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<a href="http://www.*****************/peel-hunt-and-jefferies-thoughts-on-pace-today">Peel Hunt and Jefferies Thoughts on Pace Today</a>
I get the vision at Pace. Mixing TV content and broadband content is the next big thing. For example, you are watching Dragon's Den and in the corner of the screen is 'Go Interactive'. You click this. A menu pops up offering a host of features, linking to websites. So you can rate the product, rate the presenter, contact the company making the pitch etc. Dating, food, holiday, antique shows become much more interactive and fun. It makes facebook look lame by comparison. Analysts already predict this market will surge from $4bn this year to $26bn by 2017. This market is technically complex with Pace holding a dominant position. Pundits who said set top boxes were dead are so wrong and lack vision. :)
direcotorstalk.com, cant post here for some reason. Jeffries SP Target 467p Peel Hunt Sp Target raised to 490p. Worth a read as parts of the Full Note are on the site and its free to sign up.
http://www.*****************/peel-hunt-and-jefferies-thoughts-on-pace-today/
I have a strong feeling that its worth holding Pace no doubt there will be many sell this week but those that hold will have the last laugh. I would expect them to reach £4.75 today and at least £6 by the 27th April.
Can't remember exactly when but about early 2000's sounds about right. Bought 4k at just under a quid so happy days. Still with all the fails - RR., WMH and RSA recently, about time something perked up!
Ain't it a 6u99er when no one listens .... been here since 3rd qtr '97 at 52p, and [profitably] at +£8! In and out since, not a big player, tho' still pleased its prospering yet again [fingers crossed] - hope you decided like me, to stay the course.
What a performer, sp is X8 in less than 2.5 years, lovely steady climb, the finance guys have really got to grips with it. Sorry to say I baled out too early, but still did well. gl to all involved at pic.
Peel Hunt: * Final results slightly ahead of pre-close, sales +2.7% and adjusted PBT +22.5% to $193.6m (PH $190m), operating margins 7.8% (initial guidance 7.5%) from 6.6% last year. Adjusted EPS 44.3¢ (PH 41.7¢). FY DPS 5.49¢, in line. Y/E net cash $33m, prior to Aurora completion in early January. Free cash flow generation $209m. * North America sales +16.9% to $1.54bn, driven by media server growth; US Gateway business -22% because of dual sourcing at AT&T; Latam -4%; Europe down 19.5%, but profits held flat; new media server wins in 2013 to drive growth in H2 2014. RoW -20% but profits increased because of mix. * Overall, mix is shifting towards media servers, software/services and Pace is gaining share in IPTV and in Europe. * Guidance: sales $2.7bn (including c$200m Aurora), operating margin around 8.5%, free cash flow generation greater than $185m. PHe forecasts, which are 2.6% ahead of EBITA guidance, are maintained (implies margin of 8.7%). * We see the stock as largely up with events short term, given the H2 weighting, but free cash flow generation and debt paydown to drive mediumterm value. 12-month TP raised to 490p, equating to 0.9x 2015E EV/Sales.
Jefferies: Pace have completed a strong year (2013 in-line with trading update) as the self-help story continues. The FY14 outlook suggests more with margin expansion (up 70bps yy to 8.5%) and strong FCF (guiding $185m) as a mix of Aurora integration, synergies and growth in software and services bear fruit. We retain our Buy rating but increase our PT to 467p. Aurora is cash generation upside in 2014-16: FCF last year (2013: $209m) suggests a near optimal performance for the core business with upside seen more in bringing new working capital efficiencies (especially balancing payables/receivables) and operational savings in Aurora (global buying power of larger group, synergies, etc.). We currently estimate sales for Aurora of about $245m in FY14 but believe management have room for upside (strong cable capital spend cycle, CCAP). Product cycles see 2H14 outperformance: We believe that 2H14 growth will be more driven by recovery in European business (better traction in media servers) as well as in RoW (bridging into newer devices). We also see a wider spread of business into North America, with shipments into AT&T/CenturyLink (IPTV - historically underpenetrated and enjoying solid growth) and Charter (cable), offsetting a reduction in gateway business. But with tighter procurement we see a chance that Aurora could exit FY14 with a GM% of c. 40%, a solid base for further margin leverage in FY15/16. Our estimates for 2014: The acquisition of Aurora adds a 35%-40% GM% business (Pace core is 18%-20%) and c.$245m sales. As a result, we see underlying EBITA increase to 8.7% (2013: 7.8%) with 10.1% in 2015. We suspect the existing cash conversion at Pace, together with synergies from this deal, should see pay-off inside two years and the Group return to net cash in 2015. Acquisitions won’t stop there – we expect them to do more of the same on a near annual basis. We continue to see scope for value upside across 2014. With Pace's improving cost control and market-leading position we see 10-12x 2015E EPS in the core business and 15-20x 2015EPS on Aurora’s earnings as fair. Using our new 2015 estimates (63c with 8-9c from Aurora) we retain our Buy rating but increase our PT to 467p. Risks include debt reduction, competitive pricing, new TV platform entrants and macro uncertainty
ty, looks a solid company, results great, havent got round to watching the pres yet. nice increase in div too. looking forawrd to some broker upgrades.
