Aveva Share Discussion Threads

[thomasthetank1] 19/4/2016 12:25

Read Panmure Gordon & Co's note on AVEVA GROUP, out this morning, by visiting hxxps://www.research-tree.com/company/GB00BBG9VN75
"Aveva seems to have staggered over the line, saying that revenue and profit are broadly in line with FY expectations. We are at the bottom end of the range and so we are relaxed. Our view is unchanged: Aveva has a poor operational backdrop to deal with (i.e. weak end markets, poor geographic exposure and a new sales model) and this will keep forecast risk on the negative. Given the macro uncertainty we retain..."

[danieldruff2] 13/4/2016 17:46

One thing to look out for here is Chinese exposure. It is getting increasingly difficult to do business there. The Chinese are either indicating or mandating that only Chinese made software can be used by Chinese companies unless an increasingly difficult set of hoops are jumped through. There will be software companies who put a bet on Chinese expansion who may eventually have to throw in the towel and retreat.

Whether this hits Aveva or not, who knows. It depends on alternatives to their software in the Chinese market I guess, but it's something to look out for in the next results particularly as the half year update was a rather general "The performance in China was impacted by the general economic slowdown in the country"

[ruethewhirl] 25/2/2016 19:27

Getting some nice uplift lately.

[ruethewhirl] 18/2/2016 19:48

Cthulhu rises from the depths.

[ruethewhirl] 02/2/2016 23:27

"City hopes Siemens will target Aveva after Schneider snub"

"We remain of the view that Siemens would be well-served by acquiring Aveva."

[ruethewhirl] 12/1/2016 23:30

Bottom line is Aveva remains heavily exposed to the oil price which craters further by the day. That issue is acknowledged but is downplayed in the article.

It's a huge issue for Aveva and they would be wise to urgently seek further diversification, which was stated by Longdon himself as a major positive coming out the Schneider tie-up.

The ongoing low oil price will be one of the defining issues for 2016 and maybe much longer.

[hastings] 11/1/2016 16:29

May be of interest to others taking a look.

[ruethewhirl] 11/1/2016 00:59

"Aveva needs to find a route away from over-reliance on customers in the energy sector and towards new sources of growth. This false step shakes confidence in its ability to find one."

hxxp://www.afr.com/technology/aveva-sweetener-turns-sour-20151215-gloja0

I hope management are actively seeking suitors right at this moment, not vice versa.

[ruethewhirl] 08/1/2016 08:22

Now the tie up is not happening, Aveva has max exposure to the oil price. Not good.

[tsmith2] 06/1/2016 13:42

Kinda of ran out of steamTurned back down again, another leg down?

[tsmith2] 23/12/2015 11:32

Ship defo turning..

[ruethewhirl] 23/12/2015 01:07

Looking at the charts, think it'll get up to and hang around the 1800 level for a while, unless there's more news to act as a catalyst to get it through 1800.

[tsmith2] 22/12/2015 12:55

Like the look of the Intra day recovery

[tsmith2] 22/12/2015 08:43

Tick tick...

[tsmith2] 21/12/2015 11:50

Graph turning upwards v nicely

[tsmith2] 18/12/2015 16:38

Expecting a decent rise next week

[tsmith2] 16/12/2015 20:31

Let's see what tomorrow brings..

[sharw] 16/12/2015 17:18

After being below 1400 early yesterday has uncrossed at 1594 on over 57k at today's close. Possibly some think that the company is now in play again.

[tsmith2] 16/12/2015 13:54

Could be a good afternoon

[sharw] 16/12/2015 12:53

Emerson and GE were the companies previously said to be interested in AVV as mentioned here:

[tsmith2] 16/12/2015 12:30

Berenberg- AVV still a likely takeover target, recollect multiple suitors previously..

[deanroberthunt] 16/12/2015 08:20

Insane in the membrane....

[tsmith2] 16/12/2015 08:19

Citi- BUY - TP = 1910..

[deanroberthunt] 16/12/2015 07:49

SOMEWHAT OVER-PRICED.....

Appealing valuation ?

Meanwhile, shares in engineering data and design IT systems company Aveva (LSE: AVV) have fallen by around a third today after it announced the termination of talks to acquire industrial software assets from Schneider Electric. The acquisition stalled due to significant integration challenges being identified during the due diligence process that Aveva felt couldn’t be overcome without considerable risk and cost. This was exacerbated by the complex nature of the prospective transaction and as a result, Aveva decided that the risk/reward ratio from the deal was unappealing.

Although today’s news is disappointing, Aveva remains a high quality business that’s trading in line with expectations. Furthermore, today’s share price fall appears to be the result of overzealous investor sentiment during 2015 that saw Aveva’s shares bid up to a very high level. They were up as much as 77% at one point this year. As such, even after today’s fall, they’re still up 9% year-to-date. While their valuation is now much more appealing, Aveva still appears to be somewhat overpriced given its growth prospects.

For example, Aveva trades on a P/E ratio of 20.5 and with its bottom line due to rise by 7% next year, this puts it on a relatively unappealing price-to-earnings growth (PEG) ratio of 2.9. As such, it appears to be a stock to watch, rather than buy, at the present time.

[deanroberthunt] 16/12/2015 07:41

per and peg are way too high....