Stilo Share Discussion Threads

[mudbath] 15/6/2016 11:53

Thanks michaelmouse for providing your measured opinions.

A most unusual event,for Stilo,has just occurred.

"Current vacancies

Our team is currently complete – we have no open positions at the moment."

I cannot remember a time when STL was not scouting/advertising for talent.
Maybe we could read something into this.
Maybe it goes hand in hand with recent significant share transactions.

Good luck with the thread mm.
Let me know in the event of your seeking some amendment to the header.

[stilolosses] 15/6/2016 10:56

If one wants to get some knowledge around the new Authorbridge product the company are holding a Webinar today at 5.00pm

[stilolosses] 15/6/2016 09:26

Mouse 1000% CONFIDENT. When it does happen I will certainly be more than happy to come back to these very boards and remind everybody of this.

I too would like the same for the next year or two and I think that this is a lot, lot more likely to happen than not. When they do end up being taken over around those levels it would be good for everybody. At the same time it will also be very, very disappointing for long term investors who have sat on these shares for many years as they certainly will not be happy for waiting for so long to see the company starting to make inroads only then to succumb to a takeover. A TAKEOVER that is GUARANTEED to happen mind.

I think it is well known around the Stilo community that Stilo will be taken over. Companies in this position always succumb as has been the case more hundreds of companies over the years and the things that completely stands out for Stilo is its current financial position, its unique products that cannot be replicated by any competitors and the way management has been positioning Stilo for quite some time now. After, all one does not really has to be a rocket scientist to work out that a takeover will come.

[michaelmouse] 15/6/2016 07:32

SL - You seem very confident that a takeover will occur at some point in the future?

Personally, I'd like to see them continue with their current growth for a year or two yet since ultimately that would be the most rewarding path for shareholders, but accept that the company may eventually succumb to a takeover.

[stilolosses] 14/6/2016 21:30

Anybody who think that Stilo will not get taken over really are living in cloud cuckoo land as that is one thing that will happen 1000%. That is a GUARANTEED FACT. What price will be paid is another question but I think the very best price that will be offered will be around the 12 to 15 pence level.

I agree with you Mouse in terms of £200k to £300k revenues and at least a further £100k profits for 2016. I think what Stilo does, its expertise, world leading products and specialist area, I expect Stilo to keep the current momentum going at the very minimum.

[michaelmouse] 14/6/2016 17:01

SL - I'll probably still be here in 2026 if they keep moving in the right direction. With a company like Stilo, I wouldn't be surprised to see them snapped up by a predator at some point in the future though.

As for 2016, I'd be happy if they increase revenues by between £200,000-£300,000 with an increase of £100,000+ in operating profit, and a similar scenario in the following year. As mentioned in post 1509, the EPS figure rises dramatically with relatively modest increments in revenue. In reality, they may do far better than this.

[stilolosses] 14/6/2016 16:46

Your right mouse. Personally my expectations are that they will be able to deliver a lot more and this will be only be confirmed once the share price increases significantly from its current levels together with higher dividends. I think that everybody will be in agreement that this is well overdue. I hope everybody else have the same high expectations. 2017 and 2018 will show.

What kind of growth in revenues and profits do you expect at the very least for 2016 Mouse?

[michaelmouse] 14/6/2016 16:32

SL - They're already delivering. See post 1509 above. :)

[stilolosses] 14/6/2016 16:14

Michaelmouse post 1494 contains the following:

Cheers infocusint.
£2 seems like a realistic target;as long as one is not too much of a hurry.

I feel that there is nothing wrong with being positive or massively positive with Stilo as I feel they have certainly turned a corner but what I think is totally wrong is for posters to make some incredibly unrealistic claims which over the years never did materialise.

Nevertheless, I hope that Stilo are able to push the current momentum through but with them disappointing for so long I too have my fingers crossed that they will now be able to deliver. I believe they will but its the timing that I know that is going to be the frustrating part. Deliver they should!

