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.
recd in midas share tips today. "Midas verdict: Premier Farnell’s shares were 240p in March. Today they are 176p, reflecting concerns about growth in the electronics industry and the wider economy. The fall seems overdone and these shares should recover. The company is also hosting a special day for large investors this week, which should provide reassurance about the future. Buy the shares now."
Took my profit and ran at 200p. Is your chart still showing 218p as keen to now get back in? Lennie
BROKER RECOMMENDATIONS Date Broker Recommendation Price Old target price New target price Notes 08 Jul RBC Capital Markets Outperform 196.75 - 280.00 Reiterates 30 Jun Credit Suisse Neutral 196.75 225.00 225.00 Reiterates 13 Jun Deutsche Bank Buy 196.75 240.00 245.00 Reiterates 12 Jun Cantor Fitzgerald Buy 196.75 250.00 250.00 Reiterates
Went long at 181.8p so would be happy for your chart target of 218p. Lennie
Gone long on PFL looks cheap on a forward P/E of 12.5 to 2015. Should have a good run up to results mid september. https://pbs.twimg.com/media/Bvo-OGnIgAAz7Ih.jpg
The continued tough trading conditions last year held Premier Farnell's shares back - a 14 per cent rise in 2013 marginally underperformed the FTSE All-Share. And that means there is still upside potential if a recovery gathers pace. The shares trade on a forward earnings multiple of 13 times, which is a marked discount to peers Electrocomponents (ECM) and Brammer (BRAM) on 15 times and 18 times, respectively, and also a big discount to its historical high of 19 times. The icing on the cake is that there is a near 5 per cent prospective dividend yield on offer...As always DYOR and good luck.
While the fortunes of its end markets remain the primary driver of Premier Farnell's performance, it has also done much to help itself. Historically an old school catalogue distributor, Premier Farnell has moved with the times establishing a multi-channel sales presence that spans catalogues, field sales and online. The company says its customers are increasingly choosing the e-commerce route with over 56 per cent of its business conducted online. Having the right products in stock and being able to offer the latest products are also key to keeping customers happy. Efforts here do appear to be paying off, with the active customer base up 2.7 per cent on-year in the first half, which Premier Farnell says means that it's growing market share. The Asia Pacific customer base, which the company believes offers its best source of future growth, was up 8.9 per cent. Premier's net-debt-to-cash-profit raio of 2.2 times looks comfortable and strong cash generation has helped cut net debt by a quarter since its 2009 peak - operating cash flow conversion was 125 per cent in the last financial year.
Premier Farnell (PFL) supplies a vast range of electronic components to a vast range of customers, as and when they require them, which means there is no comfort from a forward order book to provide revenue visibility. That makes it a pretty pure play on the economic cycle. And the good news is it could be on the brink of a cyclical upswing, which has yet to be properly reflected in the share price. The data that should feed into demand for electronic components - namely manufacturing PMI and Semiconductor Industry Association (SIA) - are pointing in the right direction. Recent figures from the SIA flagged up the ninth straight month of increasing global semiconductor sales, while the JPMorgan Global PMI data showed manufacturing ticking up for the 14th consecutive month in December, and at the quickest pace since February 2011. Analysts at UBS note that Premier Farnell does tend to follow the data, albeit with a lag. And, indeed, the distributor's first-half results in September were still blighted by a cloudy outlook for end markets. Stripping out the company's recently launched Rasberry Pi product (a credit card-sized single-board computer) to get an underlying picture, group sales per day were down 1.4 per cent year on year in the first half. The company said that while PMI and SIA data have been encouraging, its customers were still cautious and end markets remained mixed. There was particular weakness in the UK market, where Premier Farnell reported subdued sales to certain large customers exposed to public sector spending cuts, and also in the US, where the company was hit by cuts to US Federal Government spending and general caution among its customer base. These soft spots offset an improved performance in Europe ex-UK and strong growth in emerging markets. But there are signs that this late-cycle play is moving into calmer waters and that the improving economic and industry data is feeding into trading on the ground. The company's trading update in November flagged up "improving group sales trends", with underlying group sales up 2.1 per cent year on year in the third quarter. That is a clear improvement from the 1.4 per decline in the first half. Encouragingly, the UK returned to on-year sales per day growth, while the trend in the US was broadly flat, despite the impact of the US Federal Government shutdown.
