BVS - Bravura Solutions

[steve fleming]

http://www.bobsguide.com/guide/news/...n_Officer.html

Yes, with BVA having taken on a Global Head of Product, together with a Global Chief Technology Officer over the past few months, doesn't look like there was much room for poor Edna.

[steve fleming]

Big volume day to-day.

Story gets better and better:

"Sydney; 12 November 2007 – Bravura Solutions (Bravura, ASX: BVA) – a leading global supplier of wealth management applications and professional services – has premiered amongst the FinTech 100 group of companies as named by Financial Insights and American Banker magazine. Bravura is the only Australian company to appear on this year’s list.

The FinTech 100 is an annual listing of the world’s leading vertical technology vendors which generate more than one third of revenues from the financial services sector.

Global revenue was a key component for Bravura’s standing, attesting the company’s strengthening presence across the Australia and New Zealand, UK, European and Asian markets.

Iain Dunstan, Group CEO and Managing Director, Bravura Solutions said: “This award is a proud achievement for Bravura. 2007 has been a strong year for the company, which generated significant revenue growth and momentum across all regions of operation.

“Entry into the FinTech 100 represents a key milestone for Bravura and stands testament to its market leading global presence in financial services.”

Changes to legislation governing investment and pension systems have driven IT spending across the financial services sector globally. Customer retention initiatives and new account growth have seen an increase in demand for Bravura’s wealth management applications and services."

[steve fleming]

An interesting $2mil trade went through yesterday in a single on-market trade.

Aequs Securities was the seller and Reynolds & Co the buyer.

On further investigation i now see that Aequs and Reynolds have traded between them over $7mil of BVA stock in the last month...pretty good effort for a couple of small time brokers.

So confirms that we have one large seller and one large buyer.

[COLIN]

An interesting $2mil trade went through yesterday in a single on-market trade.

Aequs Securities was the seller and Reynolds & Co the buyer.

On further investigation i now see that Aequs and Reynolds have traded between them over $7mil of BVA stock in the last month...pretty good effort for a couple of small time brokers.

So confirms that we have one large seller and one large buyer.

Fisher Funds the buyer, perhaps, to add to BVA already in their BRM and Aust. Growth Fund portfolios? They might use a small broker, being specialists in things small themselves! Just a passing thought.

[steve fleming]

Fisher Funds the buyer, perhaps, to add to BVA already in their BRM and Aust. Growth Fund portfolios? They might use a small broker, being specialists in things small themselves! Just a passing thought.

Possibly, they paid in excess of $2.50 for BVA shares last year...and the BVA story has improved considerably since then, so you'd think they would still seee good value at these prices.

[Footsie]

The buyer is MBL and the seller is Queensland investment

[steve fleming]

some of Huntley's latest re BVA:

"...The tone of announcements in recent months suggests management is confident of meeting FY08 targets issued at the time of the release of FY07 results. These were for revenue of $155m-$165m and EBITDA in the range $26-$29m...."

"....One of our biggest concerns, the price and shortage of appropriately skilled employees, is yet to be realised. The company continues to source employees out of Melbourne and Adelaide, both, particularly the latter, proving much less expensive than Sydney. As a global group there is also the ability to move staff from regions with excess capacity to those with excess demand. The company is budgeting for a 5% increase only in average wages in FY08.

Another concern is that the sub-prime related chaos among some financial institutions will retard growth. So far management has witnessed nothing that indicates this is the case. Management’s view is that, because BVA’s systems increase efficiency, demand should remain strong even in a less buoyant environment, aside from burgeoning demand from the increasing scale globally of the wealth management industry.. ."

[steve fleming]

http://sa.iguana2.com/cache/28dadf64...BVA-483207.pdf

"all business units are progressing and/or trading well above expectations and will result in significant revenue growth for many years to come."

"Earlier this year, I was extremely proud to have been nominated for, and won, the Ernst and Young Entrepreneur of the Year award in the Technology, Communications, E-commerce and Life Sciences category for the Eastern Australian region.

During one of the stages where I was being interviewed, I was asked what thecompany’s greatest obstacle was; I replied without hesitation that it was exponential growth"

Do your DD on this one folks....its a great story.

[Footsie]

Steve F

What's your target price and valuation for BVA?

[steve fleming]

Steve F

What's your target price and valuation for BVA?

FTSE

BVA's EV/EBITDA (08) is 9.74
BVA's EV/EBITDA (09) is 7.48

Current EV/EBITDA ratio for sector ~ 15

Therefore inital target would be $3.00 - increasing to $3.50 - $4.00 over the next 6 - 12 months assuming the story holds