Software Circle Share Discussion Threads

[stewjames] 10/2/2009 16:09

Yep, it's now below cash even totally discounting the recent $4.4M property investment.

[masurenguy] 10/2/2009 15:49

Still sliding - market cap of £6.2m must now be below current cash reserves.
No position and not tempted yet either - just updating my watchlist !

[stewjames] 22/12/2008 12:51

Well, they don't actually need the cash, so it shouldn't be. And it's not like the current yield (bit over 5%) is totally outlandish. Forecasts are assuming the dividend is going to be held, then raised slightly next year (to 0.33p)

Basically, I hope not, 'cos it could be a long, long time before we see the shareprice anywhere close to reflecting true value! I'd like my 5% in the meantime.

[igoe104] 22/12/2008 10:52

IT will be interesting to see if the divi will affected, in any way.

[stewjames] 22/12/2008 10:07

I think the forecasts have been updated (although I'm not 100% certain). Current predictions are 0.65p earnings this year, 1.22p next. That effectively predicts breakeven for H2 2008.

[igoe104] 15/12/2008 13:44

I think its a case of being on the other side of the world, thats why they treat share-holders like they have. but what they don,t realise they will have to show there faces at the agm,shareholders should turn out in numbers and lay into this lame management team.

they have good products, a good cash pile, but over the last couple of years the management have stayed in 1st gear, its time for holders to stop being so polite.

ps At least one of my other software companies is going up igp, id card software company keep winning contract after contract, worth putting in your watch-list.

[cgequityinvest] 15/12/2008 12:50

igoe - I also emailed management on day of warning but have not heard anything - I assume you have also been met with a wall of silence!

[igoe104] 15/12/2008 11:08

WITH THE POUND DROPPING, this company should benefit with its cash pile. with this cash available they should be looking at testing its SAT software in alot more provinces.

come on management, at least show us holders you have a pulse.

[hugepants] 09/12/2008 13:24

....The pressure on margins and consequent impact on net profit, which is
expected to be significantly below expectations....

Does anyone know what "expectations" were? Or is this one of these annoyingly meaningless statements companys make from time to time ie. Only the management knew what the expectations were.

[stewjames] 08/12/2008 16:33

Edit. Never mind.

[hugepants] 08/12/2008 14:57

I bought some of these last week.

Anyone know what the current year forecasts were?

I see they are now entering the chinese property market/ The loan terms look very favourable.

Also their website doesnt display properly on Firefox which is pretty amateurish.

[igoe104] 08/12/2008 14:56

You also have to remember, with-out shareholders investment this company wouldn,t be around today.
so disgarding emails and a not caring for holders concerns stops further investment from current holders.

this company started falling for the 16/17 months when markets were ok.

[stewjames] 08/12/2008 14:46

So they got this good product and decent historic business performance independent of the management?

As far as the shareprice goes, look what's happening in the general market. And look specifically at what's happening to small Chinese companies. It's the norm.

[igoe104] 08/12/2008 14:33

ALL good staying that stew, but whats annoying alot of holders is sft are not shareholder friendly, they rarely answer shareholders emails, or release Rns when they win contracts, unlike other companies which i hold.
so with that kind of stance your always going to get a falling share price.
As far as im concerned the management can run and jump.

Sft is has a good product, in a good growing market, but it also has a poor management team.
and continued low after low shows the market is thinking the same.
but i,ll continue to hold, its not worth selling at a 70% loss.

[stewjames] 08/12/2008 13:53

"Whilst I would not expect the company to be immune from the world economic crisis in terms of delays etc, why oh why are management committing to significantly increased R & D spend when their margins and profits are under pressure."

Because they're shrewd and they don't care about short term results? The best time to invest is surely when others are cutting back - you get everything on much more favourable terms, and you have a big head start on competitors when the financial climate turns. Sacrificing short term results for long term gain. Good for them.

[mathisvale] 08/12/2008 11:34

cge &igo

Sorry, but I do not share your view of the SFT management. I am retired now, but in my working life I was an analyst/programmer, working in a smallish (80 people) software house like SFT.

I know exactly what it like developing software for users who are not really sure what they want and are constantly changing their minds and requirements.

R & D is absoulutely crucial, because you have to keep up or better the opposition and you have a new development that you can sell tomorrow, while living off the income of products that you made yesterday.

It is a case of constantly chasing your tail in the early days until the breakthrough comes and you start getting big sales and getting big repeat-order customers.

In my view SFT have't got to the breakthrough stage yet, but it looks to me that it is not that far off. The benefits when (and if) it comes will be huge and is, IMO worth the risk of holding the shares

[igoe104] 08/12/2008 10:28

I agree cge.
and i,ve let them know in as email to the company.
The company need a good kick up the back-side, and a new ceo.

ITS got great contracts, and products, in a great market place, but it seems the management aren,t up to the job.

[cgequityinvest] 08/12/2008 10:17

Very disappointing trading update. Whilst I would not expect the company to be immune from the world economic crisis in terms of delays etc, why oh why are management committing to significantly increased R & D spend when their margins and profits are under pressure. The SATs contract is losing all credibility in terms of delivery and constant delays and in my eyes management are also losing credibility. R & D spending is fine but it needs to be balanced with delivering against your forecasts. Management need to manage city and investor expectations - in my opinion they have failed at this.

[jailbird] 08/12/2008 10:04

chinese impact affected this company.

I cannot see why other ones will getaway with it.

[apetley] 04/12/2008 07:33

Nearly three months have passed since the interims and still no news on the testing and roll out program. Is anyone else getting everso slightly cheesed off like me?

[stewjames] 03/12/2008 16:22

Counting the dividend is double counting the cash at hand from which the dividends will be taken. Still cheap though.

[dolores123] 03/12/2008 15:48

The company is now only valued at its cash on hand amount. So it is under valued by the value of:

the dividend and
the business profits being achieved and
the potential for the export tax software project which will be rolled out across China?