Up up and away OPAY so several analysts say! Another 50%+ on it's way?

28th May '14 by lightningtiger

12 comments 8671 reads

MIDEAST TIMES HEADLINES OPAY has it's buy rating rerated by analsts Canaccord genuity @575p on Wednesday. A potential 59.06% increase on the current price. Several analysists including Numis Barclays & Edison also commented as a buy & a consensus price target of 555p.

OPAY AGM statement states "Trading ahead of market expectations & strong performance in first four months 2014".

Interim chairman Jonathan Comeford stated 2013 revenues grew 41% to $253.4M. Net profit grew from $1.2M to $35.1M. As a result the first four months of 2014 have had a strong performance are now to be materially ahead of market expectations.

On 21'st May 2014 OPAY was honoured @ CNP awards, part of CNP expo May 19-22 2014 in Florida.. OPAY takes home best E - commerse plannetory gateway customers choose award. (CNP is card not present.) Danny Chazonoff OPAY's CEO said " Being selected by our customers is a testamant to our commitment to best-in-class service.

OPAY accepts payments from over 200 countries around the world @ manage billions of $'s each year.

AFP (association of fundraising proffesionals) will be meeting on 28th May 2014 in Toronto together with OPAY.

OPAY Qualifies for 3 Strategies in Stockopedia investing and is up around 4% today 27th May.

Don't miss out on this one cheers from Lightningtiger!

Please DYOR stocks can go down as well as up, personally I recon it's going back up again. Can 7 analysts be wrong about this?

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lightningtiger

10th Sep '14

Updating, excellent report today on Google, now passing the 500p mark & still climbing. Next target price of 600p looks as if it is on the cards. Another stock up 100% in a year. Cheers!
Lightningtiger

DJLJ23

14th Nov '14

What are peoples thoughts on these deals directors (OPAY, QPP, and others are doing with Equities first (EF)
I.e Pledge/sell shares in exchange for cash, but still claiming they have an intrest in the shares, because they have a commitment to buy them back, and EF won't vote or loan shares, and apparently won't sell them unless default occurs.

peterg

What are peoples thoughts on these deals directors (OPAY, QPP, and others are doing with Equities first (EF)

I.e Pledge/sell shares in exchange for cash, but still claiming they have an intrest in the shares, because they have a commitment to buy them back, and EF won't vote or loan shares, and apparently won't sell them unless default occurs

There's a good thread on this in relation to QPP on the Fool. The consensus there is that EF's business model is to sell the shares. And also, in QPP's case, at least, there is no practical obligation to buy them back - so they won't if the price has fallen in the meantime.

It is, of course, possible that there are directors who have legitimate reasons for getting involved in a trade of that sort. However, it's also clearly an excellent way for directors with large holdings and no faith in future share performance to offload some, or all, while pretending they are not.

For that reason, any deal of that sort, with EF, or anyone else, is an out and out bargepole flag for me.

Peter

shanklin100

15th Nov '14

Can anybody explain to me how given the text in the RNS:

http://www.investegate.co.uk/optimal-payments-plc/...

"For the purposes of securing the Loan, during the period of the Loan Mr Leonoff has transferred title and voting rights in the Pledged Shares."

it can be suggested, again as per the RNS that the CEO's interests in OPAY remain at the same level as before the transaction?

BTW, given OPAY seems a solid growing company, I am not suggesting the shares are likely to have to be sold by EF, just that today's RNS IMHO does not seem to reflect the realities of the situation.

Thoughts welcome, Martin

What the exact legal definition of a loan is (if such exists) I couldn't say, but clearly if title and voting rights have been transferred most people would I think regard the deal as something more along the lines of a combination of a sale and an option to buy in the future.

Continuing to count the 1.5m shares as included in his "interest" seems a somewhat dubious, even with the footnote. What he now has is an interest in 2,633,843 shares, with an option on an additional 1,5m

I tend to agree with your statement that:

"What he now has is an interest in 2,633,843 shares, with an option on an additional 1,5m"

As I posted on another thread, perhaps incorrectly, my understanding from having previously worked at an AIM-listed company, is that NOMADs effectively have sign-off authority on RNSes. With this in mind, it would certainly be interesting to know what Canaccord Genuity Limited (for OPAY) and Cenkos Securities (for QPP*) make of the recent RNSes w.r.t. the dealing of directors with Equity First.

