Bought – Optimal Payments (OPAY)

Well at the end of last week I bought into Optimal Payments they look set for some upward price movement!

Here is a quick run down of their stats

From their Website

WHO WE ARE

Welcome to the company trusted to move billions of dollars around the world. Every second we facilitate secure payments between millions of consumers and thousands of businesses around the world in multiple currencies.

See also their website here…

The Financials…

Listed on AIM

Market Cap £608.39m

Current Year Profit before tax $32.71m (for 2013 according to Barclays) Forecast to do around £40 million GBP for 2014

So PBT (Profit before Tax) to Market Cap is around x 15

Dividends – Currently not paying a Dividend. 🙁

Next results for Optimal Payments are due on the 23 March 2015 that will be their Full Year results. After that their AGM is in May and their Interim Results announcement (for the six months ending 30 June 2015) is out in September 2015

Previous Trading statements say that Optimal Payments expects its financial results for 2014 to be at least in line with market expectations. That sounds good to me!

The only concern that I am overlooking for now are the recent directors deals…

Directors Deals

Here is a Screen shot from my Barclays Stockbrokers Platform you can see how it shows you the latest Deals by the companies directors.  In this case what do you think?

OPAY Director Deals

You can see that Keith Butcher has over a million pounds worth of shares in his company! That seems quite high dont you think? I wonder if that is why the price has been down a bit lately?

Lets look at the remaining shareholdings of the directors… Again from Barclays

Notifier Holding Value
Joel Leonoff 4,133,843 £15,419,234
Stephen Shaper 19,000 £70,870

So we can see that Keith Butcher has no shares now.  A quick check through their news tells me that Keith is stepping down as Chief Financial Officer in march.

Any Concerns?

I suppose the CFO leaving the company and selling out is a bit of a negative but looks positive otherwise so I am in for now I will put my stop loss around 10% away and see how it goes…

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Trade Summary

Buy Price: 377p

Target Price: 535p is initial Target if they Break through this I may reduce my holding but keep some to see what happens.

Stop Loss: 340p (Previous Support point on the Graph)

 

What do you think?

Any Questions  – Comment Below!

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Investor John

Investing as a Private investor John has shown success over the last 15 years with a straight forward common sense approach to investing - He can help you to learn and will gladly share his knowledge to get you started.

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