RFL - Rubik Financial

[Waspi914]

Any ideas behind this Perth company providing low cost, hosted ‘bank in a box’ services.

Board includes Craig Coleman (Director) who was a former Managing Director, and current Non-Executive Director, of Home Building Society Limited and now a Senior Advisor and Director of the Wyllie Group Limited, Chairman of boutique fund manager Viburnum Funds Pty Ltd and Executive Director of Bell Potter Group Limited.

Also Ian Hunter (Director) who was a founding and ongoing Non-Executive Director of E*TRADE Australia Limited, a wholly-owned subsidiary of ANZ Bank who has over 25 years experience in banking including Director and Executive Vice President of Bankers Trust Australia.

 

[springhill]

Have taken a look at RFL, no post here since '08.

The 2 directors mentioned by waspi haven't changed, but Andrew Moffat is also on the board, who has experience in mergers and acquisitions, and also equity raising. He is a non-executive director of Cash Converters.
There seems to be some smart heads steering this one.
Interstingly, his wife(?) has been buying 500,000 shares on-market recently.
http://www.asx.com.au/asxpdf/20110408/pdf/41xygx9m6nmqy0.pdf
http://www.asx.com.au/asxpdf/20110407/pdf/41xxjmlf4dk23c.pdf

RFL has also completed an on-market share buy back of 16m shares, between the prices of 6.5-5.4c.
http://www.asx.com.au/asxpdf/20110324/pdf/41xn1dtq7bftmy.pdf

They have a current cash backing of 7.5cps, with a strong cash position of $17.2m.

Major Activities for the half are (from the half yearly report),

At calendar year end Rubik had completed the development of its new generation collections and
internet banking systems and implemented its first bank-in-a-box customer.
The post – GFC environment has seen a subdued level of capital investment spend from within our core customer base of credit unions, building societies and banks. Notwithstanding this, revenue levels were in line with the previous corresponding period.
In January, with the completion of major development initiatives, Rubik has restructured by reducing development resources and increasing the number of staff allocated to sales and customer support.
During the first half Rubik also profitably exited two listed equity investments

Is anyone else watching this?

 

[springhill]

Rubik has appointed John Giddings as interim Chief Financial Officer and Company
Secretary. Mr Giddings has significant experience as a CFO of ASX listed software
companies, having served 6 years with VeCommerce and 3 years with Objective
Corporation. Vecommerce, in partnership with Telstra were successful in selling a speech recognition service to NAB.
Articles here.
http://www.financialstandard.com.au/news/view/25203/
http://speech.salmat.com.au/be-educated/nab-selects-vecommerce

Good to see them add someone who has experience in getting technology into the banks.
ASX anny here.
http://www.asx.com.au/asxpdf/20110509/pdf/41yjwy2f6wt3zs.pdf

 

[Julia]

With apologies for interrupting this thread, springhill, can you clear your PM Inbox please.

 

[springhill]

Have continued to hold RFL and slow accumulated a few more over the past few months. My faith in Rubik finding customers for their technology product finally looks to be paying dividends.
Hopefully more of this in the future and look forward to finding out who the undisclosed customer is.
Still below cash value ATM, with projected increased revenue due to this contract!

http://www.asx.com.au/asxpdf/20120516/pdf/42698106bqhljg.pdf

 

[springhill]

Has RFL appeared on anyone's radar lately, considering the first major sales announcement, buyer volume increase, volume of share turnover up, SP increase to 6.7c, potential future earnings increase, announcement of sale customer to come and potential future sales?
All good reasons to investigate this company

 

[springhill]

RFL released sales disclosure on 1st June (apologies for tardiness, been OS) regarding a system upgrade to an Indonesian based top-10 financial institution.

http://www.asx.com.au/asxpdf/20120601/pdf/426lvf8s8gfb32.pdf

 

[springhill]

RFL has entered into a trading halt regarding a potential acquisition.
http://www.asx.com.au/asxpdf/20120613/pdf/426svgfg7jghx1.pdf

Last closing price 8.5c. Now marginally above cash value, with sales in the bank and potentially more to come

 

[springhill]

RFL release out today on the potential acquisition, seems as though terms are still under negotiation so a resumption of trade tomorrow is unlikely.
Their target is a financial services software company with a strong market position and existing customer base.

http://www.asx.com.au/asxpdf/20120614/pdf/426v2d4hrnjh9n.pdf

 

[skc]

Hi springhill, thks for alerting me to this little company. I took a small position last month after some research.

