London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
*to hear not *tho hear...lol
me ol fav GBO! ..CAMK (but Chinese...and you have looked at it, no?) ...DSN (turnaround mode) ...EWR ...NTQ (u have looked) ...EME (ditto) ...GDP (sub 3p...not yet..placement? ...GCO (limited data) ...HSP (but coal) ..KGLD (but goldie) ...RKH ...STI (but goldie) ...STGR (Blue's new toy lol) ...SAL (after retrace) ...TOn ...THAL
Morning chaps, 'sorry tho hear about this...'bit of a dogs dinner, by all accounts ;-) I got our a while ago when I was thinning down my day trading P/f ... STGR looks cheap Dan, not sure how it'll stack up from a detailed research pov, tho' VBR
what's mad cheap at the moment and thus worth researching?
Thanks for the kind words - I appreciate the sentiment.
Correction: those rev & EBIT figures were for H2 of course - clearly below H1's £3.22m and £457k figures (which, as explained, seemed so conservative at the time).
lol
not comparable with gbo lol.. ...this sets its own low standards on shareholder communication
I just don't get it. How was revenue (£2.67m) and EBIT (£398k) so far below even our most conservative expectations? The HY report was so positive - all parts of the business were growing and it showed, and that wasn't even including 25%-REDT-owned Linx nor the new contract with another blue chip insurance company. So I'm just as baffled as you are. These results were really poor and I don't think there was any way we could have saw this coming considering the minimal investor communication from this company. So much for being the dark horse of 2014, eh? haha
I can find no comparators between interims and finals...not cricket!! .. Seriously, though...these accounts are meant for me and other shareholders..they are not management accounts...and should be clear; these are not set out at a high standard (English understatement) imv
us both...so I think forgivable! ...bizarrely poor communication and presentation of results imv
...so I reckon poorly presented...the substantial profit from discontinued ops? Just 25% of linx? Seem v high...not least in comparison to paltry cash settlement ...Since 1H and finals are incommensurate, it is is v difficult to extract 2H implied
The FY results are thoroughly disappointing so I've sold for a 13-14% loss. Yet another investing mistake!
still figuring it out lol...and the value extracted from linx poor ...unJolly this morning (sold more than half ...at 19.26p before results as hedge...and at 19p..and at 18p in reaction to disappointment)
n July 2013, red24 announced the combination of the Company's former subsidiary, Arc Training International Ltd ("Arc") with Linx (effectd by means of a sale of Arc) for which red24 would receive in consideration a 25% interest in the enlarged entity. The anticipated benefits to both red24 and Linx of this arrangement have not materialised and consequently, Linx and red24 have agreed that Linx and David Gill, its principal shareholder, will repurchase red24's interest in Linx. David Gill has resigned from the board of red24 with effect from 16 June 2014. The proposed sale value of £375,000 in cash comprises of the carrying value of the investment in red24's financial statements plus legal costs relating to the sale, and is proposed to be receivable in three equal installments (the first at completion, and subsequently on first and second anniversaries of completion). Red24 intend to reinvest the proceeds of the sale in ongoing product development and growth of the business.
EBIT < £1m...and lacklustre outllook
based on 20p buy price Bull Case -All parts of the business are growing very nicely and are profitable. -The company has long term contracts with blue chip companies (HSBC, AIG, etc), providing long term revenue visibility. -They’ve been very successful in securing new contracts each year so there’s probably more to come. -Historic EV/EBIT ratio is 10.3 and the forward EV/EBIT is just 8 ish based on my fairly conservative estimate which is very good all things considered. -I’m expecting a 18% - 25% rise in revenue, and a 12-20% rise in PBT for 2014. -I predict 2015 will then be even better due to the reasons above and also: A) Linx (25% owned by REDT) seems to be doing very well in these early days and we’ll see the full effects in 2015. B) We’ll see the full effects of the new contract with the “second major Accident & Health insurance provider.” C) The benefits of the increased spending on marketing for the Business Support segment will shine through and a higher % of their revenues will turn to profit I reckon. -2015 will be an even better year than 2014, with revenue rising to c £9.5m and PBT rising to c £1.4m I reckon. This would mean 2015 EV/EBIT would be just 6-7 based on the current price which is absolutely superb! -The 2013 ROCE, based on my own workings, is close to 30% which indicates that the company has a decent competitive advantage over their peers. REDT’s very good 14-15% operating margin also indicates this. -There’s a nice c 2.5% yield. Bear Case -There must be quite heavy reliance on the blue chip clients. But they’re currently all locked in to 3 year contracts which they keep renewing so that mitigates that risk. Additionally the company keep looking for new clients and recently signed a contract with a 2nd big insurance company. -Sterling is very strong that leads to currency issues, which will presumably diminish the rise in revenue and PBT this year but only slightly. -Literally can’t think of anything else… Conclusion I think a reasonable 31st December 2014 target would be 35p. But let’s say 30p to be conservative – this still represents a chunky 50% upside over the next 6 months or so, excluding the dividend to be paid in August.
Blue, Damn I forgot about that. You got lucky - I was only just inside a week! Yeah bet you did - fret than I'd return more like haha A ten bagger, if only! Have you seen my track record? VBR, Dan
Danny Boy, Back within the week...I win! lol Good to see yee here again...me and Jolly had started to fret ;-P VBR and hey I still expect you to find us a ten bagger, Blue
I was only joking ! Topped up with 2500 shares myself last night to take me upto 8000. I am investing through ISA so have limited funds to play with. Anyway good luck Dan, lets hope we all have a good time with REDT
Haha I'm not investing that much - even if I was to sell everything I own down to the shirt on my back I wouldn't have enough to invest that much! No I've bought a v small amount. I'm buying despite saying I've quit cos I really like REDT & want to buy in before results. But I'm only buying a small amount because my confidence in my stock picking ability / the AIM market being rational has been hit hard in recent months.
Welcome back...I will look out for the 250k purchase at some point this afternoon. Paul
I just thought I'd warn you that I'll be investing in REDT (for the long term) this afternoon. Take this opportunity to run now because I'm superbly talented at finding decent unloved companies and watching them become even more unloved upon my arrival. Beware!
for results