# TNE - Technology One



## seaurchin (27 June 2005)

*TNE...yield 5.6%... share buy back to underpin.*

This one looks like a goodun....I like it cos it has earnings with a track record of profits ...If steady in next year still could rise as it has been sold off..In unloved sector....Info. tech... we shall see .Share buy back. Xdiv....Sept....should hold it here.

Cheers


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## britishcarfreak (13 December 2006)

What's up with these guys yesterday and today?  No announcements - going south pretty quick.  Broker recommendations a few days ago were buy at 90-95cents???


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## LifeisShort (13 December 2006)

buying opportunities then......


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## britishcarfreak (14 December 2006)

Crap - I saw it happening but didn't buy - down to 84c on an oversell then very quick back to 94c.  I knew there was a day trade there.


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## prawn_86 (14 June 2012)

This one was just touted on SkyBusiness as being a consistent div payer, solid double digit growth, and management that always delivers on what it says.

Any members have thoughts?


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## burglar (14 June 2012)

A chart!


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## Noddy (14 June 2012)

prawn_86 said:


> This one was just touted on SkyBusiness as being a consistent div payer, solid double digit growth, and management that always delivers on what it says.
> 
> Any members have thoughts?



TNE estimates for EPS/DPS -
2011, 2012, 2013, 2014
6.5      7.3       8.3      9.1
6.1      6.2       6.7      6.5
Broker's consensus target is $1.20 -$1.25
TNE recently reached it's target price and has fallen back a bit.
Seems to be a few IT shares in this category (DWS,MLB,ASZ,HSN etc) and none of them doing anything spectacular at this stage. But what is ?
Comment on Sky business seems to me to be spot on. TNE is paying around 5%, a little better than bank interest on fixed deposits at present.
Would buy it myself if price declines to around $1.00 level.


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## skc (14 June 2012)

prawn_86 said:


> This one was just touted on SkyBusiness as being a consistent div payer, solid double digit growth, and management that always delivers on what it says.
> 
> Any members have thoughts?




It is a good solid company. I held these for years until recently. The thing I like about TNE is that they expense all R&D in the current year - so the balance sheet is not loaded with intangibles that simply gets written down if the research doesn't produce the desired benefits.

The other advantage is that they are the few mid size ERP software available (and probably the only local product) and so these can generate ongoing fees.

Current prices are at the high end of PE multiple so it's a hold. Paying anything below PE 12x (sub 80c) would be a solid investment for years to come imo. 

P.S. I bought these back in 2002 when I knew not much about the markets. I drove pass their office most days to work so I did some research about them. Funny thing is right next to them is the office of Data #3 - which had been a much better investment for the last 10 years.


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## ThingyMajiggy (22 June 2014)

Anyone been on TNE for the last few years must be happy, going nicely, was thinking of getting into these guys, I think cloud services are going to be strong in the coming years.


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## piggybank (2 September 2014)

It appears to be one that doesn't have much of a following here @ ASF. All the pity given it's present excellent run up...

​


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## Boggo (3 September 2014)

piggybank said:


> It appears to be one that doesn't have much of a following here @ ASF. All the pity given it's present excellent run up...




From a weekly perspective its in the same class as the likes of NHF, GXL etc.

Its the quiet ones you have to watch 

TNE weekly chart (click to expand).


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## peter2 (22 July 2015)

It looks to me that it's time to start watching this "quiet one" again for our next trade. 

The weekly trend is UP. The daily trend is down and price is trading around an old weekly high level (3.50). There's a little higher low (HL) on the chart, but it might be prudent to wait for further signs of demand and a BO >3.75.


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## fanger (23 February 2018)

I bought this recently and I'm worried I might have paid too much for it. Some others in this sector have had average numbers out like DTL and DWS. With TNE trading above 30x any disappointment will see this get smashed.


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## galumay (23 February 2018)

I wouldnt worry too much, its a much better business than either DTL or DWS, hold it for the long term, buy it on the dips and build a big position. I paid a pretty high price too, businesses like this rarely give an opportunity for really cheap buying.


