Finzsoft Solutions

[Lawso]

The incompetence of NZ Herald business journalists never fails to amaze me. This morning they report that FIN, one of the minnows of the local market, "has reported a 42.4% rise in first half earnings to $3.8m!! FIN's a good little outfit but not that good. The above figures actually refer to operating revenue! Ebitda was $664,000 and the net surplus was $195,000 ($16,000 a year earlier). Why can't they get it right?

That said, FIN seems to be heading (slowly) in the right direction. The half-year announcement is on
www.nzx.com/market/market announcements.

On the same page of the Herald today there is a huge climbdown over Ralph Waters of FBU. Yesterday they filled most of the first page of the Business section with a story speculating on who would succeed him when Waters retires next year. Today they are obliged to quote Waters as saying "There is no basis for the view expressed that I will be leaving next year. . . . Board and health willing, I expect to be around next year."

Oh dear, oh dear, can we believe anything we read in the Herald?

[boatie]

Yes - saw that NZ Herald misprint too. But with Finzsoft revenue up 45%, trading at a true profit, and expanding overseas, FIN while still small at least run a sound business operation - a bit of a change from most technology stocks we have seen in recent years. They dont say much, but their July announcement listed some of their new clients including St George Bank in Australia. Worth a small punt.

[Lizard]

Maiden FY NPAT. Not much else to get excited about. I was expecting $300k, but only came in at $170k. Talk of "capital raising" for overeas expansion has dissipated and they are now making noises about possible future dividends.

Did an extensive internet search earlier this week to see how they were going and turned up...nothing new... Listed in a zillion on-line software supplier catalogues. And, oh yes, they are exhibiting at a auto-financing conference in the US in June.

Looks to me like they have run out of new customers in NZ and finding it near impossible to take off-shore. Could be wrong...

[Lizard]

Well, a non-announcement out about NZ business - possibly to keep the share price from slumping any further prior to the agm. Need to see some new offshore business coming in - after all, they have said themselves that they have pretty much got the NZ market covered and need to go offshore to grow. Still, got some steady cashflows from annual fees so I'm not writing them off yet. Just like to see some proof that they can grow this business further.

Discl: Hold a few - but not as many as I once did

[boatie]

Growing steadily, new projects in announcement being completed, no debts, expanding overseas, and actually making a profit - not so bad in a tough business (IT) where we have seen few NZ successes. Must be doing something right. Yes, still small but maybe......

[ananda77]

<center>Extreme Caution is the Name of the Game here!!!</center>

The most successful bakery is one which can convince a million customers to buy 1 Variety of Bread every day 365 days a year.

If a bakery has 1 million customers and supplies 1 million varieties, what does that do to the profit????

Kind Regards

[Lizard]

Well the HY result deserves comment because it saw announcement of a maiden interim dividend of 1.5cps, which should certainly see some support under the price - especially if it is matched by the final dividend.

The result itself was somewhat non-descript - slightly down on last year, but with hopeful noises regards the second half. What was more positive was the mention of two operational installations in Australia. This is significant as there are major hurdles to transposing finance software to a different legislative regime and therefore the fact they have achieved this is very positive for further growth.

This company has been steadily and consistently well-managed since floating. However, the shares are so illiquid they might as well have been unlisted... but I like them and am comfortable holding a few. My valuation is $1.50 (last traded at $0.70).

[Lizard]

I try not to post on this stock too often, as so illiquid that it takes a patient investor to build a position. However, excellent announcement today regards contract to supply St Georges Bank. The tailoring of their finance product to Australian market successfully is a great step forward and opens up a large potential base of new customers. This company keeps a low profile on reporting, but regular checks on their web-site have showed things moving forward.

Unfortunately, the company is so illiquid, that sellers are hard to find... but am glad I took the chance to increase my holding again earlier in the month.

[Lizard]

Looks like a good result. Turnover up 12%, trading profit up 73%, NPBT up 136%, but NPAT is ???. Final dividend of 2cps. Continuation of current growth and dividend policy predicted for coming year.

Assuming tax normal, eps is 7.3cps, current P/E is 14.9, gross yield is 4.7%. Not bad for a little company just breaking into the big Australian market. My valuation is well north of current sp.

[Lizard]

Being my spec pick in the Investor contest, FIN has chosen to wait until PT closed the contest to make its run for the year. Up 40cps in the last month to $1.30 and no sellers. Something must be up...

