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RNS : DBay Advisers continue to buy and are now above 25%.....they've bought another £0.5m or so of shares: Http://www.investegate.co.uk/creston-plc--cre-/rns/holding-s--in-company/201601250700117939M/
FIL are buying more and have increased to above 5%: Http://www.investegate.co.uk/creston-plc--cre-/rns/holding-s--in-company/201601111733505109L/ They've bought almost another 300,000 shares and now have more than 3m.
From last full year results Creston stated that .2m remained from their 2m share purchase buy-back scheme, this would be utilised dependent on the share price performance. At the current price therefore we cannot expect too much support from the remaining buy back programme.
Creston announced today that last Friday they purchased 30,000 shares. If Creston management now deem the share price to low to reflect prospects then hopefully we can see a floor around these levels. If we see further purchases by Creston then I shall follow their lead.
Http://www.gorkana.com/news/all/pitch-wins/marketing-tech-company-signal-brings-in-nelson-bostock-unlimited-to-reach-uk-marketers/ "Marketing tech company Signal brings in Nelson Bostock Unlimited to reach UK marketers 4 December 2015 Signal, a software company that creates marketing technology, has brought in Nelson Bostock Unlimited as its UK PR agency following a competitive pitch process. Nelson Bostock Unlimited’s programme will focus on promoting Chicago-based Signal and its offering for the UK market, localising the company’s messages for UK marketers and establishing a "clear and credible thought leadership platform" for the EMEA team. Neil Joyce, EMEA MD, Signal said: “As a high-growth business in a competitive global marketplace, we look for PR partners who have their finger on the marketing industry’s pulse. "Nelson Bostock Unlimited has a strong pedigree in the marketing and advertising technology space, and the team impressed us in the pitch meeting with its smart, relevant ideas for helping us tell our story in the UK market. We’re looking forward to working with them to build a truly local voice for Signal and engage with UK marketers about the things that really matter to them.” Nick Clark, Nelson Bostock Unlimited MD, added: “Over the years we’ve a built a strong service offering for marketing, advertising and fast-growth technology companies and we’re very proud to sign Signal as our newest client in this space. "As this month’s Deloitte Tech Fast 500 list demonstrates, Signal is one of the fastest-growing and most innovative companies in the ad tech industry right now. We’re already helping the local team to tackle the challenge of moving the data marketing conversation on among the UK’s in-house and agency-side marketers."
Share appreciation yesterday gave me the opportunity to sell the shares I bought on interim results day. Whilst the current rating maybe cheap the market does not seem to want to rate Creston on a PE much higher than 10 so for now I do not think there is too much upside in the short to medium term. Hope that I am wrong as I still hold shares here.
...here's Sanlam's latest forecasts: this year : 12.7p EPS, 4.4p divi next year : 13.3p EPS, 4.6p divi So still excellent value on a P/E of 10 with a 3.4% dividend.
RNS - good to see the CFO buying shares. And a maiden stake too. It's only around £6k, but then a CFO is almost always the lowest paid member of the management team by far, and is the least likely to waste money and the most likely to know the numbers and prospects!
Good to see others recognising the buying opportunity: Https://www.fool.co.uk/investing/2015/11/24/why-are-creston-plc-and-iofina-plc-sinking-today/ "The City expects Creston to chalk up earnings growth of 6% and 5% for the years to 2016 and 2017 respectively, leaving the business dealing on ultra-cheap P/E ratings of 10 times and 9.5 times. When you factor in chunky dividend yields of 3.2% and 3.4% for these years, I believe current share price weakness could represent a lucrative dip-buying opportunity for patient investors"
By Graeme Davies, 24 November 2015 Investors sent shares in Creston (CRE) down 17 per cent after the marketing communications group posted only 1 per cent growth in like-for-like revenues in the six months to 30 September. That reflected the weaker Euro and tighter client budgets, leading management to guide that full-year results would be slightly behind expectations. Under review.
House brokers target of 190p now seems a little naive. Slightly disappointing results, over reaction by the market is not justified but reflects how small caps often react to slightly negative news. Found it very difficult to trade early this morning, was offered 109 to buy but it did not execute. Managed eventually to buy at 116p which hopefully will turn out to be a profitable buy.
To prove my prior post, Edison have just issued a new research report, presumably discussed with management. They have new forecasts of: this year : 13.4p EPS, 4.3p divi next year : 14p EPS, 4.5p divi That's a P/E of only 8.7 and a 3.7% divi yield.... They've only reduced forecasts by 5% - "slightly" as indicated in the RNS, and they're expecting a net cash position by year end: Http://www.edisoninvestmentresearch.com/research/report/creston14 "Valuation: Substantial discount to peers Creston’s share price has drifted back over the last couple of months and the valuation now stands at 6.8x CY15 EV/EBITDA, a 23% discount to the marketing services sector, with a similar discount a year further out. We would expect this discount to start to close when the newsflow becomes more consistently positive as the new business momentum gets translated into a more robustly improving earnings stream."
Typical - CRE have actually sorted themselves out strategy-wise, are winning clients and new business, but find themselves shot in the foot by reduced medical budgets and the weakened euro. The markdown seems a bit of an over-reaction in an illiquid stock. CRE are only to be "slightly" below expectations, which implies around 12.5p-13p EPS this year. Given almost 5p EPS in H1 this feels achievable as CRE report improved trading in Q2 and in H2 to date. The interim divi implies a 4.4p or so divi for the year - a handsome yield. At 116p the upside far outweighs the downside imho.