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## Cam019 (9 January 2019)

TNE starting to setup nicely here. A push right up into prior resistance today on a bit of volume. Would like to see a few more narrower range bars printed to get the best R/R ratio possible. No trade at the moment as iSL would have to be placed too wide for my liking. Watch list.


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## jjbinks (19 February 2019)

TNE looking good on daily and weekly
Looks like it might break through resistance at ~7.50 and has a bit of a ascending triangle pattern on weekly


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## galumay (21 February 2019)

A great business, well run. Its one of my highest conviction holdings. Its been a tech business largely ignored by the market, trades on metrics a fraction of the over-hyped, over-priced 'glamour' stocks of the sector.


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## Cam019 (24 March 2019)

*Disclosure: Held*


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## rnr (22 May 2019)

Obviously Technology One's results for the 1st half 2019, refer news release May 21st 2019, were very exciting! Now how would one know that in advance...perhaps it could be the gap down at open on the day of the press release was made public


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## rnr (23 May 2019)

Given that Technology One's results for the 1st half 2019 were due for release on May 21st 2019 one would have to wonder whether someone was trying to manipulate the market on May 20th and the open of May 21st. Given the potentially "bad news" to be released during the day, one could well be interested to know why the early buyers were willing to take on such a potential risk?

NB
@joeblow Would you please delete my previous post from this thread.


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## galumay (23 May 2019)

I didn't think about it that way rnr, (but then i dont look at charts.) TNE has run up very hard over the last 12 months - on the back of long term excellent execution by management. It had got to the point where the market had priced it for perfection and stellar growth, when the results showed a less than stellar growth in revenue and earnings, there was the sort of market reaction I would expect.  None the less I am sure there would have been buyers entering just before the release of the HY report in the expectation of a very good report, given the track record.


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## rnr (26 May 2019)

At last someone found where the brakes are located. Although there was a gap down at Open price finally Closed higher than Open after 4 consecutive down days.
It will be interesting to watch for a trading opportunity to develop over the next couple of days.


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## peter2 (29 May 2019)

Results and comments from CEO. 21st May 2019


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## peter2 (29 May 2019)

TNE happens to be one of the many I've missed out on in 2019. I've been looking through these lost opportunities to find out why and what are the lessons to be learned. #

I see the huge drop after news on the 21st May and assume the news was disappointing. I don't see how their 10th year of record profits can be disappointing. Plus, the CEO is pleased with how the company has transitioned to a successful SaaS business and the outlook is promising.

Is this a buy the dip opportunity? I'm thinking it may be.





#: I passed on the BO opp at 5.85 (new yearly high) in Nov 2018.
Why? Probably because the market was falling hard at the time. I didn't note that TNE was acting much stronger than the market at the time. D'oh!  Read the trading plan setup checklist dummy. Don't assume you'll remember everything every week.
#: I passed on the BO opp at 6.50 (another new yearly high) in Jan 2019. 
Why? I wish I knew. The market was starting to rally. No notes for that date as I started posting my WEnd reviews a few weeks later.


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## tech/a (29 May 2019)

Peter a lot of info in these charts 

No time now but Stop $6.98
I doubt will be taken out 
I expect the low to be tested though


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## galumay (29 May 2019)

peter2 said:


> Is this a buy the dip opportunity?




It may be Peter, I believe the share price fell so hard because there was already so much growth in earnings and revenue baked into the price. As we know sooner or later the price and value will come together and the present value of the future cash flows will be reflected. 

The results disappointed Mr Market because they didn't show enough revenue and earnings growth to support the run up ahead of valuation the price had seen over the last 12 months.

My sense is that it is a good time to buy in because with such a strong business, where there has been growth every year and earnings have grown every year for 10 years, no debt, good management and a clear runway for the future, the market will not take long to become rather optimistic about its future once again. I bought the last significant dip when I got in at around the $5 mark, it wasn't cheap then and it took a fair bit of will power to buy into a business that I felt was too expensive! 

I suspect it wont be so much of a trading opportunity though, it may well take a year or so for the price to get ahead of itself again, I remember it took longer than I expected last time.


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## peter2 (21 June 2019)

A thank you to @galumay for his helpful comments regarding TNE. 
Once price failed to stay below 7.00 and started going up, that was enough for me.


