Broadcastle Share Discussion Threads

[washbrook] 31/7/2003 07:59

Interim Results:
Profits +16%
eps up 10%
div Up 7% to 1.6p
Good results shares marked up 2p at 7.50am

[rivaldo] 31/7/2003 07:45

Surprise! Interims out today, and pretty solid too. There's a distinct second half bias to BCS' results in 2001 and 2002 - the second half seems to produce around 15% more EPS than the first half. Given the same this year, the EPS forecasts for the year of 6.4p should be achievable, leaving BCS on a current year P/E of just less than 10.

And there's a 2.5% divi going ex-div in a month.

Not the most exciting share (!), but could be good for a quick 25% since it remains cheap and still has potential for much growth via the NHS:

"Broadcastle plc ('Broadcastle'), the specialised bank and finance Group,
announces its unaudited interim results for the six months ended 30 June 2003.

Key points :

• Net operating income increased 13% to £4.49m (2002: £3.97m).

• Profit before tax and amortisation increased 16% to £1.57m (2002:
£1.36m).

• Earnings per share increased 10% to 2.89p (2002: 2.63p).

• Interim dividend raised by 7% to 1.60p (2002: 1.50p).

On outlook, Chairman, David Stewart stated:

'A good performance by all of the Group's operating divisions underlies the rise in first half profits. Although sales have been a little slower than expected we remain satisfied that our full year income targets are achievable.'"

[hamilkar] 30/7/2003 23:39

Thank you Dumpling and Rivaldo for your helpful comments. It is interesting to note that the 2p move today has resulted in an AIQ Trading Expert Signal Buy value of 100. This is accompanied by a Stochastic Buy signal, as the 21 day has crossed the 20% line. The Money Flow indicator has also reversed upwards as has the Money Flow Relative Strength. There is also a Moving Average Convergence/Divergence Buy signal. These all support a possible further rise when trading commences tomorrow - 31st July. I bought a further block this morning at 60.88p.

[rivaldo] 30/7/2003 20:30

Hamilkar, I agree with your prognosis based on the stats, but, just as importantly for me, also based on the most recent trading info and the markets the company are in. The price is cheap and has room for a quick 50% jump assuming results are as expected in a few days.

To repeat my post on other thread, the price has moved (up) today for the first time in a long time. Good news to follow the recent director buying? Interesting that he bought on 14th May, just over 2 months prior to results announcement and thus just outside the closed period.

[dumpling] 30/7/2003 16:22

Spot on Hamilkar. This and PHP are about the only ones I tuck away for a rainy day.

[rivaldo] 30/7/2003 15:19

Wake up everyone!

Interims are a-coming, and the price has moved up. Good news to follow the director buying? Interesting that the he bought on 14th May, just over 2 months prior to results announcement and thus just outside the closed period.

[hamilkar] 30/7/2003 14:32

Further to my comments on 25th July, Broadcastle now on the move.

[hamilkar] 26/7/2003 00:11

The price of Broadcastle (BCS) has now not moved from 60p since the 6th of June. Bollinger Bands have been at !00% since the 3rd of July. There is an abnormally high probability of a significant price move in the near future. This stock has a prospective PEG factor of 0.75 and a prospective yield of nearly 7%. One must expect therefore that the move will be upwards. The interim results are due to be announced on the 8th of August. I would suggest that any upward movement should be followed. Anyone out there with views please.

[rivaldo] 24/7/2003 19:17

Nope, out of ideas and inspiration - although today the offer price dipped momentarily, at which point there were 2 50,000 trades which pushed the offer price back up to 61p.

Still think this is tremendous value, but may have to wait for interims for this to be reflected in the price. But chin up - last year's interims were on 9 August, so only 2 weeks to go.

[buba] 24/7/2003 13:00

still bored!!!!

[buba] 18/7/2003 13:56

I'm really getting bored with this share. Does anybody have more info,ideas?

[washbrook] 02/7/2003 03:03

In the last 2 weeks I sold a lot of stock, not this one, it's my second biggest holding and my longest.

[rivaldo] 01/7/2003 20:35

Teather & Greenwood have increased their forecasts for BCS. Forecast EPS for 2003 is now 6.4p (up from 5.8p) and 2004 EPS is 7.1p (from 6.4p). They're almost in line with Williams de Broe now.

BCS is now on a prospective P/E for 2004 of just 8.4, with a divi yield of over 6%.

Remember, they're offering finance products to NHS trusts and the health sector for medical equipment etc, when the NHS is about to embark on one of the biggest expenditure programmes ever seen anywhere in the world (or so I read anyway).

With director buying and a positive recent trading statement, I'm betting that sooner or later the seller will be mopped up and the price will move forward strongly from the current range.

