Software Circle Share Discussion Threads

[hugepants] 06/5/2009 12:48

Good to see both SFT and TAIH recovering somewhat. Good ones to tuck away.

[explorer88] 06/5/2009 08:51

"The results and any dividend will be announced soon (in May). AGM will be in June with the venue being either at Tavistock or Hansonwesthouse.
Thank-you for your interest, these should all be announced shortly."

Anyone else planning to go to next month's AGM?

[cgequityinvest] 01/5/2009 11:35

Gazza - go back a few posts and you will find out. Exact date awaited.

[gazza102] 01/5/2009 08:54

Anybody know when full year results are due?

[explorer88] 21/4/2009 11:32

cg - may see you at the AGM.

appointment of Yifa Yu is, imo, positive news.

[cgequityinvest] 21/4/2009 11:23

Explorer - thanks for the response. I would love to see these growth rates but I think they are on the optimistic side.

I agree that if they can prove the SAT contract can be easily rolled out to other provinces they could well become a target for another larger company who wants to buy into their IPR. I am still however to be convinced about the SAT contract - to date its been a question of delays and lots of re engineering for individial provinces. I don't have a feel currently how scalable the product/contract is. Hopefully we will get greater clarity in the results.

I went to the last AGM and think I met Guy Thomas who had a smaller shareholding than he has now. I plan to go to the 09 AGM subject to date being suitable.

[explorer88] 21/4/2009 07:57

morning cgequity.

fwiw my long term m/c estimate is based on FY11 profit of approx. £9m (organic growth only, greater if there is any m&a activity), with profit growth approx:

FY07-FY09 +56% (i have excluded FY08 as we know this will be down, and the reasons for the decline) SAT contract will be the principal driver of this growth, especially H2 roll out to small/medium sized provinces

FY09-FY10 +71% All four divisions will drive this growth

FY10-FY11 +50%

Having said that, i think there is a distinct possibility that SFT will either be acquired by, or merge with, another software/IT company; with the resulting entity arranging a dual-listing on the Shanghai stock exchange.

[cgequityinvest] 20/4/2009 18:06

Its nice to see the share price recovering after being in the doldrums so long. I am a holder and added a modest amount when the market cap fell to well below the cash value.

However I am not yet convinced by the mgment team. They have not really delivered in terms of profits or on the big contracts and I think the jury is still out on them.

Explorer 88 you state "After results are announced in 3 years time, i would be surprised if the m/c wasn't between £100m-£200m (65p-130p)" - I can't really get my head round the basis for this statement - is this just based on a hunch or more detailed analysis of growth of the business sectors they operate in?

PS I emailed the company last week about an error on their website and asked about their results - the response was:

"Thanks for your valuable feedback and we have rectified the problem accordingly.
With regards to your question on the date of release of the annual result, we expect the preliminary results announcement to be out sometime in May, after it has been approved by the board at the end of April."

[boadicea] 20/4/2009 08:58

HP - Yes.
Until a day or two ago I was trying to forget I had bought it! LOL.

[hugepants] 19/4/2009 21:59

SFT is a good buy and forget share IMO.

[explorer88] 19/4/2009 20:55

It is perhaps interesting to note that SFT (with a m/c of £8m) are already employing more people than RCG (with a m/c of £135m).

[fatfish] 19/4/2009 20:43

thats the way they are taught in schools today as long as you understand what they are generally talking about thats ok, ok bruvver ya know what ime sayin

[kallista] 19/4/2009 20:09

I'd be "wary" of someone who could not spell "wary". It's only a 4 letter word.

[explorer88] 19/4/2009 19:34

It seems that Guy Thomas and i have mopped up any share overhang.

The mms are now so short of stock that each buy pushes up the price.

I don't know what Guy's plans are for his stake, although if he does decide to start to sell in the future, we'll be able to see this as his stake is now above 3%

I intend to hold my stake in sft for the long term (5 years +) unless either the story changes significantly or the stock becomes substantially overvalued.

As Guy Thomas says in one of his investment papers - it is not necessary to know exactly how undervalued a company is or how much it will grow when investing, just to know that a stock is undervalued and will grow significantly

I concur with that view, although i do stick my neck out and try and predict fair value market caps both in the short and long term. fwiw i think SFT should currently have a m/c equivalent of 15p-20p / share, despite the lower annual profit levels which will be announced for FY08 (27th April?)

After results are announced in 3 years time, i would be surprised if the m/c wasn't between £100m-£200m (65p-130p)

The building of the Sinosoft Park in Nanjing shows the hallmarks of a company planning to grow into a £100m-£200m + m/c company pretty quickly. SFT has strong Government support (national, provincial and city) which will enable it to reach these growth targets.

[wimbled] 18/4/2009 19:31

Looks alright to me. And also the Company earning!!!! 1.4 EPS.

[bones30] 18/4/2009 15:27

I'd be very very warey of a software company who's website is "squew-iff" in Firefox, but works ok in IE. Ouch broken image links too.

[teelo3] 17/4/2009 15:04

Cheers S100... just was worrying about cash burn. thought the market saw something i couldn't as it seemed so undervalued...

[ayesha4] 17/4/2009 15:02

have SFT on my monitor, a fair few buys going through

usually it is

D
E
A
D

[siwel100] 17/4/2009 14:53

Teelo3...Its only a small amount compared to their cashpile. Its a short term loan that pays a hefty 10% p.a. plus ongoing discount on forward premises rental and "face" on development naming . If the developer goes bust then no doubt there will be little recourse on the loan, if they dont go bust then its a fantastic deal.......and considering the terms of the deal its actually a pretty decent risk/return.
Am I glad they did it rather than investing in the company or an aquisition...no...Am I concerned about it given the relatively small size of the investment...no........Is the company still as cheap as chips at 15p...yep.

[teelo3] 17/4/2009 14:39

this is a genuine concern. I do see massive upside with chinese government contracts and some pretty innovative technology however they have already made provisions with a Chinese contracter for a new HQ. What is the risk in this developer going bust in China and what is the recourse on the loan that has been made? Any help much appreciated as have been almost in a few times with sinosoft but not sure?

[explorer88] 17/4/2009 09:00

morning HP - if they maintain the dividend that'll give a yield of 9% :-)

So, you have a business with significant growth potential across all four of its divisions, valued as you say, at less than cash in bank and less than a third of net assets, with a good yield ...

... i can see this rising pretty quickly back to 10p, then a rising share price thereafter to match growth in the business.

[explorer88] 17/4/2009 08:23

bought a few more SFT on Wednesday ;-)

we may get an RNS on 24th April, with results announced on 27th April

i expect results to show how undervalued SFT is - based on cash and net assets.

[hugepants] 15/4/2009 19:10

Most of the stocks at a discount to cash have bounced recently. But not this hound. Its valued at 50% of cash at last results and at only 30% of net working capital. So its fantastic value. It will be interesting to see if they maintain the dividend. And good to see some 3% holders appearing.

[drewz] 14/4/2009 16:56

...and very astute.