Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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good to see rivaldo here aswell, I seem to be in a lot of the same stocks as him and his input to the board is hugely beneficial
I agree, been on my watchlist a while but only just got around to serious research. Very impressed and got in just now, looking to get more via a spreadbet very soon
I've had CMS on my watch list for several months. Yesterday I purchased shares as the good news and potential good news, as reflected in the two earlier posts this morning, lead me to believe that the environment is turning from 'promise of future delivery' towards 'actual delivery'. The risks appear heavily biased towards the upside.
Further details..... Liberum are projecting eps next year of 6.5p and a dividend of 2.3p. At todays closing price that puts CMS on a forward PER of just 7.5 and a yield of 4.75%. They expect operating margins to increase to 7.8% by the end of this year and 8.4% next year, and that they will subsequently achieve their target of 10% after discounting zero margin pass through sales. They are also projecting FCF of £10.9m this year and £13.9m next year, after investments in new contracts, which will provide more than 2 x cover of the increasing dividend. In particular, they also believe that CMS are currently in discussion with several global brands over potential multi-million pound pan-European contracts and have already commenced running some pilot programmes.
New interview with AB here - sounds very positive: Http://www.proactiveinvestors.co.uk/companies/stocktube/4025/communisis-chief-on-european-expansion-and-growth-opportunities-4025.html Some interesting quotes: Sales "In terms of actual demand (in Europe) the growth and demand is extremely strong" Cash Flow "We've increased our free cash flow by £5m in the first half and for investors that is one of the most important numbers" Debt "We do know that if the business carries on delivering the kind of growth that it is doing then we would remove all of our debt within a couple of years. Now whether or not that is the right strategy for the business, given the growth opportunities that it has got, remains to be seen but from an executive board point of view we are very comfortable with the reducing level of debt that we are now seeing but most importantly we are seeing strong growth in terms of free cash and that is the key point" Dividends "It's my 13th six month period and we've increased it every time. We've just increased it by 9% in our recent in terms of our interim dividend and it is generally weighted one third/two thirds so whilst making no commitment obviously people can take a view on that for a full year trend. Dividends are very important to a lot of our investors both institutional and private clients and we intend to pursue a progressive dividend policy" Acquisitions "90% of our growth within the past 5 years has come organically and that says a lot about our client relationships and strength in the market. Acquisitions are being used very selectively to augment our skill base where we want to do other things for our clients which we just don't have the skills to do."
Someone wants out (slowly). Low volume doesn't help. Also, its in FTSE All Share / Small Cap, not AIM. We're looking at 4.5% div @ 50p. I think the question is whether China has a knock-on effect here in 12/18/24 months. Its possible, but EU is showing growth in the last few quarters in places that needed it, like Spain. ECB's QE will stabilise things overall. I just think given the growth just reported not only in CMS, but in the advertisement industry as a whole, this is good for a while.
Liberum have today intiated coverage of CMS with a 75p target. Their forecasts are: 2015 - EPS 5.7, DPS 2.1 2016 - EPS 6.5 DPS 2.3 At the current 50p, both the P/E and divi yield mark CMS out as extremely cheap. There is a seller or sellers around - which makes this a buying opportunity imho.
...and yet there it goes back to 49 again!! I wonder whether there's a large holder who is constantly reducing their stake into strength? A low capital intensity business with growing sales and margins on what is almost a single digit PE comes out with a positive trading statement and its price falls?? Good old AIM eh!!
All looks good. Debt only down a tad, but given the FCF generation (approaching £10m on an annualised basis), this shouldn't represent a long term issue. There's been a lot of negative sentiment in this stock (on no real news as far as I can see) for some time - let's hope that this news finally quietens the naysayers!
Operating margin and profit is moving up.
A good performance in the seasonally weaker H1, with PBT, EPS and cash flows increasing nicely. Most importantly, the outlook is very positive, with confidence shown in the year end outturn. Some significant new multi-year contractual relationships secured too, particularly AXA, with extensions from EE and a major utility. Plus a "strong pipeline" with European blue chips.
UK-wide Advertisement spending up... lets hope that translates to more revenue for CMS design.
Some rather chunky trades. :/
I can't see any reason why this won't be 60p WHEN they do the Greece deal. If it carries on for months though, I think the wider market is in trouble.
Good news that the core business is obviously doing fine, and trading is in line at constant currency. Forecasts this year are for 6.6p EPS - with a 2.2p dividend. If they make say 5.5p-6p EPS given the currency headwinds, that still leaves CMS trading on a bargain rating. At that level a 60p share price could certainly be justified, and if currency headwinds were to abate later in 2015 you could go for say 80p-90p looking forward to 7.6p EPS forecast for next year. The "pilot activity" with new clients sounds encouraging and will hopefully lead to contract news.
It at least gives the first confirmation we're on track to meet expectations, and that should mean 2.2p dividend; which at 48.75 is 4.5% yield. Indication on July 31st that the margin is up I think will really help; it should do as design ramps up. Still, I suspect this is still a Greece and Euro play for the time-being.
Nice words, although a contract extension isn't going to change their world. Expansion into Eastern Europe sounds good. Either way, the market likes but the share price has a long way to go before it moves into a confirmed uptrend. GLA
...so hopefully we'll see the share price move back into the 50s!
...and back to the mid 40s, all of this on no news! Interim results on 30th July, so hopefully that will bring some cheer...!!
I think the problem with this one is poor liquidity. Large position orders push it either side.
Point is that the debt is increasing due to investment required by new contracts which is a positive in my view, and I expect to the share price rise as the extra revenue and cash flow ultimately pay the debt down. Also, still only half the total facility they have in place with banks, so no sweat.
Yes, but once you realise the market is bullish it'll already be too late!
Although I'd like to be bullish, the market is telling me "no". So I'm waiting.
Not really no. They borrowed an extra £10m. Debt at £35m. Free Cash at £11m. Am I missing something?
Hello Gentlemen. Does last years level of borrowing not worry anyone here ? GLA holders.