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Steady as we go....small daily rises are the way to go....keeps the 10% crew at bay ....LOL....
If America has usaul effect should be decent close
Pity the shorts closed ,burn would have been nice
Looks like we are truly breaking out now
Https://uk.finance.yahoo.com/news/wall-street-touts-europe-winner-085008449.html
1pencil, while I don't disagree with you, S4 has only purchased 6m shares, a drop in the ocean. S4 need to ramp this up this year to take advantage of the weak share price.
Sorry, that last post might not be clear to everyone, it relates to the share buy back of shares which are now held as treasury shares.
Whilst its small, at least the company and its holders have benefitted to some extent form the craziness.
A distant memory, wonderful times ..
Date of purchase:
8 March 2024
Aggregate number of Ordinary Shares purchased:
124,749
Lowest price paid per Ordinary Share (GBP):
0.3850
Highest price paid per Ordinary Share (GBP):
0.3998
Volume weighted average price paid per Ordinary Share (GBP):
0.3961
Buyers seem to be in control... next stop 68
Some coming through now.
Not showing LSE.
New ISA so many will buy in at this level and hold. No Brainer.
This goes into 0.60 this week
Analysis spot on ....many thanks 1msn ...
I agree any merger would need to be well north of 2 more in the region 4.2...
The only reason the margin on net revenue is low at present and being addressed in staff and they are cutting this back. so I'm not worried about the margin side of things.. I think by year end we will be 1 billion in revenue and a margin of 16 5% going in to 2025.. organic growth has seen a pop in the last six months.. if you look at the presentation from October to this months clients above 10 million.. was 12 now 16, 5-10 12 now 13, 1-5 million 65 now 79 and -.01-1 million 454 now 567 so organic growth is happening at speed... I'm not saying this will be 4.20 this year.. but above 2 is very much achievable .. given the organic growth in the last 6 months..
1msn/ NIgeCo. Much as I would like to see your £4 level, I cant see this in the foreseeable future.
Last year before the sector slow down and sell off, WPP was trading at around 10xEPS, today its around 7x. If S4 were trading at a similar level on its adjusted EPS then todays SP should be in the mid 70's. Let's assume the sector picks back up and gets back to 10x then for your £4, S4 would need to quadruple its earnings. Is it possible?
If they can get back to high teens margin on a net rev of 1bn, say earnings of 180m on the f/c 2025 share count = 27pps. By 2025 this seems not impossible although according to the FT the highest analyst forecast for 2025 is 10.8p, so the analysts basically discount an improving margin., which seems harsh to me. If the sector re-rates back to 10x average (perfectly plausible by next year end) then SP at 2.70 seems not unreasonable. For it to be higher they either need to grow the revenue organically as no deals until £4 has already been stated by SMS or their rating has to be higher than the sector which could be if they get the margins back up but it would need to be 50% higher. Seems unlikely.
For S4 to i be higher than the sector they need to have 1. fully rehabilitated themselves with the market (no surprises) and 2. they either need some big client wins or start the growth cycle again at below £4ps. It's all a bit circular.
Wouldn't surprise me to see a merger but I think the price will need to be well north of £2 for SMS to agree.
Its worth reading the paragraph from the link below titled 'Encouraging innovation and bolstering competitiveness'
This is the first time I have seen the FCA acknowledge head on all of the issues UK listed companies face, one point in particular often quoted in the media;
- The latest ONS data shows that only 4% of UK quoted issuers are held by UK pension schemes and insurers.
This gives rise to some optimism and scope for improvement, my concern has always been a dismissal or failure to recognise these shortcomings.
Some encouraging news on the Premium/Standard listing reforms, couple of updates by the FCA this year which is definitely a step change for these guys.
Consultation closed on 22nd March 24, that's it, we now await final publication with implementation shortly afterwards this summer.
Realistically it could be from May onwards, given the exodus of companies I would expect sooner rather than later.
https://www.fca.org.uk/news/speeches/uk-listing-regime-developments-uk-listings-review-next-steps-reform
Both S4 and THG should benefit from inclusion in the main FTSE indexes, UK trackers and regular funds will be able to buy should they wish to do so.
Agreed no need for divi ...buy backs much better ...."it's a screaming no brainer" - Hope everyone has a good but windy weekend !!
"or a recommendation to vote on a small divi"
I hope that S4 don't pay a dividend, I would be happy if all spare cash was to be used to buy back shares. S4 issued shares for M&A mostly @420p, buy them back today @52p. It's a screaming no brainer. All shareholders would benefit. S4 need to get the the share price back to 420p so that S4 can restart M&A for further growth. IMO.
Whilst holding a much smaller amount ....I concur with the same price ....4.20....Some serious weight holding .....I am at the Zoo also ....
Have a brill weekend all.