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Coffee73, there's been a seller or two out there for ages. Once they're gone there should be big upside here for the reasons you mention. Here's today's news: Http://www.tclarke.co.uk/news/south-west-starts-on-site-at-plymouths-new-centrepiece-arts-centre "South West starts on site at Plymouth�s new centrepiece arts centre Posted: 04th December 2017 It is full steam ahead as TClarke go onsite at Plymouth�s new �34m history centre - �The Box�. The new venue, which holds the city�s historical archive and artefacts, will bring some fantastic old buildings back into life, in a 21st Century venue which can become the heart for the city going forward. TClarke has the full MEP package for the project in partnership with Willmott Dixon as South West MD Rob Faro says: 'This outstanding job is making headlines in the region. It will be central to the 2020 Mayflower celebrations (in which the 400th anniversary of the arrival of the �Pilgrim Fathers� in America is commemorated). It is a high profile project and we are absolutely delighted to have been selected. �It is another practical example of the effectiveness of our work over the last few years in targeting, winning and delivering high quality, high value projects, in partnership with quality main contractors such as Willmott Dixon, that build the TClarke brand across the region. �Just a few years ago, TClarke in the South West was essentially a local company based in Cornwall and serving a local client base. Now we are in 3 locations across the region and delivering projects of this calibre.�"
What am I missing. Value of �31m, �9m in cash and profit �6m. Why is this share price so low?
I think the fraud is probably done with. They've collecting 1.4m of the 2.8m (or 2.4m I can't remember) which is a pretty good turn of events compared with most I've seen. Last I heard they were still pursuing some or all or the rest. Anything else is a bonus in my eyes.
...but would have liked guidance on the fraud situation... although I accept that this is a trading update
N+1 Singer have retained their forecasts of 12.1p EPS for the year about to end, and 13.2p EPS for the coming year. They see the �9m cash pile rising to �11.3m by the end of next year. Hopefully the volumes resulting from today's excellent update will be enough to get rid of the seller - this may have happened already given the bounce from the low earlier this morning.
A terrific update considering the share price gyrations: Http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/CTO/13434917.html Nicely in line, �9m net cash, looking for more acquisitions, a terrific order book and high revenue visibility. Plus a second RNS with an impressive NED appointment emphasising CTO's transition to a digital future (emphasised by the new contract wins in both M&E). Extremely reassuring. CTO will have made �6.5m PBT and will have �9m cash - against a mere �30m m/cap. Which says it all.
Trading update is on 17th November. They say when buying a share makes you feel uneasy its not such a bad buy, hmmm
> there was a serious buyer just before the close of business today, but sellers seem to have had the upper hand since your "post" on the 2nd. Kev. Normally, the recent weakness in the share price would indicate caution in front of the anticipated trading statement. I just get the feeling that something is not quite right, which is a shame as a well covered dividend yield of �4% + is an attractive proposition. I suspect that the market needs information/closure on the fraud situation....
Personally, I think it worth topping-up at this price. Unfortunately I don't have any spare funds at the minute. The next trading update is due within the next 2 weeks or so. Let's hope it's a really good one and leads to a higher share price (once the sellers have gone).
It looks like an institutional seller dripping their stake into the market to me, which supports the same pattern we've had over the last 3 years with stock rotating from institutions /funds to PI's. It can't go on forever though. Apart from Miton, the only funds with decent sized stakes are Chelverton 1m, JP Morgan 1.25m, Cavendish 877k, alliance trust 763k, Hargreave Hale 407k. Hargreave have been selling in the last 6 months as have JP Morgan, although JP Morgan haven't sold any in the last 3-4 months. So, whoever is selling it can't go on forever as that's not alot of stock JP Morgan and HH have to shift
... she goes again. That's 10% over the past couple of months ..... any thoughts?
....and possibly the fraud problem...
Spread tightened up now and lots of volume on the book. Although tbh I think the seller at 80 is fake and trying to entice sellers out, so they can get it sub 80. I think the problem if there is one is guilty by association. CLLN, IRV, it was BBY a couple of years ago.
