Connect Share Discussion Threads

[edmundshaw] 02/2/2016 15:24

Ditto. Already a bit overweight, but have sold elsewhere so cash available. Can hardly believe it has dropped down to this price.

I could understand it if we were oil services, or exporting to China, but the low oil price is hardly going to make UK logistics more expensive. Inexplicable...

[wjccghcc] 02/2/2016 13:06

Bought some at 139p. The Q1 IMS was pretty good IMHO. The debt makes me a bit uncomfortable but the cashflow is stellar. Hopefully the debt will start reducing in the interims and the market will realise the good cashflow generating properties.

[speedsgh] 02/2/2016 12:44

Hmm. 6.8% prospective yield (based 9.50p) for current FY. I won't be adding though as am already overweight in CNCT.

[lord gnome] 02/2/2016 12:36

So much for the IC tip (kiss of death). Still going downhill and picking up speed.

[market sniper3] 29/1/2016 11:08

hmmm might start buying it again on weekends when out shopping. Cheers.

[rcturner2] 29/1/2016 10:57

I subscribe to the IC, it has its good and bad points. I don't tend to pay much attention to the tips, they have enough of them. They are strong on their longer term economic and market coverage. I also like their stock screen and IT coverage.

[speedsgh] 29/1/2016 10:52

I believe IC don't release certain tips online until they have also been released in print. I suppose that is fair + is presumably also an attempt to maintain their print subscription levels.

[market sniper3] 29/1/2016 10:36

Yep i can see them but not a member, strange is it some kind of advertising campaign where they let tips after a certain period out to all, in order to try and promote sales.

[lord gnome] 29/1/2016 10:26

I prefer it to Shares Mag. I don't do small AIM stocks these days. Interesting to note that IC's crystal ball is no better than mine.

Try these links to previous articles:







Let me know if you can see the articles or if they are blocked to subscribers only.

[market sniper3] 29/1/2016 10:25

Historical article going back a few months on CNCT Connect......

Connect delivers
TIP UPDATE
Connect Group PLC (CNCT)
VALUE
MEDIUM RISK

By Daniel Liberto,
14 October 2015

Our previous tip
WE SAID Buy

WHEN20 November 2014
PRICE150p (adjusted for rights issue)
TIP PERFORMANCE TO DATE+4%

Connect's (CNCT) £115m acquisition of next-day delivery service Tuffnells last December looks to have been a smart one. Underlying revenues at the parcel freight business grew 20 per cent, helping to send group adjusted pre-tax profit surging 13 per cent to £57m. Buoyed by the early success of Connect's shift into higher-growth areas, investors propelled the shares up 5 per cent.

But the legacy news distribution unit also put in a respectable shift. Despite heavy investment in the 'pass my parcel' service and the absence of last year's World Cup sticker sales, divisional adjusted operating profit fell just 4 per cent. Connect also benefited from £5m of cost savings, which management expects to repeat in the next two financial years. It reckons those extra funds can mitigate falling newspaper sales by bankrolling additional investments, including roughly doubling the number of parcel shops to 6,000 as the company prepares to unveil a new mobile-enabled returns service with a major retailer.

Chief executive Mark Cashmore says Connect's aggressive cost-saving strategy should also absorb the impact of the national living wage. Broker Liberum upgraded its adjusted EPS forecast for the year to August 2016 by 2 per cent to 19.5p (FY 2015: 18p).

CONNECT (CNCT)
ORD PRICE: 156p MARKET VALUE: £381m
TOUCH: 152-156p 12-MONTH HIGH: 172p LOW: 124p
DIVIDEND YIELD: 5.9% PE RATIO: 17
NET ASSET VALUE: 4p* NET DEBT: £144m
Year to 31 Aug Turnover (£bn) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2011 1.73 32.1 12.1 8.0
2012 1.80 36.6 15.2 8.6
2013 1.81 38.9 15.7 9.3
2014 (restated) 1.81 43.1 16.8 8.8
2015 1.88 29.0 9.3 9.2
% change +4 -33 -45 +5
Ex-div: 14 Jan

Payment: 12 Feb

*Includes intangible assets of £175m, or 78p a share

IC VIEW:
Connect's shares are marginally up since our buy tip (150p, 20 Nov 2014), but still trade on just eight times forecast earnings and yield nearly 6 per cent. That reflects the big debt pile - exacerbated by the Tuffnells acquisition - and the risks associated with managing a declining business. But judging by these results, Connect is delivering on its promises of careful cost management and expansion into growth markets. Buy.