(I know it is pointless mentioning this when it is not possible to buy any!) [:I]

[Lizard]

Partial takeover offer at $1.30 - now that's a new development. (Prior sp $1.05, with buyers at 80cps)

Said the other day that they are expecting to only break even for year to 31 Mar 07 due to increased costs of developing Aussie market, but mentioned getting one new contract recently. Slow, slow progress so far, but they are cheap enough to sit on and wait. Would be nice to know why the MD wants out of his holding though...

[boatie]

mmmmmmmmm A partial bid to all shareholders at $1.30. I assume Directors will need to have an independant valuation of offer done. Interesting. What happens if that is higher ? Lower ? Or a new bid comes in ??

[Lizard]

New M.D. for Finzsoft:

The Board of Finzsoft Solutions Limited (FIN) today appointed Keith McLaughlin to the position of Managing Director of the company with effect from 5 November 2007.

Chairman, Don Hattaway, today said that the Board was very pleased to have attracted a leader of Keith's stature to take Finzsoft into the next stage of its development and expansion in Australasia.

As was announced in June, the current Managing Director and founder of Finzsoft, Barrie Shannon, steps down from the company and its Board with the appointment of his successor.

"The Board thanks Barrie for his vision, leadership and courage in taking Finzsoft from an embryo in 1986 through its public listing. The recent sale of shares to Pi Capital Investments (FS) Ltd is the beginning of a new phase of growth," says Mr Hattaway.
Keith McLaughlin was Managing Director of Baycorp Advantage on a fixed term appointment between December 2001 and June 2004.

He was Managing Director of Baycorp Holdings, a provider of credit solutions, between 1996 and 2001. Baycorp Holdings was a NZSE Top 10 company, also listed on the ASX with a pre-tax profit of $35 million in 2001.

In 2001, Baycorp merged with Data Advantage in Australia and formed an integrated Australasian and Asian financial services business with a pre-tax profit of $45 million in 2003.


Interesting choice of company for Keith McLaughlin to take on. Not sure what he has been up to in the intervening 4 years since leaving Baycorp. Any comments?

[spike]

Any one keeping an eye on Finzsoft ?

[percy]

Yesterday FIN reported a very good result.
14% growth in revenue to $8.8mil and 172% growth in profitability to $410K.
Big commitment to research "and a growing pipeline of opportunities."
Revenue is 58% NZ and 42% Australia .
Looking for opportunities in Asia;"we have a number of well advanced sales opportunities which we are confident will translate into material levels of revenue and profitability in the near future."
Only 8.3mil shares at 42cents gives a very low market cap of $3.486mil .PE of 8.7.
I feel they are "well positioned."!!!!!

[Lizard]

Well since percy and I have cleaned up all the stock on offer, you may have to wait for the next bored shareholder to offer some in a few months time... :D

Seriously, I'm undecided on FIN - they always seem to have such promise, but have gone around in circles since listing in late 2000 - first buffeted by the tech wreck and then by the demise of their clients, Finance Companies. In the meantime, they have changed management on a regular basis and I have no idea what the credentials of the current bunch are like. However, would have to think that they look fairly cheap (if illiquid). And there is always the possibility that RFL:ASX may like to pick up the other 80% they don't already own at some stage.

I rode them from 40cps to about $1.20 some years ago, so am having a wee gamble on being able to repeat the performance...

[percy]

Take over at .4546 cents.????
Lizard,it would appear we are "well positioned."

[percy]

Nice big order from St.George Bank to start the year off nicely.
Did not accept the takeover offer,and have been expecting a capital raising.

[Lizard]

I liked this bit:
"Finzsoft’s current contracts, including this roll out, could see Finzsoft’s current revenue increase by up to 50 percent in each of the next two to three financial years."

I presume he means 50% pa?? Nice $30m revenue in 3 years time... c'mon Percy we could surely forsee this on the same P/S ratio as XRO - okay, growth rate is only half that of XRO so we'll settle for half the P/S ratio :). (Gets out calculator purchased from "hotcopper")...I make that $243 per share... :D:ohmy::lol:

[percy]

I liked this bit:
"Finzsoft’s current contracts, including this roll out, could see Finzsoft’s current revenue increase by up to 50 percent in each of the next two to three financial years."

