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Started: ripley94, 25 Apr 2024 00:44
Last post: ripley94, 8 Jun 2024 11:51
This the reason for pull back .
Thu, 06th Jun 2024 ...Reuters
Wiit has no plans to make an offer for Redcentric
Italian cloud computing and cybersecurity services provider Wiit said on Thursday it had no plans to make a takeover offer for British IT services group Redcentric.
Wiit said in May that it was in talks with Redcentric to potentially buy the company.
Earlier, Reuters reported that Redcentric was working with investment bank Lazard to sound out buyers for the company.
Bought these back twice after shoulder operation in the hospital , can not check price as broker has site maintenance over this weekend .
Sliced again today for 158p before seeing today's news of take over talks.
They closed back at Fridays smaller size sale of 150.5p
Might of been lucky .
Wiit confirms early-stage talks for takeover of Redcentric
Tue, 28th May 2024
(Alliance News) - Wiit Spa on Tuesday confirmed talks to potentially acquire Harrogate, England-based IT service provider Redcentric PLC.
Wiit, a cloud and cybersecurity service provider, is listed in Milan. Its shares were up 2.4% at EUR17.74 each on Tuesday afternoon. It has a market capitalisation of EUR497.1 million.
Redcentric shares were 3.0% higher at 156.50 pence each on Tuesday afternoon in London. It has a market capitalisation of GBP247.7 million.
Wiit said: "In the ordinary course of its activities WIIT regularly evaluates strategic external growth opportunities and maintains dialogue with various operators in the industry for this purpose, with the primary objective of developing the WIIT Group.
"In this context, WIIT confirms that it has held preliminary and non-binding discussions with Redcentric, aimed at assessing WIIT's possible interest in making an offer for the entire issued, and to be issued, share capital of Redcentric."
However, Wiit cautioned: "Such discussions are at a preliminary and early stage and there can be no certainty that any firm offer for Redcentric will be made; if a firm offer were to be made, it would likely be in cash."
Wiit has until June 21 to announce whether it plans to make an offer for Redcentric.
Reuters on Friday reported that Redcentric had turned to investment bank Lazard, to scope out possible buyers of the firm.
Sold the part buy back of one week ago back today for 150.5p strait through on a 146p limit order two minutes before close.
Posters saying a bid about.
Not sure about these chart annalist 56% buy now , I was minded to sell when they showed 100% buy .
In the hindsight of yesterday that was correct .
Barchart Technical Opinion
BUY
The Barchart Technical Opinion rating is a 56% Buy with a Weakest short term outlook on maintaining the current direction.
Long term indicators fully support a continuation of the trend.
Started: lavenonews, 24 May 2024 19:51
Last post: lavenonews, 24 May 2024 19:51
Just when all the restructuring is complete and the cash starts to flow, the upside looks like it is going elsewhere.
Shareholders carry all the pain of 2 years of the acquisition digestion, now the jam goes to someone else.
They better make an attractive offer.
Last post: LoveLosses, 24 May 2024 17:33
Needs 2 be decent offer to absorb loss of regular divis
Hopefully the bid speculation will turn into a concrete offer.
Nd
Started: LoveLosses, 18 Apr 2024 17:29
Last post: LoveLosses, 18 Apr 2024 17:29
Some chunky buys and good tick up in price today - how come?
Started: Rodez, 4 Nov 2023 09:47
Last post: Rodez, 4 Nov 2023 09:47
Former CFO of Redcentric (Cooked the Books) who?
Started: lavenonews, 8 Dec 2022 12:16
Last post: Thumbsupuk, 19 Apr 2023 16:01
Looking for an opportunity in the tech industry check out CLCO plenty of upside potential. IMHO DYOR
Nice rise here , still looks cheap to me
The mid period acquisitions, structure of the acquisitions and phasing of costs makes these interim accounts a bit of a nightmare to get to grips with, even for existing investors who know the situation quite well.
