Member Info for shan

yep looking very good! on form recently with CPX et al so very interested here! atb

and recd today again too so interest continuing to develop. very niche sector

Some great calls recently with cpx and Afpo Trt looking excellent too Atb

Can growth in digital marketing buck wider risks affecting the business cycle? According to eMarketer, digital increased from 15% of UK marketing spend in 2007, to 47% in 2014, and most marketing services firms report their strongest growth in this segment. So it's initially odd how FTSE Small Cap-listed Creston (CRE), which in recent years derived just over half its revenues from digital and online, saw its earnings slip from 2013 (see table) and is not yet expected to regain such earning power. This is explained partly by investment for growth and client budget volatility early in the 2013/14 financial year, which admittedly points to downside risk should the global economy worsen. In its last financial year to end-March, 66% of group revenue derived from the UK, 19% from continental Europe and 15% rest-of-world. Digital and online revenues grew 7% to represent 55% of the total. Early stage of a five-year development plan More positively, and why Creston merits watching, it is one year into a five-year strategy involving a new brand - "Creston Unlimited", launched last November - bringing together a range of digital technology-based, marketing services to blue-chip global clients. Essentially, the aim is a fuller service offering with international capability, an interesting growth prospect for a circa £90 million company - it's big enough operationally to pitch at multinationals, while small enough financially for the gains to impact value. Mind the cheer-lead factor, but Creston's chief executive cites: "a real feeling of momentum and energy across our group...we are encouraged by the early successes in our new strategy which gives us a strong platform to deliver value to shareholders over the medium term." His words coincide with an 8% rise in the total dividend to 4.2p a share, and forecasts imply a prospective yield of 3%. While it's not exactly a prop, a reduction in earnings cover from nearly seven times implies the board is more confident about Creston's earnings and cash profile. (Mind how numbers in the Company REFS table along with other databases, reflect the actual timing of dividend payments.)

Mentioned again by St in ic

mmmmmm.....interesting!

Yep I like Richard beddard too.... Very good at value investing and has also highlighted some good companies which overlap with yourself and St. Well worth watching him too.

he is still very good although it goes to show any recommendation has a certain timing as well as being able to look at the rec in terms of the macro-environment (eg THAL with oil prices) and doing financial research (eg with NBU) - although I am suprised NBU financials were over-looked!

we should start charging!

Madstork Brilliantly put! On more serious note probably wise to just sit and wait to see where market settles with this.

Well an interesting debate last night but unfortunately its still a bearish outlook for ace. Will see what the rest of the week brings

"Its finances" actually I did earlier as I wrote that the companies roce and operating margins have actually been declining despite the increased sales. Also mentioned the ballooning recievables as not a good sign too. However that was part of the whole debate and to give a different perspective. Again, it's been a good debate and wish everyone all the best

I think its important not to dismiss views simply based on who is making them. TW may not be liked but he was spot on with QPP, NBU and MTV (although MTV didnt need a lot of investigation to be exposed!!) hence I think his view is worth considering. It all adds to the debate and i did say before this has been a good debate on both sides so will see what happens tomorrow/this week. all the best to all. I said before

very good to see honest debate from both sides of the coin. i genuinely wish you all invested a good week ahead. all the best

Yep and ka mentioned on gc page about actual cash generated being significantly below net profit Couple with operating margin and roce both declining over 5 years and receivables increasing too... It requires caution.

That may be so but the recievables here have been ballooning year on year That's not generally a good sign! This has shades of nbu and its like.... Be very careful but all the best to u all

Yep but depends on WHEN they recover the monies owned!!! Very similar story to nbu et al which also showed high recievables But u never know..... All the best

I think that may have been nbu!

Slug I meant I saw RMB and knew it was a Chinese company! As for recievables increasing, that's not a good sign!

This was looking a no brained until I saw the results in RMB! Just seen too many recent shockers linked to China that suggest it's probably wise to be very cautious with this Recent examples include nbu, camk, ctek etc and the likes.... All have/had excellent balance sheets with piles of cash but always something fishy about them...would be very careful but as always all the best to all in. These are not long term stocks!!!!!!