On Hargreaves Lansdown the PE is now up to 11.80, which is still cheap for a growing profitable tech company.
Using figures on Morningstar http://financials.morningstar.com/cash-flow/cf.html?t=SPE®ion=gbr&culture=en-US
free cash flow (as Net cash provided by operations minus Net cash used for investment) trailing twelve months, was 84.7% of Net income (TTM), which is good for a small cheap growing profitable tech company, IMO (assuming Morningstar's figures are right).
If you're having difficulties "seeing" RNS on this site, you can see the full update on the Sopheon website.
Previous posters have questioned the undervaluation of this company - perhaps due to scepticism about the actual product/service. I'd like to think that this latest update will go some way towards quashing the negativity: you simply can't argue with the numbers. 2018 revenue visibility already at £18m vs £13m in 2017, and a cash balance of nearly £10m
I'm conflicted about whether I'd rather see a dividend announcement in March, or strategic investments in product development and sales. Either way, it appears that the future is bright.
I don't know why the shares are so cheap. Hargreaves Lansdown gives a P/E of 8.28. The financial record looks fairly good, though with a loss in 2014, the balance sheet is strong (from the interims), and now there's a positive trading update. I hold some SPE but I can't help wondering why the market has been so negative about the stock.
As trading updates go, this one appears to have been written by Carlsberg.
It's been a very long journey for me, so I'm pleased that my original analysis of this company is at last being proved correct. I'll leave the detailed analysis to Zulu once he's had a chance to update his/her charts, but this one is definitely a long term hold for max value, IMO.
2016 is over so we should be looking at 2017. We know that they have beaten 2016 forecasts
For 2017 the valuation is still good. PER of 16.5 and a PEG of 0.64
The above EPS forecasts does not include upgrades from the last trading statement.
As a reminder "The Board also expects that, even when excluding the impact of the positive foreign exchange effects, EBITDA will be ahead, and pre-tax profits significantly ahead, of current market expectations"
You cant ask more from a trading statement "pre-tax profits significantly ahead, of current market expectations".
Run your winners.
If you look at the charts then its quite possible its could drop a bit before it rises again.
I'm looking for around £5.20 before I reduce holding but that could change when I see the new 2017 & 2018 EPS forecasts
I've now reduced to my last 2000 shares as I believe the price now more than well reflects the value of the business. I might be wrong but I have other priorities and it is priced a 10x where I purchased the majority of my shares. What ever magic the management have done here I would welcome them to look at Newmark Security which was a 5x bagger for me before falling back. I've now added again there and they could do with the magic.....
Well done everyone who invested here, although given the chat, there are not many....
Patience has definitely been a virtue with SPE. I'm beginning to feel that the company's most recent trading update, along with a few Director buys, has finally gained it some traction with more serious investors than me!
Whilst volume is still relatively low, it's massive in the historical context for this share. Perhaps there's more to this SP climb than meets the eye. If it continues, I'll be in profit by the time the UK actually leaves the EU.
It seems that the business is on a more level footing but I do wonder whether it will be anything more than a small software house with a bespoke product making a bit of money that covers the directors wages. Given the client based, they are either not generating the true value out of the product and fees earned for the businesses they work with or they have not grasped putting the software into so many businesses that is it able to generate reasonable revenue on a much larger multiple.
Hi okgr. Whilst I'm delighted to see these latest results and the dramatic uplift in SP, I'm still nursing a loss on my original investment. When I researched this company I was confident, and believed that the BoD/management were committed to delivering a market-leading, quality product. I simply hadn't anticipated the long road of recession ahead etc. Being stubborn, I stuck with it and purchased more when the company completed its "re-structuring". Today's price is more or less what it was then. At this rate I'll be at breakeven when my estate is being fought over by my children. However, it feels like success in the longterm is at least feasible for Sopheon; for quite awhile it looked like dead horse flogging.
No comments on iii? I guess for some this has just been a return to the price of a few years ago but for me I finally something to cheer on the roller-coaster ride of the last few years. I have all my stake back and now sit on 17,500 shares that have cost me nothing. There seems some good control in the business and some clear focus so I shall hang on to the rest for now. Good luck to those that came in today, let's hope there is further to go. Gold & Silver I wish you well.
