Simigon Share Discussion Threads

[daz] 10/1/2017 10:40

That's only an estimate of what I think the broker bought in total for clients, including my modest contribution!

[rivaldo] 10/1/2017 09:50

Daz, you bought around 1m shares? No wonder the price moved up :o))

[yump] 10/1/2017 09:32

I was just re-reading interims and wish they would just say what they mean occasionally:

"As noted on SimiGon's 2015 full year financial results, delivery under this contract has continued on a slower timetable than expected as a result of the client requesting SimiGon to provide a number of deliverables outside of the original contract scope. As part of SimiGon's drive to support all of its clients, SimiGon has been prepared to agree to these new demands and has been meeting the delivery milestones during the first half of 2016. The Company looks forward to meeting all remaining delivery milestones during the course of H2 2016."

"prepared to agree to these new demands" is not what you say if the customer has given you a load more money for the extras.

My translation from the real world of getting new customers being:

Customer: We'd like a few more things done
SIM: Let us know what they are and we'll quote for the extras
Customer: Well of course you are quite new to us, so in some ways this is kind of a trial, so we were thinking that you could probably thrown them in for free. We have some more work in the future that could well follow on from this if its successful.
SIM: Oh well, give us a few days and we'll have a meeting and see if we can fit them in somehow - perhaps if the contract was spread out a little...

So which one is it then ?

[daz] 10/1/2017 09:12

My broker's trades haven't been reported yet, I'm not sure exactly how many in total it was but it could be in the region of a million shares.

[dgwinterbottom] 10/1/2017 08:51

Given the late buy trades yesterday could that imply US buyers - ie time difference?

[daz] 09/1/2017 22:15

Yes Rivaldo, some switching that has not been reported yet. I bought a decent wedge through my broker, who was buying on behalf of other clients as well.
Apparently the shares were hard to get hold of and there is little/no spare stock around now.
Looks primed for take-off now on any decent news.

[battlebus2] 09/1/2017 15:33

Looks like news to come

[rivaldo] 09/1/2017 15:26

Sudden move up this afternoon - late Buy trades yet to be reported?

[rivaldo] 05/1/2017 15:57

Nice 100k buy at 19.75p this afternoon followed by another 20k buy at 20p.

[yump] 02/1/2017 23:38

I appreciate the improved visibility of these longer term license deals.
What I have issue with is whether that implies growth or not.

Unfortunately those two things are often (not just here), talked about as if the first leads to the second automatically in due course.

ie. is an ongoing licence deal going to produce more overall revenue than a lump in the first year, a drop in say years 2 and 3, a renewal in year 4, drop in year 5&6 etc. etc.

Also I suppose the question arises as to whether a longer term licence deal is more secure than renewed and more frequent deals and if so, is that security actually a result of a lower total cost per year for the customer.

They say that it will - I think that's all I have to go on really. Perhaps longer term licences just suit both parties from an admin. point of view.

[gnnmartin] 02/1/2017 18:47

yump, I've just been reading the interim report from September, and it includes the following: "SimiGon (strategy) may lead to lower revenue from these contracts in the early years, it is expected to give SimiGon much better revenue and profits visibility in the long term." Does that answer your objection?

[dgwinterbottom] 02/1/2017 14:32

Yump - can I suggest you email the CFO and ask him to clarify your points!!

[cockerhoop] 02/1/2017 13:58

I certainly think Lockheed Martin's new tie in with Pennant may have implications for SIM. The UK fighter training contract would have been something they could perhaps have go for themselves.Agree with you Yump that SIM's narrative doesn't ever seem to reflect the numbers. They also have an amazing ability to cut costs dramatically when Rev reduced to maintain increases in profitability. I wouldn't expect a company with their balance sheet and purported prospects to do that - they'd continue to invest through the cycle IMO.

[yump] 02/1/2017 11:31

It would be nice if they could make statements that are consistent with reality. For instance, this is not a typo:

"SimiGon's capture of a growing share of the global market for simulation and training projects is allowing the Company to expand project scope and increase potential revenues."

I'm assuming that is just generic padding, because their revenues are not going up.

If they have a growing share, then with static revenues, the only conclusion that makes sense is that the value of the market is dropping.

I don't think it can be explained by customers wanting longer term license deals in return for lower up front costs, because surely the annual market size would still be the same when averaged out. ie. when upfront revenue was higher, the following years would be lower, so their average would drop.

ie. the market would be even over time.

So the key question is: what timescale will it take for the licence deal revenues to bolster up the following years to show growth ?

Recurring revenues are more stable and great, but not if customers have actually driven down the overall cost.

[gnnmartin] 30/12/2016 12:14

Gosh, nor had I, rivaldo. I hope I remember to look next year!

[dgwinterbottom] 30/12/2016 12:13

Rivaldo - perhaps in the interest of Investor relations we suggest they hold the AGM in the UK for 2017!!!

[rivaldo] 30/12/2016 08:46

The AGM yesterday was uneventful as ever with all resolutions passed. Idiotically, I hadn't realised there was a dial-in facility to take part with. Maybe next year:



The similarly succinct AGMs in the last three years have each been followed by positive trading statements in respectively, Jan, Feb and March. Let's hope for the same this time.

[rivaldo] 22/11/2016 11:18

Finncap have reiterated their 45p target price here:

[rivaldo] 10/11/2016 12:40

Nice 40k buy at 23p caused a tick up.

I'd have thought Trump's focus on increased defence spending would be good for SIM, with the likes of Lockheed Martin, the US Air Force etc as clients.

[rivaldo] 03/11/2016 10:13

Another 75k of sales absorbed yesterday by our buyer in the background.

[cockerhoop] 25/10/2016 16:35

Perhaps, I have been known to knock up some simulation software in a former life. I wouldn't employ me though, far too much trouble :-)

[cockerhoop] 25/10/2016 15:43

Knock knock, Who's there?MossadMossad w................:-)

[pj 1] 25/10/2016 11:51

Beware of Umbrellas near your leg!