Total Systems Share Discussion Threads

[joshalexander] 11/7/2007 19:55

egoi

I am assuming that the "deramper" comment was aimed at me.
You called TTS incorrecly and have paid a price financially for your view.
I called this correctly and did not.

And I will continue to make comments that I feel are relevant and need discussion.


Regards

[pugugly] 09/7/2007 09:18

egoi:- Just had a look at Fidelity -Could have been interestign back in April at 2.5p but possibly a bit rich now at 8p. Very good trading statement back in January but the market seemed to take a long time to catch on.

[weatherman] 07/7/2007 15:13

I had a look at recent RNS and there doesn't seem to be a large turnover of directors. However, TTS has underperformed peers some of whom have gone up 10 to 100 fold in the time TTS has taken to go no where. I still think the problem is the controlling shareholding which hinders the business development.

[egoi] 07/7/2007 13:32

If you want to understand real ramping I suggest you read threads like the BPRG one or simply hundreds of others on here, but this thread in my view has been ramp free; if anything there might just be imho one deramper posting on it though.

Incidentally there is a small software company on Plus-Quoted called Fidelity Systems (FID) which has a market cap of under 2.5 million, which has a property held ' at cost' which is fully owned and was bought several years ago - and it has since been extended. It has around 500k in cash, no debt and is actually profitable.

Also their key rival, a company called XN Checkout was bought by Torex last year, which as you may know is currently suspended, and XN is therefore 'hamstrung' leaving the University market in which they were the biggest player, at FID's mercy, and FID's touchscreen technology is compatible with XN systems. Gossip is XN will withdraw from the University market if TRX is bought out. FID has big spread and quite hard to buy stock at the moment, but has been attracting a few new buyers recently.

[joshalexander] 06/7/2007 20:01

egoi

I agree we need to stick to facts.

So we have a small and loss making niche software provider that has a controlling shareholder. The Sales Director has just resigned with immediate effect. The Company has been listed for nearly 20, from memory and has gone nowhere during this time - and that is being kind.

And all this at the peak of the economic cycle.

I warned that people here were ramping before results, I warned that the Capita contract lacked any financial details. And I will continue to make points that I see as relevant.


Regards.

[hugepants] 06/7/2007 13:06

Bottom line this company is still undervalued. Net cash + property is worth conservatively 45p per share (business valued at less than nothing). Despite all the gloom and doom the loss was only 4p. And R&D spending increased to £0.8M from £0.63M. Im confident TTS will start winning major business again in the medium term.

[egoi] 06/7/2007 12:09

Lot of 'speculating' in your last few posts Josh! -:)

[joshalexander] 06/7/2007 07:47

weatherman

It has not changed in nearly 20 years IMO, I would not hold your breath.

[weatherman] 05/7/2007 22:02

I rather suspect that the problem of the company might be attributable to the style of leadership of the head - the one who holds all the shares. It might seem that he is not easy to work with or he is too controlling as people seem to leave and contracts are not completed. Perhaps there is no incentive for a sales director in terms of options.

In my opinion the boss needs to reduce his holding and give up control so the company can move forward by making those assets sweat a bit more. It is in his interests to make the most of those assets instead of allowing the company to continue to wither.

[joshalexander] 05/7/2007 18:49

9degrees

It is a valid point and one I made repeatedly.
And now the more interesting question of why the value has been lower than anticipated needs to be explained. Are Capita happy with TTS ???.

[egoi] 05/7/2007 09:08

Sales Director not delivered it would seem from this imho, appears to me they are at least getting tough!
Total Systems announces the resignation of Sales Director Colin Fox with
immediate effect. The company would like to thank Colin for his efforts in
raising the profile of Total Systems in the insurance and warranty sectors of
the financial services industry.

[gemini99] 05/7/2007 09:07

The sales director has jumped ship today. He didnt last long.

[9degrees] 05/7/2007 08:45

I find it strange that the value of the Capita contract has never been released and here it is " lower than anticipated - What is the value of this contract as the insurance side of Capita is taking off and so why arent TTS as well

[weatherman] 03/7/2007 17:14

The problem is the boss doesn't seem that interested in developing the software business to its potential. Why would he want to own it all now?

Better for him to find a buyer and release as much value as possible - then he can retire.

[joshalexander] 03/7/2007 16:17

HugePants

There maybe an opportunity with the appaling trading outlook to take this private at an advantageous price. The fact that a buy out has not even been mentioned on this thread shows how little thought some have put into this.

