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All on track -I like they also give and use, analysts projections, rather than vague 'in line with management expectations' that some companies use.
IP revenues continue to be the weakest area but these are now a smaller part of the business and should pickup with covid receding.
'The Group has started the current financial year well and is trading in line with market expectations for the year. This reflects strong performances from our Language Services and Regulated Industries divisions which have offset a weaker performance in our IP Services division (which represented 16% of Group revenues in the last financial year).'
We should get a brief trading update with the AGM on the 23rd.
The share price is down 28% since the start of the year, given that they are a profitable company with a positive balance sheet and their results at year end were quite good I am not sure why they have been so heavily sold off. The integration with SDL seems to have gone well and the projected cost savings have been made.
Broker forecasts range from a low of 690 to a high of 810 (median of 762) so we are way below these predictions.
My other main software pick had been Aveva which I thought had lots of potential with synergies following their take over of OSlsoft and their major customers being energy companies- but that has faired even worse!
I ditched Aveva (although may revisit once the integration has progressed further) but have averaged down a bit with RWS, I am hoping that some positive comments at the AGM may mark the bottom of the drop.
nope...net worth is £1bn (almost all intangibles) and issued shares close to 400m
£7.32.....
tp 3.40
Bought some today...seems well oversold
Mr Market is enthused with the resignation of the senior bean counter.
Analyst estimates published and a beat of consensus for pbt: The latest company-compiled view of analysts' expectations for the year ended 30 September 2021 gives a range of £694.0m-£711.3m for revenue, with a consensus of £699.7m, and a range of £109.8m-£113.2m for adjusted profit before tax, with a consensus of £111.6m.
Yes, hopefully this will lift the sp out of the doldrums.
Looks like an exceptionally strong year for RWS. EPS will be well ahead of last year, with a lot more synergy to come from the integration with SDL.
Yes, agree £7 a conservative valuation. Cash rich, a year plus of work to do in integration of SDL, then we may get to something like true valuation here. Not slicing any until I think we're overpriced, and at this current time my view is close to £8. Of course when we get there j may have re-evauated!
700 may even be a little conservative-
From the FT
The 5 analysts offering 12 month price targets for RWS Holdings plc have a median target of 761.00, with a high estimate of 810.00 and a low estimate of 690.00. The median estimate represents a 34.69% increase from the last price of 565.00.
It does seem to be gaining some upwards momentum again. I top sliced when it hit 690 in late April but have been building up again in the lows as it has clearly been oversold (in my opinion!). Added some more over the past couple of days, however, the Director buy prompted me to top slice my RTO holding and put a good tranche in here first thing. At the time they had an almost identical share price but RWS looks to be on a roll and is already ahead, it could easily make 700 again if the results in October are reasonable.
Nice to see a good sized new director buy.
This is moving in the right direction for RWS. Price got slashed far too much when the dollar weakened after Trump lost. Will hopefully see a recovery to over £7 later this year.
I assumed that it was because the FTSE 250 was an easier performance target than the AIM 100!
I think it will be dictated by what happens with the IHT status of Aim companies.
If they went onto the main listing then they would be purchased by some funds and trackers but sold by others. I recall reading that there is a premium for companies that qualify for IHT relief on AIM so I am not sure it would necessarily be a positive thing if they did move to the main index.
Interesting reference to FTSE 250 in the latest RNS. Possible forward reference?
Press
https://uk.finance.yahoo.com/news/rws-announces-revival-language-weaver-070100948.html
'
Extract_______Wed, 9 June 2021, 8:01 am
Return of Language Weaver to unify and represent RWS’s machine translation technologies
RWS, today announces the return of Language Weaver, a pioneering brand in automatic language translation.
around the 700p level so am holding. This could now go higher again as the results show some resilience but promise too. Happy with my holding and might switch to a cheaper play for fresh money.
Interesting rotation into the larger cap growth stocks this week. This, RTO, Aveva (which I also had been building up a holding) along with the likes of Halma and Experian all seem to be going well.
aso will debate whether to buy in as part of my regular buying on the 21st. I suspect the buying pressure is some positioning ahead of the trading update. Actual target price is 700p so I still believe there is upside here.
That seems a reasonable approach and not that dissimilar to mine. I do have some long term 'holds' that I add to or sell depending upon their price but still keep a reasonable holding for the longer term. These tend to be 'growth' type shares, I feel that RWS fits into this bracket, along with RTO, the latter has been a good one for me over quite a few years.
I have some small caps that I hope will be multi baggers which I try and sit on long term, then others that are purely intended as a shorter term hold until the price reaches a level to sell at. Due to covid there have been many, many, more of the latter in the past year. I have however, found it hard at times to sell some good companies that I am well up on, just to move to the next opportunity!
Afternoon Monk. I do like the long term story here myself but I am trying to develop a new trading strategy as a compliment to buy and hold. I want to punt shares like RWS which I think the market is mispricing. Buy them regularly until they reach fair value. Then sell all or half to recycle the money into my next project. I think the market will be irrationally exuberant when we emerge from Covid before a third wave sell off so further opportunities will be thrown up in RWS and elsewhere.
I certainly hope so. I have been rather surprised that this has sat around the low 600's for so long especially as they flagged the strong start to the year and the potential for cost savings and synergies with the SDL takeover.
I have it pigeonholed as one of my longer term holdings but I still like to see it go up....
Are we heading to 700p which I think is fair value here? I have been accumulating here and happy to pay up to 660p for RWS. Trading statement on the 22nd so in over 2 weeks I am hoping the fundamentals translate into a higher SP.