMEs including major financial institutions; airlines; travel operators; government agencies; telecommunication operators; and healthcare providers, both in Israel and worldwide.

CreditGuard's audited accounts for the financial year ended 31 December 2013 show revenues of US$2.9 million (NIS 11.5 million), EBITDA of US$0.5 million (NIS 1.8 million) and profit before tax of US$ 0.2 million (NIS 0.8 million). The Acquisition is expected to be earnings enhancing for the Group in 2015.

[cfro] 12/12/2014 07:48

Exciting little acquisition which will be earnings enhancing for 2015.

[trentendboy] 10/12/2014 21:06

Now closing in on new highs.

The next trading update is what will push it to £3. Should not be too far away now and once the city understand the very aggressive dividend policy ala GVC it will fly again.

The quiet board is also actually a bull signal. Ramp free except for me of course.

[trentendboy] 10/12/2014 08:59

Indeed - the key to this is high margin pre-paid cards can be issued. This is top margin material and is another string to their bow and crucially makes them yet again more attractive as a takeover target

---------


RNS Number : 3114Z

SafeCharge International Group Ltd

10 December 2014

SafeCharge International Group Limited

("SafeCharge," the "Company" or the "Group")

MasterCard Europe grants SafeCharge approval for Issuing Activity

New Card Issuing Division and Executive Vice President appointed

SafeCharge International Group Limited, (AIM: SCH) the international provider of payments services, risk management and IT solutions for online businesses, today announces that the Group has been granted approval for Issuing Activity from MasterCard Europe.

The approval by MasterCard Europe, which is an extension of the Company's Principal Membership, will allow SafeCharge to issue pre-paid MasterCard products.

Additionally, the Company has appointed Ali Farid Khwaja CFA as Executive Vice President of its new Card Issuing Division. Mr Khwaja, who will join the Company in February 2015, is formerly a Financial Technology Analyst at Berenberg, where he specialised in the payments space. Prior to Berenberg, Ali was responsible for investments in emerging markets and a Technology Analyst at UBS. He is a graduate of Oxford University where he was a Rhodes Scholar.

David Avgi, SafeCharge's Chief Executive, said: "The extension of our MasterCard Principal Membership is another achievement for SafeCharge. The approval enables us to issue our own and co-branded pre-paid cards and is a significant step in building a new pillar to our business. We are excited to be continuing to expand our product offering, entering into a new and large market sector and to welcome Ali to drive its growth.

[cfro] 10/12/2014 08:18

Interesting Mastercard news this morning.

[trentendboy] 08/12/2014 08:52

Today PTEC was upgraded and coverage started from another broker. £8.40 target.

Remember SCH process all of the PTEC cash throughput (and that at growing LADS - online at least).

The lack of coverage here means taking these other signals.

[trentendboy] 05/12/2014 13:31

Cheeky RNS today - must be good news.

About SafeCharge

SafeCharge International Group Limited is a global provider of payments services, risk management and IT solutions for online businesses. The SafeCharge group has a diversified, blue chip client base and is a trusted payment partner for customers from various e-commerce verticals. SafeCharge has been Payment Card Industry Data Security Standard ("PCI-DSS") Level 1 certified since 2007 and is listed on the London Stock Exchange AIM market (LSE: SCH). The Company's wholly owned subsidiary, SafeCharge Limited, is an authorized Electronic Money Institution regulated by the Central Bank of Cyprus (CBC), and a principal member of MasterCard Europe and Visa Europe. The SafeCharge group has operations in the UK, Cyprus, Bulgaria, Israel, Germany and Austria. hxxp://www.safecharge.com