Simigon Share Discussion Threads

[rivaldo] 26/7/2017 10:01

Great interview Hastings, thanks. If the market latches on to the expansion into e-learning and SIM announce one or two successes in this area then we could well be on a big winner, particularly given that:

(1) cash comprises 60% of the m/cap
(2) the company is already nicely profitable
(3) it has high recurring income

Their ambitions are certainly big:

"Although across the military, simulation learning has been established and widely adopted for some years, there has been less in the way of offerings to specific commercial markets such as driving aids, support for operating or working with machinery like cranes, oil and gas related, or even for those working in the extensive health sector, not to mention that vast civil aviation sector."

[dgwinterbottom] 26/7/2017 08:07

Indeed Hastings my thanks also, I just find it rather frustrating the CEO is nowhere near as communicative with his shareholders!!

[daz] 25/7/2017 22:14

Thanks for posting that Hastings, the new 'solution' is news to me and if it is targeting an exponential market, is certainly in the price for nothing.
The forecasts could be light anyway, if the company is gaining traction in commercial markets.

[hastings] 25/7/2017 21:04

May be of interest

[dgwinterbottom] 05/7/2017 16:14

Rivaldo - many thanks for the clarification, even so as you say 9% is not great!!

[rivaldo] 05/7/2017 15:24

DGW, that depends on whether you use the published spread, which is misleading.

Using the actual 21.01p price you can achieve on selling the spread is "only" 9%. Note the apostrophes....but it's a lot better than 15%, and the price does move quickly (up and down) on any reasonable volumes.

[dgwinterbottom] 05/7/2017 15:05

"A couple of notably large buys this morning by SIM's standards, including a 65k buy just reported at 22.9p."...... and with a pretty appalling spread as well - 15%!

[brummy_git] 05/7/2017 15:04

I think that's the point - the stock is not actually very liquid, so the price at 21p still looks fictitiously low to me.

[rivaldo] 05/7/2017 14:50

For a mere £10.9m m/cap it does :o))

Especially a tightly held stock like this with 65% held by the top 7 shareholders.

[brummy_git] 05/7/2017 14:08

Not sure whether £13,000 represents especially strong liquidity?

[rivaldo] 05/7/2017 13:46

Brummy git, you can currently sell at least 60,000 online at 21.01p, a big premium to the 20p bid price. So there's not only decent liquidity, but also some demand out there.

[brummy_git] 05/7/2017 13:13

Is there any liquidity out there, even if there was an interested buyer?

[rivaldo] 05/7/2017 11:58

A couple of notably large buys this morning by SIM's standards, including a 65k buy just reported at 22.9p.

[cockerhoop] 05/7/2017 11:09

Defence contract in Asia Pacific region.

[daz] 05/7/2017 11:00

The company to my knowledge have never stated who the customer was, presumably because of non-disclosure agreements.

[brummy_git] 05/7/2017 08:58

Does anyone have any idea who the customer was – Lockheed Martin?

[hastings] 05/7/2017 08:26

Agree with the above, hopefully set for some nice upside over the coming years.

[daz] 05/7/2017 08:12

Yes, excellent news and hopefully now SIM are in pole position to provide any add-ons needed in the future.

[dgwinterbottom] 05/7/2017 07:36

Rivaldo - I have a feeling this has been a real millstone round the neck for the last two years both operationally and financially so lest hope things will now start to improve and true progress be made.

[rivaldo] 05/7/2017 07:14

Excellent news this morning - great to see SIM finally completing this major $6.7m contract without any residual issues:

Extracts:

"SimiGon (LSE: SIM), a global leader in providing simulation training solutions, is pleased to announce that it has successfully completed all systems delivery milestones and received the requisite client confirmations in relation to the $6.7 million contract announced on 24 June 2013 (the "Programme")."

"SimiGon President & CEO, Ami Vizer, said: "We are pleased to announce the successful completion of all systems delivery milestones. The experience and know-how obtained during the delivery of this Programme will be leveraged to further new business opportunities for SimiGon and our partners within the SIMbox ecosystem. We are proud to be part of this major Programme as a prime contractor, marking a significant milestone in SimiGon's strategic aim to lead more opportunities as prime. We are looking forward to extending this solution and concept to meet other training needs worldwide."

[dgwinterbottom] 14/6/2017 14:06

Rivaldo - quite agree I felt the figures appeared to be somewhat ambitious, but would go along with your point in being conservative and beating the forecast.

[rivaldo] 14/6/2017 11:30

DGW, I think in this kind of recovery situation EPS forecasts are pretty academic finger-in-the-air guesswork. I would rather the house analyst was more conservative, going for say 1.5p EPS this year and 2p next year.

Better to be conservative and beat than racy and underperform!

SIM would still be cheap imo if they achieved my forecasts rather than the market forecasts. And they still have blue sky potential outside of their currently core sectors.

[dgwinterbottom] 14/6/2017 10:06

Rivaldo - the eps for 2016 was 0.74p, forecast for 2017 is 2.47p and for 2018 2.63p. This would indicate significant improvement.
I can only wonder at how they got themselves into such a situation on that contract.

[rivaldo] 14/6/2017 09:58

Hi DGW, agreed re the completion of the contract.

This and next year's results will hopefully be decent at worst, and potentially pretty good, given the contract delays which moved revenues into this and next year and should nicely help the transition of revenues to long-term, recurring/SaaS revenues from lumpier revenue streams.

SIM had around £8.7m of cash/receivables at the year end against the current £10m m/cap, so the downside is well protected. Hopefully the June interims will bring good news.

[dgwinterbottom] 13/6/2017 08:45

Some sizeable buys these last few days........