Communisis Share Discussion Threads

[zho] 06/12/2016 09:27

The Naked Fund Manager looks at pension deficits in relation to sensitivity to discount rates.

"What's interesting is not that these companies have big pension obligations, that aren't well funded. This is already known and priced in. What is interesting, however, is how much these obligations could shrink next time the pension trustees mark their discount rates to the current yield curve."

[mattjos] 05/12/2016 23:34

Still slowly scaling in here. Evening & welcome back also ghf.

[glasshalfull] 05/12/2016 21:55

Evening all,

Courtesy to say I've also rejoined the party. In good company with a number of respected investors already here. The recent presentation - thanks for posting links Mas & sharw - & some further consideration tempted me back in.

I posted on here a couple of years ago that Andy Blundell impressed me at the Mello Derby event (Nov 2014), both the substance of his presentation and in a personal capacity when I chatted afterwards. In the time since I find it hard to believe the share price has fallen 34% !!!

It was always the lack of free cashflow & debt that were my main concerns rather than the pension deficit. To be honest, I was also bewildered at the proposed price of the Life Marketing acquisition. However that's firmly in the past now.

If they can demonstrate strong cash generation and bring net debt down while maintaining the current dividend payment, as they plan to, then the share price should (finally) take care of itself....especially when on a prospective PER of 5.7 for 2017 with 7.1% yield.

Kind regards,
GHF

[mattjos] 30/11/2016 19:51

Hi Ed, hope you are well.Fin year completed today actually & best ever for us. However, cannot take anything for granted and almost impossible to predict of late. Has been a very hard slog this year as first 3 months were sh1t so, it has all come in the last 9 months.Of course, that now raises the bar for next year, as from tomorrow :-)Not buying from Shoto ... back with Exide in Germany. I see lead prices have recently gone into orbit so, should be a good period for battery manufacturers, assuming they have their lead pricing ratchets in place correctly.

[bamboo2] 30/11/2016 19:39

Anyone keep tabs on RG's buying prices? I can't help wondering what his average price is now.

[fozzie] 30/11/2016 18:50

I am committed here having held for a few years now. I bought more this week and am content to hold as an income stock with the possibility of a little growth thrown in. Am i alone in thinking Mr B not totally convincing? Whenever i hear him speak theres just a part of me that doesnt quite engage with him.

Btw thanks for the links to the youtube vid and tmf article

[edmundshaw] 30/11/2016 18:36

Hi Matt. Good to see you here.

How's business? Does China Shoto still provide you batteries?

[cheshire man] 30/11/2016 08:29

I also added danieldruff2 can't knock the yield with CMS,,,,,,,,welcome back Mattjos :-)

[mattjos] 29/11/2016 18:50

hadn't seen the presentation until just now but, have started buying some back today after a very long absence .. more a TA thing at this stage, as it has met some criteria I look for. will see how the next 3 sessions go now to check it behaves as I expect before adding further.

[isis] 29/11/2016 14:48

Watched - answered all the questions I needed, but share price still doesn't make sense.

[masurenguy] 29/11/2016 14:37

Here is the TMF article that Andy Blundell referred to in his presentation.

"Communications colossus Communisis (LSE: CMS) has also seen its share price sink in recent sessions. But unlike the car retailer, I reckon this represents a great time for bargain hunters to pile in. For 2017 Communisis deals on a P/E rating of just 5.8 times, while a dividend yield of 6.6% makes the firm one of the hottest income bets out there.

Communisis saw revenues edge 0.2% higher during January-June, to £174.9m, it advised in August, a result that propelled pre-tax profit 37% higher to £4.4m. And while many large- and small-caps alike wince at the prospect of Brexit on future earnings, Communisis says that it expects to benefit from a rise in outsourcing activity should the UK economy experience a downturn. On top of this, the company’s bias towards statutory communications will leave it largely unaffected from any possible decline in marketing spend, it advised. Allied to this, I’m convinced the firm’s rising international presence should protect it from worsening economic difficulties in the UK. And the firm’s strong relationship with blue chip customers should keep revenues sailing higher too. Communisis inked a blockbuster six-year contract with insurance giant LV during the first half and also began working with Legal & General from April."

[danieldruff2] 29/11/2016 12:53

Yes thanks for the link, bought some more off the back of that. I used to work in the Direct Mail sector... had to do the design work on statements and run off copies on industrial printers... happy days

[cheshire man] 29/11/2016 12:49

All sounds very positive:-)

[zho] 29/11/2016 12:01

Good presentation, worth watching.

[sharw] 29/11/2016 11:25

The presentation on the 17th is now available here:



(Contains some interesting comments on the pension deficit and the share price).

[masurenguy] 24/11/2016 12:52

Yep - he now owns 36.7m shares which constitutes a 17.5% stake in the company.

[salchow] 24/11/2016 12:50

Another large purchase by Richard Griffiths

[bsharman3] 23/11/2016 19:15

I bought a few here - hopefully that is the double bottom out the way. Looks ridiculously cheap, cash generative and a well covered high yield. Hopefully not a value trap!

[edmundshaw] 21/11/2016 18:35

Well page 2 is bright pink. That seems to be an in colour these days, so keeping up with the times OK then :-)

[masurenguy] 21/11/2016 16:09

New investor presentation posted onto the CMS website last Friday, November 18.

[edmundshaw] 21/11/2016 14:55

You may jest, but actually it is quite positive news. She wouldn't presumably be buying if there were price sensitive news in the pipeline, so at least there should not be any new acquisitions coming up. So cash flow looks safer, debt should be on the way down.

[speedsgh] 21/11/2016 14:17

Hmmmm. Not exactly the biggest vote of confidence. Certainly won't be taking this as a buy signal...

Rosemary Blundell (Person closely associated to Andy Blundell, Chief Executive) has today bought 13,000 shares at 36.59p (£4756)

Director/PDMR Shareholding -

[cutlosses] 20/11/2016 17:23

Aim -Trader

Did AB do his presentation to the Capital Conference on 17 November per your post no 932?

[masurenguy] 19/11/2016 13:39

In terms of being a competitor in various markets outside of the USA and in relation to current market valuation. They're also a possible future predator in my view. See my prior post #830 in the link below.