Gattaca Share Discussion Threads

[cwa1] 16/1/2017 08:34

Morning

Well, I hate the name(change) but wonder if there might be a bit of value here at these levels? Decided to have a few at 274 and see what happens. IF things are just "ticking along", or better than that, then surely looks decent value? Of course a nasty profit warning and all bets are off. Not one to bet the farm on I reckon but worth a punt. Time will tell, good fortune to all holders.

[stemis] 16/1/2017 00:09

I did hold Matchtech a few years ago (actual 7 1/2 - wow). It's a good business although not sure about Networkers. It's certainly stood the test of time. The fall does look rather alarming although director buying a month ago does seem to suggest nothing horrible has happened.

[masurenguy] 15/1/2017 08:36

Welcome aboard GHF - you may well have got your entry point timing right here.

This is currently the worst performer in my ISA equity fund having originally invested just over a year ago and it is currently down 42% with an an average cost price of 469p. This was purely a yield play in my equity ISA portfolio so fortunately it was not a significant investment representing less than 5% of my fund. I only still hold because the fall in the shareprice over the past year does not equate to the intrinsic value of the company, its marketplace, its forward potential or its well covered yield so I have been anticipating/hoping for a recovery here over the past 6 months.

I concur with your analysis above but the shareprice has being defying logic for sometime. A year ago Equity Development made the following comment about the company. "As a result of the recent rout on the FTSE, recruitment sector multiples have dropped 20% from October levels - with our price target duly being rebased from 705p to 604p/share, equivalent to 10x CY EV/EBITA and 13.2x PER. At 505p though, we still consider stock is good value, trading at a 10%-20% discount to peers, and offering a 4.8% dividend yield (see below) that is 1.9x covered."

Since that date the shareprice has fallen by 47% from 505p to 270p.I have resisted temptation to average down any further although I could be tempted if some clear recovery in the shareprice becomes evident since the 8.5% yield at the current price is tempting compared to my current yield @4.9% here.

[spectoacc] 14/1/2017 20:42

Still happy to hold here. Wouldn't fall off my chair if the market was right & there was a wee warning before the benefit of increased infrastructure spending kicked in, but fair to say they're priced for it.

[glasshalfull] 14/1/2017 18:50

In the last 10 weeks GATCs share price has declined (-22%) from the 342p level it sat on release of 2016 results. Indeed, they've actually fallen over (-50%) since mid Jan 2016.

While they cautioned over a slow start - in the UK - in the current financial year, they also indicated International growth offsetting this. Therefore I'm surprised that the shares languish in the mid 260's given their No 1 UK position in specialist engineering recruitment & the emphasis in capital projects & infrastructure spending that the Chancellor highlighted via November's Autumn statement.

Following release of the 2016 results in November, with share price at 342p, Numis said;

"The shares have performed in-line with the market over the past three months and on our revised estimates trade on a calendar 2017E PE of 9x. Our EV / Net Fees based target price of 395p is unchanged and we believe a forward dividend yield of 7% remains attractive."

At the current mid price GATC is valued at £83.3m with an EV of £108m.
Forecasts for 2017 suggest c.39p Adj Dil EPS achievable, with strong cash generation the net debt is also forecast to fall to c. £20m while the company has banking facilities of £105m committed to 2020.

So, with the share price fall this places GATC on a prospective PER of 6.8 offering a 9% dividend yield at the current share price of 267p. The dividend is covered 2 x times.

I'm a buyer given Matchtech's track record & believe the combination of Matchtech & Networkers offers a decent risk/reward investment proposition at this lowly share price. They expect to benefit from £3.1m synergies this year following the Networkers acquisition although I acknowledge that much of this will be reinvested into the combined business.

Hopefully the forthcoming trading update will confirm further positive momentum in overseas operations & perhaps paint a better picture on UK trading. Well that's the hope....

Then again, I could have just sliced off my fingers with a falling knife!


Kind regards,
GHF

[immokalee] 12/1/2017 22:01

Skyship, Bscuit, quite normal to get quote within the spread, Barclays for instance more often than not offer 'discount'.

[skyship] 11/1/2017 16:00

I bought purely as a trade, looking for a short-term bounce off the 300p support. After they went XD they failed to recover the 300p level, indicating weakness; so baled out.

Frankly the stock is out of my comfort zone of value stocks such as private equity and property, so for the timebeing not really one for me as impossible to read the likely trading position. With PE & propcos the positions are well known and momentum raises all boats....well almost beyond rare exceptions! See the two threads: PE & CP+

[spooky] 11/1/2017 15:00

Why did you sell?

[skyship] 11/1/2017 13:41

Bscuit - Was lucky enough to bale out of these at 296p for a £15 profit - price looked to be 292p, but suddenly for a few seconds 296p-296.5p, hit the sale button and happily they took the stock. You frequently get bizarre quotes from SETs stocks, you just have to watch like a hawk when you wish to trade.

[quepassa] 11/1/2017 11:06

They have MAJOR challenges and going to get further caught in Brexit fears about employment laws and legislation.

Bring back Gunn. Sell the European operations. Focus on the UK and consider expansion into the New Worlds like USA, Canada, Australia which want to foster strong trade relations with a soon-to-be unshackled UK.

ALL IMO. DYOR.
QP

[bscuit] 11/1/2017 10:56

Have held for a while, but gave up today. intriguingly at a time when the bid was 262.25 the broker on e-generated sale got me 268 for 2000! Spread was 262.25-279.25. Somebody must like me or is somebody is looking for larger blocks.

[amencorner] 08/12/2016 12:25

Those director buys are in fact very significant in my view and indicate good confidence in the business; total combined purchase is £142k, that's significant.

[skyship] 07/12/2016 15:12

....or was there perhaps some indication given at this morning's AGM? Certainly no Market reaction...

[skyship] 07/12/2016 15:04

Larva - posted on the wrong thread perhaps!?

[larva] 07/12/2016 14:50

profit warning

[kmann] 25/11/2016 16:06

As I said, obvious someone buying past few days, price manipulated. Suspect other ii's doing similar.

[aishah] 25/11/2016 15:15

Chelverton above 5% having acquired another 50k.

[kmann] 23/11/2016 13:57

There you go, £23Billion on infrastructure (and thats before some of the bigger projects kick off). GATC should take a slice of that imo. Wait for the herd after this order has been filled.

[aishah] 23/11/2016 09:35

Maiden purchase for me here today.

[kmann] 23/11/2016 09:17

Price being manipulated before the budget statement imo. Infrastructure high on the agenda.

[salpara111] 22/11/2016 17:23

Yeah, you should be able to do much better than the spread quoted

[spectoacc] 22/11/2016 14:25

Spread's off putting, as always, but can buy well beneath offer.

[salpara111] 22/11/2016 14:07

Seems to have formed a bottom here.
May dip my toes in the water for a few.