Networkers International Share Discussion Threads

[cheshire man] 20/8/2013 14:32

Yes getting some interest today,,,,,:-)

[battlebus2] 20/8/2013 14:04

Flurry of buys and up we go again, can't keep value this cheap for long imv, dyor etc....

[battlebus2] 20/8/2013 08:43

Well the bid has moved this morning with a buy that should please you :))

[investali] 19/8/2013 23:17

Always pleasing to see these marked up even if it is only the offer.

Ali.

[battlebus2] 12/8/2013 18:29

Looks like a seller sold 170k today to bring down the shares a tad today.

[battlebus2] 09/8/2013 16:54

Hopefully the start of a decent rise.

[puku] 09/8/2013 11:47

Also bought in a few days ago - into my ISA for a 2 year hold - after news from other recruitment firms.

[cheshire man] 09/8/2013 09:37

and a nice move up this morning :-)

[battlebus2] 08/8/2013 18:18

Thanks for that article, Equity Development also have a note out which reads well also. Networkers certainly looks more and more at odds with the market.

[glasshalfull] 08/8/2013 17:42

Yes battlebus...well done with Matchtec.

Comment by ShareProphets indicates that NWKI is significantly undervalued with the larger recruiters valued on basis of PER 20. I certainly don't think NWKI deserve a rating of this magnitude, but it does suggest to me that the growth in their Energy & Engineering division is not reflected in the current shareprice.

hxxp://www.shareprophets.com/views/1252/matchtech-group-full-year-trading-update-value-in-the-staffing-sector

Following my recent analyses in the staffing sector (see HERE), AIM-listed, UK specialist engineering and professional services recruitment company, Matchtech Group (MTEC) has today updated on its year ended 31st July 2013. The following reviews.

The company reports that, following "encouraging" trading in recent months, it now anticipates that underlying profit for the year "will be slightly ahead of its previous expectations". This is as it particularly noted that "demand for contract staff within Engineering and Connectus, our technology business within professional services, remains strong" – helped by continued investment in UK infrastructure programmes. This fuelled a 12% increase in 'Contract' net fee income over the prior year (to £27.4 million), with 'Permanent' net fee income 4% higher (to £11.1 million) – the company noting on the latter that "whilst demand for highly skilled candidates across all the group's brands is still very high, the time to hire period has been elongated as candidate confidence remains fragile".

The update has seen house broker, Numis, nudge its forecasts for the year and the now current year higher (earnings per share from 29.9p to 30.4p and 31.1p to 31.8p respectively), whilst noting "given the strong H2 trajectory, we believe this outlook into 2014E could prove conservative if the general UK macro recovery continues to gather momentum... Following the upgrade to forecasts we increase our target price to 510p, implying a July 2014E PE of 16x, which remains at a significant discount to c.20x for the larger UK staffers".

Unsurprisingly, given also the sector performance, these shares have been stronger performers – currently trading at 425p having commenced the year at 238p. Although the company's operations are UK-focused it notes "global demand for the products and services that our clients offer" and Numis notes that the company is benefitting from a niche position in areas of high demand. Although the stated share price rise means the deep value here looks to have been eroded, there is certainly much worse value in the sector currently and indeed within the market as a whole. There also remains a pretty attractive prospective dividend yield on offer here – approaching 4% for next year.


Regards,
GHF

[battlebus2] 08/8/2013 07:35

Great update from Matchtech this morning hopefully a trend that will eventually show here.

[glasshalfull] 07/8/2013 23:35

Welcome steg. I also had a few more today...rationale a few posts back.

Happy to reinvest profits from elsewhere in companies such as NWKI that have yet to enjoy a re-rating despite improving picture...and offering a decent 4% yield.

