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Dartron, it's rare i see someone discuss something on LSE who actually knows what they are doing, well done very refreshing. A bulletin board full of sensible people discussing reality but the majority don't want the reality they want a fluffy fan club and endless speculation. The price action here appears to me that someone just said let's get it down at any cost by bots trashing the order book on any weakness, traders bailed at the usual points. I saw it as a buy myself.
Thanks Dartron, totally agree with your view, the other share has done well for me in the early days and I can't complain overall but there are too many dreamers talking unrealistic against a market position which is not moving, if all goes well it will probably re-rate, but not without risk. Here at HSS and SFE they look more as they are approaching the bottom of the cycle and being priced accordingly, so assuming they get through the difficult downturn in 1-3 years they will be a multiple of where they are today. Appreciate your input and analysis
Hi LV, yes I spotted you here. Regarding that other stock we were in, I do know what I am talking about, though most people there haven't a clue. You could probably make more money here, or on a similar stock than you could over there. These types of businesses are far more predictable. Effectively, the difference between a real business here and a storey stock over there. That ridiculous talk of a 20p dividend over there, they haven't the foggiest. Conversely if you buy and hold something like this you could actually be looking at 20%+ yield in a couple of years. For example many of years Safestyle paid a dividend, the dividend was higher than the price of a single share today. Imagine that, in a two or three years being paid back your entire investment each year. Thats the dream.
Sorry to keep mentioning SFE, I wont again, just very comparable to here and I am less researched here.
Hi Dartron, that's an absolutely excellent overview and lots of useful data, many thanks indeed, I am not currently invested here but have been in the past and considering a possible re-entry for a longer hold. Your input is most helpful as I have not done much research recently on this one, again much appreciated and good luck
Bought a few here, I personally think it is a short culminating, but only my personal feeling.
June trading update was positive, still on track to meet expectations, but quite vague, note they are hoping to meet EBITA expectations, removing the D from their headline figure.
Lombard bought 5% in March, that is a good sign. Was tipped in IC in 2022 (may be a bit out of date now).
Single analyst buy rating, with target NTM 33p, 200% upside.
Last full set of results Dec 2022:
- Net debt10 £41.5m (FY21: £45.4m) reflecting improved profitability and working capital management
- Strong free cash flow generation of £28.4m despite increased capex investment
Ownership looks pretty decent as well:
Exponent Private Equity LLP 33.43 %
Ravensworth (International) Ltd. (Gibraltar) 26.71 %
Lombard Odier Asset Management (Europe) Ltd. 3 5.576 %
Hestia Investments Ltd. 5.532 %
Merchant Capital Manager Ltd. 3.972 %
HSBC Global Asset Management (UK) Ltd. 1.601 %
IG Markets Ltd. 0.8837 %
Clareville Capital Partners LLP 0.7092 %
BlueBay Asset Management LLP 0.6161 %
Hargreaves Lansdown Asset Management Ltd. 0.6026 %
For me, I am happy to be buying building materials and services companies. I plan to hold these as long as necessary. There is a quarterly ZEUS note for this sector, its well worth a read. It has monthly consensus EPS for each company, HSS is showing a decline of 14% for the prior year, but that is a lot better than many others. HSS heat map is one of the better (red) ones. Only a few are green, Epwin is one green which I hold (6% yield on that, just plods on an on).
I have also conducted a fair bit of research regarding Safe style, one of the biggest droppers this year on that list. While Revenue and earnings are down, they are within their covenant, and importantly for me own freehold of factory and head office, worth more than the value on the balance sheet IMO. Big drop there today also, company mcap about £10M now. Huge II ownership, some recent director buys.. Will post over there very soon, was waiting to get entire position, which I have today. Again another 2 or 3 year hold, if not taken out expect 5 bagger from todays 8p.
The building scene seems ok round my way, trades I know are busy.
Very plausible... been nearly 3 months since last update. Ashtead warned on its UK operations but the starting point was so high it seemed unrealistic. Speedy also suspiciously quiet
Leaky ship just before the results ? Looks like a profit warning coming linked to the problems in construction and the wider UK economy ??
I wonder what Exponent are thinking about this. Its not that far from the 2020 emergency placing price...from nearly 3 years ago! If I could find a few more pennies down the sofa I'd nearly have enough to buy this company myself.
Will they release H1 results on the last day permitted again this year? On fundamentals this business is sound, do they have an investor relations department? They could start with a results calendar
Looks like you may be getting your 12p bangrak after all!
Since the continued drop to 3 april after 700 days of declines shaking everyone out the vwap from that point is 14p, I'm concentrating on adding below that and to a base of 11.75p hence the 12p comment earlier and gain i feel is available.
No liquidity!! The entire small cap sector has ground to a halt, its pretty much loathed by institutions. Summer vacations aren't helping. If you want to sell anything of size now be prepared to take a hit.
On fundamentals the company has never been stronger, debt has been reduced incredibly quickly and the valuation is rock bottom.
Apart from the new build sector, which I don't think HSS has a huge exposure to (largest customer is a civil engineer), the end markets are pretty robust and they have a coherent strategy to win market share from smaller competitors
Hang in there
Trading systems crashing support & pre results shakeout it looks to me, just had the same with Costain. I'm a buyer it entered the 80-100% gain around 12p. Unless something unusual comes out next i suspect it shoot up after the results.
Can anybody explain what is going here - I have read their latest annual report which is very upbeat. IC has recommended
a buy. in October 2021 and again in April this year. The company is profitable and has reduced its level of debt and has
returned to paying a reasonable dividend. The price, despite all this, keeps falling. What am I missing ??
Showing a pretty good bowl formation. Nice 108K buy just in to underpin the rise too
Three trades over 100k
Three over 50k .
Buys too
Time to take a serious look at HSS currently trading at 14p. Recent financials showed a great turnaround and this should re-rate over the course of the year. Added bonus being that they also pay a dividend so worth tucking away for growth and capital gains.
Some nice trades coming through.
Gla
Indeed they are good, and a day early.
A further divi payment due
Hopefully head back to 20p
Gla
Impressive is a great word. Particularly against quite an interesting macro environment. The published outlook is more upbeat than Speedy's softening stance. I'd hope for an improvement in the SP to bring us to a more average p/e ratio, but we might need to get through the remainder of this year and have an outlook on 2024 interest rates before we see a major rerating.
£20m annual profit for c.£95m market cap company. 130% rise in profit. Minimal debt and a significantly improved business!!
Not the best site is it
Well I spent about an hour this afternoon on the HSS website, trying to order a mobile tower from a local depot.
I failed to get a hire price, system kept telling me rates not available.
I hope it is a temporary hitch!!!
Some nice chunky buys today
Thursday:
https://www.hsshiregroup.com/investor-relations/financial-calendar/
Well fingers crossed that we have a good or very good set of final figures this Friday.
Set your alarm clocks