In terms of the dividends I think one has to hold a good at least 2 million shares in order to get around £1500 dividends annually. I hope you have a decent amount of shares to your name. I do feel though that this is not going to be a yield stock anytime soon yet.

Clocktower, if your guess is right then I have no issues making some serious bucks as long as the company can continue offering shareholder value.

[clocktower] 14/6/2016 16:03

SL - My guess is someone close to the company that sold a lot around 6p+ has done a deal to get the stake back, as they like the long term prospects but happy to take profits in the knowledge there are deals to be done. :-)

[michaelmouse] 14/6/2016 13:38

SL - I love the way you consistently avoid mentioning the figures. ;)

The facts are that incremental revenue improvements at Stilo pretty much drop through to the bottom line. Every £100,000 of extra profit adds 0.09p to earnings. Stilo doesn't need to ramp revenues by much to make the shares exceedingly cheap.

Last reported earnings show EPS of 0.28p on revenues of approx. £1.5m. If they improve revenues by £300,000 let's say (£1.8m in revenues) then I'd guess at least £200,000 drops through to operating profit and EPS jumps to 0.46p putting the shares on a p/e ratio of 13. Let's also say they add just another £200,000 again the following year then EPS is 0.64p and the forward p/e ratio is 8.5.

This is high double digit profit growth and hence a p/e ratio of 20 is highly conservative given that they only need to improve revenues slowly but surely to achieve this growth.

EPS of 0.64px20 implies a share price of 12.8p for starters.

A long term buy and hold is just the ticket imo. In the meantime I'll collect a decent income from their progressive dividend policy.

[michaelmouse] 14/6/2016 13:02

"I am positive on Stilo too but I certainly think it is wrong to lead people up the wrong tree by making all kinds of ridiculous claims such as the share price is going to get to £2 etc, etc, etc."

Nobody has mentioned any price targets SL? £2 sounds nice though. :)

[stilolosses] 14/6/2016 12:56

20 years or so Omnimark was put on the market and 20 years later it only generates around £750,000 with sales here that will never go up but will continue to be used by the current crop of customers.

Migrate was first spoken about in 2008 and some 8 years later it only generates around £500k to £600K. If it was not for that big single contract over 3 years that will come to an end at the end of 2017 then we would be talking about sales for Migrate at a much lower level. So, Migrate, being the wonder of the world only contributes around £500k to £600k after being on the market for so many years.

The company has launched countless amount of other products over years which they have then had to discontinue.

So now we have Authorbridge?

Authorbridge, just like absolutely every other product that Stilo has launched over the last 20 years or so is going to take a long time to generate any kind of decent revenues.

Authorbridge will generate revenues and additional profits but how much and how quick even Stilo management would not be able to put a finger on. That's why they say "future years"......this covers them completely as it could be 2 years, 10 years or 20 years.

Stilo will continue to make further profits and revenues that will bring shareholder value but 100% guaranteed this is going to be a long term story, frustratingly slow and long winded to say the least.

When Migrate came out I can recall people saying that IBM has billions of documents that could be converted but this turned out to be around 100,000 to 200,000 thousand only.

I am positive on Stilo too but I certainly think it is wrong to lead people up the wrong tree by making all kinds of ridiculous claims such as the share price is going to get to £2 etc, etc, etc. If you asked the Chief Executive if this would be the case the response would be as follows: " Yes if we are able to generate around £5 million of annual profits".

Of course, the CEO would certainly not be loading off on this scale if he knew that the share price was going to be more positive over the medium term.

[firth] 13/6/2016 16:27

Thanks for the posting Michaelmouse. Its always good to get another point of view. I would love to know who bought the 2.6 million shares!!!

[michaelmouse] 13/6/2016 15:27

It's a terrific little company this one and I agree with Mudbath's comments.

