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Agreed seems to the steadied , hopefully climb back above 500 p pre results then hopefully a leg up. Brokers seem happy
Starting to firm up now after the results sell off, missed £4.61, was fully loaded elsewhere. Hopefully a rise now to Q1 24 18th April, won't be long excluding Easter. GLA
Totally agree, marked down early Jan 24 as a side swipe throw away memo, utter useless. This is a powerhouse combination as it matures. You can't swallow a whale without breaking a few eggs!? Will load up on weakness, US tailwinds will kick in later in the year- on all fronts (Except Trump). GLA
I sold at nearly £5 yesterday on the basis it was inevitable there would be some more profit taking today. I will buy in again if it drifts down again. So many analysts are useless. I really do wonder how they come up with their assessments sometimes. It was only a few weeks ago they were trashing the Terminex aquisition stating it was too expensive and would be a drain. Now the results show a far more positive story. This share a pretty safe growth stock in my view, but there's more opportunity to buy on weakness and do the same again.
Overhead supply from previous trading at 500 and 550. There is a falling down trend line at 550, which together with overhead supply, msy be expected to provide initial resistance to a rally.
The latest complete trading day , represents a Japanese spinning top candlestick, with the high and low of that trading day representing the levels at which RTO, can be expected to either rise further beyond the high , or fall below the low. Volatility based bollinger bands are separating, confirming higher volatility than normal.
Looks like its heading for 200 DMA £5.22, I did add after initial sell - in the £4.90's , a lot of momentum here and I feel cheeky I added in the US last week, (only modestly) but thank God. GLA - long time coming here - had to wait and didn't like the pre Mkt drop last few days, always makes you think, is there something....?? As with the others - thought this was an overkill mark down after H1 - took Rollins 14th Feb to clarify a better view.
That took the bait at 400p level. Could have been a bear trap but looks to have worth a nibble. Those that rode into town at that price have done well here buy I still have a feeling there is some cheese still to be had here despite the rise.
After today’s update I think it is only a matter of time before we climb back towards 600p. Great stuff
Agreed Gogetum &Leew - fingers crossed. Looks like their US recovery plan has teeth and US Int Rates will decline in 2024-25 so strong tailwinds ahead next 18 mths- hopefully. GLA
Same here and I would hope after further updates they will climb to the 600p mark again,
The management presentation later this morning will possibly provide a further uptick
I did the same, got some between 395-420 as never understood the reaction last year so hopefully can ride with it back to the previous levels, which will hopefully see a 40-50% return on the investment.
Feeking hell - built up here in the darkness - normally get it wrong, out for grub now HNY.
RTO adr up 4.87% probably waiting for this.
2023 Fourth Quarter Highlights
• Revenues increased 14% to $754 million. Organic revenues* increased over 7% and acquisition-related revenue increased approximately 7%.
• Operating income increased 16% to $139 million. Operating margin increased 30 basis points to 18.4% of revenue. Adjusted operating income* increased 20% to $144 million. Adjusted operating income margin* increased 100 basis points to 19.1% of revenue. Adjusted EBITDA* increased 14% to $167 million. Adjusted EBITDA margin* was 22.1%, flat versus last year due to lower non-operational gains included in other income associated with vehicle and property sales.
• Net income increased 29% to $109 million. Adjusted net income* increased 20% to $101 million.
• EPS increased 29% to $0.22 per diluted share. Adjusted EPS* increased 24% to $0.21 per diluted share.
• Operating cash flow increased 24% to $153 million. During the quarter, the Company invested $18 million in acquisitions, $11 million in capital expenditures, and paid dividends totaling $73 million.
• The underlying health of core pest control markets, as well as Rollins' ongoing commitment to operational execution, should support another year of strong organic growth, further complemented by a strategic and disciplined approach to acquisitions. As we look to 2024, demand for our services is solid and our pipeline for acquisitions is robust.
See what 7th Mar brings but no structural issue with the US Market. GLA
I've been watching this share for a while. I don't really understand the magnitude of the 35% SP collapse from 610p to 396p, when the disappointment of the Oct TU points to some margin pressure in the US. Taking a step back, this SP fell 42% in the COVID pandemic Feb - Mar 20, for understandable material reasons, from 505p to 289p.
