Why are we again at 10.5p bid?

It doesn't add up...

Good Results + Strong buying pre results + Christmas online buying soon = Price drop

Then again some companies that have debt for equity hanging in the balance, poor results and bankruptcy around the corner and they go up!

Why sell now at a loss?

Wont that be a kick in the teeth when we see 13.5p 14p again!

Best of luck all.

Long term interest Douggie.

Patience!

*Strong trading in Australia has helped credit card fraud prevention group Retail Decisions to meet first half expectations and express confidence about full year trading.

"Trading has been particularly strong in the group's Australian fuel card business, where new card sales and high average fuel prices have contributed to better than expected revenue and margins being achieved," the group said.

Retail Decisions fraud prevention division has also won over 40 new merchants in the "card not present" sector, boosting sales by over 50%. Brokers expect profits this year to December to jump to 6m from 2.9m.

*UK's Retail Decisions on track to double profit

http://www.reuters.co.uk/financeBreakingNews.jhtml;jsessionid=A2FOAILJVKX5SCRBAEZSFFA?type=breakingNews

*Retail Decisions Plc
Trading Statement
1 July 2004

Key Data Market Cap 50.85m Enterprise Value 46.65m Shares in Issue 289.773m Est Free Float 78.7% Gearing N/a Net Cash (Debt) 4.2m

Next Results Interims Sep 04

Research David Johnson 020 7847 0399 david.johnson@danielstewart.co.uk Roger Tejwani 020 7847 0380 roger.tejwani@danielstewart.co.uk James Hollins 0207 847 0386 jmes.hollins@danielstewart.co.uk Sales Tom Jenkins 020 7847 0370 tom.jenkins@danielstewart.co.uk Daniel Willmott 020 7847 0364 daniel.willmott@danielstewart.co.uk Sebastian Wykeham 020 7847 0362 sebastian.wykeham@danielstewart.co.uk Alex Davies 020 7847 0359 alex.davies@danielstewart.co.uk Daniel Stewart & Company Plc 48 Bishopsgate London EC2N 4AJ Tel: 020 7374 6789 Fax: 020 7374 6742 www.danielstewart.co.uk

Retail Decisions (RTD.L), the fully integrated risk management solutions and payment processing provider, has today issued a positive trading statement, indicating that trading in H1 2004 has been encouraging and in line with the Groups expectations. Stronger than expected trading in the Australian fuel card business, driven by both new card sales and the record oil price,has contributed to better than expected sales and margins. This has offset adverse currency movements due to the weakening of the Australian dollar and we are not currently adjusting our forecasts. Trading has also been impressive in the other divisions, with the core card not present (CNP) operation signing up over forty new merchants, delivering a 50% increase in transaction volumes compared to the same period last year. These sales are on a transactional based revenue model, and as such offer a highly scaleableoperation with significant potential for margin increases. The company has also renewed contracts with a number of key customers. RTD.L has also generated higher than expected licence sales in its card present(CP) division. We do not regard this as a key growth area, and as such have minimal contributions in our forecasts from this division. We are not upgrading our earnings estimates at this stage, however we would flag the potential for substantial earnings upgrades driven by both new contract wins and the scaleability inherent in the business model. RTD.L is the market leader in a growth industry, with payment processing and risk management no longer a discretionary spend for on-line operations. The Company is currently trading on a forward annualised P/E of 11.5x, approximately a 45% discount to the sector average. We consider this rating to be unjustified, and recommend BUY.

There's a rumour floating around that RTD are totally hacked off with the constant beating the share price gets even after good news. They could be looking at floating on the Nas instead or a buyout.

Not surprising really, 45% discount to the sector average and broker targets of 30p (given trading is as expected - which we've just been told it is!) and still we're lingering in the mire at 17p.

I read somewhere today, that RTD are still seen by institutional investors as tarred with the dot-com brush from the heady days of the share price at 4.00 - whoever mentioned that suggested that the commpany should consider changing its name to shake off that tag once and for all. This sounds like a sterling idea to me, much less drastic than the alternatives rumoured to be being considered.

The company still looks to be going great guns from where I'm sitting, it's frustrating that this rapid growth is not currently being reflected in the share price.

Still it's Friday now - a good end to the day will be a message from Douggie signed off with :-)))))))))))))))))))))))))

All the best.

