Cinnober is a Stockholm based mission-critical system solutions developer established in 1998. It provides platforms for exchange market places, clearing houses, banks and brokers. Products include solutions for trading, risk management, clearing, index calculation, market surveillance, etc.
Quality of Earnings
Quality of Management
Cinnober Financial Technology – No negative earnings recorded during history
Proven more than 15 years of successful operations. Cinnober provided high quality solutions for well-known exchange marketplaces and clearing houses worldwide e.g. ASX, DGCX. No negative earnings recorded during history.
An equity security for long term dividend seeking investors: with an average dividend yield of more than 2 % during the last 10 years, Cinnober continuously distributed growing dividends. However, Future pay-out ability faces challenge by limited expected growth and high fixed costs.
Minimized default risk investment opportunity: Cinnober is a debt free company with limited trading liabilities perfectly covered by high quality current assets.
Stable mature industry: Revenue growth is at its minimum level associated with slow estimated aggregate demand increase. Profit margins are minimized. Abnormal returns are unexpected. Price wars are moderate. No significant threat of new entrants.
Operating leverage, stock alternative and execution costs do exist: The most important investment associated risks which are the result of the high fixed cost nature of the business, and the low market liquidity and depth.