Software Circle Share Discussion Threads

[igoe104] 22/3/2008 10:44

YES hopefully we should have a positive news next month about its SAT roll-out, if they get that sorted and the roll-out into the provinces, this will rocket, so PP have your finger ready to hit the buy button. with 10 million in the bank, a market cap of 13.6 million, and a divi annoucement with results next month, its well worth keeping an eye on, it could be a 10 bagger.

[papalpower] 21/3/2008 12:41

igoe104, one of the main problems I see for SFT is the lack of clarity over the subsidies and rebates offered by the PRC to its companies.

If you note the last update :

"An agreement was recently signed between China and the US (the 'Agreement')
settling the trade disputes between the two countries. The background of the
Agreement is that on 2 February 2007, the US government filed a complaint with
the WTO against China's domestic trading subsidies and in particular the use of
income tax refunds. It is our understanding that China has now agreed to
eliminate some of these income tax refunds. However, it is also our
understanding that the Agreement only relates to 12 specific industries and
relates to income tax rather than the value added tax refunds which Sinosoft's
export tax software is focussed on. Whilst we will continue to monitor the
situation, at this stage the Company is confident that the Agreement has no
direct effect on our business."


It is widely thought that China will be forced to abandon many of its "indirect" subsidies it offers to local companies that has helped them flourish via low tax, subsidies and rebates. By eliminating these they will also be causing the rising pressure on the Yuan to fade and become more subdued and then, eliminated. A de-facto revaluation of the Yuan will happen if all these subsidies are removed, one which involved not having to revalue the Yuan itself. Therefore imv, keep an eye on China's changes to regulations. The world media thinks they will revalue the currency, expect them to do something different, and I would take a guess it will be removal of many of these subsidies and rebates.

Good luck, I have been watching its fall, and must admit its tempting to buy some as a speculative punt, but I have decided not to, so wish you well here, good luck.

[henryatkin] 21/3/2008 12:19

Just a bit of reassurane that the export tax is alive and kicking. I have been reading a bit in the Peoples Daily News that exports focus is now moving from the US and Europe to the emerging markets to avoid any effects of the US downturn. Interfax-china did announce yesterday that there was a big unexpected increase in copper inventories up fro 24,000T to 61,000T. I'd put that down to slowdown in plumbing supplies from all those US houses that aren't being built. Stainless steel/nickel will probably be next when they find out that there is a slowdown in kitchen sinks and taps. In the meantime the export tax looks here to stay - para 3:


Beijing. March 21. INTERFAX-CHINA - China is likely to impose further controls on steel exports if they rebound, which will result in a decline in Chinese steel exports over the whole year, a senior industrial official told Interfax in Beijing yesterday.

"However, demand for Chinese steel from emerging economies will remain high in the foreseeable future as their infrastructure lags behind their domestic demands," Luo Bingsheng, executive vice chairman of the China Iron and Steel Association (CISA) said at the Sixth International Steel Market and Trade Conference.

The Chinese government released a new export tax policy on Jan. 1, 2008, increasing its export tax on low value-added products in an attempt to curb rapidly increasing exports of highly polluting and high-energy consuming products. The export tax on both steel billet and coke was raised from 15 percent to 25 percent.

In turn, China's steel product exports slumped 24.88 percent month-on-month to 3.11 million tons in February. For the first two months of this year, steel product exports fell 17.2 percent to 7.25 million when compared to the same period last year, according to China's General Administration of Customs (GAC). Steel billet exports came to 80,000 tons for the first two months, down 92.6 percent on an annual basis, while exports for February alone were zero, said the GAC.

[siwel100] 20/3/2008 10:32

oops...wrong thread.

[igoe104] 20/3/2008 09:56

WELL WITH A MARKET CAP of 13.6 million, and 10 million in the bank, and a divi annoucement around the corner this is well worth a top-up.

[asp1] 19/3/2008 16:42

1.75m trade and the share price starts to rise....hmmmm....time to top up...

[igoe104] 19/3/2008 09:18

ME too, im getting cheesed off as well apetley, im losing 25k on these at the moment.

The company told me that everything is in line reguarding results 2007, so if the roll-out problem is sorted, the share price should move north very quickly.

heres the best best person to email, if anyone wants to send one.

[e-mail]

ps Ive sent an email today.

[apetley] 19/3/2008 01:06

Bloody shame to see SFT marked down over 10% on just over 20 grands worth of trades!
This type of fall happened just before we had the last earnings warning.
Hope we are not going to get some other warning on profits or hint of more delays soon.
Getting a little cheesed off now.

[siwel100] 18/3/2008 21:28

With £9m cash and a £14m market cap and a nicely profitable and growing business, its just a case of waiting.
Chinese stocks fell out of favour last year and the current pictures from Tibet hardly help. But with the Chinese economy still growing at an exceptional rate (certainly in comparison to the West) and the currency looking set for a steady upwards revaluation and all the associated benefits it brings to their reporting, then the introduction of the Maiden dividend should help pay nicely for the patience.
It will be interesting to see the usual media attention around the olympics. The showcase is likely to rekindle a fair bit of interest in the Chinese growth story.

[igoe104] 17/3/2008 10:37

NEWS should be out in april, hopefully it will come with a positive write-up.
Im losing over 20k with these at the moment, its certainly one of those shares which could make you go grey, if you let the situation get to you.