OG

Edmond Jackson
Edmond Jackson: look behind the words at Retail Decisions
Published: 09:28 Thr 1 July 2004
By Edmond Jackson, Columnist
Email to a friend | Printable Version


Sometimes words matter more than deeds just take a look at today's pre-close
trading update from fuel card operator Retail Decisions.

It is often the case that financial news releases affect underlying
financial prospects. In the case of Retail Decisions today's update simply
affirms expectations.


Like various other statements I have read this week, trading has been
encouraging. I suppose it is at least encouraging that trading is not behind
expectations but this adds nothing.


It's interesting to note 'particularly strong trading at the group's
Australian fuel card business'. However this is not quantified and it only
offsets weakness in the exchange rate when profits are translated.


Management notes encouraging progress in the 'Card Not Present' sector which
is obviously a key aspect of Retail Decisions' development in payment
processing and fraud prevention.


More than 40 new merchants have been signed up in the first half, helping to
lift these sales by over 50% like for like. Higher licence sales have been
achieved for the PRISM software product that identifies changes in
transaction patterns to help prevent fraud.


The brokers' consensus is for modest profit progress, from a normalised
pre-tax figure of 5.46 million last year to 6 million in 2004 and 6.8
million in 2005. At 17.25p, up 0.25p, this means a rolling 12-month forward
earnings multiple of about 12 which looks fair.


Like many other technology shares, Retail Decisions(RTD) is off its 2004
peak of 28p. It is not surprising that managers seek to assure shareholders
that progress is 'encouraging' and prospects 'exciting'. But you need to
look beneath the surface and ask what numbers this all boils down to,
whether there is genuine positive change that impacts underlying financial
value.


A 'hold' stance is appropriate for those already in this share.

LONDON (AFX) - Shares in Retail Decisions ticked modestly higher amid talk that directors are considering a Nasdaq listing or buyout if the rating remains low. Daniel Stewart, joint stockbroker, yesterday reiterated its 'buy' advice in the wake of the company's trading update, citing the shares' 45 pct discount to the sector.

Retail Decisions shares were 3/4 firmer at 17-3/4 pence by 7.45 am.

Is this a show of things to come, or is the above column going to prove correct?

Hardly a rush to buy on the news. If the price rises it seems to be a signal for some holders to sell. Most depressing. I can see why management are considering a buy-out - nothing they do seems to be viewed positively by the market.

Times July 02, 2004

Rumour of the day

RETAIL DECISIONS, the payment processing systems developer, dipped p to 17p, despite stating that first-half trading has met forecasts. Daniel Stewart, joint stockbroker, repeated its buy advice, citing the shares 45 per cent discount to the sector. Sharing its frustration, directors are said to be considering a Nasdaq listing or buyout if the rating remains low.


Well, we are up again so far today.

They are considering a buyout? What is this exactly, they are considering, letting someone else buy them out? Wasn't it only earlier this year they said they were not interested in a take over bid, at these prices?

Can anyone shed any light here? Moneyplus/fundamentalist?

Buy-out, I think, means the management buying the share cap and taking the company private.

Yep

Management getting external funding to allow them to buy out the company and hence remove it from the stockmarket into the ownership of themselves and their creditors

Lets hope they go for the Nasdaq listing as shareholders always seem to get stuffed if the management go for a buy out!!

If it is a management buyout then we will no longer be able to wait for 90p in the next few years but we should still do very well.

If it is a buy-out then I would assume an initial offer of about 27p.

Cant see the initial offer being more than a 50% premium to the current share price. I would expect it to be 17.5p + 30% = 23p ish. where do you get 27p from pachandl

Fund: if RTD is at 45% discount to peers (ie 30p fair value? approx), and the management are confident about future prospects, then 27p seems a reasonable starting point.

OG delighted to comply a good day (I'll not spoil it by saying may it be the first of many)shhhhhhhhhhhhhhhh. [I wonder if I could get the board of CYH to follow RTD example,many simularities that share is realy getting stuffed]

have a great w/e all best wishes Doug. :O}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}

Douggie

Please edit your post & put some spaces in your smile.

Your smile is too wide & means we have to use the horizontal scrollbar to read messages.

ooooooooooooops sorry didn't know that could happen.

by the way I have often wondered why I'm the only one with 'edit' on all my posts ???

Douggie - Well all have the edit facility, but we can only see our own.

edit. and edit our own. :-))

thanks prodman another tiny bit learned. ;o))