The US margin set back is NOT a China property related structural collapse. Growth elsewhere in the RTO global markets is progressing positively and will offset the US to a point. RTO appear confident in the 2023 FY result.
The RTO business model is inflation proof and does not require long lead time massive capital expenditure in manufacturing. Admittedly the PE ratio was lofty but now has fallen back to below the sector average. IMO DYOR, RTO is in a far stronger trading position than 2 years ago and will reap synergy benefits in 2024 with the Terminix acq'n and a vastly improving US & Global interest rate and inflationary trading environment.
IMO I think the majority of the downside is in the current SP (barring a complete meltdown in trading), if it came thru Covid relatively unscathed, then this is just a short term blip. Fingers crossed I'm in. GLA FWIW. News 7th Mar & TU Q1 18th Apr - not long.
Disappointing to see this slowly drift downwards. I must say it looks a tempting entry point, or in my case, averaging down.
Maybe the market is still uncomfortable about the price they paid for the most recent USA aquisition. Surely this is still a sound investment.
Hi all, been at this caper a long while but never ventured into Rentokil, I'm an in and out merchant and bought at 412 yesterday, cheers.
Casa. Good post. Agree. Have bought more today to average down. My purchase showing as a sale.
Hi Guys I've bought in here having last bought almost decade ago at 100p and selling (too soon and usual!) at ~300p.
Having examined the reasons behind the sharp fall in October and concluding that it is overdone and tho' I might have to wait 12/18 months, I believe there is a profit here.
Recent figs show that RTO has raised revenues steadily for the last 7 years and have more than doubled revs in that time. That said, they have not always managed to turn high revenues into large profits , their business is a low-margin one and IMV will remain so. It is also true that being a well- managed company with regular steadily rising profits led to a P/E in the 50's which was too high.
The last half-year results including the Itaconix figures mean the P/E is now back to the low 30's and while still IMV high, absent any sharp SP rise it will fall to the 20's or less with the next FY results.
The next FY results including the Terminix acquisition should show revs of over £5bn and a PBT of ~£700m.
While the strength of sterling against the dollar, if it persists, will be a drag, and the US housing market may take some time to recover , falling interest rates, first in the US and then the UK will stimulate housing, and reduce the burden of RTKs borrowings to fund the Terminix buy.
I am not expecting fireworks here and am happy to hold for some time, but I am confident that my average buy price of just a tad over 400p will be rewarded.
Above current SP ???
Worth remembering the Director purchases just a couple of months ago, £200k by the CEO plus £100k each from the Chairman and CFO associate, all comfortably above the current SP:
· Andy Ransom, Chief Executive, purchased 45,700 ordinary shares in the Company at a price of 438.5034p per share on 3 November 2023;
· Richard Solomons, Chairman, purchased 22,900 ordinary shares in the Company at a price of 436.334p per share on 3 November 2023; and
· Caroline Ingall-Tombs, a person closely associated with Stuart Ingall-Tombs, Chief Financial Officer, purchased 22,904 ordinary shares in the Company at a price of 437.6172p per share on 3 November 2023.
US markets worst start since 1999, probably resetting after all their mammoth gains last year.
Probably bring us down given how highly valued UK market is anyway.
What a difference a week makes on nothing.
Was set at 413.. now adjusted to 388 ish..
Fully concur JG68 ..surely not going to have another challenging year on our markets whilst our friends across the pond continue to flourish...
Any of you guys listen to Chat with Traders Podcasts ?
YesJG certainly blind sided by this. Maybe someone selling as well
Who knows. Just need yo keep faith
Remember went down to £3.80 snd thrn up to £4.70 then down to £4.18 then up to £4.50 and now down to £4.05. Certainly volatile. Would not have bothered me if timing had been better.
500 million knocked off Mcap based on an outperform slightly lowered target price.
How is that even justified as even being slightly reasonable.
What a total joke the UK markets are.
I kn0ow and only just bought back in. Should have waited a couple more days. This share moves a lot. Still confident so will.leave for inevitable come back.