I like this company because it was trading below cash backing yet has a profitable and growing business on top. It was pretty low risk even in the current market climate.

The acquisition news has too little detail now to make any judgement, although I do note that the Share price jump before the halt means someone leaked something...

 

[burglar]

So surprised that no one has posted a chart!

 

[herzy]

damn seems like i missed the ball on this one...

 

[springhill]

damn seems like i missed the ball on this one...

Honestly dont believe this to be the case. The long time flatness of the SP has been due to long term product development and minimal market penetration. Sales have just started to roll, revenues from these sales will not roll in until Q3 FY 2013. Only just above cash value with future revenue increase. Further potential product acquisition plus the hope of further market penetration. That all stacks up quite nicely.
Just because you didnt buy at the bottom doesnt mean you cant catch any further potential SP increase. Are you better off buying at 5c with no positive news, or 8.5c with positive news rolling in? Have you really missed it?

 

[herzy]

Haha not sure - haven't looked at this stock, the chart above just scared me

I'll do some research and get back to you - good on you for maintaining this thread by the way! All kudos to you.

 

[springhill]

Haha not sure - haven't looked at this stock, the chart above just scared me

I'll do some research and get back to you - good on you for maintaining this thread by the way! All kudos to you.

I look forward to hearing your thoughts. Best of luck!

 

[herzy]

I'm not particularly good at evaluating the market need for internet banking systems, but it seems the team at RFL is... So happy enough to take your and their word for it. Cash backing in December was 7.5c which is quite nice, consider as you say that it seems much of their revenue will be coming through in FY13. I especially like how much they were able to reduce their operating costs. Everything I've seen so far looks positive - any chance you could point me in the right direction for researching more into this company? I find it quite hard to evaluate their competitive value/future prospects and determine an IV.

Thanks again, certainly seems like a very good company to get at least a small stake in.

 

[springhill]

I'm not particularly good at evaluating the market need for internet banking systems, but it seems the team at RFL is... So happy enough to take your and their word for it. Cash backing in December was 7.5c which is quite nice, consider as you say that it seems much of their revenue will be coming through in FY13. I especially like how much they were able to reduce their operating costs. Everything I've seen so far looks positive - any chance you could point me in the right direction for researching more into this company? I find it quite hard to evaluate their competitive value/future prospects and determine an IV.

Thanks again, certainly seems like a very good company to get at least a small stake in.

I am not sure if this is the area you are talking about, but if looking for free information on RFL and a small market comparison you can try www.investsmart.com.au you will need to sign up to a free membership. Or proactiveinvestor has some decent information too.

 

[springhill]

An article depicting the potential increase in retail banking spend over the next 4 years. Nothing directly linking RFL but looks to be a favourable growth area.
http://www.bicsi.com.au/index.php?o...amid-economic-turmoil&catid=1:enews&Itemid=18

 

[burglar]

Haha not sure - haven't looked at this stock, the chart above just scared me
...

Oh, how I lament the passing of semilog scaling on financial charts.
They look so much more appealing (less scary) to buyers!

 

[springhill]

RFL has provided an update on their potential acquisition. The target is Coin Software Pty Ltd.
Rubik now in exclusive negotiations with Macquarie's Banking and Finance Services Group for the purchase of Coin.

http://www.asx.com.au/asxpdf/20120619/pdf/426x4qgfxzg9rk.pdf

A quick google search of Coin turned up the following links;

http://www.macquarie.com.au/mgl/au/advisers/grow-business/planning-software/coin

http://services.coinsoftware.com.au/press-hub.html

http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=22388464

http://www.financialstandard.com.au/news/view/21653