Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
...its been a long wait but finally we're getting some payback here. Really notable thing for me is that throughout the period of volatility and a falling share price, the company has never done anything other than match or beat expectations. Finally the market seems to be recognising this!!
...is the pension fund, but I think this is largely discounted.
Http://money.aol.co.uk/2017/02/19/one-big-yielder-id-buy-and-one-id-sell-in-march/ "One big yielder I'd buy, and one I'd sell, in March By The Motley Fool Feb 19, 2017 Updated: Feb 19th 2017 08:16 AM Shares in Communisis(LSE: CMS) have received a hefty dose of rocket fuel of late, the stock touching 27-month peaks around 50p per share just last week after gaining 38% in value over the past 10 weeks alone. Communisis a month ago announced "trading for the year ended in line with expectations." The company was boosted by a new three-year contract inked with Sony Europe for providing a wide range of communications services. Other notable contract wins include a mammoth deal with HMRC in December, and the City expects the firm's growing international presence and digital delivery expertise to support a stream of fresh contract wins from 2017 onwards. With costs also coming down across the business, Communisis is expected to follow a 13% earnings rise in 2016 with a 6% advance in the current period. And this is predicted to translate into increasingly-tantalising dividends. For 2017 a payout of 2.5p per share is predicted, up from an estimated 2.4p for last year. And this period's projection produces a chunky 5.2% dividend yield, trashing a 3.5% average for Britain's big caps. This year's anticipated payment is also well protected by expected earnings, with coverage of 2.5 times sailing ahead of the safety watermark of 2 times. Furthermore, steadily-improving cash flows should also underpin sterling dividend growth, in my opinion."
I've been buying back in recently given Richard Griffiths' continued buying taking him to almost 21% of CMS. I bought some more first thing today following CMS being tipped by James Bartholomew in his column in Saturday's Daily Telegraph as follows: "As for new share purchases, I have been adding to an old holding in Communisis (LSE: CMS.L - news) , a company that organises mailshots for other firms. It has been through a difficult time but seems to be recovering. It has recently won some good contracts from HM Revenue & Customs and Sony (Hanover: SON1.HA - news) . The shares, at 46.5p as I write, stand at just over seven times forecast earnings. It is also encouraging that the three-year downward trend of the share price looks as though it has been reversed. In fact, the chart has made a shape known as a “double bottom”. In this context, a “double bottom” is an excellent thing."
And now almost 21%.....funded, possibly, by selling stake in IQE which is announced in that company's RNS today.
Hi any one with any ideas as to why?
And now he's reached 19.68%............
More than twice as many buyers than sellers. Paying debt down systematically rising profits and turnover public sector client Hmrc and now Sony What is not to like
No skeletons. Stock looks good to rise to 50p from here I think.
Anyone any idea why the massive trades on 18 January? A couple of 700k and one at 600K?
Not so much new about the Hmrc contract as that would be insider dealing! More like a no brainier at around 36p market cap 70m, he'll probably double his investment given time
Looking good for 50p+, quality well run company this, not forgetting the substantial divi. Great rns yesterday
Well I think you'll find that Mr Market is an utter bell-end then....;-)) 6x earnings before new contract, 6% yield. Only risks are: 1. Pension Scheme deficit - recent rise in bond yields helped that 2. HMRC contract been priced as a loss leader and hence very low margin I think the risks are in the price now though, don't you?
Good fundamental news, but Mr Market has already marked the shares upto 43p and taken them down to 41p. Still not in an uptrend.
Makes you wonder if he knew something about the HMRC contract announced today? Nice fillip to the share price anyway!!
Just to emphasis: 9.19% at 31.12.15 13.03% at 2.3.16 18.68% at 7.12.16
Searching the financial interests and history of the individual named in today's RNS suggests, to me, that he sees upside here.
...the key here, which I know is something you also focus on JS. Companies which appear less than compelling on an EV basis can quickly turnaround when free cash flow generation begins to pay down debt and effectively reduce the EV, and the perceived risk - like I say, virtuous circle territory. I think the stock is cheap enough to take the risk here. Also note that currency exposure will help, whilst change in UK interest rate will have provided a significant fillip for revenues as their banking clients write to all tracker mortgage holders.
to count pension deficit (pd)1 for 1 in EV...in some senses cheap LT unsecured loan ..if u discounted pd by 30%, u get pd+net debt of c£70m...and an sp 30-35p might be intteresting
Highly leveraged with the pension scheme, yes, agreed. Still, free cash flow generation of 4-5m should start to reduce this, whilst a PE of 7 does seem to discount this to a large extent. If the revenues continue to grow and costs are kept under control,. you can envisage a virtuous circle where debt is paid down leading to less risk leading to a higher multiple of a growing earnings stream. Good risk-adjusted bet in my view. However, I agree, the vicious cycle could also happen if growth chokes off, or pension contributions rise materially at the next triennial valuation. What fun!
effectively..cos of pension deficit ...the servicing costs of deficit in eps calcs look v low and shd be considered v carefully ..perhaps an EV/EBIT of 7-8 wd be fair..maybe EV of c£120-140m assuming some of the cost costing works???? ..take off net debt (c£35m) and pension deficit (who knows now..£50-60m??)..altogether c£90m to add to mcap to generate EV ..gives mcap of £30-50m...or sub 30p sp ..will be watching for that opportunity ..dyor/ignore Jolly
with ballooning pension deficit, this trades on rel high EV/EBIT, no? ....EV c£150m..perhaps more with corporate bond yields compressed ..EBIT of £12-15m?? ..if they take £3m annual costs out without impacting rev, then it gets a little more interesting
....should keep going to the high 40s and might then pause for breath.
Richard Griffiths has added a futher 2.6m shares and increased his stake in the company to 16.5%, or 34.5m shares: http://www.investegate.co.uk/communisis-plc/rns/holding-s--in-company/201608081229495526G/
Good volumes too, with 1.45m traded already and a load of AT (institutional?) buying. As stated elsewhere: "Liberum project eps of 6.0p this year and 6.3p next year with corresponding dividends of 2.42p and 2.61p respectively. Compared to this mornings Offer price of 41p, that represents a PER of 6.8 this year and 6.5 next year with a corresponding yield of 5.90% and 6.35% respectively. Furthermore, their current price target of 71p would still only represent a PER of circa 12 based on current metrics."