Simigon Share Discussion Threads

[diggulden] 16/9/2013 13:12

Excellent stuff. Good to see they genuinely have M&A on the mind.

[ianb5004] 16/9/2013 13:06

wall st journel

"LONDON--Simigon Ltd. (SIM.LN), a developer of simulation software used by fighter pilots and oil and gas companies, doesn't plan to distribute any of a cash pile worth 29% of its market capitalization until it is sure it can start paying regular dividends.

The company's cash reserve increased 19% to $8.45 million in the six months to June 30. Since the start of the year, the company's share price has more than doubled from 14 pence to 36 pence, according to Factset, which now values the company at 18 million pounds ($28.7 million). Chief Executive Ami Vizer didn't rule out sharing out some of that money via a special dividend, but said the company isn't likely to make a one-off distribution to shareholders.

"We don't want to give a dividend unless it's sustainable," he said in an interview with Dow Jones Newswires. "Our business is a cash generator and we're looking into three main options. One is to make sure we have enough in reserve, two is obviously M&A opportunities, and we're definitely planing to develop a dividend policy."

Earlier Monday, the company reported a 24% increased net profit of $220,000 for the first half, up from $177,000 a year earlier, while revenue rose 20% to $4.16 million.

The gross margin fell to 65% from 70% a year earlier as Simigon, which is increasingly working as a prime contractor rather than a sub-contractor, has been selling more third-party hardware as well as its own software. Mr. Vizer said the margin will recover to between 70% and 80% in the second half because the impact of those hardware sales will be restricted to the first half.

Asked about potential acquisitions, Mr. Vizer said the company could buy either a software company to bolster its existing products, or a maker of flight-simulation hardware."

[staverly] 16/9/2013 11:58

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[diggulden] 16/9/2013 11:54

Cheers Ian.

When I sold on Friday my initial thoughts were I would consider getting back in if it drops to 30p again.

£500k profit on a PE of 30 is a mCap of £15Million, which is about a 33p share price.

My point being that for me, at the moment, the price is about right. The upside is huge though, as every new deal announced will simply add to that bottom line profit.

Any chances of a share buy back at any point?

[ianb5004] 16/9/2013 11:49

sorry digg, I personally think slightly higher but close.

$8.45 cash now, should be over $10m at year end. special divi??

btw , 10k round buys just starting i think the ii buyer is just starting to gobble up sells. hold tight serious legs here once weak and traders out.

[diggulden] 16/9/2013 10:58

Ian, any comment on my question? Do you think 500k profit for this year is about right?

[ianb5004] 16/9/2013 10:31

are you joking or trying to get in cheap?? its an awsome set of results. please post the remarks on outlook your disappointed with. every comment is super positive, this company has massive legs to grow and will grow. $8.45m cash and no debt. net profits up 24%.
lots of big contracts in pipeline.
check6 oil and gas field is a huge multi million $$$ market we are just scratching surface.
potential 30 m CEVT contract due q4.


there is a ii buyer snapping these up, they bought 80k shares friday at 38p. will eat small weak sellers up imo.

[varies] 16/9/2013 10:24

Slightly disappointed with these results and the remarks on outlook.

[diggulden] 16/9/2013 08:23

Thought the share price may react this way first thing.

SIM has a mCap of approx £18M at present, 2013 FY results should generate around 450k-500k profit? Is that in line with others thoughts?

[staverly] 16/9/2013 08:03

Given the disproportionate expensing of R&D and Marketing (SGA costs have fallen) these are impressive numbers. Would imagine when £20m m/cap threshold breached (this week?) then real share price momentum starts.

[diggulden] 16/9/2013 07:41

Financial Highlights

-- Revenues increased by 20% to $4.16 million (H1 2012: $3.47 million)
-- Net profit increased 24% to $0.22 million (H1 2012: $0.18 million)
-- Cash, restricted cash and equivalent balances, increased by 19% to a total of $8.45 million as at 30 June 2013 (31 December 2012: $7.11 million, 30 June 2012: $6.98 million) with no bank debt remaining

-- Gross margins of 65% (H1 2012: 70%), reflecting SimiGon's increased role as a prime contractor by providing complementary third party hardware and programs

-- Basic and diluted EPS of 0.5 cents (H1 2012: 0.4 cents)



Another steady update from SIM, everything going in the right direction. Revenues expected to be slightly ahead of market expectations for FY, margins expected to be in line.

