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Great surge on Friday - looking very strong, and still good value imho. The IC had this to say on Friday: "'Patient investors were rewarded for investing in Safecharge international (SCH) in 2017 after the group's long-promised investment in building out its book of 'tier one' customers - large companies for which it builds custom payment platforms - began to pay off, leading to revenue growth of 7 percent. The group has been diversifying its customer base across industries to reduce regulatory risk. While transaction volumes and values have continued to rise, the move to lower-risk sectors has hit the group's margins and analysts don't expect the free cash flow yield to start rising until 2019. However, cash flow conversion has continued to rise and the group's dividend payment has remained as generous as ever. With the cash pile striped out, shares in Safecharge trade at 13 times forecast earnings, which is significantly below the multiple seen in recent years. With plenty of cash for acquisitions and rapid growth in transaction volumes, it still looks like a buying opportunity to us. BUY.'" I didn't realise SCH was Robbie Burns' (the Naked Trader's) largest holding per his comment on Thursday: "My biggest holding Safecharge continues a slow march up and looks like soon to break all time highs. Just a matter of patience here and hoping for a 400-450 takeout."
Noticed that Robbie aid this was his biggest holding but not sure I can see that from his trades, will have to take his word for it! Seems bullish and hopeful of a takeover
Don't hold your breath for a takeover - research would tell you there is a single very large shareholder who rules the roost in this company. That's one of the reasons why they are awash with cash with no obvious pressure to do something with it. All IMHO of course...
Hello strudel. you are right in what you say regarding the single large shareholder. But does that necessarily put the mockers on any possible takeover bid ? If the shareholder can make more money from it, won't they give it the green light ?
The large shareholder is unlikely to sell "their baby" as they see the future as more exciting when they keep control and get it to grow, rather than cutting and running at the first offer. Two circumstances may alter this: an utterly ludicrous offer coinciding with the moment the large shareholder is eyeing up a new project that will become the focus of their time. To be clear, I have no knowledge of either circumstance.