Member Info for NigeCo

1/10/2021 share price reached 828p.

Priced at the current share price of 164p S4 Capital trades @0.88X P/S. How cheap do shorters want to take this? Cheap as chips. S4 won't be at this bargain price come end of 2023 or I will eat my hat. Famous last words.

Lemming99...... "That's all looking in the rear-view mirror. Of course what we really need is a chrystal ball to see the future. Anyone got one?"

While I don't have a crystal ball, I can report what analyst currently predict for S4's earnings forecasts.

2022 Loss £153,367m
2023 Loss £11m
2024 Profit £36,933m

Lemming99........ "I think fair to say that the company is in growth mode and market share acquisition at the moment. As such, making a profit is not one of the top priorities right now. Of course each individual piece of work done for a client at the margin would typically be priced appropriately to make a profit."

I would have to agree, S4 current Gross Margin stands at 81.86% This bodes well IMO for future profits. If it wasn't for M&A S4 would be profitable. Also, S4 are trading at only 1.2X P/S ratio, very good value IMO.

IMHO, FWIW, I think that there is every chance that once the large capital expenditure is completed hopefully by year end 2026, BT going forward should become a cash cow, and I'm hopeful that the dividends will recover to what they were a few years ago, paying 15.4p per year.

Cardinal3, yes, I take your point, and the very reason why I contacted SMS via email. IMO, the RNS announcement left a lot of uncertainty that shorters pounced on, hence the share price drop from 245p at the time of the RNS announcement to 160p. Anyway, looking at this weeks share price movements maybe the share price is finding some stability.

Cardinal3, all S4 shareholders have the option to email SMS, he is open to receiving questions from S4 shareholders.

I see that Marshall Wace have reduced their 0.50% S4 Capital short position on 17/3/23.

https://shorttracker.co.uk/company/GB00BFZZM640/

WouldBGatsby..... "I believe that for the committed LTH (as I am) it offers great prospects. My expectation is that in a few years' time this share will be worth several times its current price."

I would agree fully. While I don't lack confidence in my belief in S4 Capital and it's management team. I find it reassuring that other sensible discussion board posters are of the same opinion as myself. We could both be proved wrong of course, I take nothing for granted. But when you you look at the expected earnings forecasts going forward, IMO S4 are cheap as chips. Patience will be needed, but should be rewarded long term. JMO.

Hi WouldBGatsby, the only other reason apart from the partial loss of business from of one of S4's "Whoppers" is the announcement of Sir Martin Sorrell's operation on 6/2/2023. I would agree with you though that the sell off is quite ridiculous all things considered. IMO, shorters wanted any excuse and that probably was it. I've had a conversation with SMS this week via email, I have to give him credit, I always get a prompt reply. How many CEO's of other listed companies would do that? Not many, if any at all. SMS didn't give much away as you would expect, other than to say that he's in good health.

Just to add further, regarding soon to be announced full year 2022 results, analyst's latest forecasts are for S4 to report a £153m loss, this is mainly down to M&A cost's. I think that the market will be more interested in the forward looking statement. Analysts currently have S4 to report a small £11m loss this year 2023, although it was only a few months ago that they had them at a £5m profit, with 2024 forecasts currently standing at almost £37m profit. Based on the current share price, S4 trades on a P/S ratio of just 1.1X (it was (1.65X on 6/2/23) and only 0.8X for this year 2023 earnings. This is a bargain price, but it could go lower.

On the subject of "Whoppers" S4 reported that they were on target to have 10 by year end 2022, we may since have lost part of one whopper. But just to remind you S4's target is 20, S4 reported that they had identified a further 14. S4 have a bright future IMO and I intend to enjoy the roller coaster ride. The only obstacle that I can currently see in S4's way is not having a share price above 425p that could potentially hold it back from further M&A. It's ok for now while S4 works through recent M&A, but for S4 to keep up with its 25% per year growth I think that they will need further M&A in a couple of years time, at which time the share price may well have recovered. Only other alturnative that I can see is a move to the USA Nasdaq stock exchange where I believe S4 would achieve a far higher valuation. Only time will tell. Cheers.

In the meantime waiting a further two months may well kill the BT share price. We all know that the market hates uncertainty.

still bullish on S4 Capital.

https://www.youtube.com/watch?v=rkdPiebZOe4

Reasons to be optimistic. Inflation is predicted to drop from 10.1% (now) to 2.9% by year end. It's also dropping in the USA. Once interest rates have peaked we may well have a bull market and IMO S4 will fly. Plus S4 may start to make a small profit this year, with next year predicted to be a £37m profit. More "Whoppers" in the pipeline. Big over reaction with the share price caused by shorters IMO. Buy & Hold.

Notice of results
S4Capital plc (SFOR.L), the tech-led, new age/new era digital advertising, marketing and technology services company, today confirms that it will announce its 2022 Preliminary Results on 29 March 2023.
There will be a live webcast and conference call at 5.30pm BST (this timing is to accommodate pre-scheduled executive travel and time zones).

Pearls, maybe results will be released at 7am on the 29th with the webcast at 5.30pm.

To be announced on 29th March 2023.

"Going to bed and isa £20k in April!!"

Further to add, anyone who is going to bed & ISA, it makes no difference what the share price is going to be if you sell BT shares in a none ISA shares account, move the funds over to the ISA account and then re purchase the BT shares, so it makes no sense what the current share price is IF you intend to repurchase at the same time of selling.

I also will be transferring my ISA allowance over to my ISA only I intend to purchase shares before I sell at a higher share price in my normal shares account, this way I won't be out of pocket.

Fleccy, yes averaging down can work over the long term, but buying when the share price is rising makes more sense otherwise you are just sat on more dead money waiting for a share price to recover, that may never come. I've been waiting for years for BT share price to reach £3, it may never happen in my lifetime, but I live live in hope. Time waits for no man or woman.

AbjectPerformer, I've never understood why anyone would want the share price to drop so that they could add to their shareholding at a lower share price, you have probably lost more than what you will gain, short term at least. Each to their own, but I would rather add to a rising share price than a falling one.

So markets are down because because of a banking crisis over the pond, S4 Capital down more than most UK banks. Crazy.

Virgin Money -8.97%
Barclays -6.31%
Lloyds -5.12%
Nat West -4.83%
HSBC -4.13%

S4 Capital -5.87%

Looking at the SFOR chart, the Relative Strength Index (RSI) closed @0.171. We would have to go as far back as 26/7/22 for a lower RSI @0.168 when the share price closed @112.70p. Looking very oversold to me, shorters have a lot to answer for.

Auson, Simply Wall St. Link enclosed below.... Do you have the update yet regarding the amount of S4 shares out on loan? Thanks in advance.

https://simplywall.st/stocks/gb/media/lse-sfor/s4-capital-shares/future

Latest analyst earnings forecast dated 26/1/2023

2022 £153.367m Loss
2023 £11m Loss
2024 £36.933m Gain

I would hope that shareholders will start to receive a dividend once S4 start making a profit, also this would be the ideal time IMO to move to the USA Nasdaq stock exchange where I believe S4 would receive a far higher valuation, because the current valuation of 1.2 P/S for a growth company is a joke.