Member Info for Ups1de

How much is the tax hit pa ! One article says circa £20m : is that the incremental hit from tax moving from 20-25%.If it is I can understand why lad has dropped so much because the PV of £20m into perpetuity must knock 20p+ off stock price,

Despite the resultant significant growth in equity base ,market has reacted very favourably so far...tempting tease in RNS on a transformational acquisition..

I'm not convinced we will see a tick up soon here.2013 results due end March/early April and they will not be good as already flagged in interims- full year revenue will be well down( maybe under £10m ) & no losses would be a result.2 large contracts went backward or were lost.Balance sheet is weak since they sold the main property asset for over £3mm& foolishly returned proceeds to shareholders ...just before declaring problems! That said there is longer term cause for optimism : credible new management team with ' skin in the game' & potentially lucrative CCTV transport system contracts to win...I just don't believe there is much likelihood of a quick announcement,Take bombardier : why rush out who the sub contractors/suppliers will be when its quite a while to assembly time?I can see C21 being marked down further at results or before as PG finally unwinds his 5-6% then the real recovery should begin.5p would tempt as an entry price.

Today's RNS :What I struggle to understand is why its biggest shareholder keeps selling at ever lower prices if the outlook is promising ?Any views?

Any feedback or insights?

Hope it works for you.On strong contract news you would get a nice spike & can sleep easy ,underpinned by the balance sheet & trackrecord.If it dipped I would be tempted.Will have to put QPP spoils to some use soon though I still see another 20% ups1de there.AIM has been much better since opening up to ISAs.

Ian,B,The cash gets added to the discounted future cashflow at the end.I would never pay full intrinsic value.Frankly I always want a significant ' margin of safety': 15-20%.we all invest to our own strategy but no way is SIM significantly undervalued....unless of course it delivers a big new contract,Decent growth & margin improvement appears priced in. Undertaking a dcf will confirm this...and the relative PE of 20 is nearly 50% bigger than median PE of 14.A very safe share with good prospects but no multi bagger.

Agree with posters that argue SIM safe but is it really overvalued....on a relative basis it already has a PE of 20.On an intrinsic basis ( remembering to translate $ earnings back at $1.64/£) & assuming decent growth in revenue & margin improvement ,discounted at 7 65% WACC ,factoring in options on top of 47m shares it only comes in around 30p.Safe yes,over valued not in my book unless it wins significant new contracts.

Hi Kaching,as ever quality insight.Im not in here...yet.I always worry when the market cap is so low( liquidity & volatility if they mis step).Nevertheless they do appear to have some momentum so a watching brief for a future punt.Cheers.

Thanks ,Kaching.What are you factoring in for the Deferred directors dues: now totalling £825,000 according to last results.Surely this blow ps the FCF performance stated out if the water?

What's the story? Any figures?

Very little downside based on the chronic undervaluation...but massive ups1de.ST in investor chronicle tipped & said that even if price doubles its still cheap.Thats my boy!

The most money is made at turning points,If the trading update delivers given the chronic under valuation we should see an excellent lift.

Not after the result in Saturday at Murrayfield!

Should see another nice spine when results issued confirming on line momentum & final dividend.

How do their products stand up to competition,Any sector experts out there!

Nothing beats the skirl of a good house pipe band

I note they hope to repair it quickly with fast growing earnings. I would hope they have ' key man ' insurance on G.Watt.He is owed nearly £4million ( against a market cap of only £1..7m) & issued a 1 year letter of commitment.In the absence of his support who would lend to this business with next to no net assets?Turnaround will take time given -5p book value & Fridays big sell of 350k shares not helpful.Certainly not one for widows & orphans and its already had a good run last 12 months.What would others value the company at?

Cheers,smudgedan.Camk would fit his brief.Hopefully we will get a positive trading update next week to turbo charge it.Lots to like here.

Why the bounce: hopefully trading update will confirm excellent online traction.Still soooo cheap on fundamentals.