However, I remain a happy holder who sees good value that will one day start to come out.
Started: Shanny80, 23 Sep 2022 19:11
Last post: appleby, 29 Nov 2022 22:22
RNS Large interest increases holding again , clearly they see value here . Buying on very low volume , perfect .
Took 10%, FTSE looking weak, very weak. Still think this is a takeover target mind, I'm just risk off right now, holding more cash. Hope you all do well from here, will keep on the watchlist.
Last post: appleby, 15 Sep 2022 17:25
All weak hands out , no trades yet today , lombard odier increased position . could get interesting.
Started: lavenonews, 8 Jun 2022 15:53
Last post: Shanny80, 14 Sep 2022 17:58
Great volume again today, will it test supply again at 102p, who knows. Looks good to 112p (little resistance there) then onto 120p. Usual caveats apply.
I would be looking more 150, stall for a while then 200 .
Plenty of volume today too. Took a position @ 102p last week. Looks good for a move to 112p initial target, wider economic factors may scupper things though……We’ll see.
Got the flush down to £1.00 as predicted , see what happens here , hopefully little supply available and pushes up to next level , a nice rns should do it . if its going lower turn out the lights on way out please.
GLA
As a long-term investor, happy with this piece of business.
Daisy recently took a large chunk of the Sungard Data Centre estate from the administrators on a similar deal (i.e. customers need to contract with them on new terms), so was glad 3 have been picked up by Redcentric, it seemed a good opportunity to get a decent set of clients.
RCN strategy makes sense, management are credible - not sure why it is trading on a pretty low EBITDA multiple for something generating so much cash. I guess organic growth is a bit low but personally it's the cashflow that attracts me as they can get a blend of low steady organic + acquired growth via cash and debt at sensible leverage.
Good returns for shareholders.
Long term hold for me with the dividend in the meantime.
Started: lavenonews, 12 Nov 2020 08:28
Last post: appleby, 23 Jan 2022 19:20
Like the chart here and presence of large interests , would welcome a shake out spike to £1 to take out stops , supply must be nearly exhausted .
Worth looking on the results slide pack on the website, some useful comments there about a thoughtful acquisition strategy and latest cash position (even before the second tranche of proceeds from Thales).
Delighted.
There was no need to sell this out to private ownership just as it has got its house in order and hand all the upside over to private equity. So sick of seeing that happen.
Let's see where it can go as a publicly listed company under the strong hand of current management.
Highly cash generative, back into organic top line growth, operationally in great shape with minimal CAPEX and efficient margins, and opportunities to move forwards via acquisition.
I'm in it for the long term, and trust the board to make the right capital allocation decisions on cashflow.
Appreciate the insights Appleby. Maybe it has been the former Mrs Bezos selling to give to charity. Seems to be attempting a breakout very recently.
Zarro, have a look at amazon share price , near perfect example of price being held in a range for over a year , someone is either selling or buying in that range , once the campaign is finished it will move very quickly either up or down .
This is not a fair game mate.
It does however show that several large players are taking big chunks of this business .
You must ask yourself why , will take a while to play out.
I Have tucked a few away .
Thx Appleby - i learn something every day. Although, being a simple soul, it does not seem right to me that someone can accumulate or divest holdings of more than 3-5% but not have to disclose it until some future date.
IT was purchased over weeks and months prior , only when the order is filled does it become reportable . The large positions taken can take years to get into and out of , think of it more as buying campaigns , buying on the lows of the range each time it hit the lower level they buy more.
Started: unvrkw, 19 Apr 2021 21:15
Last post: unvrkw, 19 Apr 2021 21:15
Very good reduction in debt, be clear by the end of this current financial year. Have the money from the sale also due, around £5 million so after debt is gone where does it go?
Back to shareholders or to buy something else?
