LSELondon South East
IIIInteractive Investor
DTMdiscussthemarket.com
7DIG coldascheese
21 Nov 2014
SUBSTANTIALLY UNDERVALUED read[link] anylists price target was BEFORE latest deals.
CRND jjpieterse
21 Nov 2014
RNS: Another offer on the table from Ankong!!!!!
FLG Workingstiff
21 Nov 2014
Re: FLG Chart Breakout, very positive The £300m share buy back is helping it up also
OUT city watcher
21 Nov 2014
Piers Linney is quietly confident It's been anything but plain sailing for cloud service provider Outsourcery (OUT) since listing on AIM at 110p in May last year. The shares have slumped to 15p. Set up by Dragon's Den star Piers Linney in 2007, revenue has been slow in coming and investors have been put off by funding fears. And while the business plan does seem credible, investing here requires a leap of faith.Linney certainly remains bullish. "In the next 18-24 months we believe this with be a valuable business, worth much more than the IPO price," he told Interactive Investor.And both Linney and business partner Simon Newton have invested heavily in the company. They made over £1 million each when they sold down their stakes at the IPO, but have since invested over £200,000 apiece in a recent net £1.5 million placing at 20p. They've also agreed a wage cut which will save £520,000 over the next 12 months, although lucrative share options sweeten the pill.That placing and salary sacrifice was part of a package of measures worth £4.5 million, which also included £1 million of staff cuts and debt rescheduling to generate £1.5 million of free cash flow. It also means Outsourcery will not need to raise any more cash to get to profitability, Linney told us. He expects monthly run rate break-even and operational positive cash flow in 2015.Clearly, there have been problems. Partners have come on stream much slower than expected, always an issue when dealing with big organisations. That explains modest revenue of just £3.4 million in the six months to June 2014, which includes no contribution from key strategic partners.With hefty admin costs of £4.8 million, Outsourcery made an underlying pre-tax loss of £3.6 million during the period. But it's the top line that's important here. Its main cost is people, and spend doesn't increase much whether the business is generating sales of £1 million or £50 million."The model isn't broken, it's just delayed," says Linney. "If Vodafone (VOD) and Microsoft (MSFT) thought we weren't special they wouldn't be working with us."Outsourcery focuses on the delivery of services based on Microsoft technologies; things like servers and emails. It designs and deploys cloud services for partners, which it then bills monthly based on usage and storage. Others are charged a monthly fee. Contracts are typically for three to seven years.Interestingly, the company is also working with Microsoft and Dell (DELL) on highly secure cloud services for central government. Linney tells us that Outsourcery is one of only two UK companies capable of doing this on scale, and hopes to generate revenue from it during the first quarter of 2015.House broker Investec Securities is obviously a big backer of Outsourcery. But even it admits its own forecasts "require material deal traction" in 2015. "As soon as this deal flow builds, sentiment around the sales potential and balance sheet strength should improve.""Until we see evidence of this we expect the stock to continue to be volatile, but retain our Buy based on the long term potential of the business," it adds, although the target price is slashed from a widely ambitious 130p to a more modest 71p based on an enterprise value-to-sales ratio of 2.Keep an eye on this one. As soon as there's evidence of greater up-take then the shares could fly, but it's clearly not one for widows and orphans.Now the 'Microsoft Cloud Solution Provider Programme' has the involvement from 'Outsourcery' things should well ' hot up 'The Microsoft Cloud Solution Provider Programme allows Outsourcery to provide direct billing, sell combined offers and services, as well as provision, manage and support Microsoft Cloud offerings, such as Office 365. The programme is designed to strengthen customer relationships and expand Cloud sales opportunities by enabling partners to provide direct billing, sell combined offers and services, as well as directly provision, manage and sup
MXO Stuartyboy999
21 Nov 2014
SMALL trades.. They are all buys and mine too at £2K top up again! Now moving stock around to buy more.. Got an average on 2.78p now with Scary size money in MXO.. The brave will be rewarded.. You too Liz n Steve!!
CRA AlBrad
21 Nov 2014
Life returning to this dog? Blimey - up 26% today!HARGREAVE HALE LIMITED have increased their holding by 20m shares.Who are they?!
ESTL theprior
21 Nov 2014
Re: Rights Issue Details Nov 14 FWIW I took up mine but I've not applied for extras. Still considering the likely outcome of their future.. got till Monday to make up my mind. Hmmm. Good Weekend, folks,TP
AUM lehira
21 Nov 2014
Half yearly results Does anyone know when these are due?
PHP Dingledangle
21 Nov 2014
Re: This looks good value In these since 2012, a very reliable dividend payer. Held back at under 350p for some time due to lack of dividend cover, but should head higher in a year or two. A solid hold from me.
So they have set the scene, 2 so called MOU's, Mt Tang has pulled out his 6 mil shares, Mr Gu has pulled out his 7 mil shares, now it's slowly but surely sell their shares, make a killing and leave by the back door as the MOU's disappear. Clever Chinese.
SRP Boring Bernie
21 Nov 2014
Re: Free fall HardboyRe "Their latest release predicted profits this year (after financial corrections) of £130-140m. That's an EPS of around 20p, which puts the current share price at a PE of under 9, which is cheap for a profitable company."That's only part of the story though. They aim to raise up to 550 million early next year. Even if that money was raised at say 160p a share, that would mean there'd be another ~ 340 million shares in circulation, giving something like 890 million in issue. In itself that takes eps down to ~ 14.5p, giving a PE at a sp of 165p of ~ 11.in reality it looks like the market is pricing in something closer to 120p / share for the placing. Run it through the same calcs and you get an extra 460 million shares; 1010 milion in total; eps of ~12.8 and a PE of ~ 13.Medium to long term, will 550 million be enough ?Given the fund raising, cash flow and uncertainity over profits in the next few years, it's hard to find a reason to buy Serco at current prices and I fear the shorters are going to win on this one for a while yet.
ACHL Vincentinvestor1
21 Nov 2014
Re: AGM Special Resolutions it was non chinese institutional shareholders base that voted against the two special resolutions to allow the issuance of more shares , basically this is good news for the private investors as risk for dilution is zero at this momentin medium term I expect a major change in ACHL shareholders base whereby the initial chinese shareholders will sell outimo
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