Australian (ASX) Stock Market Forum

CSV - CSG Limited

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McLovin said:
The print services division must be really struggling. Last year segment PBT was $38.5m at the half PBT was $14.3m and now they're saying EBITDA will be $30m. That might be why the market isn't getting too excited.

According to the announcement the $190m is net of transaction costs.
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I was taking the normalised EBITDA for the print service division which was ~$16.4m at H1... so the 2nd half deterioration isn't that bad.

I agree that it is not the most exciting business, but there's enough valuation upside to take a stab.. the percentage return potential is high after the capital return.
 
skc said:
I agree that it is not the most exciting business, but there's enough valuation upside to take a stab.. the percentage return potential is high after the capital return.
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I'm actually in there with you at 74c (small parcel). There's pretty limited downside in the short term and hopefully there'll be some up lift once the numbers start rolling through. Never understood businesses that sell their best business and keep the dud. Perhaps the instos were pushing for it.
 
My bet would be the return will be a fully franked dividend.
They have $20m of franking credits available and another $25m or more after paying capital gains tax from the transaction, so about 16c per share which would support a 37cent fully franked dividend. Total cost to CSV will be about $104m, so can fully pay out debt with this.
Have bought some for my SMSF as I will get the franking credit paid out to me in full, effectively a 53c payout to me,the rest of the company costing me 20c. Thats if they are thinking the same as me.
Considering even at its depth the printing division has a similar EBITDA to the technology division, I think thats a pretty good deal.
 
The sale to NEC Australia has been completed. The board is working out the best method of returning excess capital to shareholders and expects to make a further announcement when the full year results are released on 23 August.
 
I've just stumbled upon this company this evening. It wouldn't have come up in any of my market scans because of a weak balance sheet and poor earnings performance. The share price seems to be on the mend - on a now well established turn around. The company seems to be on a turn-around too with a complete restructure of the management and the business. Interesting. Looks like they are done and dusted with their share buy-back and capital return which might explain the run up in share price to a degree.

I guess where the share price goes from here depends on what faith the market have in the management. I'll put this on the watch list and put it down for further research because it looks like the share price might continue to go up in the medium term.

Their website is a bit weird though. There is a distinct lack of marketing polish to some of the content. The telephony and VOIP services business seems a bit of a strange fit on the surface but I can see the potential synergies given they are targeting the SME market more. IF you go to the VOIP page you get some very uninspiring copy about their VOIP service.

http://csg.com.au/Print-Services/Telephony-Solutions/Products/Telephony-,-a-,-VOIP-Solutions.aspx

Don't bother to "click here" the link is broken. The "Instant Demo" button takes you to the contact form.

As mentioned the copy is inspiring:

The difference between CSG and our competitors in this domain – we know what we are doing and we do it well.

If after reading the information provided below you would like to know more, we would be pleased to make a time to meet with you and discuss how this technology may be of benefit to your organisation.​

Freaking hilarious. Why choose us? Because we know what we are doing! There's a compelling proposition.

Anyway I am sure it is a work in progress.
 
P&F daily update...

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Hello - breaking the ice after the most recent posting of 23 Sept 2013 for those following this scrip for whatsoever reasons for some heads up.
  1. The current value of this stock as per Stockinvestvalue is 0.52 against market price 44 cents
  2. The highest price was $1.72 and the stock price slumped by 5% with massive volume without any public notice published on ASX.
  3. Low PE 7.7
  4. NPAT increased by 14% bla bla
Why the slump and why market failed after result announced.
Is there something market announcement need to be done?
I just bought a small parcel day before yesterday assuming the lowest ever price, but today further reduced 5%. What could be the bottom and why this behaviour? General sentiment? who knows /

Thanks in advance
 
CSG Limited hitting all-time lows today after releasing a disappointing FY2018 Trading Update this morning.

Forecast FY2018 revenue has been revised from ~$269m to $253-$260m. The company attributed the reduction in revenue to lower than expected print equipment sales which was driven by changes to the salesforce and sales incentive programs to accelerate growth in the technology business.

As at 31 December 2017, the Company had a closing cash balance of $21.6 million (including restricted cash of $13.6 million) and $42.5 million of corporate debt.

CSV was hammered after the announcement and is currently down 13.8c to 29.7c, a decline of 31.61% today. This one could be off the boil for a while now. The company will need to show evidence of revenue growth before there is any chance of a change in sentiment, and that could be some time off.
 
It's an understatement to call this a trainwreck. Another downgrade this week. $150 million in impairments and provisions. I'm interested in getting in if this drops to the teens and the CEO departs the business. Good recovery potential (also a good potential to go up in smoke)
 
Checked my chart to see the three strikes and I'm out until there an obvious turnaround in price behaviour.

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On February 20th, 2020, CSG Limited (CSV) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between CSV and its shareholders in connection with the acquisition of all the issued capital in CSV by Fuji Xerox Asia Pacific Pte Ltd.
 
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