I presume he means 50% pa?? Nice $30m revenue in 3 years time... c'mon Percy we could surely forsee this on the same P/S ratio as XRO - okay, growth rate is only half that of XRO so we'll settle for half the P/S ratio :). (Gets out calculator purchased from "hotcopper")...I make that $243 per share... :D:ohmy::lol:

Gee whiz!! Nearly choked on my Milo.!!!
You have a great way with figures.!!
I eagerly await further updates from you.!!! $243 per share.!! ???
Please don't tell Pie Funds or Milford until I have topped up.

[Lizard]

Gee whiz!! Nearly choked on my Milo.!!!
You have a great way with figures.!!
I eagerly await further updates from you.!!! $243 per share.!! ???
Please don't tell Pie Funds or Milford until I have topped up.

Hey be polite, percy, leave some for moosie... your $2k of shares already gonna be worth $1.2m in 3 years... :p

[percy]

Right Moosie.
You have tomorrow morning after 10.45am to yourself.
Then it is open hunting season.!!!
ps.Warning! I have plenty of ammo.!

[percy]

Moosie,
You are da man,sorry da Moose.
Lead us to pastures green.
We will follow willingly.[well up to $36 a share].

[percy]

Moosie,
You are da man,sorry da Moose.
Lead us to pastures green.
We will follow willingly.[well up to $36 a share].
Will hold off loading the buckshot until noon.

[Lizard]

Well, we have a bid at 55cps. Quite a queue of bidders for once.

Ideally, FIN should announce an spp about now, just so we can get enough to sell! From memory, they've been promising to increase liquidity since about 2003... when they were supposed to get at least 500 shareholders in order to be allowed to stay on the main board after they graduated from the NCM on special terms. Instead, shareholders have shrunk to just 157 at last report (and why do I have to go to the Companies Office to find it? C'mon Finzsoft, update your investor relations page!). Actually, there may be even fewer shareholders since the takeover offer...

C'mon percy, call them up and give them some helpful advice :D

[percy]

No.
Last time I rang Mr.Holliday I found him difficult to talk to.
Maybe friendlier at an agm?

[Lizard]

No.
Last time I rang Mr.Holliday I found him difficult to talk to.
Maybe friendlier at an agm?

Good idea. Maybe this year we should both go along and double the numbers. :)

[percy]

Good idea. Maybe this year we should both go along and double the numbers. :)

Great idea.!!
Just need Moosie on board to ask all the interesting questions you have thought up.!!!

[Lizard]

Looks like all the bidders gave up and went home (except perhaps Moosie, still hanging in there at 55cps :) ). Pity nobody actually wants to sell any below 95cps, so we're still stuck with a last traded price of 42cps.

Long wait between drinks for us here, percy. :eek2:

[percy]

Looks like all the bidders gave up and went home (except perhaps Moosie, still hanging in there at 55cps :) ). Pity nobody actually wants to sell any below 95cps, so we're still stuck with a last traded price of 42cps.

Long wait between drinks for us here, percy. :eek2:

Makes us enjoy them even more.!! lol.

[Lizard]

What gives? After weeks of unsuccessful buyers trying to get them in the 50's and falling off the bid against a seller at 95cps, somebody comes out and sells at 30cps? Felt sorry for them and helped them out. :ohmy:

[percy]

What gives? After weeks of unsuccessful buyers trying to get them in the 50's and falling off the bid against a seller at 95cps, somebody comes out and sells at 30cps? Felt sorry for them and helped them out. :ohmy:

Great to see you doing "charity work" helping people out by taking their "hopeless shares" off their hands.
I have decided to join you in this "community spirit service" by offering to take FIN shares off people's hands too.
Here to help.!!

[kiora]

1000 shares :was it worth it ? :mellow:
What gives? After weeks of unsuccessful buyers trying to get them in the 50's and falling off the bid against a seller at 95cps, somebody comes out and sells at 30cps? Felt sorry for them and helped them out. :ohmy:

[Snow Leopard]

Gosh, an actual trade for FIN, first since 3rd-Sep-2013.

So what do you actual do now - is there some sort of wild party thrown?

Best Wishes
Paper Tiger

[Lizard]

1000 shares :was it worth it ? :mellow:

Far bigger than that! I got the second parcel of 1757. :D.

