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Great article spotted by 'Speck you later': http://www.theel1tetrader.com/2015/01/pace-free-cash-flow-story.html
Set-top maker signals growth: TV set-top maker Pace announced that it boosted profit projections for 2014, in a sign that it was continuing to shore up its position in the video and digital entertainment world.
PIC PACE 13 Jan 15 JP Morgan Cazenove Overweight 358.90 441.00 444.00 Reiterates 441p SP TARGET
Looks very positive going forwards: http://www.pace.com/Documents/Investors/150113_trading_update.pdf
Look like retracing lead up to Nov 18th update. Downside until the news hits. Can't see it being anything from positive as what changes in six weeks. Finger crossed. GLA DYOR
TMF: Pace 'hugely appealing' - apparently it's their fifth recommendation this year... http://www.fool.co.uk/investing/2014/11/26/could-these-5-mid-caps-be-the-stars-of-2015-pace-plc-persimmon-plc-supergroup-plc-galliford-try-plc-and-monitise-plc/ http://sharedealing.nandp.co.uk/broker-views/PIC/Pace
The apparitions that have been haunting the Pace share price appear to be fizzling away. The run up to Christmas is under way and competitor BT is offering Netflix in combination with their Homehub to store movies in the UK. Likewise BT is being tipped for a strong 2015.
Any thoughts on what may be able to move the sp beyond the 350p level between now and year-end? I was hopping yesterday's strong announcement would do it, but the rise proved short-lived (day traders driving the sp up?). I'm mostly in cash now waiting for the next wider market correction.
19 Nov 2014 Pace PLC PIC JP Morgan Cazenove Overweight 0.00 340.10 445.00 441.00 Reiterates
Looking very positive now the question mark around the CFO has been removed. Strong fundamentals :-)
19 Nov 2014 Pace PLC PIC Exane BNP Paribas Outperform 0.00 340.10 530.00 530.00 Reiterates
Now concerns have been lifted with regards to CFO moved back into this stock. Looks positive for the next six months and hopefully buyout potential. GLA DYOR.
Good update but revenue numbers trimmed? http://www.lse.co.uk/ShareNews.asp?shareprice=PIC&code=w9m1nvkk&headline=Settop_box_maker_Pace_trims_fullyear_revenue_guidance
Not a single piece of negative news here: Outlook The outlook for the year is updated based on trading in the Period: · Revenues for 2014 are now expected to be between $2.6bn and $2.65bn (2013: $2.47bn), reflecting a short-term shift in phasing from this year into next year; · Operating margin for 2014 is now expected to be greater than 9.0% (2013: 7.8%), equivalent to greater than $235m adjusted EBITA (2013: $194m); and · Strong cash flow to continue, and Pace expects to generate in excess of $200m of free cash flow in 2014 (2013: $209m).
Tomorrow's announcement should make interesting reading. The work on rationalising production should now be delivering the margins. What is crucial however is having the vision of where this fast moving market is going and making the big insightful decisions like buying Aurora Communications. Mr Pulli has got it right so far, let's see if he can continue to inspire.
Had a look at the July update and the tone was very bullish. In particular 'Strong H2 anticipated...'. "Momentum building through the year: gross margin up 3.9ppt to 21.6%, adjusted EBITA up 9.9% to $106.3m, free cash flow of $108.9m up 18.4% and interim dividend increased 23.0%. Strong H2 anticipated, full year profits and cash flow guidance increased."
I had big hopes here, but at the moment RSI indicates PIC is overbought. Tempted to sell ahead of Tuesday's update. Let's see what happens tomorrow...
All eyes on next weeks update. Two points are keeping me out at the moment -> No CFO update plus lack of news on new deals which were historically frequent in 2013. Hopefully good news ahead so keeping vigilant. GLA DYOR.
Thanks xgxg on iii "Also this Set-top box group Pace surged 28.3p to 335.9p, a 9.2pc rise that puzzled some in the market. However, Liberum analyst Eion Lambe noted that Broadcom, the biggest supplier of chips to set-top box makers, had reported better than expected numbers that were boosted by a strong performance from the division that supplies the likes of Pace. The Broadcom update allayed investor worries about recent trading at Pace, said Mr Lambe." Good results but infrastructure still down. Be interesting to see if this picks up given H1 2014 v 2013 decrease.
Correction XD 6th Nov
XD 7th Nov IMS 18th Nov
When is PIC likely to update the markets next? Any idea?
Interesting times. Historically for past two years Pace have crept up towards Q3 results. This in itself is a solid reason to buy BUT there is still the potential elephant in the room which could reveal itself at any point. Hopefully this will not happen and fundamentals will be underwritten with strong figures and push the business towards £5+ Good luck all. DYOR
The only way Pace knows.