Gross margins are massive at 99%. The company is growing revenues, profits, and cash generation. Current p/e of around 19 might look high, but given that increased revenues pretty much drop through to the bottom line then the p/e will fall quickly and Stilo will look very cheap. Add to the mix a progressive dividend policy (hiked by 33% last year), no debt and a very solid balance sheet and it all looks good to me.

If Authorbridge gains the traction that they're hoping for then this really could start to move, not to mention that there was a 61% growth in Migrate sales last year.

[michaelmouse] 13/6/2016 15:06

I think the Director sale may be a positive in this instance.



If you read the RNS from October you will see that Les Burnham exercised the option to buy 2,600,000 shares at 1.5p and he's just sold the exact same amount to an interested buyer for 5.25p. Not including costs that's a profit of £97,500 in less than a year.

However, in the same RNS (above) he's also been granted options over 6,600,000 shares at an exercise price of 3.75p. I expect he'll buy back all the shares he sold today (and possibly more) in due course. He still owns 5,000,000 shares or 4.45% of the company.

I say that his sale is a positive because if he believes that the share price is set to rise further then his trade is a no brainer. He satisfies the buyer who wants 2,600,000 shares and he is guaranteed to get them all back (and more) at a lower price in the future via his share options. The icing on the cake is that he cashes in a 250% profit in 9 months.

It should be noted that Ashmore (Chairman) was a relatively recent buyer in the open market and holds more than 18% of the company.

Whilst I'd never ignore Director sales, I don't believe they're as significant as Director buys.

[firth] 13/6/2016 13:52

Well spotted Clocktower. On the face of it it sends the wrong message. However somebody wants 2.6 million shares. Mudbath is away in his summer residency, cut off. He did tell me his son could contact him. I feel sure that we will get a comment in a day or two.

[clocktower] 13/6/2016 12:43

Good timing for mud I guess, as LB has ditched 2.6m shares @ 5.25p today.

[firth] 02/6/2016 10:11

Well Mudbath re your posting 1497. This is one of the most 'bullish' postings I have ever read.
I am sure you will have plenty more to say in the coming months.
Thanks again.

[mudbath] 01/6/2016 16:58

Cheers clocktower.
You certainly know how to wind me up;for the better, best and truly mouthwatering days/months and years for Stilo International are all still awaiting investors.(fact)

[clocktower] 01/6/2016 12:52

I doubt that mud. It was disappointing not to get a review of the AGM from you, and to hear you are taking a back-seat.

I expect you have accepted the best days are over bar a bid.

It took a long time but it has been rewarding, thanks.
CT.

[mudbath] 01/6/2016 12:31

My view on Stilo is that the company has executed the first stage of its medium term strategy almost to perfection.
Investors can now relax and enjoy the ride.
I look forward to years of increasing revenues and profits alongside a growing dividend.
The STL share price,imo,should prosper;whilst we may see a more lumpy return should Stilo surrender its independence.
It has been great fun contributing/debating here over the past decade and I hope another uber bull might step into my shoes;for I intend to become merely a lurker on the STL threads.

Good luck !

[clocktower] 18/5/2016 08:40

I guess your at the AGM mud, look forward to a review. Cash down this time around I note.

[mudbath] 26/4/2016 20:50

As mentioned earlier,the following update on AuthorBridge was incorporated in Stilo's preliminary results,

"We have made considerable progress with the development of AuthorBridge in 2015, working closely with an internationally renowned customer that has helped guide our technical efforts. Following successful beta testing, AuthorBridge is now scheduled to be deployed by them in full production in the coming months."

Subsequently,Stilo has updated the AuthorBridge page on their website to include the statement,

"Now, with AuthorBridge from Stilo, there is an emerging 5th model for content creation, Guided + Fluid Authoring, breaking down the barriers to enterprise DITA adoption."

If AuthorBridge does indeed succeed in breaking down the barriers to enterprise DITA adoption,then this could render Stilo an even more attractive investment or target.