Fortunately, I can add them to the ones I already have. Besides, the next seller is at $1, so when the price jumps to meet the next seller, the brokerage will be more than covered... :t_up::p:cool:

(actually, I could sell them at 45cps right now and I think it would do it...)

[kiora]

Then there would be a price enquiry :)
Far bigger than that! I got the second parcel of 1757. :D.

Fortunately, I can add them to the ones I already have. Besides, the next seller is at $1, so when the price jumps to meet the next seller, the brokerage will be more than covered... :t_up::p:cool:

(actually, I could sell them at 45cps right now and I think it would do it...)

[percy]

Yesterday FIN reported a very good result.
14% growth in revenue to $8.8mil and 172% growth in profitability to $410K.
Big commitment to research "and a growing pipeline of opportunities."
Revenue is 58% NZ and 42% Australia .
Looking for opportunities in Asia;"we have a number of well advanced sales opportunities which we are confident will translate into material levels of revenue and profitability in the near future."
Only 8.3mil shares at 42cents gives a very low market cap of $3.486mil .PE of 8.7.
I feel they are "well positioned."!!!!!
Above posted 31/5/2013.
Today's announcement has moved us from "well positioned" to "poised." lol.

[Lizard]

Yes, looks like $700k NPAT... not unexpected, but a nice increase anyway.

[Lizard]

Another work order for St George and looks like there will be a steady trickle....where are you percy? Thought you'd be onto this bit of hot news. :p

[percy]

Exciting stuff.Yes made my day.!!
I note the only seller has 882 shares for sale at 95 cents,while the first buyer wants 30,000 shares at 60 cents.
The extra sales may mean there is no need for extra capital to fund Asian expansion?

[percy]

Another good contract,this time with NZ Credit Unions for mobile banking.

[percy]

From yesterday's announcement;
"materially increase the company's shareholder base,increase liquidity whilst continuing to examine options including a combination of new equity and debt."...........Interesting.
PSI.While I was disappointed there was no use of the word "significant" in the announcement,I found the following rather exciting,and think it could replace "significant" as our "insider" buy signal;"It's rich FUNCTIONALITY DRAMATICALLY improves EFFECTIVENESS and EFFICENCY though automated and paperless processors ." Great stuff.!!!!

[Joshuatree]

Could just be their PR guy percy just back from the Seychelles and keen as a whirling dervish to get some copy going to earn some filthy lucre for his/her next trip:) ps you could also emphasise..... "GREAT STUFF"

[Lizard]

I never understand it - virtually every year they have talked about raising new capital to increase liquidity. Then they manage to rake in cash, even while they are spending a huge chunk of takings on R&D, while still having a market cap that is half their revenue and therefore hardly worth raising capital on.

Every year, I wonder do they talk about capital raising because they actually intend to do it, or simply in order to please someone in the NZX, given they promised to increase shareholder spread when they got a waiver (http://www.stocknessmonster.com/news-item?S=FIN&E=NZSE&N=88349) on the spread requirements to migrate from the New Capital Market to the NZX instead of going NZAX?

[percy]

I never understand it - virtually every year they have talked about raising new capital to increase liquidity. Then they manage to rake in cash, even while they are spending a huge chunk of takings on R&D, while still having a market cap that is half their revenue and therefore hardly worth raising capital on.

Every year, I wonder do they talk about capital raising because they actually intend to do it, or simply in order to please someone in the NZX, given they promised to increase shareholder spread when they got a waiver (http://www.stocknessmonster.com/news-item?S=FIN&E=NZSE&N=88349) on the spread requirements to migrate from the New Capital Market to the NZX instead of going NZAX?

"This time it is different?!" lol.

[Lizard]

Good idea. Maybe this year we should both go along and double the numbers. :)

I see the agm is 27 August in Auckland... hope it's in the diary, percy! (You will have to take my proxies now that I'm a wage slave though). :D

I see we got a good run today - $3,600 through at 72cps...will give XRO a run for their money soon. :p

[percy]

It is in my diary,but don't think I will make it.
I was slow off the mark today.Saw the 5000 shares come up for sale.
By the time I worked out the PE at 72cents would only be 7.93,and relooked at the balance sheet and statement of cash flow, they were gone.!!

[spike]

In 2005 I purchased my first fin shares at $1.25 It is good to see after 9 years the share price is now above my initial purchase price.

