Silverlake Axis

Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
The rise in seriously surprised me.

Still vested since first post.
-- Where I blog about matters on finances
(15-12-2012, 11:54 AM)momoeagle Wrote: The rise in seriously surprised me.

Still vested since first post.

Congrats. Very healthy counter.
My Investing insights:
My sale blog:
The business model of Silverlake Axis is highly scalable and with each new contract win it means a higher recurring maintenance income on top of the highly lucrative one time licensing fee with 90% profit margin. Silverlake's potential to grow is limited by its contract win and these win has been great given that it has hardly won anything highly significant this year

Finally they have secured new contract after long waiting...:p..

Any thought on the profit margin for this type of contract? 50%?
Great results announced with a $0.007 dividend declared, it seemed like dividend yield for current price and current year could possibly exceed 5%. The dividend yield might not be sustainable at current level once all the licensing contracts have been executed though the management begs to differ in the CIMB report.

The best statement will probably be "In addition, the substantial recurrent income from maintenance and enhancement services is expected to continue growing in FY2013 with the completion of ongoing software projects and new project enhancement contracts secured." Too bad, it seemed hard to have a good estimate on the potential recurrent income from all its current projects.$file/SAL-Group.Announcement.for.Q2.FY2013.pdf?openelement

New Contract to Implement SIBS Core Banking Solution
for Union Bank, Sri Lanka$file/Silverlake.Axis.Ltd_Union.Bank.Contract.pdf?openelement

.pdf   SilverlakeAxis05032013cimb.pdf (Size: 539.34 KB / Downloads: 119)
I wonder if it will be subjected to a takeover offer one of these days
-- Where I blog about matters on finances
does anyone know how many programmers silverlake has?

Who is the team leading the R & D team for their software?
Silverlake Axis announced a share placement today, of 150m shares at S$0.75/share, to raise about SGD 73m.

The Company had announced an acquisition amounting to about RM 42m a while back.

SGD 73m is significantly more than the RM 42m they need for this M&A, and 9M 2013 FCF was RM 132.3m. It seems they should have more than enough FCF to internally fund their M&A, so why would they choose to raise funds through a secondary equity placement? Huh

Unless, they have even more M&A targets in mind?

Question is - can the Company grow organically, or would most of its growth have to be acquisitive? Are these M&A truly synergistic and when will results show?

(Not Vested)
My Value Investing Blog:

Forum Jump:

Users browsing this thread: 2 Guest(s)