Spectra Systems Share Discussion Threads

[protean] 24/9/2013 14:41

Spectra Systems Wins One Plus Nine Years Contract For Its New Premier Lottery ICS Services

[protean] 20/9/2013 15:01

SPSY has gone for a snooze again.

[glasshalfull] 05/9/2013 14:48

Sorry guys...absolutely no idea where you are getting forecasts from.

WHI are the house broker (of which I am a client) & they have $7.879m Rev & $864k loss pencilled in for 2013, with material uplift in 2014 to $16.591m Rev & $2.004m PBT or 2.9p EPS.

I agree with your sentiment, hold a decent slug & detailed my rationale a few posts back. Appreciate clarification of who has provided the forecast figures you are quoting as WHI are the only broker that have produced forecasts AFAIAA.

Regards,
GHF

[protean] 05/9/2013 13:37

Thanks Rainmaker. As you say, forecast PEs very low.

And good point earlier about the earnings visibility. Their contracts last not just for multiple years, but in some cases for decades. You can't get much better earnings visibility than that.

[rainmaker] 05/9/2013 13:21

Guys, I've just done some checking and as far as I'm concerned the total number of shares ie restricted and unrestricted is 45.251mln(not 21mln as they have) so applying a UK corporate tax rate of 23% will give eps of 6.125 for this year and 8.33p for next so at the offer price of 32p, it will be 5.22 and 3.84 times prospective earnings for this year and next respectively. Obviously still way to low given it's growth.

regards

[protean] 05/9/2013 12:55

Martin - you could always email the guy who runs the website.

I've separately sent an email to WH Ireland to ask if they have forecasts / a broker note to hand.

[shanklin] 05/9/2013 12:33

Rain

Yes, I also subscribe to sharelockholmes. It would be helpful to know where those estimates come from.

Cheers, Martin

[rainmaker] 05/9/2013 12:32

Definitely.............but then there is future growth, beyond those figs for SPSY patented technology which Investors love and will be prepared to pay handsomely for so we can expect sharpely higher earnings and a dramatic rerating to boot and there're something called earnings visibility which Investors also love which SPSY has because it signs multi year contracts with Central Banks.Short term we'll be trading at 40p+, no problem, IMHO



regards

[protean] 05/9/2013 11:44

If these figures play out Rainmaker then the share price should be muliples of the current price in due course.

[rainmaker] 05/9/2013 11:29

Guys, I've just checked www.sharelockholmes.com and the estimate for the current year-there year ends 31 December, is £3.6mln pre tax or 8.3p and £4.9mln or 11.3p for 2014 so at 32p, so on that basis that's a prospective p/e of 3.85, dropping to 2.83 .

regards

[protean] 05/9/2013 09:49

Yes battlebus2. The chart is looking stronger now and the sideways consolidation has perhaps got rid of weaker holders.

Prospects are much better now than they were when the price was 100p.

Just the beginning of a long upwards journey hopefully.

[battlebus2] 05/9/2013 09:41

Going up today protean, no stopping this going back to atleast that 40p level imv dyor etc...

[protean] 03/9/2013 16:14

Yes, seems a bit daft to buy and sell so soon. With the spread it's hardly a share for short term trading.

I thought we were in for another move up with the initial 10k that someone bought but alas not for the time being.

Could really do with some more MMs rather than just the two.

[hezza123] 03/9/2013 16:06

Indeed. That sale that just went through (32607), were bought at 30.5 on 28/8. Why take an immediate loss?

[shanklin] 03/9/2013 15:58

These are a bit of a pain. Still sellers about. Hope we get some decent news at or before the AGM.

[protean] 28/8/2013 15:41

Looks like someone has bought about £10k worth. A few more buys will do the trick.

Amazing how quickly the share price moves when it gets going.

[battlebus2] 28/8/2013 15:38

Nice tick up, could spark another upwards move imv.

[protean] 23/8/2013 12:30

Pulling back on small sales. Could really do with some news to give price a boost and get some decent interest from investors.

Price just above cash for a strongly growing company.

[protean] 17/8/2013 19:08

A very interesting August so far with regards SPSY.

After nearly 5 months of going sideways on little volume, both price and volume took off with a vengeance with the catalyst being the $10 million order from a Central Bank. The RNS had this down as a "Large Order from Central Bank" which it certainly was in relation to the market cap (still only £11.3 million). No wonder people started investing on hearing this news.

Price seems to be consolidating the most recent gains and this could be a good time to get on board if the next rise is anything like the previous one.

There continues to be a very good case for investment. Net cash per share is a whopping 26.5p so with price at 30.5p the shares are barely trading above cash. This is a crazy situation for a company growing revenues at 26%, winning very sizeable orders and brimming with optimism for future prospects. In the finals 3 months ago the CEO stated that the company "continues to have excellent prospects and that it will perform strongly in 2013." That's certainly suggestive of a company that's going places.

The lowly share price is still completely out of sync with future prospects although now seems to be headed in the right direction. The directors who bought late last year at 40p will be hoping for significant upside from here first to break even and then to make a profit.

It's always difficult to know exactly what will happen next, but the shares have started to attract a decent bit of interest and the most recent momentum is to the upside. The share price moves quickly and further buying could easily propel the shares back up to the directors' purchase price just for starters. Longer term and there is every reason for price to revisit the 100p highs, especially given the fact that the CEO states that "prospects for increased revenue have grown substantially since the IPO."

[protean] 15/8/2013 15:32

Holding nicely given the general market sentiment today.

[chrisis33] 14/8/2013 16:03

Nice upward move here too. Good day.

[bains123] 14/8/2013 14:37

This is getting ready to blast past 40p :-)

[cottoner] 14/8/2013 14:25

There has been NO stock avaialable to buy online for some time unless you buy 'at best'.

[protean] 14/8/2013 14:08

Nice breakout and decent volume. Clears the way to the 40p the directors paid last year.

And that will be them at breakeven. Presumably they were looking for significantly higher prices when they bought.

[battlebus2] 14/8/2013 13:26

Breather over now all we need is a director buy.