Simigon Share Discussion Threads

[cockerhoop] 18/4/2019 10:58

This is my note from Nov 17 detailing Ami's excess

I really don't know where to start here (this is a note I compiled in November 17 regarding Ami Vizer's remuneration)

The company floated in 2006 at 88p with approx 37m shares so a market cap of about £32.5m and revenue of $7.5m (2006). At that time Ami Vizer the CEO owned 1.6m shares (4.3%).

In the 11 full years since the float the company has averaged turn over of $6.4m and it has shown no real growth trajectory and has a current Mk Cap of £9.5m

Ami Vizer during that period has been paid approx $500k per annum or over 8% of turnover! He clearly works very hard, every year the company pays him additional salary to work through his holidays!

During this period of no growth the company shares in issue have gone from 37m to 51.5m of which nearly 10m have been given to Ami Vizer in options so at the last count he owned 11.4m shares or 22.1% of the company.

I find that absolutely scandalous pay and awarding of options for monumental under performance over an extended period of time.

[cockerhoop] 18/4/2019 10:55

Yes, but the CEO only held about 2% when the company was floated and has been gifted the remaining 20% in options for turning a $8m revenue company into a $5m revenue one. #rewardforfailure

[rivaldo] 18/4/2019 09:45

Good to see institutions like Herald and Axxion on the shareholder list of this microcap, along with the CEO holding 22%:

Major Shareholders

A. Vizer / A. Vizer Holding Ltd 22.11%
Jeffrey Braun 12.73%
Herald Investment Management Ltd 9.83%
Axxion S.A. 6.81%
Green Venture Capital Ltd 5.97%
Guy Poran 4.42%
Shroder Euroclear Nominees Ltd 3.33%

[inv] 18/4/2019 09:18

will continue to rise

[cockerhoop] 18/4/2019 09:18

I think Ami's previous behaviour suggests that shareholders will never benefit from the cash pile so should be discounted from any valuation calculations imo.

It's the ultimate lifestyle business, Ami picks up his $500k each year along with a couple of % of the company stock in options. Easymoney!

[blueball] 18/4/2019 09:08

Small cap great news today 40p easy in 2019.

[rivaldo] 18/4/2019 09:06

I suspect the price reaction is largely a function of SIM being undervalued previously - the m/cap was less than the cash pile (and even now is still not much above it).

It's an RNS Reach as there's no specific financial information to validate the tests for a full RNS. An RNS Reach announcement is simply non-regulatory in that sense, but still significant enough to announce.

It's a framework agreement which acts as excellent validation for the company. And for a £7m m/cap company with $5m revenues last year and a £5m-£6m cash pile, even just $1m per annum additional revenues would go a long way :o))

[pilkersa] 18/4/2019 08:48

Agreed - rise seems overdone for just being added to a preferred suppliers list.....

[cockerhoop] 18/4/2019 08:44

So they've signed up to a framework agreement for potential future business that totals $24m per year spread amongst the likes of IBM, Microsoft, Oracle & Adobe.

Doesn't seem all that significant to me. Released as an RNS Reach so not price sensitive - slightly bizarre share price reaction imo.

Might allow Ami to snaffle another few % of the company in a bonus though :-)

[rivaldo] 18/4/2019 07:33

Well well - this sounds encouraging.....



"SimiGon signs Blanket Purchase Agreement with the US Department of Defense

SimiGon (LSE: SIM), a global leader in providing simulation training solutions, is pleased to announce that SimiGon has signed a Blanket Purchase Agreement ("BPA") with the U.S. Department of Defense ("DoD") Enterprise Software Initiative ("ESI"). Under the BPA, SimiGon and the DoD ESI have established agreed pricing and processes for government customers to purchase the Company's products and services.

ESI is an official DoD initiative sponsored by the DoD Chief Information Officer to both establish and manage enterprise commercial off-the-shelf IT agreements, assets, and policies. DoD ESI lowers the total cost of ownership across the DoD, Coast Guard and Intelligence Communities for commercial software, IT hardware, and services.

The DoD ESI provides an effective method for approved software publishers, hardware vendors and service providers to streamline sales to the DoD ESI customers. The total potential sales amount for all selected vendors under this BPA is approximately $238.6 million over a period of 10 years commencing 1 April 2019.

SimiGon President and CEO, Ami Vizer, said: "We are delighted to join DoD ESI under this BPA. Through signing the BPA, SimiGon joins blue chip technology companies such as IBM, Microsoft, Oracle and Adobe as an official DoD ESI BPA contract holder.

The BPA is another validation of SimiGon's technology, software products and business model as a viable solution for Federal agencies seeking advanced training and simulation solutions for multiple domains."

[rivaldo] 15/2/2019 14:12

Looks like some stale holders got out yesterday, taking advantage of some liquidity/demand.

Anyway, for the record here's Finncap's update:

"Update and contract wins

SimiGon, the global provider of simulation training solutions, has updated the
market on FY 2018; expecting to report revenue up 15% to c.$5m (2017: $4.3m)
and a reduced adj. net loss of $0.7m (2017: $0.9m loss). As noted in the interims,
the loss is partly due to a provision of $0.5m against a delayed payment from a
civilian training customer. In operational terms the year was successful; SimiGon
hit milestones on its strategic contracts including the IAF F-16 Maintenance
Trainer program, logistics support on the USAF T-6A program and extending the
UK Military Flight Training System program.