[Lizard]

In 2005 I purchased my first fin shares at $1.25 It is good to see after 9 years the share price is now above my initial purchase price.

Oh dear... I was tickled by my 70% gain today (at least on paper) and now I'm feeling guilty... looking back at some of my 2005 posts on this thread, it is possible I sold some to you... although I don't think I sold the last ones from my previous holding until after the partial takeover offer in 2006.

Oh well, at least we are on a roll for now - percy has spent $4,500 to make my day :t_up:

[spike]

Oh dear... I was tickled by my 70% gain today (at least on paper) and now I'm feeling guilty... looking back at some of my 2005 posts on this thread, it is possible I sold some to you... although I don't think I sold the last ones from my previous holding until after the partial takeover offer in 2006.

Oh well, at least we are on a roll for now - percy has spent $4,500 to make my day :t_up:

That all right I have purchased a few over the years with the lowest being 17c

[percy]

Oh dear... I was tickled by my 70% gain today (at least on paper) and now I'm feeling guilty... looking back at some of my 2005 posts on this thread, it is possible I sold some to you... although I don't think I sold the last ones from my previous holding until after the partial takeover offer in 2006.

Oh well, at least we are on a roll for now - percy has spent $4,500 to make my day :t_up:

Not so.!!!!!
Sold a few yesterday at 88 cents and a few more at $1 today.Only have a few left.[enough to take part in any SPP should they raise capital.] I paid 42cents per share for my shares.

[Lizard]

Not so.!!!!!
Sold a few yesterday at 88 cents and a few more at $1 today.Only have a few left.[enough to take part in any SPP should they raise capital.] I paid 42cents per share for my shares.

:eek2: Out already? It's only just broken out of that decade long trading range! I have 6757 at an average entry of 38.88cps... so, nevermind percy, one of us will be able to afford the drinks at our next meeting...

...I'm just not sure which one yet.

[percy]

:eek2: Out already? It's only just broken out of that decade long trading range! I have 6757 at an average entry of 38.88cps... so, nevermind percy, one of us will be able to afford the drinks at our next meeting...

...I'm just not sure which one yet.

Well I only managed to buy 9000 at 42cents.[cost $3780] sold 4,000 at 88cents [$3,520] and 3000 today at $1 [$3,000]
So total cost $3780 and sales of $6520 means I am ahead by $2740 or 72% and still have 2000 carried free.
"Well positioned."
Think we both will be able to afford a few drinks at our next meeting.Looking forward to it.

[Lizard]

Acquisition of Sush Mobile for $1.9m, with a bit of minor dilution in a year or so. We still only have a market cap of just over $10m at $1.30/share. Good to see things happening here at FIN and a bunch of talent on board to boot. Here's hoping that "profitable" is used here in the traditional sense. ;)

Sush Mobile is a proven, successful and profitable mobile provider. The acquisition of Sush Mobile will provide adiversified income stream for Finzsoft along with access to comprehensive in-*‐house enterprise mobility solutionsthat will give us a competitive, innovative edge, and a positive material impact both on revenue and bottom-*‐line.

[percy]

As my doctor would say,"good to have a movement." !!!!!

[Lizard]

Nice announcement today... secured largest ever work order and earnings forecast is for 4 times pcp.... so even with the price jump to $1.74 on that news, the forward PE may still be under 5?

PWC engaged to review of capital structure to improve liquidity as well, although I think if they keep justifying a higher market cap through earnings, these things tend to be self-fulfilling. Having said that, I don't plan to contribute to liquidity by selling any in the short term...

[percy]

Loved chairman's Brent Impey comment;"notwithstanding a 233.33% increase in FIN's share price over the past three quarters,the board still believes the instric value of the company is not fully reflected in the company's share price." !!!!!!

[percy]

The Dow being down over night, has meant only a muted rise for FIN today!! up 80cents or 46% to $2.54. lol.

[Lizard]

The Dow being down over night, has meant only a muted rise for FIN today!! up 80cents or 46% to $2.54. lol.

Nice and a solid Board appointment to boot.

Better go easy on the celebrations tonight though - after last nights wine, I managed to mishandle a sharp knife while doing dishes and the results weren't pretty...:ohmy:

[percy]

Nice and a solid Board appointment to boot.