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## galumay (22 June 2019)

Cheers, Peter2 - hopefully for both of us it keeps recovering!


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## Clansman (22 June 2019)

It's an outstanding company and a must for any serious investor. Buy the minimal dips and it's easy money.


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## Miner (22 June 2019)

The emotion on stocks is a highly dangerous thing to make money.
I have had TNE bought at $1 and sold out $2 after a reasonable holding, a few years back. It emotionally hurts me to pay $7 with a PE of 39 or so, for the stock, I sold out at $2.


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## So_Cynical (22 June 2019)

Miner said:


> The emotion on stocks is a highly dangerous thing to make money.
> I have had TNE bought at $1 and sold out $2 after a reasonable holding, a few years back. It emotionally hurts me to pay $7 with a PE of 39 or so, for the stock, I sold out at $2.




Yes its hard to go back into anything at a much higher price, personal history is an important factor in many of life's choices.


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## galumay (23 June 2019)

Anchoring bias certainly pops up in many of our investing decisions! 

Miner, your story is a good reminder about having the conviction to continue to hold good businesses, I have only ever sold down one of my winners, selling half of my CCP at one point. It was a mistake and one I learnt from.

Conversely I have found its much harder to sell winners quickly when either I realise my thesis for the business is incorrect or management incompetence impacts value - SGH went from a double bagger to a near total loss of capital for me because I failed to sell a winner when I should have seen the warning signs.


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## peter2 (22 November 2019)

TNE is another good example of the benefits of being in the ASF community where the members post their thoughts about companies. Six months ago TNE was sold off hard after what looked like good results, but the result weren't better than expected and a few insto's took the opportunity to take some profits. 

I posted that this was one of the charts that got away from me after I missed the chart setups in late 2018. 


peter2 said:


> Is this a buy the dip opportunity? I'm thinking it may be.





galumay said:


> It may be Peter, I believe the share price fell so hard because there was already so much growth in earnings and revenue baked into the price. . .
> 
> . . . I suspect it wont be so much of a trading opportunity though, it may well take a year or so for the price to get ahead of itself again, I remember it took longer than I expected last time.




It's been six months since @galumay 's helpful comments. Price traded in a shallow sideways pattern before breaking out of the top of the range this week after it's latest corporate news release. Price is very close to it's all time high. 

_Note:_ BO of ledge is the start (resumption) of the prior trend up and is the setup I outline in the "P2 starts another ASX portfolio" thread in the members section. 

After missing out late 2018, did I buy this classic setup? Didn't have to as I got in much lower after helpful comments from other ASF members.


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## Skate (22 November 2019)

peter2 said:


> TNE is another good example of the benefits of being in the ASF community where the members post their thoughts about companies. Six months ago TNE was sold off hard after what looked like good results, but the result weren't better than expected and a few insto's took the opportunity to take some profits. I posted that this was one of the charts that got away from me after I missed the chart setups in late 2018.




@peter2 I've posted two charts for comparison entry points as you have discussed above..

Your explanation is spot on & reinforces why trading Breakouts as well as Pull Backs can work hand in glove, complimenting a trading plan. ASX:TNE is a perfect example to highlight this fact.

*CAM Strategy *
ASX:TNE - Buy bar 27/7/2018 in @ $5.034 out 11/10/2019 @ $7.17
Back in 1/11/2019 @ $7.63








*HYBRID Strategy *
ASX:TNE - Buy bar 7/12/2018 in @ $6.30 out 28/6/2019 @ $7.91






*The yellow ribbon*
Both of our charts display an Index ribbon at the bottom of the chart & my Index Filter drives my exit - some of the time & at other times it's driven by other conditions. The additional yellow "caution" ribbon shows when a position is unloved. When traders fall out of love with a position, my strategy tends to do the same.

Skate.


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## galumay (23 November 2019)

peter2 said:


> It's been six months since @galumay 's helpful comments.




Thanks for the comments, @peter2. I also took the opportunity to significantly increase my position in TNE. 

From a fundamental point of view its one of the true compounders, when you look at the ROIIC its above 30% which is a fantastic return, the compounding rate of the business is around 11%, all of this over a ten year period. No debt and almost never put their hands in shareholder's pockets for capital. 

