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CESG Ft Cesg

37.2875
0.225 (0.61%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Name Symbol Market Type
Ft Cesg LSE:CESG London Exchange Traded Fund
  Price Change % Change Price Bid Price Offer Price High Price Low Price Open Price Traded Last Trade
  0.225 0.61% 37.2875 37.22 37.355 37.29 36.7975 37.19 225 16:29:05

Ft Cesg Discussion Threads

Showing 426 to 446 of 675 messages
Chat Pages: 27  26  25  24  23  22  21  20  19  18  17  16  Older
DateSubjectAuthorDiscuss
02/10/2008
11:07
pec2004 - I was only really looking for anything with some momentum play in it - as watshot are pumping this one - and so many others - a decent set of results might have allowed a quick profit short term long trade - but on looking in detail - and this companies weighting - it was not to be the case - twas not looking good for good results.

AIM stocks are fine for quick dash momentum plays - for investing try the FTSE 250 and 100 - lots of bargains there - pick your own though.

kcprevail
02/10/2008
10:59
If you were considering buying these KC when they were 26p then surely they are a no brainer at the current price. I think they are just being cautious with the working in the RNS.
pec2004
02/10/2008
10:43
KCprevail. I am not a holder of CESG & have in fact expressed a few reservations about cash flow etc. However, I did spend a very long day researching the Co before. Basically, this is a high quality business & you are a very low quality wind-up merchant. People like you are unfortunately 2 a penny these days, delighting in the losses of investors. CESG is very cheap - & you are even cheaper. So on behalf of those on here who are investors, go screw yourself.
longsight
02/10/2008
10:36
Someone having to pay a premium to get a decent quantity.
pec2004
02/10/2008
09:49
Profit warnings come in three's - so avoid avoid avoid - their financial year is always weighted towards the second half - so no surprise they will attempt to hide behind a strong second half at this moment in time - but with the current situation - the current world outlook - the global effects - and the delayed reactions - CESG is an avoid avoid avoid IMVHO - ahead of the other two perhaps coming profit warnings the rampers of this thread will not want to talk about.
kcprevail
02/10/2008
08:27
Today they said, "Trading during the six months ended 31 August 2008 has been subdued with results being below management expectations. In particular
contract negotiations with local government bodies and other companies have taken longer to complete during the period up to and including China hosting the Olympic Games. Notwithstanding this the Company enjoyed stronger trading in August 2008 and the Board believes this augurs well for the second half of the financial year, which has historically been stronger than the first."

So on the 2 Oct today they tell us the first half was below expectations but enjoyed stronger trading in August 2008. Am I right in assuming the shortfall came before then? The Olympics were 8th August to 24th August 2008.

On the 2 Sept they said, "The signing of these specific contracts further cements the relationship between China Eastsea and the Ningbo and Yinzhou District Government and reinforces the commitment shown by the government bodies to work with China Eastsea on a long term basis. ....... This contract demonstrates our success in diversifying our client base and expanding into other industry sectors beyond the petrochemical/petroleum IT outsourcing market."

So in Sept they made no mention of poor trading that occurred in the first half and would appear to be mainly prior to August. They did say that they had won a government contract demonstrating a diversification from petrochem etc. Then in Oct they in part blame the lack of work in the government sector that they were trying to expand into after trumpeting a contract win.

Confused.

matt
02/10/2008
07:45
Interesting to see if any large sells show up later as buys now = sells.
pec2004
02/10/2008
07:24
Profit warnings normally come in three's, so there may be two more to come!
Good luck.

barn owl
02/10/2008
07:21
Every sell of 5000 or less (less than £1000) take it down another penny.


Bit of a laugh that. In theory, a 100,000 sale would wipe out the company!

stegrego
02/10/2008
07:09
Thanks Krupatel.
Disappointing, but certainly not the end of the world.

The August trading coupled with the strong order book should help mitigate somewhat. That said, even though they are on a very low rating I wouldn't expect much until the interims are released and further outlook statement issued.

No doubt the "I told you so brigade" will show their hand.
I certainly refute any ramping and will continue to post factually.

Regards,
GHF

glasshalfull
02/10/2008
07:04
Last year the growth in work from their two biggest customers slowed whilst other work forged ahead. It seems that growth in other work has slowed now. They will be waiting for the huge Sinopec contract to start - should be late this year but who knows - it may be delayed until next year.
arthurly
02/10/2008
07:03
I cant see how this warrants this sort of drop - shortfall cant be that much as they still think they may be ok for the full year.

Also current and forward p/e are already stupidly low.

Id imagine they will still do the forecast eps due to exchange rate changes.

Unless business falls off a cliff.

