Total Systems Share Discussion Threads

[joshalexander] 16/5/2007 09:15

Ben

The points I made are valid and relate to TTS.

[ben value] 16/5/2007 09:02

Josh and gemini - I would mention that if you had followed some of Rainmakers "ramps" over the years such as ten bagger Amstrad, Theo Fennell, VIG and Teather and Greenwood you would be pretty pleased with the results.

[joshalexander] 15/5/2007 18:56

Looks like its "shut up".

[gemini99] 15/5/2007 11:07

It sounds like ramping to me too. Rainmaker either put up or shut up. BB readers arent all gullible idiots. Or have you really asked the company about this issue.

[joshalexander] 15/5/2007 10:59

That sounds very much like trying to ramp the share to me.
Best to deal in facts here IMO.

TTS is forecast to lose £850,000 this year.
And this is at the peak of the ecomonic cycle, when they should be making substantial profits..

Funny how these posters who keep mentioning asset value never pick up the phone and speak to the Company. And then post their response on this thread, I wonder why??

Far too much guesswork here for my liking.

[rainmaker] 10/5/2007 12:24

9degrees-Contacts.It has to be stated that there has been no comment/ denial from the Company

regards

[9degrees] 10/5/2007 09:36

Rainmaker" all i keep hearing ....? " Where do you hear all this from ??

[rainmaker] 09/5/2007 13:31

Hi HP-what's you take re possible value of their Office?If I remember correctly you mentioned at least #4mln which I won't disagree with.That price would just have meant that it has keep up with Commercial Property since it was purchased in 87. Any further thoughts?That valuation would relate to about #30 psf rent taking the current yield which would seem reasonable

regards

[hugepants] 07/5/2007 08:20

....While returns for commercial property across the UK have been spectacular - 18% in 2004, 19% in 2005 and 18% in 2006, according to the Investment Property Databank - London office space has been in a class of its own. Returns have been 25%-30% a year for the past three years, say the agents...

[rainmaker] 05/5/2007 18:42

All I keep hearing is a sale and lease back of their Property Asset which ranges in value from £2.5 to £5.6mln(their market Cap at the moment is about £4.5mln) and the proceeds being used to pay a special dividend and/or a buyback. However Capita may have well landed a large contract that will use Total's Ultima Insurance package.IMHO very undervalued at the current levels, little downside risk and v large potential upside.

regards

[weatherman] 04/5/2007 18:33

Any news ?

[rainmaker] 24/4/2007 12:58

Hi Josh-Though I understand your point about current poor trading forcing the Directors into positive action I feel their association with Capita will bear Fruit before too long, given Capita's strong market position in outsourcing (ie number 1) and their superb track record

regards

[rainmaker] 24/4/2007 12:52

Thanks Egoi-You have to be patient although the longer you've waited already,the less time you have to wait.They signed the deal with Capita sevaeral months ago-they have a proven record when it comes to winning large contracts so I'm very optimistic. Also Capita have been investing in Insurance Services Companies which just increases my confidence. However I expect the share price to move up considerably before the year end.I look for +60p or +50% before the year end.

regards

[egoi] 23/4/2007 18:47

rainmaker I agree with your numbers. One more contract and we'll be off and running.

[joshalexander] 23/4/2007 17:20

Rainmaker

Your best hope of a nice return with TTS is a continuing poor trading Outlook.
Simply because this will force TB's hand and lead to coporate action.
Otherwise you are in for a very long wait here IMO.

[rainmaker] 23/4/2007 13:15

Can anyone here believe that the Rent on their City Of London,Office can be worth anything less than £30 psf-any Chartered Surveyor or City Letting Agents currently viewing care to pass comment?? They are based at 184 City Road

Thanks

regards

[rainmaker] 20/4/2007 13:17

Re TTS freehold 5,600 sq ft Property purchased for £760 in 1987, I reckon it is currently worth around £5.5mln and in the region of 52p per shareapproximtely 40p more than its value in the books.

I have valued their Property interest as follows-

1)As you are all no doubt aware, The City of London Commercial Property Sector is currently enjoying a boom fuelled by a thriving Financial Services sector with rents psf at the top end, trading at levels not seen since the late 1980's at around £58. Owing to the fact that TTS's freehold is on the outskirts of the City-but nevertheless within the "Square Mile"- and their Property is an older building I have valued the rent psf at £40.That gives Annual Gross Rent of £224k.The current yield on Property in the City is around that of the 10 yield Gilts at around 4%. So convert that into a value,multiply by 25(or if you want to do it the long way round,100 divided by 4 times £224,000), gives you £5.6mln.

2)At the very top end City of London Offices space is valued at around £1400 psq so applying a value of £1000 psf imho a sensible discount, gives a value of at £5.6 mln

You may want to build in an extra margin of safety and use, for example figures of £30 psf and £750 so for annual rent and price respectively but that will still give you a figure comfortably above £4mln


regards

[rainmaker] 20/4/2007 12:56

re TTS new business-Capita are the worlds largest outsourcing Co with a terrific track record so in my book it's not a question of if but when new business will feed through to TTS. Recent purchasers by Capita of Insurance Services Cos just reinforces/strengthens that opinion

regards

[hugepants] 13/4/2007 14:20

Property was purchased 20 years ago so hypothetical capital gains subject to full business taper relief?

[jhan66] 13/4/2007 14:16

First look here & I'm trying to get my head around the asset value.
10.5M shares @ 40p = £4.2M

Company quotes 40.6p NAV with a high proportion in cash (think 33p)
within this 40p is freehold property the value @ £500,000 & land at £242,000, so I guess cash covers virtually everything else.

Seems to me either-
1-Software sales go well. Company stands on it's own as a growth share & the assets merely serve as a safetynet.
2-Sales not so good. Property comes under the microscope
3-Merger prospects. probably the best value return by far.

It's idle speculation until some reliable figure can be put on the assets.
I suppose the company would be liable for tax on any property revaluation. Think I saw figues here of 75p? But if I have my figure's right, trebling the original cost would only add 14p & that's without tax.

Feel free to correct me please. (Politely too please, I'm only here trying to make a killing)

[9degrees] 02/4/2007 07:26

Capita haver purchased today another insurance claim and insurance services co must be good news for TTS

[rainmaker] 05/3/2007 12:09

Hi Fellows-unfortunately until they win new business it is fairly accurate. However given Capita's size and track record it is surely only a matter of time. Would like to see an announcement by Capita for the Pru though!!

regards

[fellowes2] 03/3/2007 14:03

off topic

riv

Compel came good big time this week.
Long term you cannot go wrong by investing in companies generating lots of free cash. Although I think Management could (and should) have been far more aggressive in buying back shares at lower levels.

TTS remains on my watch list, Brokers still looking for an £850,000
loss this year, not sure how accurate this is now, although any contribution from the Capita contract will not be in for much of this accounting period.

[rainmaker] 28/2/2007 13:06

Hi Rivaldo-I know!As I understand they avoid a lot of the regulatory expenses doing it "in-house".I know there is a problem of beleaguered Main Market Cos transferring to AIM(the same applies to Child Trust Funds as well as ISA!

Feel very unlikely they will move to AIM and there're not exactly strapped for Cash!There is a tel number on their site for an Investor Relations Manager who a Friend of mine has found very helpful. Apparently the E-Mail link doesn't work at the moment

Regards