When you find these sort of businesses they are rarely ever cheap by traditional metrics, you have to look deeper at what they are doing in terms of capital allocation and the true returns on shareholder's capital over the long term. Then if you take a position and add in the dips over time, you will tend to do very well and sleep peacefully too!


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## Clansman (2 May 2020)

Closed the week at $9.45 after closing the previous day at an ATH of $9.50. Appears to have been immune to the impacts of Covid 19.


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## Trav. (13 July 2020)

TNE getting smashed today.






Response to article below






unfortunately holding ....


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## Dona Ferentes (13 July 2020)

interesting for a couple of reasons
_the report was dated 24 June.
GMT has a $4.65 price target on the stock._

Hong Kong-based GMT Research has distributed a confidential report titled *"Growth illusion"*, which claims Technology One used accounting tricks to pull forward revenue and profits "artificially creating growth and hiding a major slowdown". "_*Overall, we estimate FY19 profits were inflated by over 200%,*_" GMT's Nigel Stevenson wrote.


> GMT said new accounting rules on revenue recognition came into force in fiscal 2019, requiring revenue to be recognised over a contract's period rather than booking it upfront.  "Revenue and profits under the new rules are significantly lower," he said. The research firm said Technology One had used accounting tricks, like changing contract renewal dates, to pull forward revenue and mask "a major slowdown in the last couple of years". "Instead of reported growth of 9% and 13%, we estimate underlying revenue was flat in FY18 and grew just 1% in FY19."




Technology One posted a $76.4 million net profit before tax in the year ended September 2019, with revenue climbing 13 per cent year-on-year to $286 million.


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## galumay (13 July 2020)

An interesting development, GMT are not the first to raise the issue of the changes in revenue recognition and the accounting manoeuvring by TNE to compensate. I read quite a detailed report showing that it appeared to inflate the free cash flow significantly in a way that was probably misleading at best. 

My analysis has the truth somewhere in the middle, I suspect GMT are tying to create a market to short into, and their numbers are patently incorrect, but I do think TNE should have been more transparent about some of the flow on effects of the changes they made, especially when it filters down to the FCF.


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## Dona Ferentes (13 July 2020)

Put it in a nutshell.


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## Trav. (13 July 2020)

As mentioned earlier today TNE had a down day ( -6.4% ) due to some bad media and the possibility of some interesting accounting practices.

Chart below for reference but it doesn't look good for holders ( yep that's me )


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## So_Cynical (14 July 2020)

The 1 year chart seems to look like TNE has been caught up in the broader Tech bubble.


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## galumay (14 July 2020)

This article may help others understand the underlying issues facing businesses like TNE. https://www.afr.com/chanticleer/technologyone-s-fight-over-intangibles-20200713-p55bn8

Part of the problem with TNE is they have been trying to sell themselves as a high growth SaaS tech business for obvious reasons -  but they are not really, which if you look through to the FCF becomes more clear.


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## Trav. (14 July 2020)

Nice recovery today from TNE






Also director stumping up a few bucks to show some support ( token )


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## Smurf1976 (14 July 2020)

galumay said:


> Part of the problem with TNE is they have been trying to sell themselves as a high growth SaaS tech business for obvious reasons - but they are not really



Past experience has taught me to be extremely cautious about any company that tries to sell itself as something other than what it actually is. 

Regardless of the detail of what it is and what it claims to be, the simple fact of them not matching is a red flag.


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## galumay (15 July 2020)

Smurf1976 said:


> Past experience has taught me to be extremely cautious about any company that tries to sell itself as something other than what it actually is.




Very good point! Trouble is that rules out nearly all the stonks on the ASX for a start, if you also exclude all the businesses that are crap and don't sell themselves as something else, there is not a lot left to pick over!!


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## Clansman (15 July 2020)

Smurf1976 said:


> Past experience has taught me to be extremely cautious about any company that tries to sell itself as something other than what it actually is.
> 
> Regardless of the detail of what it is and what it claims to be, the simple fact of them not matching is a red flag.