... and from a dealing view the near 9.5% turn is unattractive. Of course this will narrow with increased volume > but there never seems to be much volume. The general disinterest and hence the poor rating cannot be put down to the pension deficit alone as many co's have this problem .....so there must be a problem
This must be the most frustrating share ever. I cannot for the life of me see why a company paying a 4.2% dividend, with net cash of �2.5m, likely profits of �7-�10m, who have stated they will beat expectations from as early as February can have a market cap of �33m. That's a crazy P/E Ok , I know they have a sizeable pension deficit but that will have improved since the interims as interest rates are rising, which should have helped the share price. In addition they have recently won the double tower hotel in London each tower over 50 floors so that should provide an increase in the order book as Bishopgate hasn't fully worked it's way through and more importantly provide a decent sized project to support any downturn in 2018 if that does happen due to Brexit. Crazy
Yes, you are correct it's a very long article and i must admit I didn't read it all (speed read) I have some funds in CTO and I feel this company have bags of potential for growth. Marginally disappointing that the sp remains flat(ish) and the daily trades are minimal. A dividend was paid today and the dividend was a good yield for a small company. I intend to stick with CTO for some time and I may top up from time to time. ATB
New article about the recent acquisition - good to see CTO driving home the point about their move into the technology and big data space. Here's the intro and a paragraph about the potential use of Big Data (it's a long article): Http://www.tclarke.co.uk/news/the-strategy-driving-our-eton-acquisition "The Strategy driving our ETON acquisition Posted: 04th October 2017 TClarke Group Managing Director, Mike Crowder and ETON Director Jamie Ward set out the strategic picture behind TClarke�s acquisition of Integration specialists ETON Associates Technology is a strategic growth area for the whole construction sector The Construction marketplace is moving rapidly towards integration of all building systems and digital networks. This is being driven hard - both by end users and equally by principal contractors. Both see big benefits - in the efficiency of the building and the efficiency of the construction programme. Big data is transforming the world of property management by allowing building owners, users and operators to measure, manage and improve efficiency - whether that be by saving energy or using space in far better ways - but that only happens once you have integrated ICT systems delivering all the data you need. For principal contractors, the increasing complexity of data, security and alarm networks has added to the complexity of construction programming. On major integration projects we can now simplify this for them - allowing them to deliver high quality - but with less management and simplified construction planning, dealing with one supplier instead of four. Giving TClarke complete control for major integration projects This acquisition gives us complete control to deliver major integration projects. It is the perfect addition to our substantial existing capabilities - and we know through practical experience. Because ETON are not only market leaders, this team is one we have worked alongside on landmark projects like 22 Bishopsgate, Bloomberg Place, HM Treasury and Angel Court for over 20 years. So we know each other very very well, we share values and we know their teams and their leaders very well." "Now is the perfect time This move makes so much sense at this point in time because the technologies are now there to match the concepts. Big Data is a global reality now and it will have a massive impact across construction. For example, one global industrial company we know has a target of dropping their energy consumption by 1% and this would net them $1bn. It was not possible just a few years ago because the technology was not there. Now with IP addressable metering you can pick up 20 lines of information from a single meter and the potential to learn from the data and make savings can become a reality. The only 'But' is that you have to have truly intelligent buildings or you can't get the data you need to access the savings. As we move
Good to see buying at the full 85p offer price today. Here's news of a prestigious new contract win re London One Nine Elms, which must secure a further chunk of earnings for next year: Http://www.constructionenquirer.com/2017/09/22/t-clarke-bags-london-twin-tower-me-job/ CTO will get a very nice re-rating at some point: "T Clarke bags London twin tower M&E job Aaron Morby Building services specialist T Clarke has secured the electrical shell and core package for London’s One Nine Elms twin tower residential and hotel complex. Multiplex is main contractor on the £700m One Nine Elms project, which consists of the 200m tall City Tower, 165m tall River Tower and the luxury 5-star Wanda Vista hotel. The deal is a major coup for T Clarke helping to boost the firm London order book. It will be on site in 2018. One Nine Elms is being built for Chinese developer Dalian Wanda and ranks as the largest single property investment in Europe by a Chinese property developer."