I expect Pace to be £4.50 by the end of today with more good news to come in the next three months.
Nice timing, nw... In case you missed it the presentation will be here shortly: http://www.pace.com/universal/investors/ Assured and comprehensive report - too many highlights to mention! You just gotta hear it... Jefferies raises price target to 467p from 338p - surely the first of many upgrades
I'm going to hold tight and stay with Pace as more good news to come.
just bought in
Still a strong buy this week and early next and hope for positive news on the 4th March. Very hopefull that all of us that have held will be able to laugh at those that sold rid week.
Pace will rise this week. The company has some excellent products with more to come maybe I should buy more as I belive they will hit £6 very soon and for long term investment £12 plus.
Pace will rise this week. The company has some excellent products with more to come maybe I should buy more as I belive they will hit £6 very soon and for long term investment £12 plus.
Im holding tight with Pace as Im as sure as rain that the sun will shine bright in a few weeks time
on the markets, but peaceful on here. Just thought I'd post so I can enjoy seeing 4 quid over on the left...
report Barclays seeing great potential in Aurora - a 'hidden gem' capable of adding up to 50% to core profits by 2018 if their products & services gain traction: http://www.ft.com/cms/s/0/6487f8f6-927f-11e3-8018-00144feab7de.html?siteedition=uk#axzz2swk96NJZ msdutoit - depends on your point of view: if you were one of those little buddies you might think they were rather clever muppets
"Shares in British set-top box maker Pace Plc (Other OTC: PCMXF - news) rise as much as 6.5 percent after Barclays (LSE: BARC.L - news) upgrades its rating on the stock, saying it expects the company's margins to grow more than 10 percent. The bank sees margin expansion as being helped by the TV decoder maker's core business and its acquisition of U.S.-based network gear maker Aurora in October. "We see margins expanding more than 10 percent, beyond Pace's 9 percent target and therefore see I/B/E/S consensus as too low and valuation still attractive," Barclays analysts say in a note. Pace was a top 2013 performer, but Barclays sees more gains as Pace executes on its strategy, upgrading its rating on the stock by to "overweight" from "equal weight". The brokerage also increases its price target to 450 pence from 320 pence. Barclays says that it sees potential for more cost synergies in 2014 than the company's estimate of $8 million by the year end. The company said in October that it expected the Aurora acquisition to significantly add to 2014 earnings. Pace shares are up 5.9 percent at 379 pence at 0930 GMT, making the stock one of the top percentage gainer on the FTSE midcap index." http://uk.finance.yahoo.com/news/stocks-news-europe-set-top-095530719.html
*DJ Pace Raised to Overweight by Barclays - target price 450p from 320 (so they're not short!) http://investing.thisismoney.co.uk/broker-views/ Unlucky Neb - coulda gone either way, as LTHs are all too aware. PIC are increasingly moving away from commoditised STBs into higher-margin, stickier products & services - and the impressive new(ish) management team continue executing to plan. I expect Barclays will be looking fairly conservative after the 4/3/14 update
2nd Resistance Point 365.467 1st Resistance Point 361.633 Last Price 357.800 1st Support Level 355.433 2nd Support Level 353.067 370p now
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