Member Info for NigeCo

Fleeced yet again in the closing auction of 1.3p. Closing down 2.6p on the day @107p and 5.7p on the week.

Baron Investments

@baroninvestment

Probably should stop but 1.5m into #SFOR now. Maybe the only one buzzing to be accumulating here but convinced substantial returns come from these metrics. Record free cash on the horizon and when sentiment starts turning (and it will), it will really rip

BT market cap £12.7bln. Almost the same value that BT paid for EE £12.5bln. Crazy undervaluation.

Advertisingman,

Thanks for your reply, much appreciated. Your insight is most helpful. S4 will give a presentation next week on the 28th regarding AI. I think that there is currently a lot of uncertainty and nervousness surrounds AI at the moment. Would it be fair to say that you think that S4 will adapt quicker than most, that may well result in S4 gaining more business, not losing it? In other words S4 could end up being a big winner as a result of AI? Could this be the catalyst the share price currently needs?

Hi Advertisingman, interesting first comment and welcome to this discussion board.

I can tell you that the latest analyst's forecasts are for EBITDA to come in at £158m (2022 124.2m) so you are in the same ball-park at £160m. I would have to agree with you, fundamentally S4 Capital are very good vale in fact IMO cheap as chips. Do you have an opinion as to why this would be? I can only think of two reasons that may have caused this undervaluation. 1, The bad news surrounding Sir Martin Sorrell health issues, of which the recent down turn in the share price in early Feb 2023 started the share price drop from a high of 249p on the day that SMS announced his operation. 2, the uncertainties surrounding AI, although management think that this will help S4 progress further.

Caravan..... "management own significant part of the company..yet they preside over an sp going down the plughole...shameful...."

Come on then Caravan, what should Sir Martin Sorrell do to stop the share price dropping? I'm sure he will be all ears.

HBLU, yes I understand your point of view. At the AGM, SMS said that they intended to buyback 1% of stock in the second half of the year so that shareholders aren't diluted from this years M&A payment in new shares issued this year. I must admit that I was quite happy to hear this.

Hopefully once we get this year out of the way and all past M&A is paid for, S4 should start to make a profit and we see a recovery in the share price. After all management do have a lot of skin in the game 40%, no bigger incentive for them to make S4 a great company. Time will tell mate.

S4 are a new growth company that did a lot of M&A.

I'm as disappointed as most shareholders with the performance of the share price, but I don't think that management have done a lot wrong to be fair, when you look back at the financial results over the past 4 years. yes they hired too many staff last year, but I think a lot of that was related to M&A. Apart from that the results certainly don't deserve the current market valuation put on S4 Capital. IMO.

I agree with you Aus, very strange.

Market has ruled out any chance of a takeover bid that would more than likely be blocked. Not sure what will move this share price, best to forget about for 3 years. IMO.

Management have transformed S4 Capital in 4 year......

2018 Revenue £94m......... 2022 £1.069B

2018 EBITDA £8.05m........ 2022 £124.2m

Fleccy, I just think that if the BT share price is still down at this undervalued level once FTTP is complete, then a share buyback would help enhance shareholder value, and help boost the performance of the share price. I would hope for combination of both dividend increases and buybacks.

S4 Capital share price and volume of shares traded.

@10:51am Share price 110p level. buy volume 52,958. Sell volume 83,370.

@12:25pm share price 109p -1p. Buy volume 123,393. Sell volume 122,238.

So the buy volume increased to total slightly more than sell volume, yet the share price drops 1p. Clear manipulation going on here. IMO.

Hopefully the future share buybacks will follow, once FTTP has been completed and all paid for, from 2027 would be good.

I enclose Baron Investments view on S4 share buybacks....

Baron Investments

@baroninvestment

·

Jun 18

#SFOR Cash from ops last year of £97m,expecting that to shoot higher in 2023. These Cashflows that have been funding mergers/combinations end in ‘23 so cash stays in biz ahead ie rapid deleveraging. Recent weakness sending PE to a mere 7x for ‘24 and a boon for upcoming buybacks

Sir Martin Sorrell, Executive Chairman of S4Capital plc said: "Over the longer term we expect our growth to outperform our market and competition and operational EBITDA margins to return to historic levels of 20%+."

Yes that's right... "historic levels of 20%+"

https://www.lse.co.uk/rns/SFOR/unaudited-2022-preliminary-results-7emyxjgsjawq6ja.html

Sir Martin Sorrell, Executive Chairman of S4Capital plc said:

BT strategy is on the right track, says Deutsche Bank

BT (BT) is operating the right strategy despite a number of headwinds facing the telecommunications giant, says Deutsche Bank.

Analyst Robert Grindle retained his ‘hold’ recommendation and cut his target price from 150p to 145p on the Citywire Elite Companies AA-rated stock, which softened 0.2%, or 0.3p, to 135p on Tuesday.

The group was an ‘outperformer’ in the first half of 2023 and the shares have ‘done well year to date… recouping its relative losses of 2022’.

‘We upgraded to “hold” in September 2022 on a better outlook for UK tax which was eventually confirmed in the government’s spring budget – BT will pay no UK tax for a further three years on top of the last two,’ said Grindle.

‘This tax relief on an investment that had to be made regardless, in our view, was serendipitous alongside higher consumer price index as a boost to both wholesale and consumer retail pricing.’

Grindle said energy and wage costs have, however, been a headwind, ‘but the company delivered on full-year 2023 guidance – with a little help from BT Sport deconsolidation and supply chain financing initiatives’.

https://citywire.com/funds-insider/news/expert-view-bt-yougov-man-group-focusrite-and-mitie/a2419834?re=110130&ea=1680882&utm_source=BulkEmail_FundsInsider+DawnChorus&utm_medium=BulkEmail_FundsInsider+DawnChorus&utm_campaign=BulkEmail_FundsInsider+DawnChorus

S4 Capital paid part cash and part S4 Capital shares that are locked in for a number of years, with a S4 share price no lower than 425p per share. In fact to date only one of the acquisitions have been written down in value, all the rest have performed to managements expectations or above. Just a word on SMS, what SMS doesn't know about the advertising industry isn't worth knowing. He built WPP from being a £1m company in to being the worlds largest advertising company, with a market cap of over £12 billion. He's got the tee shirt.

Redwineday, I don't think that management would treat it's long term shareholders with such a low-ball offer mate. I think that there is more of a chance that S4 joins the Nasdaq stock exchange that would instantly boost the valuation IMO. This would make perfect sense to me with S4 having over 70% of its business in the US. The S4 Capital London stock exchange valuation is a joke.

Another tree shake taking place with the S4 share price. We must be getting somewhere near the end games now. Can't be many weak sellers left.

JKR Investing S4 Capital Update.... "When Will S4 Capital Stop Going Down"

https://www.youtube.com/watch?v=gwZXQjjcq6Q