Total Systems Share Discussion Threads

[joshalexander] 19/12/2007 19:40

Down down deeper and down.

[9degrees] 18/12/2007 15:10

This must surely be a target for capita who say part of their key strategy is buying small and medium companies . they already have a strategic alliance .
Any views?

[joshalexander] 12/12/2007 06:20

I did say this was going to make freah lows - do the Perma Bulls here ever listen or learn - no, thought not.

[9degrees] 30/11/2007 18:46

Thanks HP GOOD FIND
In my early years of investing in TTS I used to track Trace systems alongside - FUNNY THEY SHOULD TIE UP NOW

[hugepants] 29/11/2007 23:06

some news dated 28th November 07

[9degrees] 28/11/2007 08:16

Hey now capita have won a £772m contract outsourced from Prudential including a substantial simpification of policy admin processes,

[hugepants] 27/11/2007 13:23

Theres some optimistic noises in the results. I think TTS will be profitable next year.

...Our long term objective of increasing our recurring revenues is starting to bear fruit with transaction and time based licence fees likely to increase in future years....

...It is anticipated that some Eastern European countries
will soon be using Ultima and we will continue to supply our expertise to assist
that process....

...Technical staff have been retained during the difficult conditions that the Company has experienced in anticipation of new orders and this is the major
reason for the loss for the half year...

[egoi] 27/11/2007 10:59

Positive set of numbers. Also the talk of break even in coming months, without new contracts, is very encouraging indeed. I know we have heard it before but this time the phraseology is a little different; 'We are engaging with a number of
opportunities and remain optimistic of future orders....'

That would match with the recent strength of technology in general. The UK techmark actually hit highs not seen since 2001 as recently as a month or so ago, before the November correction (ARM has a very similar chart) while Autonomy actually went from under 600p to above 1000p over the summer, nearly doubling.

So given that TTS has not joined in (though to be fair of course small and large companies in a sector can't be expected to shadow each other) and now the news is encouraging, I think the share merit a rerating, below nav of over 34p (and of course the property almost certainly deeply undervalued in that number).

Can't see much downside, unless markets go into crash mode. With technology still so buoyant, seems unlikely.

Incidentally for anyone looking to diversify there's a similar situation at Plus:FID, - Fidelity Systems - (tradeable online but similarly illiquid to TTS) which has 500k cash, a property not revalued since 2000, no debt, is actually profitable and yet a market cap below 2 million.
Fidelity's key competitor (XN Checkout) is part of Torex and is (or was last time I looked) suspended, and FID have been marching through the barn door in recent months, providing inter alia software to Universities. August was an all time record for the company.


Now back to the improving situation at TTS. -:)

[joshalexander] 27/11/2007 09:20

Having been Bearish (correctly)on the TTS for a long time, it is only fair to say that these results are better than I would have expected.
And Management are to be congratulated for very good cost control.

Even so, Cash per share has been eroded as I feared and still no sign of a new Sales Director, unless I missed this in the Statement - this remains a concern IMO.

So what about the prospects for the share price ???.

With the severe de-rating in the Small Cap Market over the past few weeks, there will be little short term relief for hollders here IMO.

I warned that the Economic Cycle was turning months ago, long before it became fashionable to hold this view - and as a result have been in cash since last April -
saving myself a considerable amount of money in the process.

So some light at last at the end of the tunnel, but lots left to do, starting with some new contract wins and proving that this Business can show consistent profitable growth IMO.

[rossco] 27/11/2007 08:39

Yes TTS may be turning the corner at last.

[hugepants] 27/11/2007 07:27

These are good interims and the the outlook statement is optimistic for once.

[9degrees] 13/11/2007 15:59

Blimey Hp no wonder you cant sleep!

[hugepants] 13/11/2007 00:20

10 quid by Christmas

[joshalexander] 07/11/2007 18:28

Any new contract wins??? - or even a new Sales Dirctor?.