It's very obvious that the overall market/shareholders believe the company and not the offshore based unregulated shorter. It would pay to take heed of that. A company doesn't get more than 20 years down the track with their success if their are red flags. There aren't any.... simple really.


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## Clansman (15 July 2020)

Smurf1976 said:


> Past experience has taught me to be extremely cautious about any company that tries to sell itself as something other than what it actually is.
> 
> Regardless of the detail of what it is and what it claims to be, the simple fact of them not matching is a red flag.




But you spruik Paragon Care @ 17 cents? It's still 17 Cents....
Past experience doesn't seem to have taught you what you say it has....????

TNE $8.04 Monday. $8.80 today. Like I said.... simple really.


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## Trav. (15 July 2020)

and another director buying, very nice as I might even break even on this trade


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## galumay (15 July 2020)

Clansman said:


> There aren't any.... simple really.




Even as a continuing shareholder, its obvious there are red flags, TNE have been trying to mask a downturn in revenue and continue the story that they are a pure SaaS business, the financials show that up once you have a close look.

Its still a solid business, but its treading water these days.


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## Smurf1976 (15 July 2020)

Clansman said:


> But you spruik Paragon Care @ 17 cents? It's still 17 Cents....
> Past experience doesn't seem to have taught you what you say it has....????




I'm not spruiking Paragon. 

Drawing attention to sudden volatility in the price of the company's shares and suggesting that anyone holding or otherwise interested in the stock might be wise to investigate what's going on is a very different thing to spruiking it. 

As for red flags - there's been a few over the years. 

One that comes to mind is a certain company that spent a lot of time drawing attention to their having driven a diesel powered car around the country successfully. Well yes they did, but that's hardly groundbreaking and long story short the company ended up being liquidated. 

I'm not saying TNE is necessarily a dud, but I'm always cautious of anyone who claims to be something other than what they actually are.


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## Clansman (15 July 2020)

Smurf1976 said:


> I'm not spruiking Paragon.
> 
> Drawing attention to sudden volatility in the price of the company's shares and suggesting that anyone holding or otherwise interested in the stock might be wise to investigate what's going on is a very different thing to spruiking it.
> 
> ...




You would be better served being cautious of yourself then....
Sudden volatility...Lol.
I'll take TNE's daily volume of $15 million over your paltry $60000 PGC any day of the week. 
If you're looking for a red flag, look no further than the company you spruiked.


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## Smurf1976 (15 July 2020)

Clansman said:


> If you're looking for a red flag, look no further than the company you spruiked.




Nobody's spruiking anything.

Investing or trading profitably requires an objective approach regardless of whether that's via a strictly mechanical system, discretionary technical trading, fundamental analysis or whatever.

Drawing attention to a company the share price of which jumped over 85% then dropped half way back down again over the course of two trading days is not spruiking. It's just drawing attention to it for those who may have an interest in the stock and wish to investigate further.


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## galumay (16 July 2020)

Clansman, maybe have a bit of self reflection and read back through your last few posts in this thread. They scream of an emotional attachment to an inanimate object (business), backed up with an emotional defence of your attachment with attacks on fellow investors who are discussing quite reasonable concerns about some parts of the business. 

When you get so desperate as to be comparing volumes and daily price movements to justify your emotional attachment, it should be a very loud warning bell that all is not well! 

You will become victim to your heuristics/biases if you allow emotions to dominate your responses to non-confirming evidence in this way, as Smurf1976 points out, we all need an objective approach to succeed as investors or traders.

(BTW, i realise we are living through difficult times, so apologies if there is something else that has caused you to emote & personalise the discussion in this way.)


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## Clansman (16 July 2020)

Smurf1976 said:


> Nobody's spruiking anything.
> 
> Investing or trading profitably requires an objective approach regardless of whether that's via a strictly mechanical system, discretionary technical trading, fundamental analysis or whatever.
> 
> Drawing attention to a company the share price of which jumped over 85% then dropped half way back down again over the course of two trading days is not spruiking. It's just drawing attention to it for those who may have an interest in the stock and wish to investigate further.




