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Interquest Share Discussion Threads
Showing 576 to 600 of 600 messages
|I thought there might be some value here after the latest price fall, so have updated my valuation model. I set a target PE ratio of 7, to allow for the recent record of underdelivery and the very questionable management competence. After adjusting for excess cash, debt, in-the money options and tax (but not for the RDW acquisition), I get a target price of 23.6p.
Hence I'm staying well out.|
|The adverse cash flow in the last set of interims was mainly due to a big increase in trade receivables. To the extent that this reverts to a more normal level, there will be a corresponding cash inflow in due course.
The concern is that the interims don't give any indication as to why this line item has reached an historical peak; is there is a risk that there will be an issue with collecting all of those receivables?|
|The Shuffle Man - I'm mildly concerned, which is why I'll wait for FY to get a clearer picture. The indication from interims was not positive:
-- Net cash used in operating activities GBP2.9m (2015: net cash generated GBP2.8m)
-- Net debt, consisting of our working capital facility which we use to finance fluctuations in contractor levels, and cash increased during the period to GBP9.9m (2015: GBP6.9m)
a 40% jump in debt levels, could well be a fluctuation, but it's a big one. Given instis are not buying (AFAIK) I suspect a funding round/instrument may be under discussion. The future is bright, but would be better to have cash in reserve to weather any storm.|
|Is anyone worried about the debt position which at the interims was £9.9m|
the shuffle man
|Am watching, progress on cost savings sounds good, but they run on empty in terms of cash reserves which is a concern. I suspect the profit warning with subsequent price decline may be a precursor to a fundraise, could be wrong - as they haven't highlighted cash as an issue.|
|Agreed. Restructuring should now deliver returns over the medium term. Derisory mkt cap and PSR. Strong hold or add on weakness for me.|
|Jim Mellon adding and now has 5%.
Good value here.|
|Most of it is already in the price|
|Unless there is another Profit Warning|
|Paul Scott has tipped these following todays results - he reckons they are oversold at these levels - here's an extract from his newsletter today:-
"Revised forecasts - the latest numbers coming through this morning suggest that adjusted profit will be £3.6m this year (down from £4.2m), and EPS 6.9p instead of 8.5p.
The market cap of just £11.1m looks ridiculous for a company that should make £3.6m, in a bad year.
Balance sheet - has a huge debtor book, partly funded by debt. The latest broker note suggests that cash generation is good at the moment - debt tends to unwind at companies like this, as business contracts. So they're saying £7.0m net debt at year end. Overall the last balance sheet looked OK to me.
My opinion - fishing for bargains at bombed out companies which have warned on profits, can often be a depressing, and unprofitable activity.
However, at this level, I think ITQ is probably at or near the lows. It's finances look alright, and the PER is now dirt cheap. Plus it's paying a divi, and even if that is reduced, is still a nice bonus.
Recruitment in the IT sector seems an activity that's not going away. Personally I think this could be a nice little recovery trade from the current price, with a target of maybe 50p - which would still only be a PER of about 7-8 times the revised forecasts put out today. Yet that would be a 67% gain from today's price. I think that's quite a good punt."|
|Panmure Gordon is their broker. I expected nothing less from PG.|
|Level of debt is frightening though.|
|I don't think so and I have stuck with it even though I have been burnt both by the huge fall (thanks Brexit).The BOD are getting to grips with the problem and I agree that this share has been oversold, although I certainly understand why some investors lost confidence. Another reason to support my view is that despite the news, there has not been a large drop in the share price so far today and larva, if it drops to 20p, let alone 16p without more news, I'll be buying like mad.|
|Another one from TW AIM cess pit nc'est pas?
net fee income and EBITDA for the current financial year will be below market expectations.
Well below? 16p today i suspect|
|Tinasilverfox - I have to agree. Personally picked up a good wedge at 36p as I see that as far too low.
Pardon the cliche but MMs are most certainly after shares as one can only pick up around 3k GBP worth @37p but easily offload 10K GBP @36p. I'll be holding on to mine until they significantly re-rate and with the small number of shares in free float it shouldn't take much to get back to 50-60p.|
|The waiting game begins Oversold share|
|I thought there was something going on. Rose because of a tip.|
|Tipped again today by TW|
the shuffle man
|Panmure forecast pre-tax £4.07m this year and £4.91m next, a reduction from 5.6m and 6.4m previously. EPS of 8.53p and 10.10p and DPS of 1.50p and 1.58p. Mkt Cap £12m.
I've started adding here. Half a pence divi to be paid on 16th Nov. dyor|
|Turning into a disaster....|
|Charlotte break down..need to see capitulation to somewhere around 25p|
|Was going to take a nibble at 40 but will wait and see if there is support.
Given the relatively upbeat news from other recruiters I guess the problems here are largely self inflicted so it will take time to see if they can sort them out.|
|Doesn't look particularly good|
|Debt is about two thirds of the market cap. Is this sustainable?|