Pennant Share Discussion Threads

[interceptor2] 21/7/2016 10:36

PEN still under the radar imo. After a strong breakout over 60p yesterday, it feels like momentum is becoming stronger today with good demand for stock.

Not surprising when the low valuation is looked at versus the many recent positive statements from the company.

[varies] 19/7/2016 17:08

This all looks splendid but I don't think we should expect a dividend this year since doubling capacity is an expensive business.
I am a little puzzled by the large sales by Mr & Mrs Powell family although they and their daughters still hold 23%. Their holdings must count as Business Assets for IHT but Mr. Powell may have many years before him (let us hope so) and expect that he and his wife have been advised not to keep too many eggs in one basket.

[interceptor2] 19/7/2016 15:05

The directors couldn't be sending a clearer message to the investment community about future prospects.

Two positive trading updates in June and stating in the most recent that they are confident trading will exceed current market expectations in current year and next year. Plus order book visibility strong to 2018, with order book numbers provided.

Then options to Chairman only exercisable if share price trades at 100p for more than 10 business days.

Followed by two institutional investors acquiring the stock sold by ex Chairman C Powell.

And then we have todays announcement about taking possession of commercial properties that will double capacity, because of record order book and increasing business capabilities.

Unless I am being too optimistic because of our human weaknesses of optimistic bias when holding a stock. I don't think the company could make the message any clearer.

Must take my rose tinted glasses off now and read back my own post.

"Nope it still seems a sensible conclusion without them" :o)

[hastings] 19/7/2016 07:56

WH Ireland this morning cites building momentum a hefty and record order book of £45m providing a 75p price target, which would still see the stock on a sub-10x PE.

[masurenguy] 19/7/2016 07:49

19 July 2016
Pennant International Group plc (AIM: PEN)

Record Order Book Drives Expansion of Pennant's Business Premises

Pennant International Group plc, ("Pennant" or "the Group"), the AIM quoted supplier of integrated logistic support solutions, products and services, principally to the defence, rail, aerospace and naval sectors and to Government departments, is pleased to announce that in response to the need for additional design, development and production capacity resulting from a record order book and increasing business capabilities, Pennant has taken possession of two commercial premises at Staverton Connection Business Park, Cheltenham.

The new premises, which have a combined floor area of over 8, 000 sq. ft. (743 m(2) ) will almost double Pennant's production capacity to over 20,000 sq. ft. (1,858 m(2) ) and are located a short distance from the Group's existing facilities in Cheltenham. Work has already commenced fitting out the interiors of the premises, which includes the installation of offices, canteen/kitchen facilities, and mezzanine floors covering 1,600 sq. ft. of workspace. It is expected that the new facilities will be fully operational by the beginning of September. Commenting on the new facilities, Pennant's Chief Financial Officer, Phil Walker, said: "This long-term investment provides a clear indication of our confidence in the future growth, prosperity and success of the Group."

[gengulphus] 15/7/2016 09:42

And the other 1.95m shares went to Hargreave Hale:



Gengulphus

[robin_lemer] 15/7/2016 09:21

It is particularly encouraging Downing have increased their stake. They have been holders of the stock for a considerable time. Interestingly they reduced their holding from just over 1 million to 458k in February 2014. Their timing based on the graph was impeccable. Let us hope they are equally successful on this occasion

[gengulphus] 14/7/2016 11:20

And we've now got the explanation of one of the 1.95m share trades:



The fund's holding has risen by 1.95m shares, so it is indeed a "buy" - not the "sell" that the ADVFN trade reports guessed based on the price of 52p at which it occurred being at the low end of the spread. (A type of guess that isn't all that reliable at the best of times, but particularly unreliable for very big trades, due to them typically being specially negotiated, with the market maker or other intermediaries being paid by a separate agreed fee, not by taking a spread on the price.)

Gengulphus

[interceptor2] 14/7/2016 07:55

Looks like we were both partly right with a smaller amount transferred also.

Important that there is institutional demand here at a time when the potential for additional contract wins and visibility is strong.

[cfro] 14/7/2016 07:49

Well deducted Interceptor2!

Mr Powell has sold £4m so i am assuming someone has bought the whole amount....

I guess we will find out soon.

[hastings] 14/7/2016 07:48

Personally welcome the news on the sale and subsequent purchases by Institutional holders.Whatever Mr Powell's reasoning the business appears to be moving forward with a broadening of reach and offerings.