On 16th Jan Investor's Chronicle tipped PFL as a buy. It looks a steady company with a small growing market. Looking at the financials, it's not going to rocket but it's more of a safe buy and something which will grow slowly backed up by a reasonable dividend. If I chose to buy I'd wait for a retracement back to between 200p and 210p. Does anyone have any views?
Premier Farnell: UBS upgrades to neutral with a target price of 155p.
Premier Farnell: Credit Suisse moves target price from 195p to 240p and upgrades to outperform.
Premier Farnell: Credit Suisse cuts target price from 200p to 195p, while retaining a neutral rating.
big spike of 15p after opening lower!
On 04/12/12 jp morgan took out a short on this share. http://www.fsa.gov.uk/static/pubs/international/short-positions-daily-update.xls
BRIEF-Premier Farnell Q3 adj pretax profit falls 18 pct 06 December 2012 07:01, updated 06 December 2012 07:06 LONDON, Dec 6 (Reuters) – Premier Farnell PLC <PFL.L>: Q3 total revenue 233.5 million STG versus 241.8 million STG a year earlier Q3 adjusted profit before taxation 17.3 million STG versus 21.1 million STG a year earlier Have executed cost actions in the fourth quarter which will deliver annualised savings of £4M
Premier Farnell: Deutsche Bank cuts target price from 211p to 200p, while maintaining a buy recommendation.
does anyone here know when the next divi is paid out?
In the Times, the Tempus column notes the big surge yesterday by electronic components distributor Premier Farnell. This was probably because of an impressive performance in August when sales increased. The company is seen as a canary in the coal mine indicator of global trends because it has almost no forward visibility of orders. If its numbers improve, so might the rest of the economy’s. Tempus isn’t convinced, noting the long-term decline in sales. Hold, the paper recommends.
The interim dividend has been held at 4.4p.
Electronics components supplier Premier Farnell saw the year-on-year decline in its top line slow in the second quarter, as it sacrificed margin to protect market share. In the second quarter of a financial year which runs to February 3rd, 2013, Premier Farnell's revenue eased 1.6% to £238.2m from £245.4m the year before. Gross margin in the first half of the year was 39.2%, but retreated to 38.5% in the second quarter, reflecting pricing decisions made by the firm, as well as foreign exchange impacts. "As markets recover we anticipate our gross margin returning to our longer term average range," revealed Laurence Bain, Group Chief Executive. Adjusted operating profit in the second quarter tumbled 8.9% to £24.1m from £27.5m in the second quarter of the previous year, while adjusted profit before tax fell by a fifth to £18.8m from £23.0m. Adjusted earnings per share (EPS) declined 17.8% to 3.7p from 4.5p in the corresponding period of the previous fiscal year, while basic EPS dived by one-fifth to 3.6p from 4.5p. "In August we were encouraged by the return to year on year growth of 0.4%," Bain said. "We remain cautious, but by providing our customers with unparalleled service and with continued focus on optimising share gains, gross margin, costs and cash, and with easier comparators in addition to the benefit of a 53rd week we continue to expect growth to return in the second half," he added.
Interesting... second quarter results are on 13 September 2012. Looks as though this will nose dive...time to get out i guess!
Panmure Gordon reiterated its "sell" recommendation for Premier Farnell (PFL) with a target price of 50p. The broker noted that the electronic components supplier's first half results were below forecasts, with revenues down 5% year-on-year, and expects this weakness to have continued into the second quarter. Panmure added that while net debt had improved at the end of the second quarter to 212 million pounds, it maintained its full year net debt forecast of 225 million pounds. Shares in Premier Farnell declined by 1.9p to 184.4p.
Electronics components supplier Premier Farnell has completed the acquisition of Shenzhen Embest Technology, a Chinese provider of embedded system development boards and tools, as well as design engineering services. Financial terms of the acquisition were not divulged but Premier Farnell did reveal that Embest has gross assets of around £0.5m. Embest will report through element14, Premier Farnell's operating business in Asia Pacific, while providing solutions to customers across the world.
Acquisition Completion of the acquisition of Shenzhen Embest Technology Co Limited 5 July, 2012 - London, Premier Farnell plc (LSE:pfl) announces the completion of its acquisition of Shenzhen Embest Technology Co Ltd (Embest), a leading provider of embedded system development boards and tools, as well as design engineering services with gross assets of approximately £0.5 million (at current exchange rates). Embest, which is based in China, will report through element14, Premier Farnell's operating business in Asia Pacific, while providing solutions to customers across the world.