Better go easy on the celebrations tonight though - after last nights wine, I managed to mishandle a sharp knife while doing dishes and the results weren't pretty...:ohmy:

Does not sound good.
May pay to increase the wine tonight, and avoid the kitchen!

[Lizard]

Well, while the fingers are struggling, I am using the ears instead. :) .. worth listening to the short interview clip on this mornings RNZ business news:

http://www.radionz.co.nz/search/results?utf8=✓&q=finzsoft

[BFG]

Whose holding 10 baggers now?

[percy]

Well I only managed to buy 9000 at 42cents.[cost $3780] sold 4,000 at 88cents [$3,520] and 3000 today at $1 [$3,000]
So total cost $3780 and sales of $6520 means I am ahead by $2740 or 72% and still have 2000 carried free.
"Well positioned."
Think we both will be able to afford a few drinks at our next meeting.Looking forward to it.

Luckily the fun started after the get together on Tuesday night,otherwise I may have had to dig deep.!
Still holding the 2000 carried free ones.

[Lizard]

Whose holding 10 baggers now?

Not yet. Let's see what strategy they use to increase liquidity. Maybe the 19.97% that RFL:AU have been holding could be put to market?

[Lizard]

Getting a bit overweight and another terms school fees to pay... sold 1000 at $2.45.

[percy]

Well I only managed to buy 9000 at 42cents.[cost $3780] sold 4,000 at 88cents [$3,520] and 3000 today at $1 [$3,000]
So total cost $3780 and sales of $6520 means I am ahead by $2740 or 72% and still have 2000 carried free.
"Well positioned."
Think we both will be able to afford a few drinks at our next meeting.Looking forward to it.
And so it has come to pass, that I must say farewell to FIN,thanks to Lizard and FIN for a wonderful ride.I sold out last week at $2.35 per share, and recycled the funds to buy 5000 CNI on the ASX at 90 cents.

[Lizard]

From yesterday's half year result:


On a like for like basis, excluding any net profit after tax or revenue from Sush Mobile, Finzsoft Group reports a net profit after tax of $1.981 million on revenue of $7.603 million. As above, this compares to a reported small loss after tax of $(0.063 million) and sales of $4.199 million for the same period of the prior year.

Finzsoft Managing Director Andrew Holliday said: “Based on the current contracted revenue and pipeline opportunities for the year ending 31 March 2015, we will materially exceed our previous profit guidance of four times last year’s profit result”


In light of the excellent first half financial performance, as well as the expected full year financial results for the year ending 31 March 2015, the Board expect to announce that Finzsoft will pay an interim dividend. The Board are meeting in early December to consider this matter and the decision on the interim dividend will be announced after that meeting.

So we might be looking at a full year of at least $3.5m then - or a forward PE around 6.9 at current price of $2.82. Plus we will have a dividend.

Wish you were still here, percy - your CNI may have trouble keeping up. :p

[percy]

Certainly looks that way.
May be gone from FIN,but left will happy memories and a nice profit thank you.

[spike]

Getting a bit overweight and another terms school fees to pay... sold 1000 at $2.45.

I'm a bit overweight in Finzsoft as well but still holding as it is an interesting ride and I fell that the share price will rise a bit more.

[blackcap]

well done and spotted Lizard and other holders. I had this one on my radar about 10 years ago but never got on board. Feeling a bit foolish now for not having a small nibble at least.

[Joshuatree]

WOW 40% gain so far TODAY!!!

[BFG]

PE of only 11 still. Fundamentals finally showing up in the share price. This is a perfect case of an undervalued asset finally being realised at rational values.

Lizard will be opening another bottle of Moet no doubt tonight!

[spike]

WOW 40% gain so far TODAY!!!

Looks like people are starting to notice the company http://www.stuff.co.nz/business/industries/63708930/finzsoft-rise-suggests-money-to-be-made

[Lizard]

well done and spotted Lizard and other holders. I had this one on my radar about 10 years ago but never got on board. Feeling a bit foolish now for not having a small nibble at least.

Well, I'm feeling bemused... I knew they were cheap, but the Xero comparisons a few months back were more of a joke than anything. :ohmy: Have sold another 2000 at $3.99, which pays for Christmas... and am adding it to the "ten-bagger list". Will still hold the other half, but this is not yet "quality" stuff.

