LON:IBPO | IEnergizer - Someone Talk Me Out Of It!

11th Aug '16 by Carey Blunt

13 comments 10104 reads

Anyone here hold iEnergizer (LON:IBPO) ? Its been on my watchlist since it came up in the unloved stocks screen. Stockrank 99, looking at the history it looks like its had a rocky past and is now a turnaround.

It jumped by 15% today which is annoing since I nearly bought it last week but then didn't at the last minute.

The reason I didn't buy it is that for the life of me I can't really work out what they actually do!
The website and RNS are absolutely chock full of managment waffle.

The company profile says....

"The Company provides content transformation services and business process outsourcing services. Its segments include Real time processing, Back office services, Content delivery and Others. The Company provides services across the entire customer lifecycle and offers a suite of content and publishing process outsourcing solutions (Content Services) and customer management services (Back Office Services and Real Time Processing) that include transaction processing, customer acquisition, customer care, technical support, billing and collections, dispute handling, and market research and analytics using various platforms.....blah blah blah"

I work in software and IT services and it still looks like a load of buzz words thrown into a sentance at random to me.

Can anyone give me any practical example of how they actually make money or know if/why they are likely to make more money in future than they do now?

Should I care? All opinions welcomed.

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Brothersinarms

12th Aug '16

83% shareholder. They did a placing at a discount of 78% a year ago which went to that shareholder.

Carey Blunt

10th Nov '16

Stockrank still 98 and its up over 50% since I wrote the original post. The more I read the RNS that get put out the more I think that this company smells really bad but I don't have the skills to work out exactly what the red flags are.
If this was a case study in finding a dodgy company on AIM then which items in the RNS/Accounts should I look out for first.

Or is it just that the placing mentioned above has put everyone off this share on the basis that it will happen again.

Thoughts anyone?

mercury61

5th Feb '17

iEnergizer (LON:IBPO) Yes its a curious one this. Not much movement. One for Paul to investigate?!
@paulypilot

Yes what to make of that.
13.17% owned by AXA, Capital and NFU together. I guess no holding above 5.5% (AXA) advisable!?

Ramridge

6th Feb '17

Guys - Yes, they seem to love the latest jargon. Here is how they describe themselves in the last interim report,

iEnergizer, the digital publishing and technology leader, which benefits from the dual disruptive waves of big data and the cloud is pleased to announce its Interim Results for the six months ended 30 September 2016. The present structure of the Group combines a well-established, high growth, business processes solution enterprise with a leading provider of end-to-end digital transformation solutions to the media and publishing industries.

If you read between the lines, it is a bog standard outsourcing company working from offshore centres. The usual pitch is that they can take away back office operations and provide those services more cheaply from offshore centres, from simple processes to wholesale departments.

"Big data" and "cloud" and "disruptive technology" are just empty attention grabbers.

Tortoise investor

7th Feb '17

I think as a general rule you shouldn't invest in any company you can't understand. Otherwise how can you work out the competitive threats or understand RNS updates?

lightningtiger

Undervalued but not moved since last October. In the same sector MMC @ 86 ranking,FENR @ 86 ranking & FENR @ 77 are. Personally I like to check the 50 day MA's of the sector & make a decision from there.
It may have a 99 ranking but you may have a long wait before some action. Not one for me I am afraid.

Wimbledonsprinter

Not one for me. The shares are very illiquid (with a large bid-offer spread), there is a large shareholder (82%), and the company pays no dividend.

Edinburgh Investor

4th Aug '18

Suerprised they haven't changed their name yet to iblockchain

mojomogoz

9th Oct '18

Just stumbled across this thread due to some work I was doing on something else checking out a few strands. Here's a quick and not very specifically knowledgeable comment on iEnergizer (LON:IBPO):

CFO Richard Day left by mutual agreement suddenly in July 2018. It seems this was not planned as new CFO didn't arrive until month later. Interestingly new CFO is straight on board whereas Day was not.

It may be of interest to know. Richard Day has held NEDs at a bunch of interesting companies including:

Greka Drilling (LON:GDL) - just proposed to delist

More Global - insolvent 2017, as far as I can tell it only listed in 2016 (but in German and not sure). Interestingly don't think its on his linkedin profile)

Envent Capital Markets Limited - mid market corporate finance (not on profile)

EGS Energy - March 2018 position, start up re thermal power in Cornwall, on quick glance I get the impression that it'll come to mkt (I think it is also known as Eden Power?)

Alchemac Ltd - Aug 2018 position, non exec chairman of company that UK based but quarries boulders in India and wants to shift into producing aggregates and manufactured sand (watch out for a future listing?)

He's chairman of the board at Pelatro (LON:PTRO) an Indian based marketing software service company to emerging market telecos (customers based around Asia and Africa mainly) - probably will be looking for capital, has some interesting accounting practices.

He also took Jersey Oil and Gas (LON:JOG) to market which shareholders have much to thank him for.

He was head of corporate finance at Arden Partners until 2015 and one of its founders.

Just a bunch of stuff I have become aware of. That's all.

Thanks for the input... The original Thread was Aug 16 when it was 46p ish I think. I would have done ok if I had bought it then and sold out now but I would have had to ride out some drops right down to my original buying price.
In hindsight I have no regrets that I didn't buy. I still can't work out exactly what the company does. Not because I don't understand the things mentioned in the company description but because all the things in the company description are just jargon words that don't really explain how the company makes money.

No worries. Its there as "community" info in case it helps people

15th Nov '18

The company is a holding company and based in the US & India with further offices in Maritous. Call centers.appears to be it's type of business according to VectorVest , which was showing a buy on 5/9/18.
With a spread of a massive 20p it puts me off..
However the recent results on 15th November are good.
Revenues up9.5%
EBITDA +39.1%
Profit margin + 19.8%
StockRank still 99
And the debt reduced from £26M to £18M

IEnergizer - someone talk me out of it!

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Carey Blunt

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