[apetley] 14/3/2008 11:20

.....and lets hope it's a nice positive update on the rollout.
I will be mightily cheesed off it is more delays.

[igoe104] 14/3/2008 08:58

Things can change around very quickly with this one, all it would take is a positive RNS, we should get some news next month.

[slapdash] 13/3/2008 16:13

one would have to say this is indeed a typical investors chronicle recommendation

slap

[igoe104] 10/3/2008 09:08

China should learn from India in outsourcing: political expert
Beijing (PTI): A Chinese political advisor and senior corporate executive has strongly advised the government to draw upon the experience of IT giant India in developing outsourcing business to make the country shine in the sector.

Indian firms garnered 65 per cent of the world's IT industry outsourcing market and 47 per cent of office work outsourcing in 2006, Zhang Chunjiang, a member of China's political advisory body, the Chinese People's Political Consultative Conference, said.

Speaking at a plenary meeting of the CPPCC, Zhang cited the governmental industrial strategy, specially "free-of-tax policy" as a major factor for Indian firms doing well.

"The government shall expand preferential tax policies on software firms to all outsourcing business so as to help develop an advantage based on low cost," he said.

Zhang said in contrast to foreign outsourcing firms, including Indian, Chinese companies lagged behind in service quality and attracting the talent.

CPPCC is composed of representatives of the Communist Party of China and non-Communist parties, personages without party affiliation, ethnic minorities and social strata of different hues, including celebrities, scholars and experts.

About 60 per cent of members of the CPPCC, now in its annual session, are non-CPC members

[igoe104] 26/2/2008 11:47

The most important thing is garth, is we get the SAT roll-out back in full flow and working in different chinese provinces, when that happens and markets are in better health, we could see £2 a share plus in 2-5 years.

ps i see the MMS are messing around with the spread again, marking this down 0.25 on a 25k buy.

[garth] 26/2/2008 07:26

Great. Thanks for that.

Net profits increasing, and about 10% ahead at the interim stage with revenues ahead around 30%, but eps down with around 50% more shares in issue. So what are we looking at, around 2p for the year with half the market cap in cash?

G.

[drewz] 25/2/2008 17:38

garth,

please see final paragraph of this (latest) rns:

Trading Statement




RNS Number:8691L
Sinosoft Technology plc
16 January 2008



SINOSOFT TECHNOLOGY PLC
("SINOSOFT" OR THE "COMPANY")

TRADING UPDATE

Sinosoft, the China-based developer and provider of software and IT solutions to
Chinese regional and national government agencies and export enterprises, today
issues a business and trading update for the 12 months ended 31 December 2007,
ahead of the close period preceding the publication of the Company's Preliminary
Results, planned for April 2008.

Operating results

2007 has been an important year for the Company as we continued to grow the
business beyond our home province of Jiangsu, develop new products, attract new
customers and progress the roll out of the SAT contract. While revenue continues
to grow in all business segments; the previously announced delay in the SAT
contract has meant that revenue growth is less than we had anticipated. Net
profits continue to grow and at 31 December 2007 the Group (being Sinosoft and
its subsidiaries) had approximately $18 million of cash on deposit.

Significant developments

During the period Sinosoft opened its new office in Beijing and this has already
been of significant value to the Company with the winning of a substantial
outsourcing contract with United Wise Development Limited, a textile machinery
business based in Hong Kong. This work began in November 2007 and will be
completed within Q1 2008 with revenues recognised in both periods. We are
hopeful that this is a stepping stone to increasing our business within Hong
Kong.

The roll out of our export tax review software pursuant to our contract with the
State Authority of Taxation ('SAT') has been progressing, albeit at a slower
pace than we had hoped. Installation took place in Anhui in the first half of
2007 and commenced in Zhejiang from October. Following the completion of product
testing, we have been co-operating with these provinces and making changes to
our product to meet their new and in some cases unexpected requirements. The
Company has faced issues with differing interfaces across the provinces and is
currently working to resolve these. Once these issues are resolved, Sinosoft
will continue the roll-out to other provinces.

An agreement was recently signed between China and the US (the "Agreement")
settling the trade disputes between the two countries. The background of the
Agreement is that on 2 February 2007, the US government filed a complaint with
the WTO against China's domestic trading subsidies and in particular the use of
income tax refunds. It is our understanding that China has now agreed to
eliminate some of these income tax refunds. However, it is also our
understanding that the Agreement only relates to 12 specific industries and
relates to income tax rather than the value added tax refunds which Sinosoft's
export tax software is focussed on. Whilst we will continue to monitor the
situation, at this stage the Company is confident that the Agreement has no
direct effect on our business.

It is anticipated that the Preliminary Results for the year ended 31 December
2007 will be published in April 2008, following the completion of the statutory
audit and a maiden dividend distribution will be declared.

[garth] 25/2/2008 17:35

igoe,

on what basis do you make your divi comment?

TIA.

G.

[igoe104] 25/2/2008 16:28

YES ARTHURLY, when that annoucement happens this will move up in big chunks. folks forget its got over half its market cap in cash in the bank, plus a divi annoucement in april as well, is around the corner.

[arthurly] 21/2/2008 17:31

All we need's an RNS to say that these software interface problems have been solved...

[igoe104] 21/2/2008 14:40

WITH ABIT OF POSITIVE NEWS, im sure this will go back up 16p again easily.