[rivaldo] 06/6/2003 11:26

Ben Franklin, thanks for your comments. Another 400,000 gon through this morning at 59p. It's encouraging that there's enough demand to take out the supply. Perhaps that supply is about to end.

[washbrook] 05/6/2003 17:16

This is my favourite stock .My worst is Parity.

[rivaldo] 05/6/2003 15:00

Yes - we have lift-off! Forgive me for getting over-excited, but a 1p rise in one go is too much to take. This time it only took a couple of buys around 60p, so perhaps stock is finally short? Anyway, hopefully much more to come IMO (and in the opinion of the directors who've been buying I assume).

[washbrook] 04/6/2003 21:25

Go to :- for annual report in brief

Major shareholders latest
DC Cust 8.5%
Bank Sarasin 5.8%
BFS Small Co Div Trust 4.5%
3is Small quoted Trust 3.8%
UBS 3.5%

Directors:-
Gordon 1.5%
Wooton 1.3%
Voight 0.36%
others less than 1%

[ben franklin] 04/6/2003 18:47

Rivaldo

There's been a steady stream of BCS selling over the last couple of years from several sources and it may still be holding back the share price. A private company, Marsh Finance Limited, had a meaty shareholding in Broadcastle. They sold down below 3% a while ago but they may still be sellers.

At one point in the last year some of the Exeter split capital funds seemed to be distress sellers and the price dropped back to around 46p, before climbing slowly. A former chairman also owned over 3% a couple of years ago and I noticed in the latest annual report that his holding had disappeared from the 3% plus holders. He might still be selling.

For a real breakout BCS probably needs some serious institutional buying (it's already been tipped to retail buyers in Shares as well more recently the IC). There was at least one new institutional name in the 3%+ holders in the latest annual report, but a couple more wouldn't go amiss. Something the board should be pushing the company's brokers to get sorted.

Ben

[rivaldo] 04/6/2003 11:13

I've only been in BCS a short while, but it's been most frustrating! So far this week there's been around 130k shares bought and only 10,000 or so sold. Consistent buying has remained the case for a while, it's been tipped in the press, fundamentals are great, and it's not even as if there's no interest, with a fair amount of trades every day for a small-ish cap share.

Perhaps it'll suddenly break out of the current range. At these prices and with the yield I'm certainly staying put and will add if there's any further good news.

[rivaldo] 31/5/2003 00:07

Ta washbrook.

The IC notes Williams De Broe's 2003 estimates of PTP £3.33m, 6.41p EPS (up from 5.91p) and 3.53p divi.

Shares up 1p now. At least BCS is now getting some attention.

[washbrook] 30/5/2003 11:14

+1.5, (58.5) at 10:10am
30.05.03 :IC say buy (58p) - BULL POINTS Loan portfolio remains well-spread - Falling exposure to consumer finance cuts risks - Rising fee income BEAR POINTS Bad debt remains a risk:- Broadcastle's underlying strategy is to meet the financing needs of specific niche markets through its specialist subsidiaries. Its product mix has changed - motor vehicle loans fell from 30 per cent to 21 per cent of its loan book, as its exposure to the consumer car market diminished. The proportion of the book in office equipment rose 11 per cent to 19 per cent. Broadcastle decided to exit the consumer finance market as it was being squeezed further down the value chain.

[rivaldo] 30/5/2003 07:51

Apparently BCS is tipped in the Investors Chronicle this morning.

[rivaldo] 29/5/2003 11:49

Buoycat, agreed - in particular, the stock is trading on a current year consensus P/E of just 8.9, compared to the average for the speciality finance sector of 14.3. For next year BCS's P/E drops to around 7.9. With director buying and a divi yield of 6.55%, eventually I'm sure the shares will rise. Perhaps it'll take press/share mag coverage to get things going.

A nice buy of 19,000 shares at 58p today anyway. Plus 2 trades recently of 375,000 and 373,000 shares - perhaps clearing out an overhang?

[buoycat] 29/5/2003 00:55

The very positive commitment to dividend growth expressed by the board at
the last results I think, is also a good reason to hold these shares.

[rivaldo] 15/5/2003 15:31

Dumpling, (to state the obvious) that's an ongoing process which I assume the Board will review every 6 months as part of the results finalisation.

For some entertainment I reviewed the directors' share purchases. They are as follows:

14/5/03 - T.Wootton - 23,560 @ 58p
3/12/02 - D.Stewart - 25,000 @ 55p
18/11/02 - P.Vaight - 13,141 @ 53p (ISA buy?)
15/11/02 - TW - 186,500 @ 52p
23/8/02 - TW - 60,000 @ 57p
9/8/02 - TW - 80,000 @ 55p
8/5/02 - S.Bassett - 13,357 @ 51p (ISA buy?)

I find the amounts involved and the spread of director buying very reassuring, along with the prices paid and the growth rate of the company.