How about explaining to all and sundry  where you get an 85% share price jump then a drop of half that amount. The SP finished last week at $8.90. Dropping to $8.04 Intraday on Monday before being bought back up in the afternoon. Touched $8.80 the following day.  Where is this fictitious 85% share price jump and then a drop of half that ( 42.5 % ) as you claim??? It never existed...
What I am drawing attention to is that you simply aren't telling the truth, not before, not now and probably not ever...


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## galumay (16 July 2020)

Clansman said:


> What I am drawing attention to is that you simply aren't telling the truth, not before, not now and probably not ever...




Again, your emotions are getting in the way of rational thought, its obvious that Smurf1976 was referring to Paragon when he talked about drawing attention to those price movements - the issue you attacked him for initially.

Maybe, just maybe, some of that self reflection I suggested, and then how about an apology? This is not the place for personal attacks and it only reflects on your character.


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## Clansman (22 July 2020)

galumay said:


> Again, your emotions are getting in the way of rational thought, its obvious that Smurf1976 was referring to Paragon when he talked about drawing attention to those price movements - the issue you attacked him for initially.
> 
> Maybe, just maybe, some of that self reflection I suggested, and then how about an apology? This is not the place for personal attacks and it only reflects on your character.




I'll gladly accept an apology from both you and The Smurf. At $8.80, I would suggest at least one is certainly due. How about it???


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## galumay (22 July 2020)

Go back and read the thread mate, you have completely lost the plot, you have jumped to incorrect assumptions because you failed to comprehend posts, you have personally attacked forum members and you absolutely refuse to practice any self reflection about your emotions overriding any rational discussion of the business. 

Time for a hard block from me, I have tried to politely help you to no avail, I have more productive uses for my time.


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## Clansman (22 July 2020)

galumay said:


> Go back and read the thread mate, you have completely lost the plot, you have jumped to incorrect assumptions because you failed to comprehend posts, you have personally attacked forum members and you absolutely refuse to practice any self reflection about your emotions overriding any rational discussion of the business.
> 
> Time for a hard block from me, I have tried to politely help you to no avail, I have more productive uses for my time.




Listen Doctor Phil. The only person who has lost the plot is you. The numbers don't lie even if you do.
You do your little hard block charade getting it wrong productively in your little parallel universe. Nice and rational all day long.


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## Trav. (20 August 2020)

I was a bit scared to post in this thread after the exchange above but will risk it now. 

I have been stuck in this trade for longer than I planned due to my issue of not selling when I should  but hopefully TNE has turned a corner and I can now exit with a dollar or two in my pocket as the announcement on the 13/7 has hopefully been accepted (or factored in)

So as can be seen below TNE has had some good days lately which is a nice recovery and hopefully will continue to the $8.70 level (I did say hopefully !!!)


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## Trav. (20 August 2020)

I just notice that there was an announcement out today, so we can see who has been selling and hopefully that is the end of it.


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## tinhat (21 August 2020)

Trav. said:


> and another director buying, very nice as I might even break even on this trade
> 
> View attachment 105997



I've probably owned this stock at some stage. Why bother about breaking even when you can grab your cash and dash onto the next sure thing? No-one owes you (or me) anything. Remember that.


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## Dona Ferentes (25 May 2021)

_12th year in a row of record first half profit and revenue and record SaaS fees._

TechnologyOne has reported an increase in profit for the first half of the 2021 financial year on the back of strong demand for its global software as a service ERP solution.

Profit after tax reached $28.2 million for the period, up 48 per cent as its software as a service annual recurring revenue jumped 41 per cent to $155.8 million.
Revenue from the company’s software as a service (SaaS) and continuing business rose 7 per cent to $140.6 million.
TechnologyOne increased its first half dividend 10 per cent to 3.82 cents per share.



> TechnologyOne chairman, Adrian Di Marco added: “Our results are due to the continuing strong demand for our global SaaS ERP solution. Today 85 per cent plus of our revenue is recurring subscription revenue.”


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## galumay (25 May 2021)

Not the best result really, FCF -ve, profit largely a result of capitalised R&D making NPAT look much more than it really is. I am losing conviction on my position in $TNE steadily.