Looking ahead there is further positive news as SimiGon strengthens its relationship with an existing European customer through multiple new contracts totalling $0.9m over three years including licences, maintenance and support services for its simulation training centres. Our forecasts and TP remain under review until there is greater visibility.

 Strategic focus: This has been a quiet couple of years for the company. In that time, the management has nevertheless focused on three key operational areas:
 Delivering ‘Distributed Learning Solutions’ to core strategic partners worldwide,
both directly and through its partners, now has training sites in North America,
Europe, Middle East and in the Asia Pacific markets.
 Expanding market reach, to see utilisation of SIMbox technology in multiple
domains such as maintenance training, commercial equipment operator training
and research labs.
 Strengthening the technology, improving SIMbox capability; the graphics engine;
simulation and learning management system; delivering complete VR solutions.
 Positive outlook: We are encouraged that SimiGon thus entered FY 2019 with more
clients, more partners, stronger technology and broader adoption of SIMbox in
multiple domains. This is a solid platform for growth and management expects to
improve both revenue and profitability this year.
 Strong cash position: The company remains well funded with c.$7m of cash at the
interim point and significant receivables to be collected in H2."

[rivaldo] 14/2/2019 09:40

Finally some positive signs in today's trading update - and an $850k contract win too.

The loss for 2018 was much improved at around £0.2m, before the provision for the "delayed" receipt which may yet be received anyway.

Which means that SIM actually were at breakeven for H2'18.

SIM had $7m cash at June'18, so hopefully this has remained stable against the £6m m/cap.

The potential here in VR, training etc is obvious, especially given the blue chip client list, but management have to actually show they can deliver.

Perhaps 2019, with the transition to SaaS almost complete, will be a year of delivery in this respect.

SIM are certainly pretty optimistic:

"SimiGon has entered 2019 with more clients, more partners, stronger technology and much broader utilization of our SIMbox technology in multiple domains compared to any other year in our history. All of which serves as a strong baseline for further growth and management expect this to improve revenue and profitability in 2019."

[rivaldo] 19/12/2018 13:20

Another contract win, this time for $0.92m, presumably mostly falling into next year:



Already factored into expectations, but the number of recent contract win RNS's gives hope that those expectations will be met. Not that we have any idea what those expectations are - Finncap haven't issued any notes since February!

[chalkyboard] 15/10/2018 07:27

Yes excellent news Rivaldo.

After a very long (& frustrating) wait for contract news, the CEO & CFO now seem to be pulling in a few deals. Long may it continue

[rivaldo] 15/10/2018 07:18

A further $0.5m contract win with the US Air Force today - interesting that the closing CEO comment looks forward to more such contracts with the USAF "and other Government customers"....I wonder in which areas of simulation/VR this might be:

[rivaldo] 08/10/2018 07:29

Another new contract win - this time with the US Air Force in Europe - for the Virtual Reality De-Icing Simulator, again adding to confidence in expectations for this year:



"This contract is SimiGon's second aircraft deicer simulation contract win in the past six months and exhibits how the Company and its technology can be quickly taken up once new markets and applications are identified."

"SimiGon President and CEO, Ami Vizer, said: "This Contract award is a strategic milestone for SimiGon as it demonstrates the Company's ability to penetrate new markets and requirements for cost effective personal training systems. The SVADS emergence is part of the Company's vision to utilize SIMbox technology in multiple domains. We are very excited by this and will continue to push into this market with high quality deliveries of advanced training products for military and civilian aviation".

[cockerhoop] 25/9/2018 09:44

Rivaldo,

You're a seasoned and successful investor, I can't believe you can't see the writing on the wall here.

SIM have been awarded 2 very large contracts - both of them have been operational disasters. Maybe they'll win some new contracts - there is no guarantee they'll not end in similar acrimony.

The long term performance since float has been terrible and yet Ami Vizer has awarded himself approximately 18% of the company in options along with pay of approx $500,000 per year.

It will be interesting to see what he awards himself this year for losing a $7.9m contract that was in implementation.

The companies dividend/share buyback behavior suggests to me that the cash pile will never been seen by shareholders.

I'd be much more bullish about UK competitor Pennant Intl who have new invigorated management, expanded production facilities and a repeatable product line though still relying on large lumpy contracts which is the nature of the aviation training industry.

Anyway I wish you well.

[daz] 24/9/2018 16:44

Yes clearly something has gone very wrong there, I didn't pick up on this earlier but it is buried in the announcement that this also has '... led to a revision in our forward backlog order book from the previously announced $20 million to $14.5 million'

[cockerhoop] 24/9/2018 08:17

Can't believe the price is holding up - they just lost the $7.9m contract awarded in 2016 in acrimony. Yet to successfully deliver a prime contract. Absolutely woeful.

[ohisay] 04/9/2018 05:52

Woolly mammoths in the permafrost likely twitch more than this stock .
There must be lots of stale bulls around other than me dying to get out on any kind of price movement ..