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Another new client win: Http://finance.yahoo.com/news/sportito-partners-safecharge-improve-payment-070000290.html "LONDON, April 11, 2017 /PRNewswire/ -- Daily Fantasy sports platform Sportito has engaged in a partnership with SafeCharge, global provider of payment services with more than 12 years of experience in its business. Sportito is now processing all the web and mobile transactions with their customers through the services provided by SafeCharge. The partnership will allow SafeCharge to offer an effective and efficient payment service for Sportito users. SafeCharge has been operating since 2007, with certification of Payment Card Industry Data Security Standard. The Group has introduced innovations in payment technologies for online and mobile transactions to make it stress-free for the businesses and their customers. With proprietary technologies and methodologies provided by SafeCharge, Sportito will be able to improve the deposit and withdrawal process of their users. This will also provide a secure service to protect the users from scams when using their card back online on Sportito. It has improved the experience by integrating systems to give more choices such as the option to use different currencies for the deposits and withdrawals of the users. Commenting on the partnership, the CEO of Sportito Riccardo Mittiga said, "We have decided to use SafeCharge for our transactions because of the advanced technologies SafeCharge uses to make the deposit and withdrawal experience better for the customers. I'm sure that this partnership will make life easier for our users and will support our growth too." Sportito have other amazing partnerships coming up in the near future to provide the best platform for the Daily Fantasy Sports fans in Europe. With every partnership, they become stronger day by day. About Sportito: Sportito was launched in August 2016 and has come a long way with partnerships with two English Football clubs as their Official Fantasy Sports Partner. Burnley FC in Premier League and Fulham FC in Championship had signed their deals with Sportito not so long ago, to bring a unique Daily Fantasy Sports experience to their fans. Sportito is now operating in the UK with Gambling Licence from UKGC and will be operating soon in other countries in Europe, once their licences are approved from Malta and Italy."
The new April issue of Master Investor magazine has set up a portfolio of 10 high yielding AIM-quoted small caps which might grow "from acorns to oak trees". Amongst them are SCH (and XLM, which I also own) with 5%+ yields, though neither are featured at length in this first feature: Https://masterinvestor.co.uk/wp-content/uploads/2017/04/Master-Investor-Magazine-Issue-25-low-res.pdf?utm_source=Daily+Bulletin&utm_campaign=7e49d8908d-EMAIL_CAMPAIGN_2017_04_08&utm_medium=email&utm_term=0_25eff0bb7f-7e49d8908d-34898813 "While AIM shares might trade at a low price for many reasons other than a market downturn, investors should reprice high yielding stocks eventually regardless of their size if they are of sufficient quality. So there should be a decent chance of the method working in a smallcap context and there might also be the opportunity for enhanced gains given the higher growth potential of smaller companies."
and moving up again today.....
Breaking upwards now into new recent territory? Almost £100,000 of buys a half hour ago in the space of two minutes.
Nice £57,000 buy just now at 260p caused the tick up. A long way to go though imo.
Bought in today at 260.1p, a little higher than what I could have done a day or two ago; but what is 1 or 2p in the longer term?. Sold out of the very short term investment elsewhere which fell below my cut off point. Investors were looking for a spike up from the release of their trading update; it didn't happen so that was the sign to move on and invest elsewhere. Cutting losses as well as running profits is important. Doesn't mean I have got it right by investing here, but a better chance than many. Good luck to all Regards CM
Good to see a £10,500 buy just now at 261p, above the published 260p offer price.
Excellent new article from Opus Capital about Safecharge - "severely undervalued": Https://www.opus.capital/documents/insights/SafeCharge-International-Group.pdf Conclusion: "Payment Processing Industry Garnering Attention Though many smaller players operate in various parts of the payment ecosystem, the company that is probably the closest proxy for SafeCharge is Adyen, which is privately held. Adyen is owned by a who’s who of PE and VC firms, including General Atlantic, whose portfolio includes Snapchat, Airbnb, and Uber, not to mention the secretive Iconiq Capital, which counts among its clients tech legends such as Mark Zuckerberg and Jack Dorsey. While Adyen is more of a known quantity, given its Silicon Valley ties, SafeCharge’s initiative to move into additional verticals has the potential to boost its profile, as well as its valuation, into Adyen’s stratosphere. Adyen’s $2.3 billion valuation in 2015 occurred in a year when its CEO was targeting profits of $45 million. By way of comparison, SafeCharge earned approximately $23 million in 2015. Whether applying this sort of private market multiple or looking at publicly traded peers, SafeCharge appears severely undervalued, and its growth initiatives could help push it beyond a $1 billion market cap, more than double its current capitalization."
Thanks for the post Rivaldo. SCH has been on my watchlist for a little while, having read the Naked Trader articles. I made a wrong call and invested in JPL against ALL of my usual rules, looking for a quick buck. I am now on the point of cutting my losses there and may well channel the funds into here. That will probably be the cue for JPL to rise, which of course is one of the reasons why investors hold onto their shares rather than bailing out!. Regards CM
FYI the IC tipped SCH last week as follows - highlighting an ex-cash P/E of just 9... "Payments services company Safecharge (SCH) has continued to grow at an impressive rate. Its processing volumes - the value of transactions handled by the company - reached $8.1bn (£6.5bn) in 2016, up 17 per cent. This was due primarily to growth in volume from existing clients, supplemented by the addition of new high-volume customers. The group also expects a further $1bn in annualised processing volumes from clients during 2017. The group’s dedicated platform, SafeCharge Acquiring, also grew strongly, with volumes of $970m for the year, up from $191m in 2015. The restructuring of the group's Pay.com pre-paid cards business, other cost reduction initiatives and the higher revenue helped improve adjusted cash profit margins to 32 per cent, from 31.2 per cent in 2015. This measure is especially important given that the company continues to pay out three-quarters of adjusted cash profits as dividends. The group is looking to diversify into new sectors and geographies. During the year, it began the global rollout for its first airline customer, as well as taking on new customers in Romania, Italy and Portugal. Analysts at Canaccord Genuity are forecasting adjusted earnings before interest, tax, depreciation and amortisation of $36m, giving adjusted diluted EPS of 23¢ in 2017 (from $33.3m, 20.7¢ in 2016). IC VIEW Safecharge is growing strongly, and the cash position on its balance sheet remains strong. Excluding that cash, its shares are trading on a forward earnings ratio of nine. Given the yield on offer, it's hard to say no. Buy."
