Inspired Share Discussion Threads

[funkmasterp12] 21/3/2016 20:32

That can be attributed to the (very recent) acquisitions.

[petersinthemarket] 21/3/2016 19:58

Why is nobody talking about a debt increase of 189%! The mkt noticed it!

[yump] 21/3/2016 16:23

I think its a matter of waiting for the acquisitions to bed in so that the additional costs and overheads get increasingly wiped out by revenue rising at a faster rate.

Plenty of companies acquire and then the profits get hit, followed by lots of emphasis on ego revenue growth and 'global' ambitions.

INSE don't seem to be in that mould - hopefully they'll hit a sweet spot in the next few years.

[deucetoace] 21/3/2016 14:31

Funkmaster,

I look at diluted EPS with share based based payments (also known as employees earnings) removed. I always think of employees earnings as a deduction from earnings, can't imagine why. On that basis the EPS are 0.882p and the PE is 15.6. I think this is not expensive and I continue to hold. It is not however cheap. Short term I expect little movement. Over a couple of years it will do very well I believe.

[my retirement fund] 21/3/2016 14:16

Well someone bought near 200k worth at 15p so someone has some confidence

[oregano] 21/3/2016 13:54

then you will be waiting a long time as they are sellers not buyers!

[funkmasterp12] 21/3/2016 13:11

I'd also like to see some Director purchases.

The last significant purchase was by Bob Holt in 2013. The FD owns no shares (just a lot of options) and I've not seen a purchase by the Thorntons for some time.

[funkmasterp12] 21/3/2016 13:03

"Clearly for many claiming long term buy and hold, that is just lip-service while they wait for a chance to trade."

Not (necessarily) so. We've had those kind of opportunities in the past with SCSW et al. I first bought into INSE in Sept 2013 when it was on a PE of 9 and it's on a PE of about 12 now. It has consistently under-tracked the sector average PE.

I'm not at all suggesting it needs a Capital Markets day (God forbid), but some better management of its PR. For example - if there's such a major seller in the market, what action could be taken to dissuade them?

I understand INSE don't want to RNS the opening of a letter like some other AIM businesses but at the same time, I would argue they're not 100% engaged in shareholder value either. The rising of the Dividend is terrific. The company performance is terrific. The business outlook and management is evidently terrific.

So, why is it still on a lowly PE after all this time? There are no obvious regulatory potholes to speak of, and there are no major red flags (other than it being on AIM, obviously).

[activeservo] 21/3/2016 12:52

I agree with yump.

Regarding the share price reaction today, I think the positive trading results were already built into the share price following the TU on the 28th January. Because of this I only expected a slight share price increase today, if anything.

However, today's news has now validated the January trading update. So, as yump has said, over the next week or so it should steadily rise.

[yump] 21/3/2016 12:32

Depends which market you're talking about. The one looking for long term growth or the one looking for a spike.

Clearly for many claiming long term buy and hold, that is just lip-service while they wait for a chance to trade.

Anyone that is longer term (proper longer term) will be more concerned that they get on with business, rather than start on silly PR.

...and for goodness sake don't do any capital market days or roadshows, those are littered with detritus trying to lever up some innocent investors, so others can offload.

I'd rather be here in 3 years when the rating jumps based, than have it jump now, raise expectations to silly levels and then crash because everyone gets carried away.

That only damages the future.

Anyway, the news is half a day old at the moment. At least give it a week ;-)

[wanttowin] 21/3/2016 12:01

Surprised to see this go red, makes one wonder just what the company needs to do to impress the market. These are a long term hold for me so really not concerned, I will be adding on any further share price weakness.

[gymratt] 21/3/2016 11:45

Out. Switched to HGM who pay a 6.5% divi and are in a nice steady up trend. share price too stubborn for my liking.
GLA

[rivaldo] 21/3/2016 11:38

There's obviously a seller in the market who's been around for some time.

Which presents a bargain opportunity now imo for those with a little patience and spare cash! I've bought some more.

[luffness] 21/3/2016 11:30

frustrating - but just a matter of time before it comes good i think

[petersinthemarket] 21/3/2016 11:28

I'm not happy about that debt position or the share price response. I'm out for now.

[funkmasterp12] 21/3/2016 11:24

It's big enough for Hargreave Hale, Miton and Slater though. There's other funds out there with similar risk appetites in smaller companies in "safer" sectors.

Of course I'm not suggesting this is Vodafone, but it's not your typical AIM minnow either.

Maybe a move to the main market might help? That's rather blue sky obviously...

[luffness] 21/3/2016 11:20

"long term shareholders want the world to know how big your company is"

that is one problem - it isnt really very big at all and will be well below many fund managers criteria

[funkmasterp12] 21/3/2016 11:15

It's largely due to acquisitions which have already enhanced earnings, so yes. I would be worried next year if debt remained where it is with no further acquisitions though!

[petersinthemarket] 21/3/2016 11:12

All the plus's are obviously good news but I dont fully understand the debt situation. Is everyone happy with that?

[valhamos] 21/3/2016 11:10

Growth in profits seems to have slowed in H2 after a good H1 but hopefully it will pick up again with the recent acquisitions and the strong orderbook.

In terms of adjusted eps and the resulting P/E ratio, and how that compares with what it should be, I would discount items like share based payments. In other words it looks attractive but not as much as it initially appears.

[funkmasterp12] 21/3/2016 10:41

Again cfro - we've been saying that for three years. A few have come on board, but most aren't even aware of it. I completely agree though, the potential is here.

I hope Janet or her team read this - long term shareholders want the world to know how big your company is!

[cfro] 21/3/2016 10:37

Clearly there is still a stock-overhang of sorts weighing us down. How large that is, is anyones guess.

However, with the results released today and being as good as they are, there will almost certainly be many large fund managers looking through these carefully and then making portfolio decisions to buy imvho.

[hjs] 21/3/2016 10:30

Funkmaster

I totally agree with you. INSE has to market itself and make it known that how the company has performed and what to expect in the future and get some big buyers on the investors list.

[funkmasterp12] 21/3/2016 10:27

Yes, but pretty much flat in the past 18 months. For a defensive stock with exceptional earnings results, growth and performance, I don't deem this to be good enough quite frankly.

[interceptor2] 21/3/2016 10:25

Even though I follow a zulu/garp way if investing, I only bought in here because of the strong trading update in January, which signalled that trading was becoming stronger, normally when you see a company having the confidence to say that trading is ahead of expectations, then other bullish updates often follow. Reading the tone of today's statement, I would think that it is likely that more positive updates will follow this year.

INSE have seen a 40% increase in the share price in the last year, I would be more than happy to see the same performance in the next 12 month's.