Opd Share Discussion Threads

[jeffian] 26/8/2008 19:33

cascudi,

I've held these for some time and am well down. "It seems a cheap company" - yes, that's what I thought when it first went under 10X PER........and it's even cheaper now! I will hold on now for the (eventual) recovery but if I wasn't already in I'm not sure I'd buy just now. To answer your specific points -
* the balance sheet is OK but nowhere near as strong as it used to be before they made the Odgers acquisition. Then they had no debt and very substantial cash balances; now cash/debt about equal. A substantial proportion of assets 'intangible' (i.e. the goodwill value of the businesses acquired) and this could easily be written down if they fail to perform as anticipated.
* No, they didn't cut the dividend, but they left the door open to cutting the final if things get worse ("The board will review the final dividend in
the light of trading during the remainder of 2008 and early 2009.")
* Most of their business is in UK which is most at risk of a downturn (cf. Michael Page which generates nearly 70% of its profit outside UK).

I think it's a bit like the housebuilders; you know it's going to turn eventually, but if the economy goes into recession, these companies are going to get worse before they get better. Personally, I'd wait to see how things pan out - I'd rather pay a bit more on evidence of a sustained upturn than try to 'catch a falling knife' - but it's your decision.

Regards, Ian

[cascudi] 26/8/2008 16:55

Ian
maybe the result is not great
but looking in the balance sheet It seems a cheap company.
also the did not cut the dividend and did not make a profit loss
what do you think? do you think they the share price will go more down?
what is the problem of this compnay for your point of view
Regards

[jeffian] 26/8/2008 14:24

Hmmmmm! Certainly not great results.

Interesting to note that the cost of the Imprint debacle not as great as several had predicted. ("During the half year the Group incurred costs of £645,000 in connection with the proposed acquisition and realised a profit of £315,000 on the disposal of the 5% stake the Group held in Imprint."). One can see why they didn't want to bid up more.

Regards, Ian

[apatel21] 12/8/2008 15:22

OPD tanking again today - no suprise that whilst the shares of other recruitment firms have recovered a little this one have hit another new low. I'm surprised people are invested in OPD given management performance in the IMP takeover.

HVN is much better value IMO and was even better when they hit 30p recently.

[jeffian] 11/8/2008 14:55

No. I tried several times to speak to them in the old 'PSD' days but they never took or returned my calls. I don't think they 'do' Investor Relations!

Regards, Ian

[cascudi] 11/8/2008 14:45

Ian
I have sent an email to Francesca Robinson (CEO) of OPD asking if they are going to issue an interim result soon.
but I have not recieved reply yet.
Do you have any further news?

[jeffian] 08/8/2008 16:30

Last year there was a Trading Statement on 9/8 in advance of the Interims in September. Wonder if they'll do the same this year?

Regards, Ian

[jeffian] 16/6/2008 10:37

Er, which planet were you away on, WD1?

8-)

Back here on earth, the price of oil has doubled, food and commodities have gone through the roof and everything else has halved, inflation is rearing its head again and the credit crunch has bought much new commercial activity to a standstill including the entire housebuilding sector. This is generally perceived to be potentially bad for employment and the entire recruitment sector has tanked (as have many others)


As ever, I suspect that the doom & gloom is being overdone, but it is a tough call at the moment whether shares like these (and there are plenty on apparently low PER's) are 'cheap' or just correctly anticipating a substantial drop in earnings. Only the next trading update will tell.

Regards, Ian

[wd1] 16/6/2008 10:02

I have been away from this stock for a while, but its seems to have totally fallen off a cliff since July 07 when this stock was trading at £5 - please could some outline whats happened ?

Cheers
WD1

[jailbird] 06/6/2008 15:59

from harvey nash BB..thanks to rob..IC article today

Top small-cap takeover targets

My main feature discussed why so many small-cap shares are now at risk of takeover, despite the restrictions on credit lines to private equity. Here, I outline the shares that are brightest on my takeover radar - and the reasons why.

HARVEY NASH (recruitment)

• A highly cyclical sector (recruitment) that has already been sharply derated;

• Corporate activity already underway, such as the tussle between Premier and OPD for Imprint;

• Low PE ratio and lowly price-earnings-growth (PEG) ratio of 0.24, with attractive price/cashflow ratio and net cash on the balance sheet. Yield is above average at 5.8 per cent.

• Offers offshore outsourcing and executive search services as part of an overall recruitment package.

• Strong recent results and upbeat on current trading (see Harvey Nash beats forecasts)

[8iron] 04/6/2008 12:48

davidosh - great review. Seems Odgers are expanding in the UK still though.

[nigelpm] 29/4/2008 22:34

Well it wasn't over till the fat lady sung and today she's done just that.

[davidosh] 22/4/2008 15:58

Good review here..

[stephanie_m] 20/4/2008 08:27

Deal of the day - The Times 19th April 2008

Peter Hearn, nonexecutive chairman of OPD Group, the recruitment company, bought another 12,506 shares at 168.7p each, after a purchase of 24,000 on Thursday. OPD, up 1p at 170p, is holding open its bid for Imprint, a rival staffer, until April 29, even though Imprint's board has recommended an offer from Premier.

Source

[apatel21] 11/4/2008 14:57

the auction for IMP has been reopened.

Based on past form I'm guessing OPD will up their offer to 95p even though there is 115p on the table from Premier ; )

[g8ta] 29/3/2008 22:22

That's Hearn's third buy recently. Pretax/pre-exceptional profit of £15m. Market cap £45m. That's just 3x. Cash and equivalents 11.6m. I haven't seen a lot of figures that good. But since I've been averaging down from 280p, I'm expecting a shafting. I wouldn't be surprised to see a £2 cheeky offer.

[ok,yah] 29/3/2008 07:18

Next stop £3 - Dont let the shorters kid you this is a very cheap company with a decent record of growth and prospects at a silly price

[williebiz] 28/3/2008 17:12

Seen it, share price back down by next week

[morwood] 28/3/2008 15:55

No one picked up on the director buy?

[apatel21] 27/3/2008 17:29

It won't be an outside takeover as management have a big stake. This leaves an MBO as most likely scenario but given how the IMP directors tried to pull a fast one on their shareholders i can see the same happening here. Don't rely on a MBO to out the value - The OPD directors have shown themselves to be less than above board in their takeover dealings with IMP - expect the same as a shareholder.

[ok,yah] 27/3/2008 15:55

Well i'm betting this is the bottom could be a takeover target at these prices

[g8ta] 26/3/2008 17:23

Why is OPD tanking?!!! Good results, director buying, cash in bank, low PE, etc. I can see OPD being bought out cheap if the price doesn't improve soon.