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## divs4ever (3 September 2021)

Acquisition of Scientia - UK’s Leading Higher Education Software Provider

BRISBANE, 3 September 2021 – TechnologyOne (ASX: TNE), one of Australia’s largest enterprise Software as
a Service (SaaS) companies, today announced it has entered into an agreement for the acquisition of Scientia
Resource Management Limited (Scientia), a United Kingdom company servicing the higher education sector.
The likely consideration will be GB£12 million and includes an initial payment of £6m and further payments, based
on achieving progressive earnouts out to FY23. Total consideration will be in the form of cash payments funded
from internal sources. The acquisition is earnings neutral for FY21.
Edward Chung, TechnologyOne’s CEO said, “This acquisition forms part of our strategic focus to deliver the
deepest functionality for Higher Education and it will accelerate our growth and competitive position in the UK as
well as have significant benefits in the Australian Higher Education market.”
“Scientia’s market leading product Syllabus Plus provides advanced academic timetabling and resource
scheduling. Their products provide mission critical software for over 150 leading Universities across the United
Kingdom, and Australia including the University of St Andrews, University of Exeter, Monash University and the
University of Queensland”
“The acquisition further expands our Global SaaS ERP solution for Higher Education. The integration of the
Scientia’s advanced academic timetabling and resource scheduling capabilities, combined with our market leading
Student Management, HR & Payroll, Enterprise Asset Management and Finance capabilities, will provide smarter
decision-making eliminating underutilisation of space and resources that is paramount for Higher
Education across the globe in a post-covid world” Mr Chung said.
Adrian Di Marco the company’s founder and Executive Chairman said “This is our first international acquisition
and demonstrates our deep commitment to both Higher Education and the UK market. The unique IP and marketleading functionality of Syllabus Plus supports our vision of delivering enterprise software that is incredibly easy to
use and that substantially enhances our customers’ experience in the Higher Education sector. We are excited
about the opportunities this will bring to both our UK and Australian customers in the coming years.”
More details will be provided with our full year financial statements and results presentation.


===================================================================================================

 DYOR

 i hold TNE ( 'free-carried ' )  bought in @ $1.10 in November 2011


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## qldfrog (3 September 2021)

divs4ever said:


> Acquisition of Scientia - UK’s Leading Higher Education Software Provider
> 
> BRISBANE, 3 September 2021 – TechnologyOne (ASX: TNE), one of Australia’s largest enterprise Software as
> a Service (SaaS) companies, today announced it has entered into an agreement for the acquisition of Scientia
> ...



Good idea, just afraid of any Aussie company buying some O/S business.
We are mostly the suckers in that game.
Anyone remember of a success that way for Aussie shareholders?


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## divs4ever (3 September 2021)

SOMETIMES that works out OK

 but there are memorable  instances  of  international acquisitions  going badly

 now with this one  , i am assuming the benefit  will be offering the new services/products  to existing Australian customers  , and MAYBE having access to new companies/customers in Australasia  ( assuming the NZ education system  isn't that much different to Australia )

  of course one downside is the company acquired is all software ( and IP ) so it is pretty  hard to value the new assets


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## galumay (3 September 2021)

I am of the view that these transactions are almost never value adding for SH's, especially Aus companies buying UK ones. In this case though the transaction accounts for about 0.6% of TNE's admittedly grossly inflated market cap - and as TNE is up nearly 2.5% today it looks good for SH's so far!! 

The reality is its such a tiny acquisition it almost certainly will do no harm or good for TNE in the long run.

I continue to hold TNE, even though its one of my lower conviction positions, i particularly dislike their dodgy changes to accounting practices and their dishonest marketing of same.


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## Dona Ferentes (3 September 2021)

qldfrog said:


> Anyone remember of a success that way for Aussie shareholders?



CSL


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## qldfrog (3 September 2021)

Dona Ferentes said:


> CSL



A long time ago.....


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## qldfrog (3 September 2021)

qldfrog said:


> A long time ago.....



And went international, did not just bought an o/s company.. time will tell


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## divs4ever (3 September 2021)

am up roughly 900% on this 

 but runs up against geo-political risk  by contracting for governments both Federal and Local  , and most governments  have a 'desire ' rather than a defined need  , so always a chance of protracted disputes 

 looks  a great little company from MY entry  point ,  but a back-bone investment ??  not for me thanks


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## galumay (18 November 2021)

galumay said:


> I continue to hold TNE, even though its one of my lower conviction positions, i particularly dislike their dodgy changes to accounting practices and their dishonest marketing of same.




