Computacenter Share Chat (CCC)

COMPUTACENTER (CCC) £26.80
In an era of unprecedented technological change there are thousands of organisations needing help with adaption and adoption, and Computacenter (CCC) is there to help. This is a pan-European IT enterprise operator whose 16,000-odd staff annually ship more than 25 million products to something like 4.5 million end users, providing valuable advice, support and services before and after in 30 different languages. The company has been part of the FTSE 250 index for most of the last 10 years and has been an astonishingly reliable investment for shareholders on both capital growth and income fronts. Brokers calculate that between 2006 and 2019 Computacenter handed back something like £350 million to shareholders in regular and special dividends, albeit having taken a short dividend break during the teeth of the Covid-19 outbreak.This means that over the last decade the shares have provided investors with an average annual total return of 17.9%. That means that for every £1,000 invested in the shares in 2011, you would now have a little more than £4,400. By contrast, £1,000 put into a FTSE 100 tracker would today be worth approximately £1,752, according to our calculations based on Morningstar data.
Computacenter operates in three parts that help clients embrace technology to stay competitive, engage better with customers, improve access to information and services, bolster efficiency or simply trim costs. On the infrastructure side it supplies customers with the desktop PCs, tablets, smartphones and other devices on skinny profit margins.
Professional services is where Computacenter experts consult and advise clients on a multitude of best-in-class software and applications, and resell what’s right for them. We’re talking about proper blue-chip venders, such as Microsoft, Apple, Oracle, Adobe, AWS, Cisco, Symantec and many more. Managed services go further still, providing an entire outsourced IT solution, which means clients don’t need to run their own large and expensive in-house IT teams. Computacenter effectively runs the IT show remotely on the client’s behalf, with 24/7 support, advice and problem solving available and local software
engineers on-call when needed. It is a model that has worked for years thanks to steady growth, consistent profits and
superb cash flows that feed into those reliable dividends. Investor returns resumed in October last year and the full year 2020 dividend of 50.7p per share was 37% up from its 2019 prepandemic payout. We believe this sort of performance will
continue into the medium, even longer term, and recent trading seems to back that view up, with guidance raised twice this year already. That makes the shares, on a 12-month rollingprice to earnings ratio of less than 20 look very attractive. (SF)

As an employee of 20years the USA in my opinion is the one they want to crack and bit by bit they are strengthening over there.Yesterdays 50million doller order is hopefully the start of some sustained contracts

Trading sounds to be positive but without numbers it's hard to hone in on the detail - GB currency has strengthened c8% against USD since the Pivot deal completed...should help buying equipment from US for UK but negative when converting back from US sales.
I would have liked to watch the Capital Markets event from yesterday afternoon just to understand the scale of the US opportunity but not open to Private Investors.

few nice large buys late afternoon..

Cant work out if this share is in a re-accumulation zone or distribution , either way it should go up . to retest the recent buying climax at 2500 area . Volume does not give to many clues any thoughts .
Gla

Q1 results should be out in the next few weeks which will give the city a steer on whether last year was a flash in the pan or more sustainable longer term.
Following the public sector wins it would appear on the face of it that CCC have done quite well - March contract estimates are >£150m alone (I assume that the 2 x £1b contract split between 19/21 suppliers get equal split).
The US remains the great unknown at this stage.
It's a tad frustrating that Softcat get such a higher rating from the city based on their profit margins being more than double CCC. How do they achieve 7% margin versus 2.8% for CCC - and a PE of 47 versus CCC of 18! They can't charge more so their overheads must be significantly lower.

Should of gone to Wales last year which was cancelled.The company gave me £300 of vouchers to compensate.We also received a £500 bonus for earnings per share reaching £1 and a hamper at christmas.
There is a reason that the 3 of us have stayed the years we have.

Same as me, there were only 11 of us who joined in 1990 who are still here. Yes looking forward to that, will be a big bash this year, hoping to stay in the main Hotel.
DW

last year ,was 30. this year 31... Still going to wales this year ( hopefully)

Hi Filmcell. Was that 31 last year or this year?

ive been with CC 31 years.. great company...

I agree Chelwood. I've been with CC over 30 years and proud.

That’s reassuring Chelwood

Morning Arsenal58,fellow gooner myself.
Yes,is the answer to your question.I have been with them 20years and watched them grow.
There are big hopes for Computacenter USA,now a 2000strong workforce.

Chelwood
Is the future upward in an employees eyes

I work for the company,20yrs.Soon to be opening in Romania.
USA starting to look big with Pivot now on board

Robina, we've all been there when we bought impulsively and feel we paid more than we wanted to. You are right, CCC is nothing like AWS - it's a reseller of other people's hardware and offers add on serviced BUT I believe that most buy and hold portfolio's need a CCC in there. It is consistent, with exceptional cash generation. The divi at these levels is nothing to write home about true but if the management don't see acquisition opportunities then they tend to return the cash to shareholders, latterly as special dividend. There is a new flair to the management approach right now by which I mean they look to be targeting expansion of territory - currently US, having Europe already, so I wouldn't rule out other regions in time. Remains a long term hold for me.

See this roaring up in next few sessions

Hope you kept the faith Robina
UBS have found some for the time being lol

You will know in April after first. Quarter
I am in at 20.90 and feel safe for a nice earn before ex divi
GLA

Well I feel it's been overhyped and confess I fell for it.
A steady earner though esp. from govt contracts but don't believe the growth story is strong.

Robina
You may have a long wait for eighteen lol
Twenty four before ex divi

I believe the sp should be around £18 looking at the long term trend.
It doesn't have a big growth story like AWS.
Dividend is small.

Strange dip in the price today , see this bouncing to 24-25 area in next few sessions .
GLA #

That's a good PEG, can you share your workings please? I'm being lazy