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]