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 GBST (ASX: GBT) -- Solid & EBITA Growth
GBST ASX (GBT)
Share Price Now: $1.28
Robbo’s opinion and Prediction in 21- 30 Days -- >> $1.55
Market Cap still only $55 Million and look at the growth in quarter to quarter to quarter to quarter EBITA….. and low PE of -9-10 range
**-- Also look at the Last Line on this ASX Announcement on the EBITA growth of GBT announcement…. Ie: EBITA growth is 57% for the quarer.... following previous strong quarters....: >>> For the Quarter !! Annualize that…and you get…..
Demonstrates that GBT is a highly scaleable, 'repat business' (click, click, click 24 ghours 7 days, 365 days etc... business operation with an effective Proven safe model of business operation, with Mangemnt who have now got the "runs on the board" --- IMO...
So below ... is the Impressive ASX Announcement for GBST... (GBT)
10th November, 2005
GBST announces Q1 FY’06 EBITDA up 54%
GBST – Australia’s largest provider of securities transaction processing - today announced
highlights of the group’s performance for the quarter ended 30 September 2005.
Q1 FY’06 Highlights
• Operating Revenue of $6 million up 14% from pcp,
• EBITDA of $1.75 million up 54% on pcp,
• Citigroup Custody went live on GBST’s third party clearing platform and introduced their
first client,
• Leverage Equities, went live with GBST’s Margin Lending Interface, delivering new
recurring license revenues,
• At 30 September 2005, the company had cash reserves of $7.7 million and no
borrowings.
GBST Managing Director, Stephen Lake said “Our solid growth in profitability for the
quarter reflects higher levels of trading activity than the comparative quarter and recurring
license revenues from new business. The use of specialist staff to manage client
relationships is also delivering growth in services revenue and a healthy pipeline of future
work. Our results continue to benefit from the levels of equities trading volumes however,
consistent with our peers, we can not predict future trading levels.”
In releasing these results Mr Lake commented that “GBST’s balance sheet strength upon listing, and our trading performance since, leaves us well positioned to acquire the Palion broking business and consider other opportunities. Our negotiations with OMX for the acquisition of Palion remain on track and we believe it is important for the market to understand our current financial position as we enter into this acquisition. “
- ENDS -
Results Summary Quarter to 30 Sept
2006 2005 % increase $'000 $'000
Operating Revenue 6,024 5,290 > 14%
Operating Expenditure 4,272 4,151 3%
EBITDA 1,752 1,139 54% Increase in EBITA [ ][^]
ASX Announcement and Media Release for GBST (ASX: GBT)
About GBST
Established in 1983 GBST (Global Banking and Securities Transactions) is the largest
provider of securities transaction processing in Australia and a leading provider of
transaction solutions for the financial services industry.
GBST’s core competence is real time integrated transaction processing which reduces costs
and the need for and risks to capital for a wide variety of market participants, including:
global investment banks, custodians, clearers, stockbrokers, exchanges, margin lenders,
and cash management providers.
With offices in Brisbane, Sydney, and Melbourne, GBST has around 130 staff committed to
providing advanced transaction solutions.
www.gbst.com
Contact: Stephen Lake Managing Director/CEO
GBST Holdings Limited
Phone: + 61 7 3331 5555 Email: stephen.lake@gbst.com
Or Kieran Wallis CFO GBST Holdings Limited
Phone: + 61 7 3331 5555
Email: Kieran.wallis@gbst.com
Kindest Regards,
Robbo
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GBST (GBT)
Hi ya ... absolt-advance,
Thanx for your nice comments. Always makes it more worthwhile, a token of appreciation..... and so again thanx absolut-advance .....
Absolut-advance; Just do the intrinsic 'enterprise valuation' and "Margin of Safety calcs" and future likely predictable discounted earnings on EBITA growth maths, and 'join the lateral minded other aspcects of the organisational enterprise dots', IMO... absolut-advance, we have here a Winner with GBT !--- absoluteadvance --- [][]
-- errrrr....absolut-advance .... do, IMO..... Watch the ASX announcments, But IMO only, do not sell into or sell too quick or prematurely.... this one, IMO absolut-advance, has Got a Loooong Buuurn upwards trajectory IMO......'
'----, as the Clue absolut-advance for GBT Market Cap Potential, is in:
(1) The Industry sector and market Space
(2) The 'who's who' of some of the directors (including Sundell family) :
(3) Peer Company Market Cap and share Price Rise of IWL (ASX code : IWL)
(4) Lengthy successful niche and history
(5) Fabulous consistent proftability, stability and proven success of management, year on year ROE and EBITA numbers...
.... AND....
(6) -- ****>>>>--- The veeery ..... interesting Clue in the last (IWL) ASX announcement....
ASX Announcement for GBT from: 19 September 2005
The critical sentence absolut-advance is in third para.:
namely....
" Assuming the satisfactory conclusion of due diligence, the parties expect the transaction would be completed in November 2005...." []
Kindest Regards,
absolt-advance
Robbo --
Rest of ASX announcment re printed below:
GBST IN DISCUSSIONS WITH OMX FOR ACQUISITION OF ‘PALION’ BUSINESS.
GBST advises that discussions are underway in relation to the possible acquisition by GBST of the OMX Palion broking business from OMX Technology Australia Pty Ltd (“OMX”).
GBST currently provides solutions to the Australian broker market for equity transaction traded on the ASX. OMX Palion provides a similar service for equity options. Both GBST and OMX agree there is a logical fit between GBST’s solutions and those offered by OMX under
the Palion brand.
The due diligence process is currently being undertaken and GBST is, therefore, unable to provide guidance on the financial impact of the transaction. Assuming the satisfactory conclusion of due diligence, the parties expect the transaction would be completed in
November 2005.[]
GBST will advise the market of any material developments.
