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still reckon 2.80 on bounce
Starting to pick back up now.
Been a contrarian ive bought some ready for the more than obvious bounce
i would suggest about �2.80 would have been about right.
IWG didn�t collapse by 30% because of slightly lower market expectation on operating profits of �165m. It fell because, despite lower overall sales demand, management decided to forge ahead with their big spending. This leads to higher operating expenses and fears of even lower operating profit. For more about IWG capital employed trends, valuation and comparison with homebuilders, click http://bit.ly/2yTDram
IWG has been on my watch list for some time - so it is a very easy decision to make an investment today. The fall is clearly an overreaction. This trend of overreaction seems to be firmly established in the market at the moment and continues to present golden opportunities for investment - especially to the long term investor.
You mean the ones indicating a strong sell? Type 5 mins 15 mins Hourly Daily Monthly Moving Averages Buy Sell Strong Sell Strong Sell Sell Technical Indicators Strong Buy Strong Sell Strong Sell Sell Strong Sell Summary Strong Buy Strong Sell Strong Sell Strong Sell Strong Sell
technical summary on investing.com
Indicators as in a 35% drop?
indicators showing strong buy currently, GLA
The market is one i have a very strong knowledge having worked in the sector. WeWork - currently overvalued at over $20bn but has softbank money coming in. Actively poaching Regus clients through very generous rent free periods - 12 months on a 24 month contract or 6 on a 12 month contract. TOG/LEO/I2 - These are the companies currently making solid 20-30% returns, they are not as bold as WeWork, and have grown organically and much more sustainable, not opening offices for the sake of it. Even with the WeWork force these are still pulling in very strong margins. TOG has 30 buildings compared to IWG's 3000 but was recently sold for �500m to Blackstone... IWG is valued at less than 4 times as much despite having 100x more buildings. Regus has invested too much in growth for the sake of growth, smaller locations outside of main city hubs, including niche areas, airports and motorway stations look good in the sense they can say they opened 140+ buildings a year, but these are simply not profitable ventures and probably never will be. They have too many empty loss making buildings in outer city locations which are important to their message of working everywhere but really bad for the bottom line.
Hopefully could be a nice bounce from here ;)
Impossible to tell, the problem this announcement brings to light is that in a very strong market, the company is under performing, even if they will still make a profit. It indicates a somewhat risky future for the company. Unless there is more bad news i dont think it will slip much, but i don't see any significant increases in the medium term
So where is this drop going to finish then ? Roughly speaking.
I don't think so. The serviced office industry is growing quickly and is a very profitable market when done right. if IWG/Regus are downgrading profit guidance in the sort of bull market, that is a sign of terrible strategy and business plan
hi, do you more experienced people reckon this is an overreaction ? Any analyst's looking at this ? Please if so spread your knowledge.
Guesstimation You are right to a point The modern trendy office startups are hitting Regus badly in London, But they are buying market share and wont make the profit s you are statiing, they have highly inflated market valuations but don't report on profitability IWG has a different offering trying to grow national networks etc takes a long time but they have good infrastructure and a platform to grow on they intend to spend more on investing in their platform which will hit profit in the short term but as you say it is growing market. I am hoping they are very cheap at this level.
I'm in as my buy order has touched the strike price. Let the games begin. This is a very good share to trade as the share is very liquid and the spreads are tight and to top it all, there's no stamp duty on this share as it's registered in Jersey. DYOR.
IWG have been purchasing millions of shares @ around 300p since Aug they must have known the situation then and wasnt to bothered so i do feel there will be a good recovery over the coming months
There is a strong resistence at the 210 level and I have seen traders attempting to break the 210 barrier several time without any success. If 210 breaks then this could easily go down to and touch 202.
what were the profit forecasts for: 2017group profit... before todays RNS...?? thanks
The serviced office industry is growing very quickly, and many firms operate at a 30% profit margin and 90-95% occupancy rate, especially in London and other major cities. Big competitors have entered the market, particularly in the UK but also other main city hubs and they offer much cooler more modern accommodation while regus still has an outdated image and is using a template for new buildings, where other will custom design each building they open. Regus on the other hand has buildings which are barely half occupied and a significant number of mickey mouse centres around the company and in non profitable parts of the country while their presence in core cities is being eroded by new and cool competitors. Considering the growth in the serviced office market, the fact they are issuing downwards guidance is very worrying for the company. They have over 3000 centres, but expect to make less than �200m? That is a worrying sign of an inefficient over stretched company!
Mid-2018. Today's announcement is merely a bump in the road. As usual the market has vastly over-reacted so whilst wise investors will see today as a once in blue moon buying opportunity, other investors will look back in 9 months time and wonder why they did not jump aboard today. Seen similar events, across a wide variety of industries, many times in my investing career.
Looks like a good entry point so I’ve taken a small stake at 213. THe BOD forecasts weak results for its new acquisitions so I’m prepared for a bit of drift. Perhaps a rein back on new centers might be in order as it looks like we may be heading for a period of consolidation.
The serviced office market is the hot topic in property with WeWork and recently Blackstone putting some serious money into the UK market. Regus have been caught out and struggling to adapt to the new "cool" flexible workspace and co working