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.
Seems like a market overreaction. Good point t to get in as even if it grows back slowly it will be profit
Div increase and good cashflows as more business from SaaS/ subscriptions.. internet economy and increased market penetration. All good imo
Sorry yeah, see that now Volcano
Hi I have been looking at Sage for a while now, I have used their software and it's very good, I am concerned why there was a big sell off in September 230,000 shares by company employees @ a share price of around £7.21 can anyone explain? I am tempted to dip my toe everything looks ok ??
Against the uncertain economic backdrop, we currently expect organic recurring revenue growth for FY21 to be in the region of 3% to 5%, weighted towards the second half of the year. We also expect other revenue (SSRS and processing) to continue to decline, in line with our strategy. Organic operating margin is expected to be up to three percentage points below FY20, depending on the level of additional investment we make during the yea
" Organic operating margin is expected to be up to three percentage points below financial 2020"
"Beyond the 2021 financial year, though, Sage expects margins to trend upwards "over time"."
So the market seems to have focused just on next years margins? Even then though, revenue is set to increase, which seems like the more important factor.
Says margins expected to improve, are we reading the same RNS?
after reading the outlook decided not to buy in today
Is it harsh - falling margins and trend to continue.
A harsh verdict from the market this morning showing again that highly priced companies have to grow. However I am keeping faith and will take the opportunity to top up.
Who sells when a company beats expectations? I don't get it.
I find the market place a bit weird sometimes. You look at RNS’s at 7 and think well I won’t touch that one today and the share price goes up. Must be reading results incorrectly. Sage seems like it’s on the right path, not sure if Brexit would have an impact (EU services), but being world wide I don’t think so.
Me too Morbox, make a habit of day trading on news and I expected this to open up by minimum 5% so couldn't believe the initial 10% drop
I decided to buy got in under 6 so happy and long.
Sage has beaten analyst expectations; hold firm
https://www.proactiveinvestors.co.uk/companies/news/934415/sage-group-finals-bring-focus-on-britain-s-smes-during-the-pandemic-934415.html
What do I know, the market was expecting more! Oh well may buy some after 10
Outlook
Against the uncertain economic backdrop, we currently expect organic recurring revenue growth for FY21 to be in the region of 3% to 5%, weighted towards the second half of the year. We also expect other revenue (SSRS and processing) to continue to decline, in line with our strategy. Organic operating margin is expected to be up to three percentage points below FY20, depending on the level of additional investment we make during the year.
Looking beyond FY21, we expect margins to trend upwards over time, as the investment drives recurring revenue growth and operating efficiencies.
Very positive results,
Friday 20 November
Sage Group PLC Full Year Results
Hi I’ve been looking to invest in Sage for a while and now have they funds your do so. I’d be grateful for any thoughts on the current SP and the pros and cons of buying now.
When I suggested "value" in Sage (the company actually under discussion here) it was about the serendipitous nature of the buyback program. Comparing this to "incredible value" in housebuilders, which you were actually selling at the time, and now seem certain will "plummet" even further from an already undervalued position, seems an odd linkage. If comparisons of the uplifting Sage buyback program with your apparently negative leaning "value" of housebuilders was like apples and oranges, your more recent hindsight comparison with GGP is perhaps more like apples and casino chips. It seems you are now "not bovvered" about the buyback program any more, and have decided it is "almost meaningless". That's arguably slightly more relevant than your original comparison, yet it still doesn't seem to recognise, or properly evaluate, the actual value being discussed. As the Sage SP continues to show resilience in the face of COVID-19, the value of the program is arguably self evident.
Hi BBD
Not too bovvered what anyone thinks, seems to be only us two on this board now, but a great discussion.
I think incredible value in HB's now - some time ago I calcd tw was worth 260 (now 111), but that was before Covid-19 and fundamentally nothing has changed, we still need more houses. If a new lockdown (no houses Built) tw is worth nothing but its Assets. Obviously the Govt cannot let this happen, but I do think we are in for a very bad time.
A resurgence of Covid-19, Recession and Brexit with no Deal will make HB's Sp plummet but I'm not too worried about that.
What will kill off HB's is higher Interest Rates and Mortgage availability, which I think could be a result of the above.
Not really bovvered about Share Buybacks, the volatility in the economy makes it almost meaningless and I don't think it has benefitted bkg much, the Company or share holders.
Traditionally if high inflation (due to printing money) the price of Gold increases cos money loses value. Ggp just increased in value by 25% this week (now 215% profit after just over a year and 12 top ups), but price of gold has hardly increased.
Some daft numbers PER -199 (cos they have no income), MrktCap £755m, Cur assets 2.83m, Cur Liabs 0.63m - so rich.
But, the reason for the big increase in Sp was drilling results in Aus confirming a massive amount of Gold in the land they have rights to (£Bn's and a guaranteed buyer in NCM), and more results to be published soon from another development.
If price of gold doubles so will the value of ggp.
My best investment ever and cannot see any probs for at least a year, Fundamentals and prospects excellent.
BoL
Hi Nige_W
some people might question your coming to the Sage board to promote HBs at a time when you were actively selling them, you can see how that looks, and they might even be skeptical at your belated mention of GGP, but I think we should give you the benefit of the doubt and thank you for making full disclosure, if a little late.
If HBs are now well prepared for a slump, presumably because they are already so low, that's slightly different from seeing value in them. It's interesting that you do actually still disapprove of the Sage buy back program, and it seems that however low the price goes as a result of COVID-19 (they were around £6 when this thread started), you would still see it as too expensive and a bad way of using resources. Despite this, you see no specific reason for that high rating to change, which seems contradictory. If the share price is not likely to be derated lower in the future, then how can price be an objection to the value of the buy back program? If earnings increase, today's price might be seen as cheap with hindsight, and more earnings spread over the resulting fewer shares would lower the PER. In such a scenario the price is likely to go up again, at which point you would be put off by the still high PER. You would probably never invest.
I think we can agree that comparisons over PER are interesting, but can only be taken so far. Good luck with GGP, they've had a golden year so far!
Hi BBD
Think desperate times need desperate measures, hence pretty much dumping my PER method for now - will revert to it when (if?) things return to normal.
I think a buyback makes sense if Sage regards its Sp is undervalued by the Market, but with a PER of 28.9? Also you need the spare cash. Tw had a rights issue to raise cash to buy cheap land. Not sure if that was a good idea either.
Don't know how badly stocks will be affected by a resurgence of Covid-19, Brexit with No Deal, Recession and spiraling Unemployment, but think it will be far worse than people seem to expect - hence Gold refuge.
FWIW I still think HB's better prepared for a Slump than most other sectors and Sage also shouldn't be affected much.
BoL
Hi Nige_W,
that's quite a revelation that you actually saw real value in GGP, rather than your stated HBs, and for reasons other than PER.
Your argument against value in the Sage buy back program now seems to have shifted to the idea that the whole market is likely to decline. Wouldn't you agree that that is the most opportune time to have a buyback program in place?