4G infrastructure rollout gathering pace worldwide...good news for NWKI, especially with further office expansion in key territories during the last year.

hxxp://www.zdnet.com/uk/vodafone-leaps-into-4g-fray-with-london-launch-set-for-this-month-7000019104/

hxxp://articles.timesofindia.indiatimes.com/2013-08-06/kolkata/41130327_1_reliance-jio-infocomm-kolkata-municipal-corporation-tarun-jhunjhunwala

hxxp://www.voicendata.com/voice-data/news/187602/ooredoo-launches-4g-qatar


Regards,
GHF

[battlebus2] 07/8/2013 16:36

Great to see you here Stegrego, with a little patience these should reward us well imv.

[stegrego] 07/8/2013 13:05

Ding ding, ring the bell, Im on board ;)

Just a few so far.

[paleje] 06/8/2013 19:05

Mostly sells by the look, BB, but no share price movement, dealers presumably happy to hold stock. Today's news on uk manufacturing output increasing should be good for us with the demand for engineers increasing.

[battlebus2] 06/8/2013 16:38

Strong volume today.

[battlebus2] 05/8/2013 08:03

Ali i sent you mail.

[investali] 04/8/2013 23:47

Battlebus you're right I did sell most of my holding when I saw the slight retrace but i'm keeping the rest with that increasing dividend.


Ali.

[battlebus2] 04/8/2013 18:29

Welcome Cheshire Man and Ali,I thought you sold out Ali as you never posted but hey the more the better :)) We are certainly not alone but we are in great company imv.

J Moulton holds 9.9% and is one of Britains top investors, by the way he also holds shares in another couple of companies i'm in and 18% in another recruitment firm i've got a decent chunk of Work Group.

Hargreave Hale also hold 5.36% and you can't fault their track record of late with some very smart decisions like SOM and recently taking a stake in SAL which should prove fruitful and ofcourse great brokers too :))

Nice summary GHF.

[investali] 04/8/2013 11:10

Great to have a few respected names on-board now. As BB2 knows I bought in at over 40p on his recommendation so very pleased to see others. Maybe we can gather some upwards traction from what is a very low base.


Ali.

[glasshalfull] 04/8/2013 10:27

Nice to see you here Cheshire Man...we seem to share quite a lot recently such as OPM, PTCM, R4E, REDT...and now NWKI.

I've been buying over the last fortnight now & note the recent trading statement which intimated that the company were on track to achieve forecasts for the year of £7.1m PBT and EPS of 4.7p....placing them on a prospective PER of 7. Dividend also forecast to come in at 1.4p for the year so that takes the yield up to 4%.

However, the real kicker here will be news on increased 4G infrastructure spend as you and Battlebus both mention.

Article below dated 01/08 indicates that O2 will have a 4G launch by end of this month & as more companies move into this space offering the key differintiator of improved connectivity/service then I'd imagine that there will be a snowball effect, with NWKI one of the beneficiaries.

hxxp://www.moneywise.co.uk/news/2013-08-01/o2-to-launch-4g

NWKIs exposure to engineering and energy also looks well timed.

An excellent risk/reward opportunity to me and with pick up now evident in the UK economy & the likes of builders, construction and marketing companies all enjoying a fillip to their respective shareprices...I don't think it'll take too long for the penny to drop that recruiters such as NWKI and EMR will enjoy the benefits of an improving macro picture.

Regards,
GHF

[cheshire man] 04/8/2013 08:53

Well I joined you here last week, as you say battlebus2 when G4 takes off we should do very well and not a bad divi to boot-)........all IMO

[battlebus2] 02/8/2013 17:13

Can't keep it all to ourselves for very long as with the few trades today we all know how cheap this is :))

[glasshalfull] 29/7/2013 20:51

Shhhh! Lets keep it to ourselves a little longer. ;-)
Do you have any brokers notes? Save me contacting the company.

Regards
GHF

[battlebus2] 29/7/2013 20:16

Brokers target of 62p give a near 85% upside on todays price
Market Cap of £31m with adjusted profits for the year of 7 million.
An operating cashflow for the year of 6 million.
PE Ratio of around 10
dividend increasing by 16.6% to make the yield nearly 4%
Debt is falling by another 1 million
They continue to repurchase shares
When 4G takes off we should reap the benefits of our investment in that sector.

Is this not value?