Conduit Share Discussion Threads

[rivaldo] 27/11/2014 11:40

Post-interims forecasts to 31/3/15 are unchanged at 12.3p and 11.9p EPS from Singer and Edison respectively.

Plus a 4.1p dividend.

Good to also see CRE specifically talking about utilising their almost £5m cash pile to make "selective acquisitions" to further expand their digital/technology niche.

[madengland] 26/11/2014 19:43

Yes I think 110p is a possible top up. The large trade could well have been a large order being worked through, but it's gone, a drop off. Feels like the IC trade is probably played out now. As I said, although I think CRE will be re rated and the interims were solid, they don't yet deserve the re rate. A lower buy in would be worthwhile, and I cannot now see a huge rise in coming weeks. Hold, wait, top up. Solid but expected good results are not enough as CLL recently showed. GLA

[ballychan] 26/11/2014 17:36

Those huge trades may well be broker to broker - wouldn't be down on the day if they were buys. Interims and IC tip couldn't get it over 125p, so might see it drop - I hope it goes back to previous support 110p, need to double up!

[rivaldo] 26/11/2014 16:28

Big volumes today, including some buying at 125p.

Ta for the IC update above - hopefully this upturn in sentiment will take the share price up to further new highs.

[gargleblaster] 26/11/2014 12:59

IC update

The waves seem to be subsiding at Creston (CRE). Strip out currency effects and first-half, like-for-like sales rose 5 per cent at the marketing communications specialist. The group signed new clients such as BSkyB and won digital work with McCain, resulting in a 9 per cent increase in adjusted pre-tax profit to £3.8m.

In the past two months, Creston has launched its unified agency brand, Creston Unlimited, and partnered with larger peer ServicePlan to broaden its footprint in Europe and Asia. The pair have already won work with Danone in Germany and the Middle East.

Broker N+1 Singer forecasts full-year pre-tax profits of £9.8m, giving EPS of 11.9p, up from £9.6m and 11.8p.

IC view:
Accelerating sales and profits and a steady stream of contract wins bode well for Creston. And at 124p, its shares trade at only 10 times forecast earnings. We reiterate our buy advice (121p, 20 Nov 2014).

Last IC view: Buy, 121p, 20 Nov 2014

[madengland] 26/11/2014 12:28

Looking to start adding at 110p

[gargleblaster] 25/11/2014 22:19

Good hammer candlestick - could continue upwards from here

[adamb1978] 25/11/2014 20:24

This is dirt cheap at the moment so tempted to buy a few more. Being tight tough, am going to hold on to see whether the price comes off a few pence in the coming days. There really isnt much downside from current levels though

[madengland] 25/11/2014 15:12

Encouraging to see trickle of buys though.....

[madengland] 25/11/2014 15:06

I think the results make this a hold rather than buy now. Been some nice gains of late but it's yet to scream through. Solid results not yet deserving a re rate, but could well happen and I would expect it to. Will the share price advance much further now or will it re trace. Think I will wait and see for the latter before adding more.

[grahamburn] 25/11/2014 14:56

Is this formalised relationship a precursor to a merger/takeover scenario, albeit in the medium term?

[rivaldo] 25/11/2014 11:02

Interesting point here which I'd missed originally and sounds promising:



The CEO "also cited a new partnership with German-owned international marketing communications group Serviceplan which has more than 30 offices worldwide including 16 in Europe.

The two have partnered previously, to win CRM assignments for Danone in Germany and the Middle East as well as on BMW Motorrad, but this formalises the partnership so that they jointly pitch for pan-European and US work."

[gargleblaster] 25/11/2014 10:52

I decided to wet my beak here as all looks good to me.

[adamb1978] 25/11/2014 10:17

Very good figures this morning. Top-line picking up, chunky increase in the dividend...all moving nicely along and returning 7% p.a. (in terms of divi + buyback) and for a PE of 9x ex cash

[madengland] 25/11/2014 07:50

Yep Riv, solid results. Both the currency translation and new office were expected headwinds. I had been looking for a bit more flowing through to bottom line, but still scope for this in next half so the continued cautious outlook is BB managing expectations I think. Nice divi increase and as you say still undervalued.

[qs99] 25/11/2014 07:48

agreed, will wait to see how institutions react....may see some PI sellers today tho

[rivaldo] 25/11/2014 07:34

Good results, with growth in total and like for like revenues having increased in Q2 since the last trading statement.

Around 5p EPS in the weaker H1 indicates that 12p EPS forecasts for the year should be met, and the outlook statement confirms that. Nice 13% dividend increase too, again making the 4.1p divi forecast for the year look realistic.

Without the strength of the pound in H1, and the extra property costs, H1 would have been superb.

So the weakening of the pound in the stronger H2 may well see some rather good results for the year, especially given the raft of new client wins.

On a P/E barely in double figures CRE remains undervalued imho.

[madengland] 24/11/2014 09:17

I think expectations have a good chance of being beaten...... :-))..... 200p by 2015

[rivaldo] 24/11/2014 08:47

Great to see more buying coming in.

I'll be perfectly happy to see the outlook nicely in line with consensus 12.1p EPS for this year, along with the 4.1p dividend. This would still leave CRE barely on a double-figure P/E for the year ending in only 4 months' time.

As you say Madengland, there's still lots of firepower available for further share buybacks, which should help things along.

[madengland] 24/11/2014 08:16

I wonder if bb has held back some share buying until tomorrow.....

[madengland] 21/11/2014 17:18

Sounds from your posts that you don't hold then smithie. I don't agree actually, I think IC tip is spot on. The gains are to be made before the results get out. Don't be such a mood Hoover or sour grapes or whatever it is. 14p eps and a rerating..... Still time to buy old bean. I know CRE were a let down for many years with Ego at the helm, but times move on. Don't let old wounds stop you making a few quid. I've thoroughly enjoyed the last week and think there is a good chance to repeat next week.

[mrmark01] 21/11/2014 17:16

interims tuesday - GLA

[smithie6] 21/11/2014 16:41

So, IC tips Creston to PIs that buy shares based on magazine tips (!) just days before some results ?!

bit dubious imo......surely prudent advice for joe Public would be wait for the results ?
(or buy after the last results....and issue a hold tip just before the results)

[mrmark01] 21/11/2014 16:24

causing the price to rise?