Thursday, September 1, 2011

Meeting #39 IRI

Prognosis  IR is a leading global provider of high-definition performance monitoring, diagnostics and reporting software. IR is the the creator of award-winning Prognosis® and PowerMinder®

Design, development and sale of systems and applications management computer software for business-critical computing and Internet protocol (IP) telephony networks.

The Company’s PROGNOSIS product range is an integrated suite of monitoring and management software, designed to give an organization’s technical personnel operational insight into their HP NonStop, Windows, uniplexed information and computing system (UNIX) and Linux servers, and IP telephony environments and the business applications that runs on computer software. PROGNOSIS is used in automated teller machine (ATM) and Electronic Funds Transfer at Point of Sale (EFTPOS) transaction systems, Web applications and telecommunications systems. It services customers in more than 50 countries. The Company generates the majority of its revenue from upfront license fees, recurring maintenance and recurring license fees.

Data from Reuters

The Meeting
Thanks for Gilles, Tom,Mark, Cameron and Camerons Brother for coming on Wednesday.

The company routinely has a high profit margin and return on capital in the mid 20's it has no long term debt and consistent earnings there is also very little share dilution and little options. The MD has been with the company for along time and he hold a good chunk of shares and also the company is in a space (IP telephony) that could make it a takeover target in future. On the negative side the earnings are flat (falling just short of inflation).  The dividend payout is routinely 90% of the yearly earnings.

Special thanks to Cameron for driving a truck through my incorrect valuation method! My flawed valuation came up with a valuation of $1.05, both Cameron and Mark came up with around 18 cents. Tom came up with more (about 60 cents - I think)

Valuations spreadsheet will be found here

Next Meeting

We will be submitting valuations of Invocare