Good to see someone spotting what's happening here: Http://citywire.co.uk/money/david-kempton-two-new-share-buys-and-two-howlers/a1048162?ref=citywire-money-latest-news-list "I have added to my T Clarke (CTO) shares, encouraged by its acquisition of building management services provider Eton Associates last month. T Clarke is much more than a boring old electrical contractor; apart from a record order book, up 23% at nearly £400 million, electrical demand is growing strongly. We need it for our banks of computers, mobile phones and soon robots, virtual reality and artificial intelligence – it is even involved in developing facial recognition building entry systems. On a projected year price-earnings ratio of 6.9, price to earnings growth ratio 0.8, dividend yield of 4.1%, cover of 3.5 times and cash of £9 million, the shares look too cheap and I’ve just bought some more."
A few AT trade buys at 85p have moved things along early today. Still lots of upside from a P/E of 6.9 imho.
....which is good. Except that Malcolm's got his figures wrong. The current year forecast is 12.14p EPS, with a 3.46p dividend. That's a P/E at 83p of only 6.8 (NOT 12), and a divi yield of 4.2%. Oh well. Which makes CTO even more of a bargain :o)) Https://www.*************.com/views/31234/victorian-engineer-stays-up-with-times-as-the-order-book-hits-record-high Extract: "Victorian Engineer Stays Up With Times as the Order Book Hits Record High By Malcolm Stacey | Wednesday 30 August 2017" "In the first half of this year, profits were up by 8% to £2.5 million. The interim divi was hiked by 20%. The current yield is 4%. The P/E ratio I have is a modest 12. Revenues for the first half were £143 million. So the company is operating on low margins which can only attract new custom - and it has a strong order book, with more business on the horizon than it's ever had before. There’s an opportunity to buy on a dip at the mo. On August 7th the share was 90p. Now it’s around 80p. For the reasons above, I believe it to be undervalued. This is a firm which has been so successful for so long, that it’s hard to see it going into reverse, especially as the world’s reliance on electricity and other engineering marvels keeps on getting stronger."
Turning upwards now - perhaps our seller is finished? A 6k buy at 81.5p has caused an early move up.
"The fact that the fraud COULD happen is a worry. A similar fraud...." Where on earth did this come from??????????? Thank you Ronaldo for your very relevant post.
from CTO's web site - a new office in Portishead and a full article about encouraging progress and 80% secured revenues in the South West, which was the one black spot in the H1 results: Http://www.tclarke.co.uk/news/portishead-office-builds-on-expanding-client-relationships-in-south-west "Portishead office builds on expanding client relationships in South West Posted: 24th August 2017 Rob Faro, MD of TClarke South West introduces some of the project wins and the strategy behind TClarke’s expansion in the South West with a new office in Portishead - one of four new TClarke operations around the UK. It really is a very simple story: we’ve been building steadily in the South West and our strategy has been highly effective. We have had a couple of project delays and cancellations, but we move on and the real picture is very straightforward. In the South West, we have already secured over 80% of our revenue target for the next two years, along with securing places on some longer-term frameworks and maintenance contracts - and it has all been based on the solid, long term TClarke principles of good people, good work and good relationships feeding more work. Main Contractor relationships are stronger than ever Relationships with main contractors like Kier, Willmott Dixon, Sir Robert McAlpine and Midas Construction have grown stronger and stronger, based on proof of what we can deliver and our ability to be good partners. We set out to build those relationships and make TClarke a leading name in M&E in the South West a few years back - Portishead is opening because those relationships have delivered opportunities for us and we are taking them. Relationships have driven major project wins Opportunities have led to a series of substantial project wins going forward. The Aspire project involves the upgrading of three military bases at Bulford, Tidworth and Perham Down. We have won work on substantial, high-end retirement living developments in Falmouth and Portishead. These are with Midas and end user Pegasus Life. We have also won projects with Willmott Dixon at the Plymouth History Centre and The University of Gloucester Business School and Growth Hub, both significant developments in the region. And right now, as we are about to hand over the Derriford Research Facility, which has further established the TClarke name for delivering complex M&E solutions in the South West, the picture is clear. We know that there are no short cuts to delivering quality - you need good people and good relationships, we know that construction has its challenges too; but you can see here in Portishead, through quality relationships in the South West, we have been able to expand our presence effectively, economically and in the TClarke way."
The fact that the fraud COULD happen is a worry. A similar fraud at COSALT a few years ago eventually led to such a loss of confidence in the Bod, that the company folded. Whilst not suggesting that could happen here, it indicates a lack of management control and that, although being addressed, is usually cause for a downgrade.