IMHO, until the full details of these arrangements are RNS'd, there is certainly a considerable lack of transparency here.

All IMHO DYOR, Martin

17th Nov '14

As peter said, a lack of transparency

But is it really any different to getting a loan against your house?, if you don't pay it back they can sell it, but you still consider it yours.

So the issue is, can EF sell the shares only if the client defaults?, I would be a lot more sanquine about the transactions if this is the case.

no doubt 8.00 will be intresting for opay holders

(no current position in opay)

23rd Mar '15

Having been suspended for a short time today on the news that they are in a deal to buy Skrill Group for £801M. The share price shot up over £1.00 ,or 24.7% on the news. Another great graph pattern with a double bottom and back on track with the 50 day moving average. Thanks to stockopedia for the ability to see a company called GATE, just sold today with over 100% profit in just a few days. Have a look at SWKS (US) graph, just topped up today.
A Happy Birthday to Pat Robertson of the 700 club now 85 years old. You can see his celebration today on the 700 club CBN Pat Robertson. He recons oil prices have to go up on previous shows.

janebolacha

24th Mar '15

Imo, the SP of OPAY is now well up with events after yesterday's rise. The price paid for Skrill is quite full. One of the principal failings of PI's, imo, is that they fail to look at the wider context around the stocks they own, in particular market evolution, competitors and their strategies, etc, etc. Although there is the particular niche in online gambling in which OPAY has a legacy position (and which may produce good returns, should online gambling be widely legalised in the US), they are essentially now competing in the fast-evolving mobile wallet market with the really big boys now, with the likes of PayPal, perhaps with Apple Pay, Samsung, etc, etc who will surely be eyeing the online gambling market themselves. Is that market position that OPAY has there really impregnable? I can see the defensive logic of taking out a principal competitor in Europe (even at a very hefty price, imo) and in reducing the "one major Asian customer" dependency but it's what comes next that interests me if a PER now approaching 20 is to be justified. I'm happy with the gains I've made but fairly cautious on where we go from here.

TheWatchmaker

I generally agree with your view that SP may now be about right following the Skrill takeover announcement. Maybe there's a bit more short-term rise if investors get over-enthusiastic.
It's difficult for me to have confidence on whether the combined entity will show anything like the growth of OPAY to date. On my quick calculations the current share price would need 15-20% growth for the combined company for each of the next 2 years. Could happen, but not something I'd wage money on. Particularly when weighed against the potential difficulties of the merging of the two companies in a reverse take-over. Plenty of scope for disappointment.

WarrantStar

26th Mar '15

Jane, I always like to read your well considered posts. To what extent do you think Optimal Payments (LON:OPAY) might itself become a take over target if the current take over goes through & OPAY continues to excel?

27th Mar '15

Warranstar, thank you.

The present valuation of OPAY might be a deterrent to potential predators. Imo, the mobile payments market in general is now over-touted as the next Klondike and could well become commoditised as competition, technology and redefinition of payment solutions (one example being Apple Pay) drive down margins. OPAY sees its position (and that of Skrill) in online gambling as a strength but this may be rather a legacy position which will come under threat. After all, is there any reason that the "big boys" (a newly independent PayPal, phone manufacturers, etc) would not want a big share of the online gambling market? Isn't it simply just one category of spending like any other? OPAY's "moat" is thus, to me, problematical. Developing new technological solutions that revolutionise markets actually doesn't cost very much, we see this every day, and I don't see OPAY as being somehow exempt from such a threat. I'm going beyond your question but I needed to in order to explain my answer to it which is that, imo, OPAY can be "taken out" much more effectively and cheaply by its competitors, they wouldn't need to buy OPAY out.

All IMHO, DYOR.

Up up and away OPAY so several analysts say! Another 50%+ on it's way?

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Lightningtiger

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