[gengulphus] 14/7/2016 07:47

And as it turns out, Christopher Powell sold 4m shares, so neither as big as the nearly-8m figure originally suggested on this thread nor as small as the 0.1m figure I said it could be. I would now be reasonably certain that the two 1.95m trades were the market maker moving most of the shares on to the institutional investors - that fits their timing within about a minute after the 4m trade. (They could instead be someone else selling shares, but then the timing would be a pretty remarkable coincidence...)



Gengulphus

[gengulphus] 14/7/2016 00:47

Almost 8m shares changed hands today, interesting!

Be careful about reading anything much into that - they "changed hands" in a strictly pedantic sense, but whether they actually changed hands in any meaningful sense is a good question...

For example, suppose a shareholder with at least 4m shares decides he wants to sell 0.1m shares to raise some cash, but also to shift 1.95m shares to each of his and his wife's SIPPs. He sorts out a deal with a market maker: for a negotiated commission, they will buy 4m shares from him and sell 1.95m shares to each SIPP, without taking any "spread" between the buying and selling prices, and keep the 0.1m shares they are left with as trading stock. The market maker duly puts the trades through, all at 52p (the price at which they've agreed to take the 0.1m shares) and in quick succession because there's no point in hanging around once you know what you're going to do. The net result is the pattern of reported trades we saw around 16:26 this afternoon, but only 0.1m shares have actually changed hands into any meaningful sense: all the rest are basically just an existing holder shuffling his holdings around...

Not saying that's necessarily the explanation - there are plenty of other possible explanations, including the possibility that one or more major shareholders are indeed selling out. I.e. I'm not saying you're necessarily wrong, just that you're not necessarily right... We'll only be able to be certain what happened when the RNSes come out and tell us... Or if they don't, we'll be able to narrow it down to the possibilities that don't require RNSes, or alternatively that a major shareholder has neglected their obligation to announce significant changes to their shareholding.

Gengulphus

[topvest] 13/7/2016 20:42

Yes, all very odd that he has sold out at 52p - that's not a great price for all his hard work. Either he has fallen out with the Board, is retiring or is ill would be the conclusion I'd reach.

[interceptor2] 13/7/2016 20:40

Thanks hastings, hadn't noticed that.

7.8m shares = 29.4% of shares in issue. Looking at the major holders it must be ex Chairman Christopher Powell who held 38.91% before today.

52p is a good price imo and shows a keen buyer, will find out soon who has purchased these.

Interesting.

[hastings] 13/7/2016 17:04

Almost 8m shares changed hands today, interesting!

[topvest] 21/6/2016 20:40

Well I trust the outgoing Chairman rather than the new lot. He has always played fair.

[hastings] 21/6/2016 07:34

Agree Staverly. That taking on of some sizeable extra space and 60% visibility already in for 2018 suggests a high level of confidence in growing the business.Last year's delays were unpleasant and unlucky, but while momentum has rebuilt again, the share price continues to lag, despite having jumped from the oversold low.

[staverly] 21/6/2016 07:24

Topvest ... it would appear that chairman threw his toys out of the pram due to the suspension of the dividend. Understandable perhaps given his concert party hold around 38%. To my mind it sounds like a prudent decision for long term orientated shareholders.

[dangersimpson2] 21/6/2016 00:39

CEO & CFO get a decent bonus if there is a bid >£1. Doesn't mean there are going to get one at that level soon but does mean their interests are well aligned to the Chairman & other shareholders if one came in.

[topvest] 20/6/2016 19:40

Yes, interesting- wouldn't be surprised to see this being subject to a bid at a £1 in the not too distant future. Share options, Chairman change and dividend cut are all consistent with this possibility. Happy with my exit though as I've lost a little trust in where this is going.

[modform] 20/6/2016 18:57

I only have a small holding which I got a few days after the results, been waiting for a oull back but hasn't materialised, so not going to chase the trade atm

[cfro] 20/6/2016 18:07

Great to see the options set at 100p which is about 90% higher than current price. Not often you see management share options set in a way that is friendly to shareholders. Great vote of confidence imo.

[interceptor2] 20/6/2016 13:32

Today's RNS above shows the level the BOD expect PEN to be trading at in the not too distant future.

[interceptor2] 20/6/2016 09:51

Excellent write up hastings

I had been looking for the increased W H Ireland estimates, appreciate you highlighting them. Also interesting to know that they are adding significantly to their existing space, which indicates that they are confident in securing more contracts imo.

Not often that it is possible to buy into a company that seems to have potential dynamic growth prospects on such a lowly rating.