||EPS - Basic
||Market Cap (m)
Real-Time news about Debts.Co (London Stock Exchange): 0 recent articles
Their share price certainly spiked too early but, as the slowdown continues to bite, my expectation is for business and profitability at the company to increase. The agreed IVA deal with the banks has removed one of the big drags and I suspect that the share price is now simply tainted by the whole of the financial sector. Give it a year and then see where we are.|
|alexacj: My own view is that 2008 should be the year of doom and gloom with the economy sliding along with house prices.......consumer debt has never been so high and with rising costs and diminished ability to refinance then there is only one way to go......."POP".......I see these companies operating very similarly to the way credit hire works with insurers....and if you look at HHR their share price collapsed when the insurers refused to pay and challenged the credit hire set up........agreement was reached much the same as we have now seen with IVA's.....once everyone stops panicking that the world is about to end and wakes up to the fact that a few co's will actually profit from this credit crisis....then I think we should have a good year.....I'm also holding BEG & INVO!|
|dasv: my guess its takeover approaches on accuma (up 37% today)
Accuma group says receives a number of approaches for co, talks at early stage
LONDON (Thomson Financial) - Accuma Group PLC said it has received a number of approaches for the company and discussions are at an early stage, adding that this may or may not lead to an offer.
The company made the statement following its recent share price movement.
At 2.22 pm, Accuma shares surged up 37.22 pct at 30.60 pence.|
|buetowa: Seymour Pierce reduced their pretax earnings estimate for DETS for the year to July 2008 to 2.24 mln stg from a previous forecast of 5.7 mln. This figure seems particularly high given the overall market conditions for IVA's.
However, you could look at it from the current earning perspective. £2.24m is down from this year's figure of £3.44m and but still equates to an EPS of around 7.4p against the reported 13p today for the year 07. Given today's share price of 53.5p that a PE of 7.2. EDITED
If they collect outstanding receivables then it becomes an even more attractive proposition.
The questions that I have asked myself whether to remain invested were:
1. Do they offer a necessary service (ie acting as an intermidiary between borrower and lender) and therefore is there a long term future?
2. While the IVA industry may change (revenue model) are they in a position to rapidly adapt?
3. Are they actively looking to reduce costs?
4. Can they recover outstanding receivables or borrow against?
I am satisfied with what I have currently found but still the risks are high but as a recovery oppportunity the risk / reward looks on balance ok. I to expect a slight further drop in price where I plan to buy again.|
|7kiwi: If there is nothing wrong isn't it time for a "We know of no reason for the recent share price fall..." sort of statement? Silence is a bit of a worry and is stopping me swooping in with a buy.|
|naeclue: Looks like an agreement between financial institutions and IVA providers has been reached:
20% reduction in fees, staged payments.
Less uncertainty now, hopefully will help the share price a little!
Dets year end is July, results around September, which should give the dust time to settle and a realistic forecast to be provided. Company looks cheap to me.|
Our view: Buy
Share price: 117.5p (+4p)
The debt management industry looked to be in all sorts of trouble at the end of January, when a handful of providers put out profits warnings. As well as complaining about increased competition, several of the sector's largest operators revealed that a number of creditors had been taking a harder line when it came to so-called Individual Voluntary Arrangements (IVAs), which help indebted consumers to write off large proportions of their debts. IVAs need to be ratified by 75 per cent of creditors by value, so if the banks stopped playing ball, as some had feared, the industry could be brought to its knees.
Shares in all the IVA providers nose-dived. Even Debts.co.uk, which issued a statement claiming its business was in rude health, saw 25 per cent wiped off its shares in a couple of days.
Over the past few weeks, however, the lenders have continued to work with the industry towards developing a Code of Conduct. This will see greater transparency, and put an end to debt management companies advertising IVAs as a way to escape your debts.
Meanwhile, demand for these services remains high. Debts.co.uk unveiled a 61 per cent rise in profits yesterday, and looks well positioned to take advantage of this fast growing market.
After its January share price slump, the shares are woefully undervalued. Buy.
|ollie6: THE SHARE PRICE IS FALLING SO QUICKLY IT IS DROPPING OFF THE GRAPH,I READ IN THE MAIL THERE IS A CHARITABLE INSTITUTION THAT IS GOING TO DO THE SAME WORK AS THE CO.DOES AT A FRACTION OF THE COST.SELL AS I HAVE|
|diogenesj: Yes, I was struck by the ambiguity in that statement too. As you say, the current share price fluctuations don't seem to mean much and we shall just have to wait.|
Debts.Co.Uk share price data is direct from the London Stock Exchange