Simigon Share Discussion Threads

[n3tleylucas] 30/6/2013 12:46

Of course if you deduct the cash from MV, you get the £9m I stated earlier lol ... so on that measure, it's actually decent value. However markets don't always value cash like that, so the cash element will be valued on what they spend it on.

[noli] 30/6/2013 12:39

You have pointed out a concern i have, they now need to expand asap, ami did say they just met the orders in an interview. Thats my thinking behind the cash they have, they need to grow quite quickly as the product is selling well by the looks of it. If i remember correctly they have about 10 mill of backlog orders at the interim stage. Now add in the new contract for 6.7 million so approx 16/17 million up to now.

Regarding Israeli defence, i would suggest but a total guess on my part that SIM may have a decent chunk of the Israeli defence contracts. These are funded partly by the US, however being an Israeli company may just give them the edge.

[n3tleylucas] 30/6/2013 12:30

From my initial reading, a couple of things stand out. Sounds like they were caught out somewhat last year, didn't expect that many orders, so there's likely to be bigger investment in production & manufacturing to catch up on the backlog, as well as future planning. Also I suspect the BOD have very good links with both the Israeli & US defence departments, given their background. These types of close contacts are very important in such a competitive business.

[noli] 30/6/2013 12:07

Ok, thanks.

[n3tleylucas] 30/6/2013 11:06

Hey, I'm not a de-ramper you know! lol ... put it this way, this looks nearer to decent value than IOF atm, I'm happy to run a current thread, in a positive manner.

So anything you want in the header, just ask.

[noli] 30/6/2013 10:42

Ive seen your projects on the IOF board, lol. I will do once i fully get my head around it all, still a little early yet.

[n3tleylucas] 30/6/2013 10:34

LOL ... ffs, you want me to start one? Get a decent header? ... I need a new challenge/project this summer LOL

[noli] 30/6/2013 10:30

Happy to post here N3, with only about five posting for now it matters not. Still got plenty of research to do on this one so very early days.

[n3tleylucas] 30/6/2013 10:27

noli,

Look, it's clear Liarspoker's abandoned this thread ... start a new one.

[noli] 30/6/2013 10:27

Also the 60 month contract with CHECK-6 is very interesting as it takes them away from the defence industry into the oil/gas industry, revenues have only just started from that contract, also i believe that contract is going very well indeed so i expect SIM to sign other training companies to take their product on board as expanding into oil/gas is a very large sector indeed.

[noli] 30/6/2013 10:21

My thoughts exactly N3, the key for me is that they have just changed to a prime contractor, this should give them larger contacts and profit as per the rns just announced. The CEVT contract they have applied for shows their intent imho especially noting URS's interest on the venture together. If they could possibly win that contract or part of what they have applied for, then that is a game changer imho.

[n3tleylucas] 30/6/2013 10:17

40p? Hmmm, getting on for £20m eh? ... well, if she can make £2m in 2014, yeah, 40p's a decent 12 month target.

[n3tleylucas] 30/6/2013 10:07

I agree with you on the acquisition front though noli, I've watched small software firms build cash, and yes, it's rarely just kept in the bank lol ... expect a buy this year.

[noli] 30/6/2013 10:03

No worries N3, have a nice day.

[noli] 30/6/2013 10:03

I am glad you are only predicting a 33% retrace, it's usually 38.2, nothing goes up in a straight line. Thanks for the heads up, i will buy a few more if it falls.

[n3tleylucas] 30/6/2013 09:59

One to watch noli, gl.

[noli] 30/6/2013 09:57

Thanks for your comments N3, Finncap have a 40p target price that they have just upgraded from 25p, they have already beat last years revenue figures with the most recent contract announced, currently on 80% margins, last year was 85%.

Revenues increased by 24% to $6.81 million (2011: $5.48 million)
Net profit increased by 97% to $0.69 million (2011: $0.35 million)
Gross margin of 80% (2011: 85%)
Increased positive cash flow from operations by 9% to $2.5 million (2011: $2.3 million)
Significant increase in cash and cash equivalents and short term bank deposits at the year end at $7.11 million (31 December 2011: $4.74 million) and the Company has no debt

[n3tleylucas] 30/6/2013 09:41

Yeah, simulations eh? Profit around £450,000, Sales around £4.5m, cash around £4.7m, good profit growth, almost 100% YOY, what's the catch? MV is nearly £13m.

It's a good company, but the stock price is too high, too much good news already baked in the price.

Worth around 20 times profits, so around £9m, 19p.

Sorry noli, it's a sell.

[noli] 30/6/2013 08:43

These are some competitors for the CEVT contract, as stated before it looks as though each company will go for their own strength.













Here is the full list of companies that have gone for the CEVT CONTRACT.

CAE, Durham, NC
Caterpillar, Peoria, IL
CSE Software, Peoria, IL
CUBIC, Orlando, FL
Dignitas, Orlando, FL
E&A, Metairie, LA
Globalsim, Draper, UT
Indra, Winter Park, FL
Lockheed Martin, Orlando, FL
Metters, Orlando, FL
Northrop Grumman, Huntsville, AL
Raydon, Port Orange, FL
SAIC, Orlando, FL
Simdustrial, Culver City, CA
SimiGon Inc. Winter Park, FL
Southwest Research, San Antonio, TX
Thales, Orlando, FL
Wegmann USA, Orlando, FL

[noli] 30/6/2013 07:27

Its in the right place at the right time imho, with defence budgets cut and budgets from all areas, all will be after a cheaper but quality product. From what i have seen and the contracts they have signed it looks as though many are very interested in what they offer.

With over a 100 partners in different skill sets they can get help whenever they need it. On the cash situation i can see them buying another company to grow even further. With 7 million cash and a 13 mill market cap this to be a storming buy.

Ami stated in his interview they will have larger revenue/profits this year, if you work the contracts out he said that just after the results in the interview, he already knew they had signed up the latest contract that was released last weak. Also from his comments i would expect the Check-6 deal to grow and grow in the oil/gas industry.

[diggulden] 29/6/2013 22:55

Good posts Noli, definately a case of the more I see the more I like.

[cfro] 29/6/2013 18:20

Yep, so it does sound very encouraging then. If they can win that contract for the £30M or thereabouts then that would be transformational for the company.

Excellent stuff.

[noli] 29/6/2013 18:08

cfro, that is what i am thinking, they are going for what they know best and are more confident at winning.