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The EBT has purchase shares at 17.25 and John Mocatta has increased his stake at 17.00 p.
so historic EV/EBIT of 5.5-6/0.879...6.5-7* ...for a growing company with experienced management ... ...but one that hasn't shown a great eye for deal making recently (linx) and which is now perhaps looking for acquisitions ...As a stale bull, I cannot get excited...with months of little news...and downbeat 1H to look forward to cf "Most of these opportunities are likely to benefit the second half of the year to March 2015 and lead to the year as a whole to show continued growth; however, the first half year is unlikely to receive the benefit of the major assignment in the Middle East that boosted the half year to September 2013." ...so reasonably valued...and plenty to prove ...I look forward to drift
thank you for your help...I doubt the company will provide more/any help on 2H implied lol...perhaps too tough to piece together? ...1H 2014/5 trading may be muted (dreaded 2H weighting flagged in rns)...so who knows where this will drift to over the long long months without official communication? ...I'll be back sniffing c15p
You seem to be a bit defensive. Give the company a call. I spoke to them yesterday.
you are clearly better at this than me..so v grateful for your help ...I'd greatly appreciate your input here (for me and others, I guess) if you could set out the 2H performance (incl revs, gross profits, op profits, FCF)... ...I have struggled with this essential research cos the interims were drawn up on one basis and now the finals on another... ...also why the change in handling the figures for the business that temporarily became part of Linx (from the drawing up of interims to finals?)
Not sure I agree about the the information being opaque. Stripping out discontinued operations is normal and the information re proceeds and impact on profits is there for all to see. The proceeds from the sale are disappointing. It seems that the original transaction was a mistake, this has been recognised and swift action has been taken to extracate RED24 from the relationship. But lets not forget, this is a share paying a dividend with a yield of 2.64 operating in what I consider to be a growth sector and with a track record of growth. I`ve taken the recent dip in the share price as an opportunity to increase my holding.
Didn't invest here, but have followed in light of prior enthusiasm from Jolly and Blue. I have to agree Jolly, it's very poor form to allow such little meaningful comparison between the results. Unnecessarily opaque...something quite arrogant about doing that without mention? Concur re conflict of interest too. Dan - nice to see you back, and talking like Sean Connery too. You'll get there eventually, you seem to be doing most things right in my opinion. I say this as a fellow novice investor! I think I saw you ask for book recommendations some time ago? I McKinsey's 'Valuation: Measuring and Managing the Value of Companies' recommended to me by someone in M&A. Haven't bought it yet.
I am irritated by the linx deal lol ...look at profits from discontinued ops...what is that? From ops that redt sold to linx, no? and then compare with cash paid in instalments for redt's share of linx...I haven't got the figures to hand...but roughly 1.5-2* growing profits is being paid...I'd have expected 5-7*...and in instalments to boot...so effectively paid out from future cash generated by linx ...or at least, that is what it seems...the details/notes are shoddy ...I therefore have to be conservative...and see the remaining business slowly sharply ...down 10-15% on rev and op profit 1H to 2H ...so run rate EBIT of £0.7-0.8m...valued at low 5* plus cash..perhaps an sp of 14-15p would tempt me
Sorry but you've totally lost me there, mate. Come again?
shd be looked at by any of the bigger investors here (never me, and certainly not now after by sales)...a decent slice of op profits sold at v v low multiple...is the sales process transparent enough? Are there conflicts of interest?
That certainly will keep me busy haha! Just quickly, jolly, a quick comment on some of those picks where I've looked at them previously: CAMK - are you bullish on these chinese shares? I've really gone off them because the market clearly does not trust them one iota DSN - cracking little share but I want to do more research into electronic bag tags (why there's a demand for them etc?) NTQ - looks good EME - ditto, but I suffer from not-buying-at-7p remorse there HSP - I spotted this one too, but yeah it's coal and UK Coal is coming to an end etc. Probs worth more research tho cos v cheap on the multiples SAL - I've looking to get in for a while. Could do with some help re: timing ?? THAL - been meaning to give this a look for a while so you'll probably see me on that bb soon! Thanks for the tips mate :)
I noticed that myself. That they've somehow made out Rev and Profit have gone up when actually they're down on last year. Shurely shome mishtake, no? I know they say they've restated the 2013 (clearly downwards) but nevertheless that's v odd
Blue, Thanks - I appreciate the comment. Yeah the results are a bit of a dog's dinner. Bit like your initial comment haha ;-) Will give STGR a look but don't get offended if I don't buy in - I've lost a lot of confidence lately so I'm unlikely to part with my cash in a hurry! VBR Dan
the linx sale aint helped...lost plenty of op profit for £270k in instalmants..must do better, BoD
Financial Highlights: · Revenue from continuing operations increased by 10% to £5.89 million (2013: £5.36 million) · Profit before tax up 9% to £0.85 million (2013: £0.78 million) · Cash balances up 12% to £2.30 million (2013: £2.05 million) · Total dividend payment for the year increased by 12.5% to 0.45p per share (2013: 0.40p) comprising of an interim dividend of 0.22p and a final dividend of 0.23p per share which will, subject to shareholder approval, be payable on 18 September 2014 to shareholders on the register on 29 August 2014 · Basic EPS from continuing operations up 6% to 1.33p (2013: 1.26p)
Highlights • Total revenue increased by 12% to £6.5m (year to 31 March 2012: £5.8m) - Growth particularly strong in Business Support Division -revenue up 82% to £2.1m (2012: £1.15m) • Profit before tax up 9% to £0.94m (2012: £0.86m) • Food and product safety assistance service has successful first year • Gross cash stable at £2.05m (2012: £2.07m) even after the purchase of the Cape Town building - Only indebtedness of the Group is £0.42m mortgage secured on this property • Interim dividend payment increased by 25% to 0.40p per share (2012: 0.32p) - Final dividend of 0.20p* per share recommended subject to shareholder approval at the AGM (2012: Nil) • Basic EPS of 1.55p (2012: 1.53p)
most folk who make money on oillies are gamblers, no? betting on black and it happens to go their way?
OK..I'll restate my last post...grateful if company could include an explanatory note to show the details behind the restatement of last year's figure between interims and finals
probably one of the reasons i don't play many oilies myself, i suspect that many of the people on aim who do make money with the oil tiddlers are folk who have some inside tracks / tips re placing activity, the when/where and costs. too much a guessing game for little bod like me.
I would not be surprised to see a correction rns...the figures for last year in the interims and finals don't seem to match (look at admin costs)...and the profit from discontinued ops looks too high ...I am not an accountant but I would suggest further scrutiny of these figures would be helpful
yes and no ...I like what little I understand about the value of the prospectivity/"likely" resources/reserves ...but wonder how the CAPEX will be funded...placement?? ...so reckon sp caught at this level...and may drift back towards 15p (where I will flip back in from sale at 25p plus add a lot more...probably)
Blimey Jolly, that'll keep the kid busy, lol Bought some STGR earlier today and also some RKH (at 90p) as it may well have hit its JMB.
and extra esp dodgy: PINN & BOX
* and out not our...FFS!