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Howdee there Thereslife:
That's what I need: A restraining Force of: "Objective"[:o)][:o)] equilibrium to my irational exubrance...sort of the way, Buffett says Charles Munger has been in His Investment partnership---although of course; it does go without saying that putting B and me in the same sentence; is Totally insulting to B and also sheer foolish Heresy.
Me .... to Buffett is so crudely laughable; like comparing a micro piece of one granule of sand; to all the Worlds's Desert and Beaches Sands of financial Wisdom... I know I'm not even one-thousandth of one trillionth of one zillionth; the size of a bees d*&(@@*k ...compared to Buffetts incomparable investment Genius !! [:I][:I][:I]
Actually...thereslife; your post was excellent and given me a little rare glimpse into your Investment Philosophy !! What I fundamentally ADMIRE: is your able to say the Word "No".
That alone will potentially make you very successful and rich !!
Your voice; thereslife is the voice of playful, tempered reason; wholesomely reminding me to check "the barometer and look at the true financial teperature. What I love about you thereslife, apart from your legs !![:X]--[} ][}]--IS that you are never going to be like talking to my barber, and asking him if I need a hair-cut !!
Or to put it another way; therelife; harkening back to the Wisdom;seen in many parts of the Old Testament Good Book, in such wisom seen in Ecclesiastes, Joshua, Deuteronomy, Proverbs, Job...but in this case Genesis...
Your like Noah in the ominous time.... when only Noah could see the "wood -from-the-trees";...when really: "predicting rain does not count, but building a good solid workable Ark certainly does...."
So why do we agree to disagree(and note, that very possibly, and likely; your interpretation is more reasonable & credible than mine on this occasion) about the perceived "Margin-of-Safety" with Objective Corp....
Here's my basic take on the OCL fundamentals from where I sit:
(1)-Immediate cash liquidity for Objective Corp is sound--IMO
(2)-- Objective Corp....--IMO--has a good structure of not too high and manageable borrowings between short term and long term financing instruments--again IMO...--so Current liabilities to Total liabilities is well spread/managed --IMO...
(3) Following from (2)--the gearing of Objective Corp.... b/w debt and equity is very conservative(from my interpretation of conservative....)--so Total liabilities to total assets is good--again IMO...
(4) Related to my comment re. (1)--Objective can readilly meet short term cash flow commitments: and this margin of safety is excellent; and pertinent to issue of margin of safety for Objective....
(5) Assisting the Margin of Safety in my view Thereslife; ...which I argue is v.good indeed for Objective; is the Level of Retained profits; and the level of funding held by Objective as Cash At Bank from retained Earnings....
(6) Regarding the price to earnings ratio: look at the PEG ratio; only 014 !!--very low for such a historical year on year strong Earnings record company..!!
(7) EPS growth is north of 150% !!while EPS (earnings per share has risen from 1.57 cents per share to now 4.04 cents per share; while net operating profit is up over 230 % !!--for Objective and Return on Shareholders money//ROE is a very very high 57 % !!
(8)--futhermore I have down field trips...and much snooping around to suss out Objective and its competitors/suppliers "space in which it operates" etc--and PERSONALLY --and I stress personally; am vcomfortable with what I see...for myself....
So, if share price is now .88 cents having been at $1.04...and one has say $100, 000 Invested--at this new entry price; and S/Price returns to just previous levels; then one mak
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Member
Fair enough Robbo.
Be careful though, Using the PEG ratio can be a big mistake where past growth is no indication of future growth.
You might do very well out of OCL. But for this to happen, they will need to win another contract the equivalent to, or better than, the contract with the Scottish Parliament.
The PE ratio is at the point where if they don't produce 30-40% EPS growth, the stock price will probably trend down.
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Objective Corp (OCL)
Took Some good v good Profits at just around $1.00...think it was mid December before the Chrissy 'hols....(thank-you and kind regards to thereslife...$$$$$...., but have been AGAIN, just slowly & QUIETLY ( shhhh...Don't Tell anyone, okay guys... ) slowly ADDING OCL again to the Objective Corp(OCL) position these last few weeks...
So Why So...??
Well....here's the: "Robbo Rationale".....>>>>>.... (now there is an oxymoron if I have ever heard one..!! ) [:o)][:o)][:I][:I]:
Govt and Quasi Govt, and Large Corporation tenders for IT tenders are often chosen; in Late January//Early February...to implement New Systems for following 12 months going forward etc etc....& .....so if history is a guide, and reading some various Press and snooping around, there are some whopper IT tenders out in there the market to be WON by the fortunate few........ with IT Vendors and Contractural IT Computer Software Co's and Large Data Base Mgers and MIS suppliers; putting their best foot forward, showing mmore than "a bit of leg..." smiling for the camera, & doing Their Beauty Parade Walk down the various Catwalks routines.... No doubt !!!
Objective Corp(OCL) will hopefully be ONE of those short-listed winners of aforesaid & mentioned Tenders...[ ]
My new rubbery Target is approx ## $1.35 for OCL...(which would be around 55% plus ++%% $$$$$.... and again at these current OCL prices..... I do believe there is at very least; an argument for Value and rather good probability --IMO--solid worthwhile Up-Side.......of course there is also flip side risk with IT vendors......etc etc etc...
My other two/three faves in IT stocks presently, are Oakton (OKN) and Sonnet(SNN).... , of course only considering buying on the DIPS.......hasn't SNN had some nice buying opportunities biggish dips...???.... with okay buying for SNN...at around the 27.5/ 28 cents mark, and maybe Senetas...SEN at the 27-27.5 cents mark if your brave !! []
Regards all IT Stock followers,
"Penny for your thoughts...... ??..."
