Hi CO Interesting thoughts, and yes the interims were very positive. The business model is relatively simplistic in its nature and that is what I like about EPO, and the space in which it is trying to work. The toughest "nut" to crack will be Europe with its archaic and bureaucratic way of doing things simply to preserve its own status and sense of superiority. Cost control will always be an issue, but as long as cash burn is kept under control and there is adequate free cash flow and low debt. In relation to being taken over, would have been more financial and economical sense to have done so when it was at the 20-25p stage? With regard to technology, its so fast moving, and the key would be to at least remain on par with the rest and the competitive advantage gained via its product differentiators compared to its competitors. As long as EPO continue with is land grab of this space, gaining further momentum and traction.
24 Mar '15
I've been a fan of EPO for some time. Hank Uberoi is ex Goldman Sachs and he has turned this company around into an international payments firms supplying services to international financial firms. The last interims seemed to indicate they have momentum and the forward customer pipeline looks very strong.The point about this kind of tech service is that once you reach breakeven then any increase in business improves profitability margins. I believe we're very close to that b/e tipping point. The fact that Blackrock's bought over 5 per cent is also supportive. Look out for new customer sign ups for SP prompts. THree potential dangers: one - not enough cost control, two - they get taken over while still cheap and three - leapfrog technology makes their systems redundant. I don't think that last one is likely to happen for some time yet i.e, 2-3 years.
20 Mar '15
Big delayed sell
£1.171m is a very large sell in my book. Any thoughts from any current investors? Not in here yet, but watching!
19 Mar '15
Somebody's seen the light! A couple of very big buys straight after the interims. Great stuff.
18 Mar '15
Today's price drop makes absolutely no sense whatsoever against the results.
18 Mar '15
We've been in a 40-45 channel since May last year so this could provide the reason to get out by moving back up to 50p. Excellent revenue and customer pipeline numbers. Big increase in admin costs is slightly disconcerting and needs watching but EPO has got momentum now and we're on the way. Break even beckons, maiden dividend to follow and who know where we end up. THis is as safe a medium term bet - 12-15 months - as anything on the market right now.
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