Pennant Share Discussion Threads

[topvest] 08/8/2013 16:11

The company is very cash generative as the contracts are billed in stage payments as they get going. Nothing to worry about in my opinion. Just the unprecedented start up of some very big contracts. The pull-backs are due to "top-slicing". This will reverse as new holders come aboard. Fair value must be over a £1.

[royaloak] 08/8/2013 14:46

I sold out in stages on the way up, I know how iliquid it can be, and I had bought quite a way down. It would not surprise me to see it test the mid seventies again at some time, if so I will be a buyer, otherwise best of luck guys.

How great that future stocks can be held in an ISA, it's going to make filling in my tax returns much easier!

[wilmdav] 06/8/2013 07:29

I agree with ganthorpe that 6.6p looks light for full year 2013. An upgrade from the house broker looks likely.

hxxp://www.david-wilmshurst.co.uk/pen/pen_data.htm

[big7ime] 05/8/2013 22:40

I think its topped out for a while, the results are no more than expected, cashflow is a problem being used up fast for the new contracts. Let's hope they can get paid soon

[dasv] 05/8/2013 22:37

The mere words "working capital" triggered me to sell initial stake - the profit (100% profit) is running as free ride. I think they have plenty of work to do and there is now at least a little execution risk to be factored in. A company at this market cap has a safe growth rate and the order book suggests (to me) that they have plenty to be getting on with without taking on more work than they can handle. I think the forward multiple is undemanding but earnings attributable to share holders on a trailing basis is not outstanding. They are doing the right thing though - funding growth, and the lack of debt is admirable imo.

[topvest] 05/8/2013 20:28

I think there has been a little bit of top slicing, which is probably healthy. I think the share price is not really valuing this as a growth share. If that does happen and we get wider buying then there could be another 50% uplift. The triggers for a further upward trajectory are 1. being tipped as this is quite thinly traded and 2. Further major contract awards. Both are quite likely in my view. This has been a great share for me from the depths of below 10p. Happy to keep holding and top-slicing as we hopefully head up to £1, £1.50 and beyond. Fingers crossed!

[interceptor2] 05/8/2013 19:16

ganthorpe, I haven't seen any new broker estimates yet, after today's results, maybe the EPS 6,56p is still from WH Ireland update from 19th June ? I agree with you that between 7.0p and 7.5p looks likely for 2013. If brokers forecasts are still 6.56p for this year, we know that by past experience that the PEN management would be quick to issue a trading update with the words "exceeding expectation" imv.

I must admit that I did take profits here on Friday, but have brought back in today for the ISA, after these strong results.

ic2...

[ganthorpe] 05/8/2013 16:43

New Contracts £4 million not £4 per year in 473.!
Apologies .
Note to me - Must read before pressing button
GAN

[cfro] 05/8/2013 16:35

Good post ganthorpe, i do agree. I thought todays results were very good but i do also think that perhaps that is now priced in somewhat for the time being. Dont suppose it will be too long before another big contract win then the shares will look extremely cheap once more. AIMHO.

[ganthorpe] 05/8/2013 16:30

I see broker forecasts are for about 6.6P for the full year. It is too easy just to double the interim figure without doing any work.
With the momentum in H1 continuing and two large new contracts looking like £4 per year turnover , I would be looking for between 7P and 7.5P for the current year and 8.5P to 9P for next year.
PEN is only a small part of my portfolio so I am not looking to ramp up the shares and it may be that a price of 10/12X next year's forecast earnings is not far out at this stage.
Not looking to sell or add.
GAN

[topvest] 05/8/2013 08:22

Yes, I will probably top-slice a few. Liked the bit about the rail opportunities. It sounds to me like that is the pre-cursor to another major contract win announcement at some point. I agree with you on the earnings front; they have plenty of momentum.

[foxman14] 05/8/2013 08:08

See no reason in the interims to sell or top slice my holding in fact imo more earnings upgrades are on the way.

[topvest] 02/8/2013 20:41

Looking great ahead of the results on Monday!

[cfro] 02/8/2013 13:50

New highs yet again.....:-)

[valustar1] 31/7/2013 08:39

wait an hour

[grahamhacker] 31/7/2013 08:17

Just invested £10k through Stocktrade but trade not shown.

[wilmdav] 26/7/2013 08:24

Spread shown as 87-90. During which I have top sliced this morning at 88.2p, which is interesting. The trade is shown as a sell too.

[cfro] 26/7/2013 07:57

Wilmdav, yes WH Ireland new forecasts from the 19th June. But if you ask me i still think they are way too conservative particularly given how well the company is said to be trading.

[topvest] 25/7/2013 20:04

£1 looks within grasp, depending on how good the interims are.

[wilmdav] 25/7/2013 19:22

cfro,

Presumably these figures are from W H Ireland. Can you confirm that? Is there anywhere accessible online where these figures are being displayed?
Poor old Sharescope is still showing for y/e 2013 PBT of £1.51m with eps of 4.4p and for y/e 2014 PBT of £1.70m and eps of 4.96p.

[saucepan] 25/7/2013 18:41

Thanks for those numbers, cfro. PEN is not expensive by any means.

That surely is an exciting breakout, with strength gathering late in the day. It all augurs well.

[cfro] 25/7/2013 18:30

Looking at the recent broker forecasts for ye 2013 and PBT of £1.73M and eps of 6.56p is being forecasted and PBT of £1.88M and eps of 7.1p for the ye 2014.

So Pe's of 13.2 and dropping to 12.2.

[cfro] 25/7/2013 15:08

On the move once more and breaking into fresh highs.

[topvest] 18/7/2013 09:36

Thanks - you seem to have pushed up the price again. Yes, looking forward to the interims - should be very good!

[calahan] 18/7/2013 08:36

Topped up here this morning @77p. Was hoping to get nearer 70p, but can't see it falling that low with estimation beating results being just around the corner.

Quite surprised to see it's fallen back at all before results, but not complaining as I was hoping to grab a few more before then (and now seems likely to be the best chance IMO)