Huge cash stock pile compared to mCap, but what are they doing with it? Not sure if acquisitions are on the horizon, although I'm not sure what, maybe a divi at some point?

Be interesting to see how the market reacts this morning given the recent strong rise. Don't think the interims will trigger any re-rates from the broker.

[ianb5004] 15/9/2013 10:35

212 annual report.

a must read for new investors

hxxp://www.simigon.com/PDF/2012%20Annual%20Report%20-%20Final.pdf

[melodrama] 13/9/2013 16:54

Stav, deal with Visa International, massive B2B commerce, Visa could have tied up with anyone else in the world, but chose ATUK, read the thread and Nick 2008 posts, ignore the trolls, my buy price was 10 p ish, so no fannying around now, just leaving it to simmer for the next few years.

Looking forward to Sim on Monday given recent vols etc

Have a good weekend all

[staverly] 13/9/2013 11:49

melodrama - in the context of your obvious good taste vis-a-vis Simigon i took a quick look at your other major holding; ATUK. My initial takeaway, admittedly from a quantitative perspective was "avoid". I am baffled to note that the latter is valued (market cap) at around double of the Israeli gem.

SIM Management is road-showing post results on Monday and so unlikely to disappoint. With a market cap of 17m expectations can hardly be that high. Disproportionate cash on balance sheet, negligible asset base, visibility of revenue growth over the next several years, lonely single sell-side (corporate) coverage, to name but a few redeeming features, suggest this stock has got serious legs.

PS What do you like about ATUK?

[diggulden] 13/9/2013 10:24

Agreed Ian, I was nearly 700% up on my IOF investment in May, didn't bank any and then it halved! Still up approx 350% but it has taught be to bank profits along the way now.

SIM will be great long term, if it carries on making the anticipated progress then it won't take long to get to the £ level share price.

[melodrama] 13/9/2013 10:21

You are right Ian, but in the past my weakness has been not taking at least the cost out of something that has 4/5 bagged, i have to be less greedy in the future, still my largest holding, or joint largest with ATUK, i have faith in the long term for both these, software saving money for massive Institutions, a no brainer business model given the state of the worlwide Government Finances!.

[ianb5004] 13/9/2013 10:11

my target was passed a while back but in this game when you find a rare winner you have to ride them. Ive averaged up and set new higher target. theres so many poor shares out there when you catch onto a cracker its crazy not to hold. especially with pipeline here.

[diggulden] 13/9/2013 09:59

Maybe, I hope it flies, always great to see people make money. I had my personal short term target and it hit so trying to stay disciplined, something I have been useless at in the past!!

[melodrama] 13/9/2013 09:39

Hate to say Dg, but this is behaving like there is good news on Monday, vols have been storming. I sold down about a fifth of my holding 2 weeks ago as had been in since circa 8 pence and was one of my largest holdings. Rest stays put in the SIPP.

[diggulden] 13/9/2013 09:28

Well I'm out for now, just banked a 33% profit on this over the last 2 months so happy with that.

Think we may see the typical sell off on Monday on news and need to bank the profits now to pay for a holiday!!

SIM long term is a fantastic little company, I will be back, sooner rather than later if there is a pull back next week.

[galacticus] 11/9/2013 19:17

N3 what sort of daft chart is that ? macd break has only just started and rsi moving up from neutral this will hit 39/41 friday pm or HY monday then may dip at worst to 36 before a firm move into 40s its blue sky after 36 and then 36 acta as strong support rather than resistance .

[cfro] 11/9/2013 16:07

Excellent breakout, just what we were after. :-)

[interceptor2] 11/9/2013 10:12

Strong breakout with 143k volume already, about 25% over average volume.

ic2...

[diggulden] 11/9/2013 10:11

Malachey, yes that's the one.

N3tley, you said to expect a test of the blue support 2 months ago, never happened. May be a slight pull back after interims unless something amazing comes up, but I can see 40p before any type of pullback.