Sopheon Share Discussion Threads

[smithie6] 08/6/2018 11:36

hi
I'll try & have a look at those pages but I dont hold SPE...& dont plan to buy any so there's little reason for me to dig in the accounts any more..

---

Globo
I got out around 35p on the way up since I saw that the claimed rocketting sales werent getting paid for...the share price then doubled ! despite many fin. writers by then saying it was a scam !
but later went to 0p.

And I know of 1 more UK sware co. that did the same 'trick' & its shares got nailled but it managed to stay in business but it de-listed at tiny share price
Gowex in Spain claimed big sales (wi-fi hotspots with advertising income), all false. Pescanova (fish !) claimed higher sales but it was just movements of product between divs/subsidiaries. Tesco....

1 big difference between SPE & Globo is that Globo kept raising money, to cover over the cracks & pay staff...& SPE lists sales to blue chip clients & audited so those sales surely are true so appears there is a capable sellable product (appears not true for Globo) but the rise in receivables does create questions about what SPE claims is a sale since they are clearly not getting paid for the claimed jump in sales !
(perhaps a sale is paid over years 2-6 with no payment in year 1, but all money from years 2-6 is claimed as a sale & profit in year 1. Which imo wld be false accounting.)

[al101uk] 08/6/2018 09:42

Smithie6,

Not saying it's an explanation, but you may want to look at the revenue recognition statements in the results on pages 24 and 34.

I think you can safely say that they are at least aware of the risks.

If you were involved in Globo I'd be interested in any further similarities you see in the way the two companies deal with revenue?

[rogash] 08/6/2018 08:46

thanks trinko

[janeann] 08/6/2018 08:23

thanks bamboo - there will be more - and you cant buy family/time!! enjoy

[trinko] 08/6/2018 08:22

rogash yesterday

[rogash] 08/6/2018 08:18

Isn't it ex-divi today???

[bamboo2] 08/6/2018 07:56

janeann, I'm too busy with family and work to do much in the way of charting or trading at the mo. It's a real shame as I have missed a few good buying and selling ops over the last few weeks. Hope to be on top of things soon. gla

[ramridge] 08/6/2018 07:54

If you look at the list of their customers on their website, they tend to be large well known enterprises. Stands to reason as their products are of interest to large geographically dispersed corporations.
The risk of receivables remaining unpaid is IMO low. Timing will however depend on how long the projects last. Could be some months or some years.

[janeann] 08/6/2018 07:29

smithi - why not email the company on that?

bamboo - surprised we haven't had a post from you - would be interested in your predictions here given the current bounce back?

[trinko] 08/6/2018 07:18

You have a point. But projects can last longer so paid when the job bin done?

[smithie6] 07/6/2018 23:38

Im bearish about SPE...& Im probably the only 1 !

I dont like the 2017 numbers for trade receivables wrt turnover (50% !. infers 6 months average payment delay !) nor for the increase in receivables in 2017 wrt reported increase in turnover in 2017 (1:1).

a sale is only a real sale if it gets paid for

for me for those reasons Im avoiding SPE...
or can anyone explain why those numbers are not wrong/terrible ? (& a reminder of Globo)

[trinko] 07/6/2018 14:03

House broker finnCap said Sopheon’s outlook statement for the current year was “justifiably confident”.

“Visibility (contracted revenue for delivery by year-end) of US$23.5mln represents 76% of full-year forecasts, an all-time high in absolute terms, and surpassing the best yet experienced in the range of 55%-73% enjoyed in the past ten years, at this stage of the year,” the broker said.

“Organic revenue growth expectations of 9% for the year are dwarfed by the 34% growth in visibility, and prospects are clearly strong: forecast are de-risked; earnings quality is improving; and investment in sales and marketing has the opportunity to deliver yet further momentum to growth,” it added, as it reiterated its price target at 1,000p.

No higher target.

tritace placed this on a other chat

[ramridge] 07/6/2018 13:46

Hi aimingupward2 - I never trust ADVFN financial data. It often is full of errors. Very sloppy and careless.

[ramridge] 07/6/2018 13:43

Hi trinko - I have gone back to the YE17 published accounts, para. 8. You get this.

* on statutory basis, net profit $5.4m , no. of shares 7.5m which gives eps 72 cents or 53p

* on adjusted basis, net profit $5.8m , no. of shares 10.3m which gives 56 cents or 41p

[aimingupward2] 07/6/2018 13:29

From the 'Financials ' section above and the the column headed 'Sopheon Key Figures' which says eps 71.92p and eps 13.14.

But you're right, ramridge. The results are in $ not sterling so ADVFN are reporting wrongly. I should take more care! I've known both ADVFN and iii report figures in sterling when they should be in $/cents. They should take more care too!

[trinko] 07/6/2018 13:28

Think your right ramridge, But this undiluted 7.5 milj shares gross of the year

Now 2018 10 milj after the conversion.

But even here see under the graf.

Name Sopheon Sector SOFTWARE & COMPUTER SERVICES
Mkt.Sector AMQ1 Mkt.Segment ASQ1 Turnover 28.53 Profit 5.13
Norm EPS 71.92 PE Ratio 13.14 Market cap 95.66 NMS -

[ramridge] 07/6/2018 13:14

aimingupwards - For YE 2017, normalised eps was 56 cents (MorningStar) or 52 cents (Stocko) . So that is 41.5p and 38.5p respectively.

Where did you get 72p from?

[aimingupward2] 07/6/2018 13:01

"p.e down to 20". It's going to be much lower than that, surely. They made 72p in 2017, so if we take a figure of only 80p for this year (and it could well be significantly more), then the fpe would be 12. So we're on a very modest rating.

[ramridge] 07/6/2018 10:31

Although SPE's share price has gone up a lot since the start of the year, I think there is more mileage.
Today's RNS says contracted business + rec revenues so far amount to $23.5m . Let's look at last year's statement made at this time. The corresponding number was $17.5m. And they continued to make total revenues for FY17 = $28.5m , i.e. +63%. Let's apply only 50% this year. That makes projected revenues for FY18 circa $35m. This is some 20% over current broker forecasts. and would bring a PE down to 20.

Broker upgrade is definitely on, IMO

[geraldus] 07/6/2018 10:16

Nearly trebled for me.In a great position for growth.Have hopes D4T4 can do the same.

[hopeful holder] 07/6/2018 09:31

That's probably one of the most positive AGM statements I have seen for years.No negatives, all positives.Recurring revenue fantastic, new business opportunities huge.Maiden dividend also.What's not to like.

[trinko] 07/6/2018 09:17

Ten again today😊

Anything from Finncap?

[mfhmfh] 07/6/2018 09:11

up we go. GLA

[trinko] 07/6/2018 07:48

Someone pre opening? Thanks

Something wrong with the aim or LSE?

[bahiflyer] 07/6/2018 07:13

Well if that's not a positive AGM statement I dont know what is. Hell of an uplift in visible revenue from what turned out to be a record year.