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Small holding in MWA @2p. Very cheap on EV/EBIT, decent management and hasn't yet reacted to rebound today in Nickel prices, which seem to be expected to rise into the new year.
Very impressive...leaving PE at an age when many in IB clamouring for entry! I have a lot of respect for the self made...modesty always a virtue. I read Barbarians at the Gate earlier this year - was an interesting intro to PE accountability/scrutiny. KKR ruthless!
nm
That sounds great. I'm particularly interested to see which aspects and metrics he focuses on, so look forward to it. Hopefully he doesn't pan them lol! EV/EBIT here more expensive than some of your other favourites, but mgmt team has a very impressive record here and the company has had several years of strong growth (a big endorsement of them). Good, far reaching international exposure and seemingly good prospects for further growth. Although it may get a little cheaper, I'm happy to gain a small foothold within 10% of 52 week low. I'm effectively rebuilding my portfolio from scratch, looking for 4-6 (small/medium cap) holds and 1-2 trades at any given time. This is the first entry in the former. Will look further at the other two (both on radar for some time, traded GBO several times) - do you know consider the three to be a tier above DWHA, RBN, TFW? Appreciate all very different. I think I'd need to meet management teams (possibly independantly) before I ever invested that sort of amount...will you look to do so (if not done so already)?
Bought a 1/2 holding today. Seems a decent price for an initial entry. Will add further @180 and 160, should we get there.
In calculating market cap for Dewhurst PLC, would the right method be to get market cap of DWHT, then add that to the number of DWHA shares multiplied by current DWHA share price? From there calculate EV/EBIT of combined group (plus any other valuation metrics), to get fair value for DWHT, then separately apply discount for DWHA?
That's great, thanks. The 14/15 EBIT was based on 13/14 operating profit, less the £250k max indicated in the trading update...but I realise that's a rather simplistic way of looking at it. I also noticed two other things - 1) The trading update referred to a large project which will allow the company to meet expectations for H1 - perhaps implies other areas of revenue not as strong as anticipated? 2) The outlook in final results predicted an upswing in work in Germany, with a prospective office in Munich - may be influenced/hindered by current German economic issues Still seems cheap overall, but really didn't like the Linx episode (down even to disposal terms...£375k, in 3 instalments over 3 years, with no interest?). Can see why you'd back management looking at their record, so may enter with half stake on any further retraces.
M/C: £5.33m + debt £1.3m - cash £2.3m = EV £4.33m 2013-14 EBIT: £879k 2014-15 adjusted anticipated EBIT: £640k EV/EBIT (14-15 predictive) of 6.76? That all sound right? EV/EBIT 5-7 healthy?
Applicability here? Interesting comments on how they've found the markets...do these provide an indication here? I know Enteq has a greater regional focus on North America. Anyone with greater knowledge of this market want to comment?
was awful, and his reasoning for exiting a little spurious...but fair play for doing the digging and putting that in print.
Why stop there? With illiquidity, little to no visible institutional interest on the buy side, few obvious PIs and a dead bb, it will keep dropping to ever sillier levels as long as seller continues to offload. Anyone who catches the turn will do well, but I'll wait until dropping tranche 2 before ramping! Personally don't see cash as providing support, quite few AIMers trade below cash, especially in bear markets.
Jolly! These premises were chosen following chosen "after an extensive search throughout the South West of England" - I couldn't possibly comment further!
here is desperate to dump, another big late reported sell. It creates a great buying opportunity for the brave. I wish I made a note of the big sells in these situations...without doing so it's near impossible to gauge how much more of this is to come.
with a small buy...last year's trading update came on October 15, so hopeful of at least 10-20% increase either before or on release...as AGM statement implied that it will be positive.
Yes I'm well thank you, I hope the same is true of you. I hope you banked some gains with UVEL lately, was pleased to see that rise...I sold for about £80 profit so didn't really make the most of it! I think Ash would be a good LT prospect at around this level, purely on basis of its pipeline. I think the debt facility sounds good too. However, AIM generally doesn't reward LT, and with profits (or news of profits) 6-12 months away...I'll probably leave it for now. I'll keep an eye on it, I think 5p would certainly tempt!
Also note the revenue recognition point in the results- it's not all been billed yet
Very happy with today's results. Whilst the breakdown could provide more detail, it's still easy to see that the business isn't as dependant on IPOs as many of its competitors...but a few more would really boost earnings no doubt. Libero could you post Paul Scott's thoughts please, or a link? DD your timing was excellent! I could have sold today for about 15% profit after dealing costs...I'm going to hold in the hope of a sustained rise.
Panmure Gordon, one of London’s oldest stockbrokers, reported a small profit in the first six months of this year, an early sign that the City broker is beginning to turn around its fortunes after a “disastrous” US acquisition it has taken two years to recover from. Pre-tax profits from continuing operations rose to £1.9m in the six months to June 30 from £335,000 in same period last year. Panmure’s net commission and trading income increased 26 per cent to £5.4m during the six months, while corporate finance and related income increased 22 per cent to £11.5m. The City of London’s brokers are coming under pressure from “unbundling” – European proposals that would stop banks from charging research out of dealing commissions, which have been endorsed by the UK’s Financial Conduct Authority and are likely to disproportionately hit small and mid-cap brokers. Panmure plans to have another crack at the US market and has hired Nick Hiley to lead the distribution of its products into the US, from Canaccord Genuity, where he held a similar role. This time it will be different, says Mr Wale because “we’re not physically there and we won’t be buying a business at a vastly inflated price and letting it be remotely managed.” Mr Wale said that while Panmure only worked on two IPOs in the first half of this year, it booked four IPOs in the last two months of 2013 and has more in the pipeline for the rest of this year. In the past, Panmure’s rivals have criticised its top-heavy management structure, which meant that profits didn’t trickle down to more junior staff. Mr Wale said that this is “a fair criticism” but added that it has restructured its remuneration structure from a discretionary model to one linked to performance. He said: “We’re making the whole business transparent so you can see where people’s contribution lies [ . . .] It makes people healthily hungry.” Mr Wale said he is surprised there hasn’t been more consolidation among the small and mid-cap brokers. “It’s still a hugely overbroked, fiercely competitive environment. On pure economics one would argue that there are too many players and not enough business in anything other than very strong markets,” he said. Panmure held talks 18 months ago with Oriel Securities, which was later bought by US brokerage Stifel Financial Corp this year. Evolution Group had looked to acquire Panmure in 2010 but decided not to pursue a formal bid. Deals are often difficult because of the cost of redundancy payouts, said Mr Wale. “We remain looking but there is no obvious match and no talks going on at the moment.” Panmure reported diluted earnings per share of 9.8p compared with 0.92p last year and plans to pay a dividend in 2015.
Yes, the 20,000. I hadn't noticed that, thanks. Seen article/El1te's response too, views below remain unaltered. Good to see good results from Cenkos and Shore Capital today. Hopefully bodes well for next week.
Big trade of the day is a buy...so can't readily explain price movement. Profits are up...as the IPO bubble has burst, does it matter that PMR's slice of that pie was smaller? If anything it is arguably a positive, as they may now be less affected by the downturn than other brokerages that were/are more reliant on IPOs. Personally, I don't know Danny Gibson, or how "inside the city" he truly is. Is his gauging the word on the street, or has he just read a City AM table of no. of deals? Did El1te comment on advfn or are you referring to the review on his site?