Don't worry, blackcap - a small nibble was all you would have been able to sensibly pick-up!

I did extend myself to drinking half a bottle of $7.99 Ohau Gravels Sauvignon Blanc from the local New World, which is also well and truly under-valued and at least a 3-bagger in the taste department...:)

[noodles]

Operating cashflows were only $815,000 compared to profit of $2,023,000. This can be explained by the high level of Receivables- $2,805,000. This is very high compared to Revenue - $7,685,000. So keep a watch on this. I understand the company has a major customer that most of the revenues are derived from (St George Bank).

[Lizard]

Still... $6.40 now.... not sure how long the share price can keep going up at 20%+/day. Going up faster than the runner beans... :eek2:

[dingoNZ]

Finsoft - WOW.

Congrats to all holders, fantastic performance

[Harvey Specter]

Not sure why the Board would welcome a takeover at a 48% discount?

Anyone understand this?
http://www.nbr.co.nz/article/finzsoft-boss-make-discounted-takeover-bid-silverlake-bd-166936

[BFG]

Not sure why the Board would welcome a takeover at a 48% discount?

Anyone understand this?
http://www.nbr.co.nz/article/finzsoft-boss-make-discounted-takeover-bid-silverlake-bd-166936

This price makes absolutely zero sense. If they're "taking it to the next level" and the PE is below 20, why the hell would they pay a discount for it?

I hear another Frankenstein in the house...

[Lizard]

Yep, was something odd going on here... oh well, still will end up with 10-bags average on this one. Just concerned about the way they did this - something here was not legit and would have to suspect there was more churn involved than percy and I accidentally provided!

[BFG]

Yep, was something odd going on here... oh well, still will end up with 10-bags average on this one. Just concerned about the way they did this - something here was not legit and would have to suspect there was more churn involved than percy and I accidentally provided!

I already know the SHA is getting 2 letters about this debacle!

[spike]

This price makes absolutely zero sense. If they're "taking it to the next level" and the PE is below 20, why the hell would they pay a discount for it?

I hear another Frankenstein in the house...

As the major share holder is changing the way that they invests in finzsoft it may require a takeover offer as the transaction is larger than 20%. A low price could mean that they do not have any plans to take over the company as people will reject the low price.

[percy]

Take over at .4546 cents.????
Lizard,it would appear we are "well positioned."

Above posted 06-09-2013.
Would appear Holliday Group have done rather well?
Selling down at $3.00 will mean they "have covered costs."

[Lizard]

As the major share holder is changing the way that they invests in finzsoft it may require a takeover offer as the transaction is larger than 20%. A low price could mean that they do not have any plans to take over the company as people will reject the low price.

Yep, think this is the third time there has been a lowball takeover offer/partial offer for FIN to facilitate change of majority holder? Funny, because they are always promising more liquidity and then end up by consolidating the majority shareholding further. In this case, the share price inflation to get to an agreed price? Hard to believe it was simply a convenient market re-rate...

[Baa_Baa]

So as FIN at $3.30 today rapidly approaches the $3.00 takeover offer price by Silverlake (the new entity Silverlake HGH Limited), accepted by Mr Holliday for his 66% of the company, what are the probable scenarios from here?

Jan9'15 http://www.stuff.co.nz/business/industries/64798510/finzsoft-takeover-two-years-in-the-pipeline
Impey said it was too early to comment on the position of minority shareholders. "Just wait until the offer before we address that issue - that's speculative," he said.

Dec 19, 2014 https://nzx.com/companies/FIN/announcements/259146

[Lizard]

I think this is not a safe place to stay. Majority shareholder is in control in all aspects - I am sure he will be doing his best to get whatever it is he wants. I'm not sure how a stock that is as tightly held as Finzsoft and seemingly well capitalised, should so be in need of a "cornerstone shareholder". There seems to be a fair bit of rhetoric around. Although I still hold a few, I don't think this is a good space to be playing - not unless you know more about what the majority shareholder really plans than I do.

[Lizard]

Forcing the price down? I would say he has spent a year talking it up! I don't think "cheap" can be determined from one years results and one forecast, particularly given they seem quite dependent on just a few customers for the bulk of revenue. My bet would be that he benefits more from a good sale price than from a cheap takeover, but it is difficult to tell what the long term arrangement is here.

