The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen 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.
Experian, a global information services company, has completed the sale of PriceGrabber and its North America online lead generation activities for 80m dollars, with a possible $30m extra on earnouts. PriceGrabber, a price comparison shopping business, and LowerMyBills and ClassesUSA, will be sold to the management teams of those businesses. The gross consideration is $80m, comprising $2m cash and a $78m loan note. In addition, if profit targets are met, Experian could receive up to $110m. Experian expects to realise cash tax relief of about $120m over the next two years. For the year ended March 31st 2012, revenues for the businesses sold were $283m and earnings before interest and tax were £20m.
Experian: Jefferies downgrades from buy to hold, target upped from 1,060p to 1,200p; UBS raises target from 970p to 1,040p, neutral rating kept.
Jefferies may view information services provider Experian as a 'core support services holding', but has been prompted to downgrade its rating on the stock from 'buy' to 'hold' on valuation grounds. "In an uncertain world, with just 5% of group revenues from Eurozone economies, we continue to view Experian as a core support services holding: a clear global market leader, with a scalable business model, consistent cash flow returns & high barriers to entry offering 13.7% FY12-FY15F EPS CAGR [compound annual growth rate]," Jefferies said. "However, post upgrades, Experian trades on FY13F PE [price-to-earnings ratio] of 20.2x & EV/EBITDA of 12.3x (within 6% of peak multiples); hence we moderate our stance from 'buy' to 'hold'."
The Tempus column in The Times writes that Experian has wasted no time in snapping up the minority interest in Serasa, the Brazilian credit bureau that it first bought into in 2007. This is despite signs that the Brazilian economy is flagging, not least because global economic uncertainty is hitting the country’s exports. Tempus asks what will happen to Experian’s strong free cashflow, about $700m in the last financial year, once the Serasa deal is paid for? The company has always indicated that this would be returned to investors by buying back shares. On about 18 times’ earnings, though, the shares look up with events for now, the paper says.
Experian: Jefferies keeps buy rating and 1,060p target; Seymour Pierce keeps reduce rating and 1,000p target.
Experian: Jefferies keeps buy rating and 1,060p target.
Experian non-Executive Director, David Tyler, who is also the Chairman of both Sainsbury and Logica, has ditched 40,000 shares in the FTSE 100 financial data company. Tyler's sale, which saw him pocket £388,236 by selling the shares at 970.59p each, comes less than a month after the company posted a 14% rise in second quarter revenue. Earnings were pushed higher by activities in Latin America, although the firm continues to feel somewhat edgy about its prospects in the Eurozone.
Nomura has reiterated its 'buy' rating and 1,035p target price for Experian after first-quarter results from the financial data company came in slightly ahead of forecasts. The broker says that shares are trading at around 18 times current-year earnings. "We believe the premium valuation is justified by superior growth vs. the rest of the sector."
Note: In the United States, 'Social Security' is the equivalent of our State Pensions. EXPERIAN PROVIDES FRAUD PREVENTION SERVICES TO THE U.S. SOCIAL SECURITY ADMINISTRATION Experian fraud prevention services help SSA provide consumers with secure and convenient online access to their Social Security earnings and benefit information Experian® today announced that it has provided the U.S. Social Security Administration (SSA) with fraud prevention services that securely authenticate and safeguard the identities of consumers who now have online access to their Social Security earnings and benefit information through the SSA's new online Social Security Statement. "As the trend for consumers to access more information online increases, the ability to confidently verify identities is critical for an agency like the SSA," said Kerry Williams, group president, Experian Credit Services and Decision Analytics. "Experian's Precise ID platform will provide the SSA with an additional layer of security that will help combat threats such as identity fraud and unauthorized access to information while at the same time allowing well-intentioned consumers seamless access to their online Social Security Statement." Read the full story here: http://www.marketwatch.com/story/experian-provides-fraud-prevention-services-to-the-us-social-security-administration-2012-05-17 P.S. Here's a couple of links about SCLP, one of the hottest stocks at the moment: http://www.euroinvestor.com/community/discussionthread.aspx?threadid=252803 http://www.euroinvestor.com/community/discussionthread.aspx?threadid=253089
are out - 16% revenue growth and 10% organic profit growth this year. great company as a 'steady' share
Experian (EXPN) enjoys a commanding position in the credit checking market, a sector that has moved acutely into focus in the wake of the Credit Crunch. Just as important as the defensive attractions of its non-cyclical business are the growth prospects associated with its exposure in emerging markets such as Latin America. Boosted by this, the group announced constant exchange rate organic revenue growth of 7% for Q3, with expectations for the full year for this outperformance to continue. Just to make sure, Experian also announced acquisitions in Japan and the U.S. presumably in order to turbo charge earnings going into the new financial year
Nightmare Scenario: With Experian shares near the top of their 52 week range, too much of the growth story may already be in the price.
