Software Circle Share Discussion Threads

[jailbird] 28/11/2008 14:01

well it is moving finally!

[cascudi] 28/11/2008 11:33

It should be nice to see some good news coming from the company to give more confident. why for example directors do not buy?
carlo

[jailbird] 28/11/2008 09:53

well the 15k caused a big jump on the asking...been a while since we had a spread like this.

No wonder the MMs were paying above the mid to buy stock!

Seller done and no overhang.. you boys around.

[jailbird] 26/11/2008 15:00

tick up..MMs looking for stock..i see..i can sell at least 50k above 6p!now, but buy only 10k.

i see 100k buy yesterday at midprice, maybe the buyer is back for more today.

[dolores123] 18/11/2008 09:11

Yes of course there are but sinosoft is profitable and has good cash reserves. The share price only reflects the value of its cash on hand. So the company is well undervalued.

[jailbird] 18/11/2008 08:41

alot of ifs and buts there!

[dolores123] 18/11/2008 08:29

If eastern countries bounce back quicker than the west Sinosoft appears well placed.

[theblackswan] 10/11/2008 10:26

Nice find Jailbird

[jailbird] 10/11/2008 08:23

from GNG bb

[dolores123] 07/11/2008 10:52

Quiet today but at least no sellers so far!

[dolores123] 05/11/2008 09:44

Another rise in the bid price today. At this rate we might see 10p before Xmas!

[boadicea] 04/11/2008 16:37

Nice to see a concerted jump. I am afraid we may now see a big dump knock it on the head - but hope to be proved wrong!
Of course, it could be leaking news of step progress in their SATS roll-out or some other contract. We shall soon find out.

[jailbird] 04/11/2008 15:41

is the seller done?..overhang clear?

did not take much to get this moving in the end.

[philjeans] 04/11/2008 13:30

Could be; RNS will confirm in a day or two.

I've been buying all the way down so if it really can push back up, I'm happy.

Just cautious now about paying top dollar today only to see it fall back after the hedge fund dump tomorrow.

No question it's a steal on fundamentals though.

[jailbird] 04/11/2008 13:26

phil,

could not have been a delayed buy @5.5p which explains why they
were taking stock quoted above mid prices yesterday

[philjeans] 04/11/2008 13:20

and there we see another dump from Polar - 191,500 gone through at a paltry 5.5p.

Millions still to sell; I love the business - hate the sentiment.

[jailbird] 04/11/2008 11:50

nice turn up for this one today..Come on MMs move the bid up!

[cgequityinvest] 04/11/2008 11:15

Boadicea - I agree with much of your message. On fundamentals this looks cheap:

Current makt cap £10m ...... 6 p per share
Current NAV £18m* .......10.9p per share
Current cash £10.3m .......6 p per share
Historic div yield 5.2%
Forecast p/e 4

*I have used June 08 figs for nav and cash values and exchange rate of 1.6.

Yield is based on div of 0.31p paid for y/e Dec 07.

Last years profits were inflated by a one off gain on an investment but the half year figures and brokers forecast suggest that they are expecting to exceed last years PAT of $4.8m from normal trading. The strenghtening of the dollar will also help - the forecast p/e based on borkers estimate of PAT of $4.9m and using 1.6 exchange rate falls to 3.3.

So we have a business which is valued by the market at cash which is forecasting a growth rate of:

20% in turnover - 2007 - $10.6m to 2008 $12.8m
40% in core profit 2007 - $3.5m to 2008 $4.9m*

* I have excluded the one off investment gain in 07 of $1.3m.

Downsides

*Small Chinese based business
*Continued slippage in SATS project - although this accounts for a smaller part of their business now
*poor communications with shareholders


As you say Boadicea - plenty of companies have cash close to their market cap and are trading on v. low p/e's. The potential upside with Sinosoft is the growth rate and high margins - gross margin was 77% in first half of 08. They are also spending heavily on R & D re future products.

The fact that 50% plus of their turnover is with govt/govt related which may/should provide some protection against any recessionary impact.

So I have been adding modest amounts recently on the basis it ain't going to go bust (I did email the FD in early October and got comfort that their deposits were with HSBC and other Chinese banks) and there is reasonable growth forecast.

As ever DYOR.

[philjeans] 04/11/2008 09:50

I hold and will take more; the problem is Polar Capital who keep dumping millions on the market as soon as the dealers jack the price up a tad - they are distressed sellers and are selling "everything" to raise cash.

That continues to sink the s/p.

[jailbird] 04/11/2008 09:50

yep,

the funny thing yesterday when the spread was 4.75/5/5p

MMs were offering little sub 5.5p but were willing to take 50k @5.25p.!(so well above mid price)

So not surprised that it is up from the what was apparent yesterday when quoyes.

Not always reliable but appears in this case.

[dolores123] 04/11/2008 09:24

The share price is up again today.

[welsheagle] 03/11/2008 19:33

Good synopsis of situation, Boadicea.

[boadicea] 02/11/2008 13:25

cas/Dol -
In terms of 'undervaluation', SFT is just one among hundreds similarly afflicted.
A chosen few of the relatively large companies in supposedly recession-resistant markets are holding up, but none to speak of among the smaller stocks, more specifically AIM and more specifically foreign-based companies. Some are trading at p/e's of ~2 or less and others have market capitalisations below their NTAV, sometimes with most of it in cash or near-cash.
While you might choose SFT among hundreds, there is not enough current liquidity to correct all the market anomalies. Any attempted rally merely encourages frightened or hard-pressed holders to sell into it and kill it stone dead.

Sometime, but not for a while imho (2years perhaps?), when the chaff has been blown away, logic may return and there will be a healthy crop of 2, 5 or 10-baggers appearing. Those with cash are mostly content to sit on the sidelines for now and wait for the dust to settle before jumping in. The risk of missing out on a bargain does not currently look very high - it's just as likely to be even cheaper tomorrow.
A toe in the water to maintain interest is my current philosophy except where I am particularly confident. However, as always, dyor.

[dolores123] 31/10/2008 10:53

An extract from the interim reslts announced in Sept 2008 is as follows

"The long term roll-out plans for SAT continue to have significant potential and will be further enhanced once further installations and
testings have been completed."

The Sept 08 report was overall quite encouraging and the market does not seem to have taken this into account

[jailbird] 31/10/2008 09:14

doleres,

how do u know that, have u been in ctc.?

last year's trading update was in january 2007