Loads of small buys coming in, and now starting to impact on the share price.
A good sign to see the COO buying £12k of shares: http://www.investegate.co.uk/safecharge-int-grp--sch-/rns/director-pdmr-dealing/201703231626493872A/
"The company put out an excellent statement I thought this week. It is in the hot area of payments and has a mountain of cash. On top of that it sensibly tells us likely profits to base a valuation on - and it is moving to secure higher quality customers - and it has also massively raised the dividend. The share are tightly held so a bid might be difficult but surely one or two payment firms must be taking a look? "
The dividend yield is terrific, but imo this is one of those stocks where after long periods of consolidation something - usually yet another good set of results or a decent trading statement - coincides with a market where sellers have run out of stock. This causes a large and sudden re-rating. In SCH's case there's a good 50% or more upside imho.
Canaccord today reiterated their Buy and 320p target: Https://www.thecerbatgem.com/2017/03/21/canaccord-genuity-reaffirms-buy-rating-for-safecharge-international-group-ltd-sch.html The same article notes that Berenberg also say Buy, with a 324p target.
My top up this afternoon showing as a sell. Can't believe these trade positions. This looks good value with a nice dividend GLA.
Http://www.investorschronicle.co.uk/2017/03/21/shares/news-and-analysis/news-tips-mears-group-iqe-faroe-petroleum-more-BLS6USmboHdTwTwHhnAmeJ/article.html "Processing volume - the annual amount of money handled - was up at payment company Safecharge (SCH), increasing 17 per cent to $8.09bn. This is due to increase in the coming year, with over $1bn in annualised processing volume from new clients starting in 2017. Revenues and profit were also up. Buy."
They look ahead of expectations to me in terms of EBITDA/PBT and perhaps EPS, though difficult in the latter case as SCH don't publish the adjusted EPS. The £115m cash pile and the big 16.47c dividend reinforce the value here. The outlook for 2017 is extremely bullish, and it seems to me the revised guidance for EBITDA is also ahead of current expectations: "Following a successful year to 31 December 2016 and building on the strong trading and operational momentum achieved in Q4, the Group has made a good start to 2017. Transaction volumes continue to grow in our core payment processing and acquiring platform and the Group has a strong sales pipeline. The company continues to generate significant free cash flow, which is being returned to shareholders through the company's dividend. The Directors look forward with confidence to 2017 and beyond. The Board is issuing guidance for 2017 with revenues expected to be in the range of US$115m to US$118m, and Adjusted EBITDA between US$36m and US$38m. This will be driven by continued growth from our existing client base and over $1bn in annualised processing volumes from new clients due to start processing in 2017. "
Going for it pre-results. We already know the results and outlook will be good from the trading update: "Management expects to report 2016 Adjusted EBITDA* in the range of US$33m - US$34m (approximately US$34.5 - US$35.5m on a constant currency basis**). The Board reiterates its expectation that the full year dividend will total 75% of Adjusted EBITDA* for the period. Management expects to report that the Group closed the year with more than US$124m of cash and short term investments and continues to be debt-free." "The Company remains confident that its focus on higher quality earnings from its healthy pipeline will yield continued revenue growth during 2017, building profitable momentum into 2018."
Motoring nicely now.
The two transactions represents almost 2.3% of the issued shares.
Every trade a buy so far today - £115,000 of them. The share price should get a nice leg up in the run-up to results and presentations in less than 2 weeks.
Http://www.safecharge.com/company/media-center/ "March 8, 2017 SafeCharge selected by online travel agency Anywayanyday for payment services SafeCharge continues growth in travel sector driven by demand for increased transparency in an increasingly complex market SafeCharge (LON:SCH), a leader in advanced payment technologies, today announced that it has been selected by online travel agent (OTA) Anywayanyday to provide payment services. Anywayanyday was looking to improve transparency and control around its payments, to better combat fraud and improve business efficiency. As part of the collaboration SafeCharge will be providing card acquiring, enhanced back office and financial reporting, improved resilience, with unparalleled availability, and travel-specific fraud protection. The announcement builds on the continued growth of SafeCharge in the travel sector with wins such as El Al Airlines. The travel industry is increasingly demanding, with the traditional agency model giving way to a digital-first approach with OTA’s like Anywayanyday growing rapidly. These OTAs are not only accepting payments from consumers across an increasingly multi-channel environment – especially as mobile becomes more popular – but also need to reconcile payments with their travel partners: airlines, hotels, tour operators, etc. The delay between booking the service and the use of that service (often months) creates risk as the card used for the initial booking may later be found to be fraudulent when the full transaction is settled. Furthermore, OTAs are subject to frequent fluctuations in transaction volumes, creating a need for a payments platform with continuously high uptime. Businesses operating within the travel sector run the risk of incomplete transactions, reducing bottom lines and increasing customer churn if the payment system cannot meet this need. etc"
Good to see a new client in the form of Funzig: http://www.safecharge.com/company/media-center/