Trade Summary Dream Scenario: Experian remains highly regarded as an emerging markets growth play.
Key Technicals Shares of Experian have occupied a very steady looking rising trend channel on the daily chart since the end of October. The floor of the channel runs level with the current position of the 50-day moving average at 950p - and while this double support remains in place the upside for the stock should be the late 2011 price channel top as high as 1,020p.
Not only are annual profits at Experian predicted to almost double over the next 3 years, but since the Q3 announcement in January, acquisitions have been announced in Japan and the U.S. which are set to underpin profits still further. The breakneck speed of international expansion has marked the group out as a proxy to emerging market growth, and quite deservedly puts the stock at the top of the Galvan Research buy list.
On January 17th, credit-checking firm Experian announced it had achieved underlying revenue growth in all geographic sectors in the final quarter of 2011, lead by Latin America. In the three months to 31 Dec 2011 total revenue from continuing activities increased by 12% at constant exchange rates from the year before. Group organic revenue growth was 7% year-on-year. Organic revenue growth was 15% at Credit Services, 3% at Decision Analytics, and 7% at Marketing Services. Organic revenue declined 1% at Interactive. Latin America's organic growth was 27%, while both the UK & Ireland and the Europe, Middle East, Africa / Asia Pacific regional groups delivered 7% growth. North America's underlying revenue growth was 2%.
Sir John Peace, the Chairman of Experian, the FTSE 100 information services firm, sold 12,633 shares in the firm and gave the proceeds to charity. Peace sold the shares at 990p each for a total of £125,067. "In addition, Sir John made an off-market gift of 5,015 Shares to charity for nil consideration," the company announced. The transaction took place on March 27th, the same day the firm said it would increase its footprint in Japan by buying email marketing company Altovision. Experian did not reveal how much it is paying for Altovision, but did say the acquisition would be funded from existing cash resources.
Financial data company Experian has made big money in Brazil since its purchase of Serasa, which has tripled in size since the acquisition in 2007. Total sales in Latin America jumped 27% in the third quarter. In the other divisions, however, growth is much more mundane and despite the recent purchase of Computec in Colombia Tempus in The Times believes Experian is a strong hold, but at 16.5 times earnings, definitely not a buy.
Commenting on the performance of Experian, Don Robert, Chief Executive Officer, said: "We are pleased to have delivered another strong performance in the third quarter. At constant exchange rates, total revenue growth was 12%, with organic revenue growth of 7%. "We continue to see good results from the execution of our growth strategy, helping us to withstand uncertainties in the global economy. Looking ahead, we expect organic revenue growth for the second half to be at least as strong as the third quarter, while for the year as a whole, we reiterate our expectations of modest margin improvement and strong cash flow conversion."
http://www.investegate.co.uk/Article.aspx?id=201201170700156554V
Shore Capital maintained its "buy" recommendation for Experian (EXPN) ahead of its third quarter trading update due on 17th January. The credit checker should deliver continued growth, ranging from the high teens in Brazil to single figure in North America, says the broker. Additionally, Shore believes the acquisition of Latin American credit services company Computec will give growth a further boost from the third quarter and into 2013. The shares fell 12.5p to 854p.
Credit checker Experian (EXPN) has bought web monitoring company Garlik for an undisclosed sum. The acquisition will expand the group's identity protection capabilities and accelerates its plans for international development, through the targets existing presence in the UK, US, Germany and Italy. Garlik reported gross assets of 1 million dollars (0.6 million pounds) as at 31st December 2010.
Credit checker Experian (EXPN) has agreed to buy online identity verifier 192buisness for an undisclosed amount in cash. The target achieved revenues of 11 million dollars (7.1 million pounds) from continuing operations in the year ended 31st March, with gross assets of 9 million dollars (5.8 million ponds). 192business will be incorporated into Experian's existing decision analytics business, providing new fraud prevention products. The shares climbed 23p to 800.5p.
Prime Markets confirms buy recommendation and 841p target
Nomura reiterates buy and 867p target