SOPHEON

(SPE:AIM) 990p

Shares - - GREAT IDEAS UPDATES -

Gain to date: 6.5% Orig­i­nal en­try point: Buy at 930p, 13 Septem­ber 2018

IT IS EARLY DAYS with our cur­rent Great Idea on Sopheon (SPE:AIM) so in­vestors would be wise to re­sist get­ting too car­ried away with this week’s up­beat trad­ing up­date. That said; the busi­ness is de­vel­op­ing quite the rep­u­ta­tion for beat­ing fore­casts, a habit that goes back at least a cou­ple of years.

Man­age­ment are clearly be­ing very care­ful about how in­vestor ex­pec­ta­tions are han­dled, which is a good sign.

In­no­va­tion and prod­uct life­cy­cle soft­ware provider Sopheon now ex­pects 2018 full year num­bers to come in ahead of mar­ket ex­pec­ta­tions.

That prompted stock­bro­ker Fin­nCap to raise its rev­enue es­ti­mates for this year from $31m to $32.5m and lift earn­ings be­fore in­ter­est, tax, de­pre­ci­a­tion and amor­ti­sa­tion (EBITDA) fore­casts 5% higher to $8m.

What’s re­ally in­ter­est­ing is that the third quar­ter is usu­ally the quiet pe­riod be­fore the fourth quar­ter storm. This sug­gests to us that per­haps some new busi­ness has been done early al­though we cer­tainly couldn’t rule out fu­ture pos­i­tive sur­prises.

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