My final concern here relates to the Capita contract.
Why?? - has the revenue been lower than anticipated.
This has been glossed over IMO - What is the explanation?.

This is all IMO, but these issues are at the very least worth a mention

[weatherman] 03/7/2007 15:43

I wonder if the lack of contract awards is due to the boss having a majority holding. Companies may be reticent about signing contracts with companies controlled by individuals. Also the sales team do not seem to get share bonuses and not encouraged to share in the future of the company.

[hugepants] 03/7/2007 13:28

Josh, Speculate on. This chap has always had the majority shareholding. He could have taken it private any time he wanted to over the years. Why do you think he is going to do it now?

[pugugly] 03/7/2007 13:22

most of the daling on PlusMarket today:-
Trade Date Trade Time Price Volume Type Consideration (p) Conditions
03/07/2007 08:26:25 35.00 4000 O 140000.00
03/07/2007 08:07:22 31.00 20000 O 620000.00
03/07/2007 10:08:47 32.30 500 O 16150.00
03/07/2007 08:01:21 33.30 5000 O 166500.00
03/07/2007 08:01:10 34.70 5000 O 173500.00
03/07/2007 09:02:25 32.30 800 O 25840.00
03/07/2007 08:47:37 32.30 2368 O 76486.40
03/07/2007 08:25:03 32.30 2500 O 80750.00
03/07/2007 08:11:41 32.30 1000 O 32300.00

[joshalexander] 03/7/2007 13:05

What Bulls may also like to ponder is this.

If TB were to decide to take TTS private, the size of his shareholding gives him a large say at what price this will happen IMO. If I had to speculate, as many others here have enjoyed doing, TTS will be taken private, at a price largely determined by its largest shareholder IMO.

[weatherman] 03/7/2007 13:00

What about a campaign by us to call for this company to realise its value? Although I understand the CE has a controlling shareholding, he must realise he isn't realising the potential value for shareholders or himself.

Stated net assets per share - real nav could be twice the stated value.

2007 35.45p
2006 40.06p
2005 40.10p
2004 37.60p
2003 35.51p
2002 34.08p
2001 27.04p
2000 24.30p
1999 29.10p
1998 26.80p
1997 21.70p

[hugepants] 03/7/2007 12:56

The analyst estimates were for a loss of 8.1p so less than half that (analyst guidance seem to be more or less useless for this stock)
Have to say the outlook statment is a bit of a classic. Current customers delaying new projects, no material revenues from Invu and Contemi, and just when you think it cant get any worse they top it all off they say the Capita contract isnt as lucrative as they thought. Could they have worded it in a more negative way!!
Holding (impossible to sell anyway)

[joshalexander] 03/7/2007 11:21

Its the realistion of any "value" that is the issue.
If you really thought for a second that 70 pence per share would be realised anytime soon, you would be buying shedloads rather than selling IMO.

All speculation, and there has been far too much of that on this thread for my liking.


Regards.

[egoi] 03/7/2007 11:15

Wiganer, If I am right that the real nav is about 70p (as per my post above, I did speak to them about the property and they agreed, no question it is a fair estimate imho) and no debt, enterprise value nil, whether there are others in that position is not really the point (I suspect I know the one you speak of, but doesn't it have rather a large amount of debt, or am I thinking of the wrong one? ;) ).
When it will be realised though was part of my problem.

Some will see that as good value. I got out because of the underperformance of sales, though unlike Josh, (who imho speculated about sales levels just as much as the rest of us) I can understand and respect the validity of the nav value bull case.

I'm out anyway so am now moving on having weighed up the new facts, and happy to leave the semantics to Josh.

[joshalexander] 03/7/2007 11:05

egoi

We keep hearing the same argument, Property Property Property.

Rainmaker kept banging about this, was told to "put up or shut up" and promptly disappeared.

The Company is making a large loss at the top of the economic cycle. It is effectively controlled by one man, nothing happens until he decides to take action. TTS has been listed for nearly 20 years from memory, what has been achieved during this time??. Answers on a postcard, or maybe on something smaller IMO.

[wiganer] 03/7/2007 10:03

Falling turnover, rising losses, and share price about NAV levels. If the argument is that TTS is a value play then surely there are better ones around.

For instance I hold a share (shan't say which in case am accused of ramping) that is trading at 50% of TNAV, and is within a whisker of breakeven, with rising turnover and profits likely next results. there are other such shares about.

I also hold a cash shell on a sizeable discout to cash. Again there are others around.

I'm not saying TTS is a bad 'un, just not convinced why it stands out as a value buy.