Oh dear, the Bulls have called this consistently incorrectly.
The share price is heading for a new low IMO.

[9degrees] 15/10/2007 13:51

Thismay be what we have all been waiting for :- I quote below from the RNS that TTS put out in Jan 07 which came hot on the heels of Capitas announcement last november(06) when they were selected as supplier to bid into of the strategic partnership .

"Total Systems plc ("Total") are delighted to have been appointed as the
preferred supplier by Capita Insurance Services ("Capita") for the provision of
their Ultima system as the strategic platform for future general insurance
policy administration outsourcing contracts."

[hugepants] 15/10/2007 12:54

I just wish it was TTS that won this £270M contract.

[9degrees] 15/10/2007 10:35

Capita has today won a 10 yr £270 million contract with Co-op insurance - surely now TTS can come into play ?

[joshalexander] 16/9/2007 09:02

allegedly

You look like joining the long line of posters on this thread,
that have proved to be reliable contra indicators.

[allegedly] 25/8/2007 16:01

There seem to be several balanced posters here; had a look at this company and disappointing management is universally agreed on, as is weak sales team. Bulls have agreed on that.

Does look like a cracking little asset play though and as such must be too cheap. it's cheap because fears are value won't get realised as Josh has said, repetitively.

But there are plenty small companies in this sector who would benefit from buying this company and sprucing up its act as egoi says.
From all i have read about management from the various contributors there's no doubt in my mind they could be 'bought' by a reasonable bid. 40p might be cheap.

Incidentally, lot of traders have made hay all summer, so not sure being in cash since April was that smart.

It's about contracts from now on, and I am quite bullish still about the economy.

[joshalexander] 23/8/2007 21:17

CFB

I must congratulate you on the quality of your posting.
It makes a change on this thread to read a more balanced post -
And I do not exclude myself from that criticism.

[egoi] 23/8/2007 12:15

Bought a few at 30p, 3250 shares all i could get, but looks like it helped move price.

As you say HP, plenty downside protection.

[hugepants] 23/8/2007 11:47

Of course I dont mean investing in TTS is like putting your cash in a bank but you have to admit there is a lot of downside protection at the current price.

Ive noticed TTS are becoming a bit more investor friendly as regards their RNSs. The latest one suggests a share buyback is a possibility.

[cfb2] 22/8/2007 16:02

egoi: I have a friend in the area who has looked at the property and valued it at £2.1m based on similar properties for sale. The accounting rules that TTS use do not require you to reevaluate the property value, however they did add an additional £200K to it in the last accounts. I do see the disparity and that is the main reason I have a shareholding in TTS. My concern is twofold:
1) That there is something I don't understand about the property that means that the valuation is closer to the value on the books
2) That the intrinsic value is going to be chewed up in subsequent losses by an inept management.

CFB

[egoi] 22/8/2007 15:53

I agree with Hugepants' assessment that it is in effect similar to being in cash and property, and in this case at a very significant discount. CFB I take it you are not aware as to when the property was last valued.

I did not for a moment take HP's comment as a literal one comparing investing in TTS to being in a building society, the legitimate question is whether the value of that cash, property and product suite will be realised. One day, maybe later than sooner I don't deny, it will be imho.

[cfb2] 22/8/2007 14:53

Josh says he's in cash well buying TTS you are effectively going into cash and property.

That statement is misleading.

Investing in TTS is not like a building society; putting the bid/offer spread to one side for the moment, the shareholding of TTS makes realising the asset value of the business impossible. And then there is the probability of an ongoing loss.

Property, plant etc. is in the accounts as £1,040K. The cash component is £2,380K. So, approximately 34p per share. But another £845K loss would value the shares at around 25p - where the share price is at the moment.

HugePants: Was your comment about the directors pay rise derived from the administrive costs? That might have included a golden parachute for the sales director. Most normal companies don't reward a hefty loss with a pay rise.

CFB