[forest]

Takeover Notice Pursuant to Rule 41 of the Takeovers Code
2:05pm, 28 Jan 2015 | TAKEOVER
Silverlake HGH Limited
C/- Harmos Horton Lusk Limited
Level 37, Vero Centre
48 Shortland Street
AUCKLAND 1010

28 January 2015

Finzsoft Solutions Limited
Level 2, Northern Steamship Building
122-124 Quay Street
AUCKLAND 1010

By email: nadine.baker@finzsoft.com / frances.renwick@finzsoft.com

TAKEOVER NOTICE PURSUANT TO RULE 41 OF THE TAKEOVERS CODE

Silverlake HGH Limited hereby gives notice pursuant to Rule 41(1) of the Takeovers Code of its intention to make a full takeover offer under the Takeovers Code to acquire all of the equity securities in Finzsoft Solutions Limited.

Attached to this notice are the terms of the proposed offer, including:

- the information specified in Schedule 1 to the Takeovers Code which is required to be contained in, or accompany, this notice (stated as at the date of this notice);

- the signed certificate required under clause 19 of Schedule 1 to the Takeovers Code; and

- the independent adviser’s report required under Rule 22 of the Takeovers Code.

We look forward to receipt of the Class Notice in accordance with Rule 42A of the Takeovers Code.

Yours faithfully

Kwong Yong Sin
Director

Andrew Holliday
Director

Copy to:

NZX Limited
Level 1, NZX Centre
11 Cable Street
WELLINGTON 6011
By email: announce@nzx.com

Takeovers Panel
Level 3, Solnet House
70 The Terrace
WELLINGTON 6011
By email: margaret.bearsley@takeovers.govt.nz

Attachments
Takeover Notice Pursuant to Rule 41 of the Takeovers Code
Attachments are available on nzx.com for six months from the date of release. NZX o

If FIN would have been on the NZX I believe Fin would have been forced to engaged a independent valuation of the company.

However FIN is not on the NZX but the alternative exchange. Anybody knows if an independent value of the company is forthcoming?

[zigzag]

Forest - My impression is that FIN is listed on the main board, and that the independent directors will provide an independent report. Is this just a compliance offer, or a serious attempt to get 100% of the company? I have already sold my shares, so my interest is purely academic.

[forest]

You are right ZZ FIN is on the main NZX. (Why did i think it was on the NZAX ?). So we can expect an independent report. I would expect the valuation to be north of $3.00.
Is this just a compliance offer or serious attempt, time will tell but the price offered seem to point at the compliance, being less then what it has traded at from the 1st of Dec 2014.

[Lizard]

I think compliance... but I also think a chance that Rubik will fold and take the money on this one. From my perspective, the interests of the new majority shareholder are too murky and I'm not sure what is to stop them from discreetly transferring across the more attractive parts of the business to Silverlake HGH and thence to Silverlake Axis?

[Baa_Baa]

It's certainly a distraction and hasn't helped the share price at all. Looks like the owner wanted a handsome payout and to be part of a bigger picture, though loss of direct control means this company could go any which way under new ownership influences, or even cease to exist in it's current form.

I'm not very happy about picking it for the 2015 sharepicks contest, but [disc] I don't own it, it was one my 'promising techs watchlist' and I was a bit busy working on my melanomas in the sunny Hawkes Bay to change my pick before the contest closed.

I hope it works out for holders. If it does, I'll be buying when the dust settles.

[percy]

Tin Hunter has written an article on FIN in today's Sunday Star Times.
Conculsion;"I think Holliday and the Finzsoft board have made a promising deal with silverlake that could take the company to another level."

[pennyacw]

anyone have any update on the takeover offer. Company looks fantastically priced at the moment, but last I herd was the MD was buying the company at $3?

[heisenberg]

Awfully quiet on the Finzsoft front... anyone monitoring their progress?

[heisenberg]

Considering current depth (only sell offer at $1 over current SP) I suspect not!

[Jerry]

Anyone have a fresh opinion on Finzsoft after the 30th Aug announcement? I am still cautious of buying into something that is controlled from overseas, even though the management team are very well qualified.

[hardt]

I really like the look of Finzsoft.

A whopping total of <3% of outstanding shares on the market to play with... why buy a stock that isn't going to move :(

Anyone holding this one?

[PLYNCH]

Anyone know what is going on?