Started: unvrkw, 19 Apr 2021 14:57
Last post: unvrkw, 19 Apr 2021 14:57
i used to own and i sold luckily before the disaster period for this business and have now come back in. they obviously don't hold many shares as i have to wait for them to find enough this morning which helped with the sp increase.
far more stable, focus and direction, debt not that high and coming down, divi in place. good luck all.
Started: Thincat1, 20 Feb 2021 11:33
Last post: Thincat1, 20 Feb 2021 11:33
Started: Happyzone, 13 Oct 2020 14:13
Last post: Happyzone, 13 Oct 2020 14:13
Has anyone actually received any shares or money as part of the restitution scheme? Seem to be dragging their heels, though from the recent RNS it looks as though payments have been made - maybe still in the hands of the brokers?
Thank you Happyzone. This is a bit weird as my broker Interactive Investor contacted me in July saying the last date for me to nominate my choice of cash or shares was the last week in August. Maybe it was their own internal deadline. But they didn't go on to say when the payment would be made. I've messaged them and am still waiting a reply!
These are the dates;
RESTITUTION SCHEME DEADLINE
All claim forms (including supporting documentation) must be received by Deloitte by 5.00 p.m. on Friday 30 October 2020 in order for the claim to be considered. After this date the Scheme will be closed. If any claim form is received after 5.00 p.m. on Friday 30 October 2020 or is received before such time and date but is not valid or complete in all respects at such time and date, your claim shall be void and you shall not be entitled to receive any compensation under the Scheme.
However, my broker, Barclays, says, "We will aim to update your account within 5 working days of receiving the proceeds", which kind of leaves it very open ended..... Hopefully by Xmas, though I'm expecting it by next Wednesday. We;ll see...
Can anyone on here know when the restitution cash payments will be made? I cannot see any dates on the original corporate action documentation.
I had a go at a small limit buy this am on announcement of FSP (underplayed) but the price of 1.48 was not met despite some trades going through for less after (thanks X-O you excelled again).
I find it hard to work out if it will/might be a premium sale or distressed one. Company talks of profits but sheet shows losses. Maybe that's to do with exceptional costs of the FCA restitution. Good revenue with growth could see that putting company valuation beyond mcap if generous mutliples used, not so much with the bottom line figure. From the limited share chat I think 120p would have been a better buy in point and the fsp was not a surprise so may already be well priced in.
Finance directors resigning suddenly I never see as a good sign but maybe that would be expected. I'll keep watching this out of interest.
Anyway I put the money into Rockfire Resources instead fingers crossed on deep drilling results after rising recently. A top up.
Started: xbb2008, 26 Jun 2020 10:40
Last post: rollofthedice, 26 Jun 2020 13:50
Very good results. However not sure if price will stay in the mid 1.20s with the placing/subscription priced at 1.10, lus such a spike today. Do people know if this placing/subscription is open to anyone that held shares at the appropriate time. Weak short term sell for me with view to buy back in and hold for longer term.
Nice trading update today. Regretting selling 50% of my holding when it reached 117p a few weeks ago!
Started: You_Having_a_Laugh, 16 May 2020 08:53
Last post: You_Having_a_Laugh, 16 May 2020 08:53
Some averaging down going on but relatively new FD jumping this close to results sets bells ringing. What does he know and is investigation completed?
Last post: pcpunter, 6 May 2020 17:13
Something happening today, no News, no RNS, somebody knows something. Any Ideas ?
Could we have that in English please.
...trading pattens o here.
But regardless, we have had two weeks of much overdue relating. Imo a this should be at the 120-125 level, with 150-160 to come once financial clearance comes through.
H9ld and chill,
Bassea
Started: MrBasse, 28 Nov 2019 07:09
Last post: MrBasse, 28 Nov 2019 07:09
...and dividend. But where is the conclusion of the financial investigation???