EDIT

Kru, thanks for that

Huge drop in revenue forecast there - they have done well to get that from just a few words in the TS!

stegrego
02/10/2008
07:02
Not a holder here but got this in my inbox this morning from Seymour Pierce

China Eastsea 3,5 (Move from Buy to HOLD) – Profits warning
CESG.L (23.25p) Market Cap: £16.7m
China Eastsea has revealed that the company experienced a slowdown in business during the first 6 months in the 2009 financial year. Signing of several key contracts was delayed, due to the falling corporate earnings and IT budgets. Snow storms, earthquakes, Olympics and rising commodity prices exacerbated the problem. The company historically had a stronger H2. However, even though we expect H2 09 to outperform H1, our full-year expectations are not likely to be met. We are cutting our 2009 full-year revenue forecast from £16.4m to £9.3m, and net profit from £4.9m to £2.3m. Whilst we believe the macro-environment and industry trend remain in favour of CESG, the company needs to deliver more in H2 to prove its growth sustainability in the challenging market. Move to HOLD (Buy since 16 June 2008).

krupatel
02/10/2008
06:57
Don't be silly KCprevail - this is one of the quieter threads on ADVFN! And those who do post here post factually and concisely.

Nevertheless the update does appear to support my earlier assertion that CESG's earnings aren't as high quality as certain other Chinese companies. The emphasis on governmental activity in particular seems to be the cause of the problem, which is not the case elsewhere.

The update is also badly worded, too vague and non-specific about whether CESG is in profit or loss (or whatever) for H1. It sounds like they're still profitable, but simply below expectations to me - so why didn't they say that?

The premarket price is down to 17.5p - that's now below tangible NAV I believe!

In other words this could be a great opportunity for those not in yet and happy to wait a while.

rivaldo
02/10/2008
06:54
Bit of a mixed bag here -

Not very good TS, but very low p/e - so its not like it was running a high rating.
Also, the exchange rate will surely more than make up for any shortfall.

Depends if you believe management expectations - they clearly got it wrong earlier in the year, but blame Olympics, which may be feasible.

They are not calling the year as lower yet, but could all be bluff.

p/e will still be less than 5 (especially if the price tanks, which it probably will in this market)

Im going to hold i think as it may turnaround.

Bit of a sickener though.

stegrego
02/10/2008
06:53
I'll be adding today, have a long term view though so I welcome the chance to get some more at a lower price.
pec2004
02/10/2008
06:44
Spoke too soon there then.

Don't be so idiotic KCprevail.

arthurly
02/10/2008
06:40
I like the update, as it exposes a few of the rampers on this thread - so thats good.

Some posters here need to hang their heads in shame at some of the nonsense they have been posting while trying to ramp this share - its disgusting - and lucky I have not been ramped into this - I decided against buying in - as I did not like the look of things - good choice by me - but its a difficult choice given the ramping of some of the posters here - must learn the lesson now - add the names here to the "ramper so ignore their posts" list - IMVHO.

kcprevail
01/10/2008
17:37
Oh and here's a goodie :

CESG held £4076k in cash at the end of February - Exchange rate 14.13 yuan to £1.

Exchange rate at the end of August 12.42 to £1.

Merely holding the same amount of cash in yuan would retranslate to £4,637k at the end of August, a profit on exchange of £560k.

I think CESG made around £860k in H1 last year (before minorities). If they say made £1.2m in H1 this year, you would need to add on the £560k profit on exchange (could be more if they increased their holdings in yuan), giving £1.76m against £860k last year - more than double.

PS I believe H1 is the weaker half.

arthurly
01/10/2008
15:38
GHF - It also occurs to me that the tangible net assets of £11m at the end of February would translate to around £13m now. With £4-£5m of profit this year, the net tangible assets should be around £17m by February ie around the present capitalisation. That should never be the case with fast growth companies, surely ?

Actually I'm probably double counting here. Except... I reckon we're going to get some huge profits on Exchange gains on these Chinese companies, and they will be reported within profit. So don't be at all surprised if CESG makes £6m this year - £4.5m on trading and maybe £1.5m on exchange.

For instance, say CESG hold an average of £5m cash during the year but the exchange rate changes by 20% in favour of the yuan. There will be a £1m reported profit on exchange just for holding cash. This is without other exchange gains.

arthurly
01/10/2008
15:19
Thanks Art.

I hadn't calculated the PER net cash as they will require this for WC but yep, PER will be sub 2.5 on that basis.
Hard to buy online today, couldn't get 10k at the current price....fill 'n kill for a further 5k.
Happy to top up and increase my holdings on any weakness, as we all know markets will turn in time, and this is one of the best risk/reward situations...all IMHO.

Regards
GHF

glasshalfull
Chat Pages: 27  26  25  24  23  22  21  20  19  18  17  16  Older

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