Robbo
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Yes Indeed KW you make the good point vis-a vis liquidity,
so PERHAPS short less patient Sellers and Traders, , would possibly not be attracted to these type stocks... , and the "float on both of these stocks for me; is usually around the $32 -$43 K level only...due to this good point vis-a-vis liquidity; you indeed make here....
Both, Objective Corp(OCL) and Euroz (EZL) are among my fave good stocks, IMO, that form part of the rich intricate web of tangled emotions--that forms to become the sum total of my stock portfolio !!
I've been quietly chipping away at OCL at the lower end of the range this last fortnight mto 3 weeks and ditto EZl after taking nice profits on the Upper range of north of say $1.76-$1.81 approx, having bought in about 40 -55 % Below that....and again with OCL trading in the range of low 80's through to high 90's...although of course Pos News on Earnings might bring OCL into the $1.15 territory approx dependcing on their next Report which will MEAN much hihger profits this time around....or at least THAT is THE PLAN KW !!
Before this to be watched for scenario, I was predicating the range at around a Top of approx; one dollars on share price, for OCL, although high nineties was s of course fine, with profits in the range of b/w 15-17% and slightly above...if $1.15 range is achieved then add another 15-20 % to the profits !!
Unfortunately nothing is more certain than uncertainty in equity markets KW so that is why it is so importatn...again only IMO to only byuy with what one ascertains is a [u]high MARGIN OF SAFETY </u> ...IN MY ESTIMATION ONLY, .....[u]THE</u> ......, single, FOUR(4).... MOST IMPORTANT WORDS TO INTERNALIZE in regular, compounding, consistent & winning Share market investing !!! [][][]
Actually I am not sure whether I have had the honour, pleasure and privilege of corresponding with you, as of yet KW, I'm the Aussie Sydney Crownie Pub based correspondent; who other New Zealander correspondents, have regular fantasies, (when my psotings crop up...); of Roman Colloseums and gladiator fights, basically where I am one of The Early Christians thrown, for Sports and casual entertainments, regularly as tasty morsels to the... "Leo the Lions....." [:I][:o)][:o)] eeek !! [B)][:0]...no only joking--or at least I hope so!! [:0][:0]....
So anyway KW, HI there!! .. and a big welcome and howdeedo..from Robbo, and the regualrs here at The Pub, Aunty Madge, Uncle Max, Chris the Cockatoo; and my erstwhile Crownie Pub drinking buddy & mate, and current national Pub darts champion, Gav the Galah....
Hope to talk again soon,
kind Regards,
Robbo.
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Objective Corporation (OCL)
WOW. [8D]
Very, very Pleasing and smashing all expectations ..such a SOLID profitable and upward result with even more to come going forward...[]
Profit Increase for OCL after 3 straight previous year on year on year profit increases of 50 ++ %
....and,,,,even .....More than Pleasing and even more Up/beatedly surprisingly was the Satisfying SALES Revenue Increase of 37% ++ []...and the successful EXPANSION of their acceptabiliyt and moves forward into Europe !! Now more than 1/2 of Revenues//Profits from Exports !! [^][^][^]
OCL's Earnings Per share. Increased and Up 75% []
Objective has ZERO //No Debt..High High Margin of Safey and Investor Security...[]
Outlook for Enterpirse Content Management (ECM) and their New Proprietary Software unner devlopment--Good Soliod R& D spend year on year too which is very healthy and progressive), makes Objective (OCL) look set for another Stellar going forward into forseeable very BRIGHT prosperous & profitable increasing its's predictable earnings future ...IMI..
Based on these year on year on year growth rates,High Profit Margins (north of 25 ++ % ) [], I think we should see OCL quite easilly now achieve $$ 7.7 Millions being quite conservative on their Bottom Net line, for next reporting after this substantial and well over Guidance first half !!![]
Watch out for a secular sizeable Up-Grade and positive re-rating of Objective's Market Price and Share Price over the next few days and market by the market ass all this is slowly absorbed !!!! []
Regards,
Robbo (feeling Objective and Great !!)
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Member
Robbo,
Remember that last year in the second half they won a $10m contract.
They will have to better that in order to outstrip last years profit numbers significantly...
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Howdee TL87,
Many thanks for you sage counsel TL87...
Also owe you a good tip or three; somewhere & sometime, down the beaten dusty track,
'COZ of YOU mate; I did take profits with OCL last time [].. at around The 99 cents to $1.01 and a bit at $1.02 last time....and YOU WERE absolutely spot on...so again a big sincere thanks..[^][^]
Fortunately I again got a bit lucky and nearly picked the bottom on OCL's latest Dip again, and as we speak are working out a price Target... $1.25 sounds about okay, but still running the calculator over the score-board....
...errrr....also...My INTEL. tells me; that the $10 mill contracts of which you speak; is more likely than not, and also more likely than not to be more than one(1) of those....but to readers out there. looking at OCL.... do NOT rely on this INTEL as it is more deduction from numerous sources and other Scuttlebut to use the famous, guru, Phil Fisher fave phrase...
So again many thanks TL87,
All the more reasons; here, as to why one can benefit from Sharetrader, if used in conjunction with one's own independent research, asessment and valuations....
By the way TL87,
You going to CASH at present or mildly interested in anything else you see around the traps ??? ,
I do Sense that overall the market is generally a tad more wary, which means stock-picking skills will have to be "dead eye dick" to make much more easy dough , coz the market is being very demanding on valuations now, and will PUNISH any downward revisions or slightly NOT so brilliant but just mediocre to average reults by the looks.
Would you agree with those general sentiments TL87 !!
Have a great day TL87,
Robbo
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