I've set a buy order for 10,000 shares at 48p and another 20,000 at 42p. Personally I hope neither get filled and we bounce from here to 80p but then I wonder where other buyer will come from when the markets are uncertain and there is so little coming from the company. This is only money taken out of the recent spike that will be reinvested but I so wish is was, with regret, that I am looking back wondering why I sold so cheap.
Sopheon Plc (LON:SPE) insider Barry K. Mence acquired 46,844 shares of Sopheon Plc stock in a transaction dated Thursday, April 23rd. The shares were purchased at an average cost of GBX 58 ($0.87) per share, with a total value of £27,169.52 ($40,642.51).
Separately, analysts at FinnCap reiterated a corporate rating and set a GBX 100 ($1.50) price target on shares of Sopheon Plc in a research note on Thursday, March 19th.
Shares of Sopheon Plc (LON:SPE) traded up 23.333% during mid-day trading on Thursday, hitting GBX 74.000. 47,546 shares of the companys stock traded hands. Sopheon Plc has a 52 week low of GBX 35.000 and a 52 week high of GBX 92.143. The stock has a 50-day moving average of GBX 47.4 and a 200-day moving average of GBX 45.8. The companys market cap is £5.39 million.
Sopheon PLC is a United Kingdom-based company, engaged in design, development and marketing of software products with associated implementation and consultancy services. The Company operates in two geographical locations: North America and Europe. It offers the following services and support: Business Consulting, Implementation, Customer support and Customer training.
Time to sell a few on this rise. I hope it continues but having taken the gamble and added at 40p it's time to bank at least some profit. Probably off load 15,000-20,000 shares still leaving me 50,000 for a hopeful continued rise.
I guess there were a couple of reasons. The recent results dropped the price increasing my losses making it more painful to sell. On reviewing the results, whilst disappointing after evaluating the performance and underlying income along with the client base I decided that the business is going cheap at £3m. I've been here before with Newmark Security, I accumulated 4m shares, buying 1% of that business when it was only worth £3m. Today it is worth £11m. So I took a fresh look at today's price, a good product, good clients, reasonable income stream, growth cost base (which could be trimmed to deliver high profit) and I decided that it is now too cheap. Having made lots of money elsewhere and being mainly blue chip invested adding 40,000 shares for £16k-£18k, with a possibility of a £10m valuation in the next 2-3 years (I don't think it will go bust, it has to be worth more in a sale and in had positive income) seemed to be a reasonable investment opportunity.
Mm... So you've decided not to dump, and instead are now approaching a personal RNS level of investment. I'm still holding at a substantial paper loss, but still hopeful that I'll see a profit, at a much lower level.
Would be useful to hear why you changed your mind.
Indeed very strange. I've had purchase orders set at 40p and 42p in the last few weeks and struggled to fill them even though the price has been at those points. I have managed to pick 40,000 previously and now hold 65,000 shares. Nearly at 1% of the company.
I have 18000 shares in this company and I'm extremely disappointed in the last 12 months. There was a significant investment in employees and new distribution to grow sales and income. The silence on significant deals has been too long and sales growth has not come through. As a shareholder I've been paid nothing and it is the managements job to either pay me an income or grow the value of the company, they have done neither, in fact they have gone backwards. Whilst the rest of my portfolio has gone up between 30%+ in the last three years, this one has dragged overall performance down. The product is good, but they are failing to drive revenue growth, I'll give them until the end of this year and if there remain no green shoots I'm off to pastures new.
Finncap may be a bit over-ambitious with a target of 220p ? 100p-120p immediate target for 2014 imo......but i think something more sinister is going on here and along with hundreds of other stocks.....
Update: Campaign to make short selling illegal:
# Thanks to all those that have supported this campaign #
IT is estimated that over 90% of AIM stocks are INFECTED by short-sellers !
Many highly popular stocks are going down even on GOOD NEWS !
# IF you were a short-seller, BLUFFING, (basically manipulating a shares' price) about a company's overvalued share price, you might not want to *draw attention to yourself since you could get accused of stock manipulation. So you would hope (OR PLAN FOR) others to get involved and to present SEEMINGLY GOOD REASONS to short the stock.
You would want to put AS MUCH FEAR INTO 'LONGS' as possible and would use high volume short trading as well as buying to drive the share price down as low as you can and as long as you can. You really want the longs to fold and to get out of the game. If you are consistently seeing sellers overwhelming buyers driving a share price down as a stock seems to be going up, I can assure you it's probably shorts' selling, since longs are totally motivated to sell their shares at the highest possible selling price. #
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