|Northern Recruitment Group
||EPS - Basic
||Market Cap (m)
Real-Time news about Nthn.Recruit. (London Stock Exchange): 0 recent articles
|stemis: I'm afraid its the sort of behaviour which gives AIM a bad name. And they wonder why there is no demand for shares in companies like NRG! Its designed to do one thing only and that's line the pockets of the executive/major shareholder; an MBO in drag. The Morans struck when the share price was at its lowest. Jupiter clearly also wanted out but was unable to find a buyer for its 18% stake. What happened to the responsibility of the executives to other shareholders? The passing of the dividend 6 weeks ago dropped the share price from 40.5p to 35.5p at a stroke and is now shown up for what it was; a cynical move from which there has been only one beneficiary. Pretty shabby.
I'd expect NRG to be sold in the not too distant future (Lorna is getting on a bit). The price will be quite a bit north of where it is today. Unfortunately only the Morans will left to benefit.|
|deswalker: Nice charts as usual Wilmdav. The profit2 tab is the one I like to look at (EBITDA). Now to me that looks very resilient. Yes the trend is disappointing but does it warrant a share price drop of over 80% from its peak ? I'd suggest not :-)
Anyway enough of trying to teach granny to suck eggs. We all know it's cheap. We either hold or buy more until things improve. That's it.
|deswalker: There have been a couple of indicators for quite some time. I did't mention either as I'm a holder and didn't want to rain on my own parade by panicking people into selling.
Firstly, Digital Look has been forecasting a total divi for this year of 4.8p for several months now implying a 2.3p final divi instead of 5p last year. Clearly the analysts had been given a steer that the 5p final divi was to be cut. I didn't mention it months ago as I'm a happy holder at the lower divi level and so didn't feel like panicking people who were expecting 5p but it was there for all to see.
Secondly, the share price. With the consensus 2.3p divi there for all to see, anyone thinking that the market is so inefficient as to sit at 40p whilst a better-than-expected 5p divi rolls off was always going to be mistaken, especially after they spent 800k on buybacks. If the market had gotten wind that they were going to hold the 5p divi (instead of reducing it to 2.3p) then the share would have priced itself back up at least at twelve times this level (60p) instead of languishing as it did right up to today. The chart is often more accurate than people like to think.
Yes the total divi cut was a bit of a surprise to me but not a major one as I was only expecting a maximum of 2.3p anyway. Now with hindsight, I look back on events over the summer and realise I'm happy with what they've done with the cash instead. I also hope they line up more large chunks of stock to be bought back rather than returning a couple of pence here and there. I need this back over a quid to get my money back and they won't achieve it by running the business down for cash IMO :-)
Anyway, I'm not looking to fall out with anyone but I did think all the talk in the last couple of weeks of a 5p divi and 18.75% yield coming was ill-informed garbage and so it has proved to be.
Des (long NRG but not for the divi)|
|stemis: Actually you need to compare market capitalisation (£5.70m) less cash (£3.88m) against taxed EBIT (£907k less tax of 30%). That gives a multiple of 2.9
All very cheap but it doesn't get away from the appalling news management by NRG of the dividend cut which is now driving the share price.|
|deswalker: momentos - you're looking for things that don't exist IMO.
My reading is simple:
- they know trading is tough
- they believe the current share price already more than reflects this
- they are digging in, conserving divi cash and looking for cheap buybacks in decent volume.
I don't see any corporate action, just a tightening of the business and an intention to pick up any loose stock. That's about it and that will do for me on an EBITDA/EV of 44%. I'd be actively p*ssed off if they started blowing the cash on anything but divis and/or buybacks.|
|momentos: And Share price movement over the period....|
|harrogate: The problem with NRG is that it has stopped growing - a bit earlier than the others did so down to the company not the market so it has a rating to match - if it starts to grow again that we will get the share price back to where it used to be. The managemnt have a bit to prove i think|
|slaine777: It aint fun. Anyway I bought a few after a brief perusal of the fundies. Looks good value. Looks a good contrarian play too. I take it you have an interest in this company. Given it is a small cap, assisting the odd lazy investor might improve the share price. You just dont know who could be looking in!! If you have the info give it. I would always check anyway!!!(when I get time).|
|opener: I'm convinced Momentos,and have bought in following the results.The divi announcements are very strong and a good use of all that cash,I know in theory it makes no real difference,but well nice in my isa I think.Moran has got it right on acquisitions -you can't buy people.One of the things holding NRG share price back must be her holding of 53%,not often loved by the institutions,a reduction in her holding would probably spark greater interest.The yield is going to be very comforting in the near future though !
|rivaldo: Ditto momentos!
CSFB in their note today had outperform ratings for MPI and Hays, despite MPI being on a current year P/E of around 25 and a forward P/E just less than 20.
If that were the case with NRG, the NRG share price would stand at 340p, or around double the current price. And that's without the downside protection of NRG's cash pile!|
Northern Recruitment share price data is direct from the London Stock Exchange