Wednesday, April 19, 2006
NCipher: almost cheap enough
NCipher (LSE: NCH) is a high-tech encryption hardware supplier. The shares currently trade at 240p to buy. Recently, the stock fell back sharply when a US software specialist pulled out of a takeover that priced the shares at 300p.
At the final results, NCipher announced cash reserves of £40.2m and earnings per share of 10.97p. Against a market capitalisation of £58.6m a quick calculation reveals 166p of the current market capitalisation comprises company cash. Ignoring the effects of the cash on the market capitalisation, that leaves 74p of business covered by the ongoing earnings which are forecast to rise further over the next two years (as is the norm for these technology companies - take care).
NCipher is clearly very cheap. I'd like to examine this one further as it is even cheaper than I had previously calculated. I'll check my numbers and report back but NCipher is clearly one cheap share, provided future earnings are maintained. I may be purchasing imminently.
The Artful Dodger
At the final results, NCipher announced cash reserves of £40.2m and earnings per share of 10.97p. Against a market capitalisation of £58.6m a quick calculation reveals 166p of the current market capitalisation comprises company cash. Ignoring the effects of the cash on the market capitalisation, that leaves 74p of business covered by the ongoing earnings which are forecast to rise further over the next two years (as is the norm for these technology companies - take care).
NCipher is clearly very cheap. I'd like to examine this one further as it is even cheaper than I had previously calculated. I'll check my numbers and report back but NCipher is clearly one cheap share, provided future earnings are maintained. I may be purchasing imminently.
The Artful Dodger
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