- END -
For further information, please contact:
GBST
Stephen Lake
CEO and MD
T +61 7 3331 5555
F +61 7 3367 0181
stephen.lake@gbst.com
About GBST
Established in 1983 GBST (Global Banking and Securities Transactions) is the largest provider of securities transaction processing in Australia and a leading provider of transaction solutions for the financial services industry.
GBST’s core competence is real time integrated transaction processing which provides the capability to increase revenues, reduce costs, for a wide variety of market participants including: global investment banks, custodians, clearers, stockbrokers, exchanges, margin
lenders, and cash management providers.
With offices in Brisbane, Sydney, Adelaide, Melbourne, and Hong Kong, GBST has over 130 staff committed to providing advanced transaction solutions.
www.gbst.com
ASX Announcement and Media Release
------------- ends --------------------------------------------------
Kindest Regards,
Robbo
Disclaimer:
Robbo's Disclaimer:
These above expressed opinions and comments are not, and ought NOT to be construed as being in any form financial advice. They are not financial advice of any kind. These comments are only one possible subjective view, and are only a personally held whimsical and subject to change and qualification, personal opinion. These comments are not officially sanctioned and therefore are expressed only on a: 'without prejudice basis' --
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Junior Member
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Member
Nice pick Robbo. Any particular reason you prefer GBT to IWL?
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BGT verus IWL
Thanx -- One Up!
Both Good Companies and Shares...IMO -- One Up !!
However on a Comparative basis, as implied in your post's question, One Up, it is on a "Present Tense Time Basis" , that the relative undervaluendess vis a vis VALUE point of view, that there is, only..... IMO --- Now At This Current momement in time, IMO..... more Share Price and Market Up Side Increasing Growth of S/Price growth Potential in GBT.....
Two years ago One Up, would have also been very Bullish on Potential of IWL and IWL's then (2 years ago) undervalued Share Price and Market S/Price 'Up Side' vis a vis their (IWL) Increasing Growth of S/Price growth Potential.
Also it must be said, that in with IWL's recent JDV acquisition, IWL do still have stacks of nice new plusses....IMO ...
Actually I just sold a Parcel of IWL about 2-3 days ago.... But there you have it One Up.
Hope that helps 'in a balanced sort of way' -- One Up ....??
Kindest Regards,
Robbo
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Great tip robbo,
I'm gonna get into this one too.
GBT does look extremely undervalued at the current level, the sell side is ridiculously thin or what! As usual I will dig around and see what kind of articles and news I can find on GBST Holdings
____
P.S. Robbo, I regret having sold off SEN and EMI too early, but I suppose it's better to forego some extra profits than losing money (can't be too greedy I suppose)... I get scared when a share skyrockets too fast, I'm not a trader so I prefer slow but steady incremental rises! ENG looks like it's running out of steam, a nice entry point soon?.
Respect
TOMMY
Disclosure: trading in and out of many stocks, too many to update the list at the moment...
DO NOT TRUST ANYTHING I SAY OR IMPLY... USE YOUR OWN BRAIN AND RESEARCH BEFORE MAKING ANY INVESTMENT DECISIONS.
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Found an old article:
http://www.theage.com.au/news/christ...724698987.html
Veteran stockman whips up interest
Strictly Private
Christopher Webb
June 30, 2005
Hard-To-Get shares in GBST Holdings, the largest independent provider of securities clearing systems in the country, have given their owners very handy profits indeed of up to 30 per cent.
Underwritten by ABN Amro Corporate, the scrip was rationed out to fewer than 700 folk and the desired spread was achieved, with most of them holding fewer than 10,000 shares.
The float shares were handed out at $1 and on Tuesday, the first day of listing, they closed at $1.205 while yesterday they hit $1.30.
The vendors hung on to close to 80 per cent of the offering, and one other point of interest is that the outfit has a decent sort of record, unlike most of the garbage that has been foisted on punters by some in the stockbroking and merchant communities in recent years.
GBST extracted pre-tax earnings of $3.4 million on sales of $21 million last year, and for the current year the take is tipped at $4.5 million from sales of $22 million.
Not much sales growth in those numbers, but maybe there's business to be had in the 42 of the 81 stockbroking firms that are not on GBST's client list.
And adding a bit of lustre was the company's winning this week of Citigroup's third-party clearing service in Australia.
Meanwhile, most of the stock is controlled by directors in the form of Joakim Sundell, John Puttick and Stephen Lake and scarcely a recognisable name was on the share register.
But there was one, and it was none other than Sir Brent Roderick Potts, veteran deal-doer and still lining up a useful chunk of block trades as shown by his Southern Cross Equities' buying of Just Group scrip for share trader Solomon Lew.
Potts weighed in with 250,000 GBST shares, which is petty change in the Potts world but nevertheless represents one of the larger allocations of stock to an outsider.
Southern Cross placed about $4 million to $5 million of stock to institutions and the firm likes the stock.
Potts has a penchant for stocks linked to stock exchange turnover and it might be recalled that nearly seven years ago he was one of the few brokers to publish research on the Australian Stock Exchange before it listed.
Some stockbrokers made duffers of themselves by selling out far too early but Potts dubbed it a "cashed-up natural monopoly" and recommended all and sundry buy the stock up to $4.50 shortly after it listed.
GBST is obviously not in the same league, but nevertheless interesting to see the master broker on the list.
Respect
TOMMY
Disclosure: trading in and out of many stocks, too many to update the list at the moment...
DO NOT TRUST ANYTHING I SAY OR IMPLY... USE YOUR OWN BRAIN AND RESEARCH BEFORE MAKING ANY INVESTMENT DECISIONS.
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