Brilliant news - CRE have won a British Airways account. This is only a month after winning a Vodafone account. It seems the new management and strategy is doing very nicely: Http://www.campaignlive.co.uk/article/british-airways-picks-creston-unlimited-crm-strategy/1373644 "British Airways picks Creston Unlimited for CRM strategy November 20, 2015 by Omar Oakes British Airways has picked Creston Unlimited and data analytics consultancy Aquila Insight to handle the airline's customer relationship management work. In August Campaign reported British Airways was looking for an agency to manage analytics for its CRM programme without an intermediary. Milk, the customer strategy agency, is the incumbent on the account, which will be transferred to Creston Unlimited and Aquila Insight on 1 December. Creston Unlimited will manage the CRM strategy, while Aquila will work alongside the airline’s analytics team. Bartle Bogle Hegarty has looked after British Airways’ above-the-line advertising and customer loyalty business since March 2014, while Carat handles the airlines' media planning and buying. Sara Dunham, the head of marketing, retail and direct, at British Airways, said: "CRM is critical to differentiating British Airways for our customers and engaging effectively with them. "It enables us to place them at the heart of our marketing by delivering messages that are relevant and personal. "We believe that the best way to deliver that personalised approach is to have data planners and analysts working hand-in-hand with CRM strategists. "Creston Unlimited and Aquila provided us with a solution that delivered exactly that and played to both their strengths."
Results out next week, could be selling before they come out, seen that quite a bit lately. I'm tempted to buy some but will probably wait to see the results first.
Any thoughts of the recent price drop. It has droped app.? More than 13% drop during a month... I sold it at 153, maybe a good time to top up?
Nice find Rivaldo Bought a further 2000 shares at 145.6 so pleased to see the share price moving ahead. Hopefully we will see further share price gains ahead of next months results.
Talk of additional business wins in the health sector in this article about the combining of two of CRE's agencies: Http://www.pmlive.com/pharma_news/health_unlimited_merges_pan_and_djm_842391 "The new company will remain at the Health Unlimited offices in Richmond, where both of the 'old' companies were based. Marchant confirmed to PMLiVE that the headcount will remain unchanged, with a combined staff of 41. “We've had some important new business wins and together with forthcoming pitches we will need all our existing talent to deliver for our clients,” he added. "
Wow - just found this nice £5m win :o)) Http://www.campaignlive.co.uk/article/vodafone-hands-5m-crm-account-tmw-unlimited/1366067 "Vodafone hands £5m CRM account to TMW Unlimited September 28, 2015 by Gurjit Degun Vodafone has appointed TMW Unlimited to handle its £5 million CRM account and help with the mobile phone network's move into the pay-TV market. TMW fought off competition from the incumbent AIS London, Wunderman, Havas Helia and WDMP. The pitch process was handled by AAR. Vodafone kicked off the process in July. AIS had handled the business since September 2012 when it picked up the account without a pitch. The shop was asked to create a Christmas campaign. In February, Vodafone shifted its £53 million UK creative business into Grey London after a pitch that included the incumbent, Rainey Kelly Campbell Roalfe/Y&R"
...after little profit-taking. Consensus forecasts are now 13.93p EPS this year and 14.78p EPS next year. Forecast dividends are 4.64p and 4.86p respectively. 2016 2017 Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p) N+1 Singer 20-10-15 BUY 12.22 13.90 4.70 13.08 14.80 5.00 Peel Hunt 16-10-15 ADD 12.04 13.98 4.66 12.77 14.73 4.91 Edison 15-10-15 None 12.30 13.90 4.60 12.91 14.80 4.80 Sanlam Securities 06-10-15 HOLD 12.10 13.60 4.50 12.70 14.20 4.70
Liberum as house broker to Creston are naturally bullish with their price target which I do not think we will see in the short term. It appears that the current price weakness is designed to generate higher daily volumes. Any return to the low 140's and I will add to my holdings.
Liberum have a 190p valuation here and say Buy today: Http://www.dakotafinancialnews.com/creston-plc-receives-buy-rating-from-liberum-capital-cre/485907/
Logitech hires Creston agencies Fever Unlimited and Things Unlimited to six-figure UK brief October 02, 2015 Http://www.prweek.com/article/1366823/logitech-hires-creston-agencies-fever-unlimited-things-unlimited-six-figure-uk-brief Global PC and tablet accessories provider Logitech has appointed Creston agencies Fever Unlimited and Things Unlimited to a UK PR and social brief believed to be worth six figures, PRWeek has learned. The agencies replace Brands2Life, which continues to handle Logitech’s B2B comms. It follows a competitive pitch for the retained brief that included the incumbent agency. Logitech was founded in Switzerland in 1981 and operates in 100 countries. It is listed on the Six Swiss Exchange and the Nasdaq Global Select Market and has a market cap of $2.27bn (£1.5bn). Logitech also owns speaker brand Ultimate Ears. The company confirmed the appointment of Fever Unlimited and Things Unlimited but declined to comment, as did the agencies. Brands2Life co-founder Sarah Scales told PRWeek: "We worked with Logitech for more than ten years and we participated in the tender process in July. We are very proud of our work and we wish Logitech all the best with their new partner. We still look after Logitech B2B."
...yet still only on a current year P/E of 11.6, with an almost 3% divi yield.
Thanks for that shan, good article from Edmond Jackson. The link is here as it's a much longer article than in your post, with this conclusion: http://www.iii.co.uk/articles/266467/stockwatch%3A-buy-five-year-plan "All considered, it looks fair to regard risk as being on the upside, targeting 175p to 200p a share over the next two years as earnings and their rating improve. While this kind of business is in the front-line of any recession, Creston's financial strength would enable it to make attractively-priced acquisitions in a downturn. Customers also tend to be loyal to their marketing agencies even though budgets can vary. So despite the chart high, there are good reasons to consider the stock as a tuck-away."