Started: LoveMusic, 26 Sep 2019 22:05
Last post: LoveMusic, 26 Sep 2019 22:05
I wonder if the share buyback is making the difference. At the very least, I would imagine it shines a positive light on the company in general. And also attracts attention to it.
I wish I didn't already have a lot tied up in RCN, otherwise I'd want to add at this point.
LM
Last post: MrBasse, 26 Sep 2019 19:26
...we’re about to get the all clear financial judgment!? In any case, way undervalue at the moment imo:)
Started: Zarro, 26 Jun 2019 13:13
Last post: Zarro, 26 Jun 2019 16:09
GS - Fair shouts. I am not yet convinced about attraction of valuation ....although I like the amount of cash the business appears capable of throwing off at the moment - so maybe I should be. GLA
No ghost. Maybe Lazarus though :-)
RCN looks as if it has turned. Brotherton was a first rate FD and looks as if he might be a good CEO. I bought in again today after an absence of nearly 3 years. I use DCF to try to judge an entry point and now I reckon RCN is well and truly undervalued at present. There is an FCA report awaited which I hope will be OK and I like the determination to start returning cash to shareholders. As for no ideas - give the BoD a chance. Fix the sinking ship, take a breather and then get stuck in.
GLA
GS
Its very quiet round this board.......or were the published year end figures so unexciting that there is nothing to say.
At least they changed their dividend policy back to a sensible 2x cover (yeah!).....which puts the yield on 2.5% (oh dear) ....and they might do some share buybacks with all that cash flow (yeah!) because they can't think of anything productive to do to grow the business (oh dear). The business should be in a great sector with exciting opportunities and prospects.
Not exactly a scintillating story to light a fire under the share price........although I am often wrong (here's hoping). zzzz zzzz zzzz.
Last post: MrBasse, 25 Jun 2019 08:44
Good news.
Thanks would have thought that the fact settlement, once done, would drive up the sp.
But know little of the fine business, what order of magnitude fine cab we expect? More, less or same as pic?
Looks like the FCA have finally settled with PwC, now RCN's turn:
https://uk.reuters.com/article/uk-pwc-accounts-fine/pwc-fined-4-55-million-over-audit-of-redcentric-idUKKCN1TE0J1
Will be interesting to see the result, and a pragmatic approach is to expect RCN receive a fine.
This fine on top of poor sales numbers for FY18/19, perhaps its time to dump this stock. Its ripe for asset stripping or buy out.
Last post: LoveMusic, 26 Apr 2019 11:46
Thank you Zarro, that's exactly the sort of informative answer I was looking for.
LM
LoveMusic - I am in a very similar position and was asking myself the same question. The trading update did not give much away but does not, on face value, imply anything materially better or worse than the recent results and outlook expressed in the presentation with the interims.
I am estimating EPS around 4p - maybe a bit more - which puts PE on about 20 - 22.5. The £10m net debt reduction to £17m is good news, putting leverage at only around 1x EBITDA and gives them either some firepower within their £40-£60m Bank facility or more likely scope for substantial dividends (they would be debt free within 2 years). I thought perhaps half of the annual free cashflow could be used for Dividends which would be a dividend yield of 3.75% and wondered whether that was what was underpinning the rise in the share price BUT I see that the Board have said they will maintain EPS div cover at 4X which points to only a 1p annual dividend (split 1/3rd 2/3rds) i.e. no better than 1%.
So all in all I don't really know what is really driving the price up. We have low growth and low dividend yield. At present levels share price looks just about justifiable and sustainable but hard to see what takes it a lot higher from here and keeps it there. This is all IMHO
Anyone have any idea as to what's going on with Redcentric? Why is it going up now? Does anyone think there is any basis for expecting the rise to continue?
I am in rather heavily with an average of 92p per share. I had more, which I had bought for much less, which I sold when it topped 100p. Naturally I've been kicking myself ever since for not selling the lot.
Perhaps now, though, it will exceed its previous recent high.
Any thoughts, anyone?
LoveMusic