117 replies to this topic

[flexbender]

Good trading update today!

 

Expected HEPS increase is still forecasted in a very wide range though. 23%-43%.

The actuals will show how they've really done in the interim period.

 

Keep in mind though that most their earnings come from the second half of the year...

 

 

Here's why I love this business: (pardon the formatting)

 

Management feels they are well positioned to

enhance operational efficiencies through the

amalgamation of the company’s subsidiaries into

the main subsidiary. The company remains

positive about the future and wants to strengthen its position as an IT solutions and service

provider. The group has been successful in its inte

rnational expansion, as 25% of its turnover

came from foreign business, with a specific fo

cus on Africa. The group feels they are well placed

for long-term success given thei

r strong financial position.

 

 

[chrisp]

Made some good money on this share over the last month. Cashed out half of my portion after I increased it at R6.20. Seems like it will go down slightly again - will increase holding after all the excitement of the new acquisition wears off. Just not sure on the new entry price yet; will keep an eye on it.

[flexbender]

Nice.

 

ADI buys AspiviaUnison for R200m.

Love it when cautionaries turn out to be good news.

 

Sense extract:

 

 

2. THE ACQUISITION

   2.1 Nature of the AspiviaUnison business

       The AspiviaUnison Group is a cloud telecommunications intelligence and management solutions
       provider. With over 14 years’ experience in the field of telecommunications management within
       Southern Africa, AspiviaUnison Group provides Telecommunications Lifecycle Management
       (“TLM”), Telecommunications Management Services (“TMS”) and Mobile Device Spend
       Management (“MDSM”) software solutions. The products of the AspiviaUnison Group comprise
       several crucial forward-looking telecommunications intelligence services that provide business
       intelligence on telecommunications billing information for a more uniform and understandable billing,
       integration of billing data with enabling technologies and understanding and control of mobile device
       spend.

       AspiviaUnison Group has a reputation of having substantial experience in the TMS market and
       flexible, robust technology solutions that focus on supporting customers' business needs in an ever-
       changing communications landscape. AspiviaUnison Group has expert understanding of how best to
       manage the costs attached to communications services and environments, and combines this
       insight with innovative technologies to assist customers in realising cost savings, boosting
       productivity and maximising the benefits of telecommunications.

   2.2 The rationale for the Acquisition

       The Acquisition will add another significant pillar to Adapt IT’s growing vertical software solutions set.
       The Acquisition, which is in line with Adapt IT's strategy of targeted acquisitive growth, will enable
       the Adapt IT Group to further diversify and bolster its customer base, especially in the Financial
       Services Industry (FSI) and the wider Private and targeted Public Sector markets.

[flexbender]

Good luck mate...you probably bought my small holding.

88k around 12pm?

 

let me know if you want to sell any of your other winners. thanks... mate.

[michaessers]

I guess I'm sceptical about the companies future growth prospects. Ive seen a decent return. Im not unhappy.

[chrisp]

Good luck mate...you probably bought my small holding.

Why do you get out at the current prices? Seems to have good value for a long position and also bound to bounce back to last week's levels within the next couple of days...

[michaessers]

Good luck mate...you probably bought my small holding.

[flexbender]

Increased my holding today.

 

Been building a nice position over the last few months...

 

[orca]

Yeah. I swopped my PNC for ADI just 4 days ago. Had 2 red days before she turned.

[delta66]

just love it!!

 

well done to those who loaded up on pullbacks

[cdb999]

Indeed. At one stage it was at 580 level.i hope some of you guys got in there. <br /><br />Sent from my D5503 using Sharenet Sharechat mobile app<br /><br />

[flexbender]

Oh No!!! <br /><br />Sent from my D5503 using Sharenet Sharechat mobile app<br /><br />

 

 

down nearly 5%

 

 

Why are they struggling all of a sudden?

 

You can't be watching a growing share like ADI and worry every time it moves in the wrong direction for a couple of days. You'll go crazy!

Sit back and observe the fluctuations. If they are big and you still believe in the share then follow LiveInExcess's advice and up your holding.

ST volatility makes it easier to increase your shareholding in a company, but make sure you know the difference between building a position and catching a falling knife...

[LiveInExcess]

Well from what i know, the company is perfectly poised for more acquisitions. The market is fickle at the moment, i can only imagine that the investors waiting for the share to bounce after the results are exiting.

 

Could be a time to up your holdings.

[Sugafoot]

Why are they struggling all of a sudden?

[LiveInExcess]

down nearly 5%

[cdb999]

Oh No!!! <br /><br />Sent from my D5503 using Sharenet Sharechat mobile app<br /><br />

[flexbender]

The 2012 v 2013 results will show a very similar story with regards to industry breakdown.

The increase then mostly came from manufacturing. And since they're currently trying to diversify out of manufacturing this year's results is not worrying at all. And judging from the growth in share price over the last 2 years the market agrees.

 

ADI's acquisitive diversification strategy will mean the other business sectors will stagnate a bit and possibly their margins will go down. However, the contribution by Aquilon (& Fuel-Loc) have shot the lights out. Excellent acquisitions.

And another thing I love to see is the level of cash and leverage they have available on the B/S to continue growing.

 

[Magnet]

Not a stock I currently follow on a low level, but in this article [link] the CEO does say: "We are happy that we continue to diversify out of the manufacturing sector into other sectors, and will continue to pursue that growth"
 
So explains the manufactureing segment's decline.  The education segment also declined slightly in real terms *shrug*
 

So effectively 18m of the 20m profit growth came from the latest acquisition. So more acquisitions is what they need!

Sent from my GT-I9500 using Sharenet Sharechat mobile app

[vlam]

Not a stock I currently follow on a low level, but in this article [link] the CEO does say: "We are happy that we continue to diversify out of the manufacturing sector into other sectors, and will continue to pursue that growth"

 

So explains the manufactureing segment's decline.  The education segment also declined slightly in real terms *shrug*

 

[Magnet]

lol

 

 

                                                  Manu-     Financial

                                Education     facturing      Services       Energy         Other          Total

                                        R             R             R            R             R              R

 

2014

 

Segment profit/(loss) 

  from operations              15 127 121    12 492 200     6 410 444   18 842 133   (3 183 571)     49 688 327

 

 

2013

 

Segment profit/(loss) 

  from operations              14 692 854    13 092 734     3 054 323            –   (1 440 399)     29 399 512

 

 

This looks worrying