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yep...impossible to tell from sparse communications...the selling is slow but relentless ...eyeing 9p ...(then 8p lol) ...cash of c5-6p may act as support?
below 9p for quite some time. I think I'd need single figures to buy. I misread the trading update RNS in the updates below and thought the reduction was over a full year, not half. So EBIT more likely to be £400k ish if no new business is won ...
That's great, thanks. The 14/15 EBIT was based on 13/14 operating profit, less the £250k max indicated in the trading update...but I realise that's a rather simplistic way of looking at it. I also noticed two other things - 1) The trading update referred to a large project which will allow the company to meet expectations for H1 - perhaps implies other areas of revenue not as strong as anticipated? 2) The outlook in final results predicted an upswing in work in Germany, with a prospective office in Munich - may be influenced/hindered by current German economic issues Still seems cheap overall, but really didn't like the Linx episode (down even to disposal terms...£375k, in 3 instalments over 3 years, with no interest?). Can see why you'd back management looking at their record, so may enter with half stake on any further retraces.
surrounds the EBIT ...I doubt it will be as high as your figure ...and it may end up (?down lol) a lot lower next year (see the profits warning), but the EV is so low that I reckon it is worth the punt ...EV/EBIT 5-7 is Jolly healthy...it is a 15-20%pa pre tax return on external capital
MCap + net cash, yes ...but net cash is higher than you calculate..the non borrowing liabilities are part of the on-going business (working capital), not traditionally thought of as part of the externally funded capital structure ...and the small borrowing is offset by the cash from the linx sale ...so EV is c£3m
M/C: £5.33m + debt £1.3m - cash £2.3m = EV £4.33m 2013-14 EBIT: £879k 2014-15 adjusted anticipated EBIT: £640k EV/EBIT (14-15 predictive) of 6.76? That all sound right? EV/EBIT 5-7 healthy?
would be miraculous ...Germany spending big more likely
cheers, i will keep watching for the 8s if they come as i need to bottom fish as my portfolio is a disaster at the moment. Doesnt help im heavily weighted to GKP,HAWK,SHG,GBO! The only sensible stocks I have are CGL and FSJ so will need them to come good. I was hoping for a seasonal bounce after the summer as the past couple of years the market has really ticked up in the lead up to Xmas. This year though we will need some good news fairly soon to realise this...... poss EU QE could do the trick.
yes...missing the (potentially) bleak profits warning of a few months ago ...visibility on EBIT/earnings next year poor atm ...had hoped for 8-9p, but bought back big @10.75 cos LT have some confidence
hello again! just looking at the fundementals here and they dont look too bad..... low PE and plenty of cash in the bank compared to MC. am I missing something here or is redt undervalued? appreciate any feedback MPG.
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11.6p sold
strong buy cos I reckon it overshot on the downside.. ....I had hoped for 9p/£2-2.5m EV...but the EV more than halved @10.75p, and the fall seems a tad overdone to me ...an EV of £4-5m seems fair enough to me, but I accept there are risks here
Your timing was excellent but 'Strong Buy'. Really? This company seriously disappointed the both of us not long ago (after we both did lots of research) and you now think they're 'Strong Buy'-worthy?
in dreadful markets...Jolly exciting ...That may have been perfect bottom fishing
NED...non exec director EBT...employee benefit trust
Jolly I will keep my eye on things and start to do a bit of digging to see if I may dip my toe back in. Thanks
FSL and NED? what's these acronyms? haha
for a bit of mojo ...great if really has bottomed ...@ EV of £3m, plenty of headroom given EBIT was meant to be hovering c £1m before recent bumps in the road
Bod (good but small beer) EBT (neutral) FSL (? independent of Mr Richards..so who knows?)
not all bad news...the NED looks fine and bought a few
Are you two still in here? What's going on, all I've seen is bad news. Sold out at 17.05p in June after results. Is it time to jump back in?
tick up ..let's see whether any fancies the exit @ EV of c £3m
which is kinda interesting...will the effective bid move up to entice selling over 11p? ...6/7 weeks to interims, so perhaps nothing will happen until then