I sold out yesterday, the price had just got so far ahead of any sensible valuation and combined with my low conviction about the business overall, it was time for me to exit. The growth required to support the current price by my reverse engineering is over 8% and that seems improbable to me. 

I hate selling a position, especially where I have done as well as TNE, averaging a CAGR of 18% before dividends, and I may well come to regret it!


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## finicky (18 November 2021)

That's the spirit, get yourself a cash cushion from overvalued stocks


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## galumay (18 November 2021)

Trouble is @finicky is I sell all my overvalued stocks I will be 100%.


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## finicky (21 November 2021)

galumay said:


> II hate selling a position



Having a look at this for something to do and vehemently agree with @galumay that this is a grossly overvalued stock. It's even worse than CDA was before CDA's high dive. I don't doubt that the quality stocks that galumay picks are all overvalued but taking some profit is not all or nothing; a value investor doesn't have to sell all stocks because the p/f is extremely overvalued across the board, nor sell 100% of one particular stock. Having some cash to spend amid the 2020 Wuhan crash transformed the experience for me because there were buying opportunities to brighten the gloom. If it had turned into a protracted bear market I would not have been forced to sell in the depths to meet other cash needs. "Cash, an undervalued asset" someone said; cash becomes highly valuable in a deflation of other assets.

Returning to TNE, I wish I'd owned it (it was a company that I almost invested in back in pre-internet days for most people, I'd never used a computer - I was checking it out in 'Shares' magazine at the local library and saw its increasing dividend and liked the sound of the founder in his interview). It's been a fantastic company but fwiw I would only pay a third of the current price and probably hesitate at that. With this attitude, I admit I would definitely have sold a big chunk of it well before now if a holder. I figure a ROE of 30% is a fair average number to work off, disregarding the very recent surge in ROE, so a multiple of 10x bv might be generous (vague credits from me for eps growth, cash, low debt, a progressive book value, history of low share issuance). Book value fy20 is 0.45. So fair value around $5? Maybe I don't ascribe enough for growth. Anyway, I don't count on continued growth in these times. As a caveat, my macro 'guru' @DaveHcontrarian on twitter is still foreseeing a final leg to the crack-up boom on the U.S market and last week bumped his S&P500 forecast up to 5,300.
P/E is *59* (from comsec av: fys 19-20). Looks like TNE could report fy21 full results next week? Nov 24 last year.

Looking at the monthly price chart, few warning signs yet that I can see? Except declining volume trend over the last one and a half years of bullish action and mild non confirmation from RSI momentum.

This ratio is now about 250% I believe, chart is from February.


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## galumay (21 November 2021)

My totally different approach to valuation gives a range around $4.50 @finicky, so pretty similar!


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## finicky (21 November 2021)

I would have said 4.50 too (10 x 0.45) but gave myself some leeway because it seemed extreme. Also a little improvement on bv of 0.45 is imminent with the fy21 result. Another stock, LBL, which I know you like as well, is also overvalued imo but not extremely so. I till hold some DTL, also overvalued. As you say, they all are that I can see.


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## peter2 (21 November 2021)

@finicky Thanks for the notice about the upcoming FY21.
I'm currently in a short term trade (BO > 12.75) and will take the opportunity to sell on any price spike up near my T1 target.





	

		
			
		

		
	
 Thanks also to ANZ-CMC.


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## peter2 (22 November 2021)

*TNE*: Sold my position today as the down day erased any buffer there might have been in case of a selloff on the news tomorrow. 

It will be interesting to see if others think that *TNE* is wildly overvalued and decide to take some profit on the news. 
If it rallies strongly (argh) I won't be too disappointed as I've followed my trade mgt plan and minimised any risk of further downside.


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## peter2 (15 July 2022)

Since my exit price has fallen 30% but has now been supported near the $10 level three times recently. 
*TNE* like the other IT companies *DDR* and *DTL* have been in demand recently with their share prices showing strength relative to the index.


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