[market sniper3] 29/1/2016 10:18

Just checking the IC online, says you can share older articles.

Might be an idea to get the last historical article up.

Actually looks rather interesting now the IC, far better format than when i used to buy it about 8 years ago.

[edmundshaw] 29/1/2016 10:13

Would be nice. Thanks for the information yr lordship.

[lord gnome] 29/1/2016 10:00

Only seen the digital version so far sniper. Postman will be here within the hour. Looks to be one of their tips of the week.

[lord gnome] 29/1/2016 08:45

Big Buy rec on today's IC. Nothing we don't already know. Doesn't look to have caused a rush to buy :-)

[market sniper3] 29/1/2016 07:47

Broker Views for Connect Group PLC

19 Jan 16 JP Morgan Cazenove Overweight 0.00 180.00 180.00 Reiterates
14 Jan 16 JP Morgan Cazenove Overweight 0.00 180.00 180.00 Reiterates
13 Jan 16 Shore Capital Hold 0.00 - - Retains
13 Jan 16 Peel Hunt Buy 0.00 174.00 174.00 Reiterates
13 Jan 16 Liberum Capital Buy 0.00 190.00 190.00 Reiterates
13 Jan 16 finnCap Buy 0.00 201.00 201.00 Reiterates

[market sniper3] 28/1/2016 23:55

CNCT Connect Group PLC

Produced a superb trading update only a couple of weeks back.......

Well worth reading.

Used to be ( Smiths News plc).and trades on a forward P/E of just 7.6 and and a prospective yield of 6.4 per cent this year, rising to 6.6 per cent in the year 2017.

The exciting part of the distribution business is Pass My Parcel, the UK's fastest click-and-collect delivery service. It signed online fashion retailer Asos as its second customer and launched a new service enabling customers to return unwanted deliveries via their mobile phones. The click-and-collect market is expected to grow huge in the coming years,and take up a bigger percentage of the business.

Longer Term Chart



Shorter Term Chart

[edmundshaw] 13/1/2016 10:10

Has Liberum done any new research on CNCT? Personally I doubt it. Also gave a reiterate sell & target on Debenhams yesterday, which looked a bit uninspired given some nice numbers (retail another sector analysts tend to write off as "structurally challenged"). Most of the research staff off skiing perhaps?

[lord gnome] 13/1/2016 09:28

Liberum's target would still put CNCT on a PE in single figures with a yield of around 5%. Still not expensive. Compelling value here.

[skinny] 13/1/2016 09:25

Peel Hunt Buy 167.88 174.00 174.00 Reiterates

Liberum Capital Buy 167.88 190.00 190.00 Reiterates

[lord gnome] 13/1/2016 09:24

Agree, edmundshaw. If the market doesn't want to give these a higher valuation, I can live with that. I'm happy to carry on collecting a decent and rising dividend and I'll try to take advantage of any trading opportunities that come along.

[edmundshaw] 13/1/2016 08:44

Had these 4 and a half years now, no complaints, with nearly half my original investment returned in dividends and a doubling of the share price. And still undervalued.

[edmundshaw] 13/1/2016 08:41

4 months of the year gone and steady progress. Perhaps a 5% dividend hike, yield staying above 5.5%, PE staying around 8, still looking solidly good value.

[edmundshaw] 22/12/2015 18:29

With any luck some of those guys will want to cash in the shares and we will get another nice buying opportunity...

[speedsgh] 22/12/2015 14:36

Good to hear the Tuffnells acquisition is performing well...

Payment of deferred consideration pursuant to the acquisition of Tuffnells Parcels Express -

...the Company today announces that, in light of Tuffnells' strong performance, the conditions relating to the payment of the deferred consideration for the first year of the three-year earn-out period to the Tuffnells Management Sellers and Option Sellers have now been satisfied in full...