Pilat Media Global Share Discussion Threads

[brummy_git] 29/8/2013 14:21

I think the management are sensibly being ultra-cautious after past wobbles (FOX Networks in 2011), influence of 2 large shareholders and 2008/9 recession. To me the stock looks undervalued. Should be on at least 2x sales (say £55m) plus £12m of cash -> giving a fair value of over 100p/share

[rmillaree] 29/8/2013 12:59

results weren't good or bad.

Shame they arr not confident enough to say ye profits will deffo be higher than last year - wording is ok as they simply don't know - just don't be surprised if they come up slightly short.

Margins may in theory be growing but if you factor in R&D spend then the effective margins are well down - i would like to think that all extra sales now would be flowing through to the bottom line - shareholders have being waiting a long time for this to happen. all the talk a few years ago about moving stuff to cheaper countries will pay rewards later - there is an element of running to stand still here although i understand it takes time with some sources of income for the rewards to pop up - this may be the case with PGB and early sellers (me) may miss out on the good upside potential that exists if they can double or triple profits from what they expect to do this year.

I have done badly with IT companies before believing the cookies are being delivered only to find out the cookie monster had been there first :(

[obiterdicta] 29/8/2013 11:29

The use of the word invest suggests an acquisition will be made with the cash pile. That's good news I think.

[adamb1978] 29/8/2013 10:19

Another solid set of results - accerlated top line growth in Q2, growing margins, cost control.

Quite optimistic about this one. If you ignored the cash pile then you might say that it was fairly valued however if they use that cash pile to acquire something synergistic, then it would look very cheap. They could buy a co with that cash and add 50% to earnings. Equally happy if they gave the cash back, though I don't really see that happening

[yump] 27/8/2013 13:09

Hi

I'm currently in two minds with this stock having held for a long time and sold half around 58p a month or so ago for very little gain. There is the niggling doubt that it might regain old highs and then just not keep growing as promised.

The only reassurance is that it hit a high just before the recession started to hit, although I thought it might be fairly immune. Whereas now, it looks to be growing and we're (touch wood) on the way out of recession, albeit slowly.

One thing is for certain, like you, if I sold the rest, 80p would be odds on, so I'm holding for a fair bit longer. My original reasons for holding because the business looked promising (recurring revenues etc.) haven't really changed.

PS
Excess cash doesn't often seem to make a difference to share prices, no matter how much talk there is of it justifying part of the share price on its own. If its a growth stock, people expect growth and cash doesn't count.

[rmillaree] 27/8/2013 11:10

Hello yump

That would make total sense that the price continues on up as i have just offloaded my holding today.
Hopefully those that continue to hold will be rewarded by good future results as this certainly is(probably always has been) a company with good potential to ramp up the profits in the future.

Personally with forecast EPS of 2.9p next year (albeit some nice cash) and a slightly up and down history with regard to retained profits i was a little worried that if they have any more hiccups the share price may be back down below 50p again.

The excess "surplus?" cash is nice but to a certain extent it is probably partly necessary to prove to clients that they are worth handing a large multi-year contract too - although one would like to think that there current client base would be proof in itself.

[yump] 27/8/2013 09:13

Starting to look as if it might have a go at the 2007 high, given its the quiet summer period.

Interims were 30th. Aug last year, so perhaps rising in anticipation.

[smithie6] 15/8/2013 18:24

"Covered today by SC "

who or what is SC ??

[alter ego] 15/8/2013 14:18

As I suspected, Simon Thompson has repeated his advice to buy PGB with an online article which should be repeated in the paper edition. He sums up as follows

"From my lens, the shares are easily worth 72p, and possibly much more if Pilat continues to win new contracts and earnings upgrades come through."

[techno20] 15/8/2013 11:38

Thanks for flagging Kambrook,

Fantastic write up.

Particularly like the line...

"In fact, there is very little technical resistance between 55p and 88p, so the re-rating could be quite sharp especially if the 60p high from a couple of months ago can be taken out"

Techno

[kambrook] 15/8/2013 11:13

Covered today by ST with a strong buy rating. He reckons any movement above 60p could be pretty sharp.

[alter ego] 15/8/2013 07:37

Wonder if Simon Thompson (the IC columnist) will comment again. His last piece dated 3rd June gave a year end price target of 72p, or more if new contract wins came about. He also said that a breach of 55p would signal a major buy signal.

[techno20] 15/8/2013 07:34

Deals covered in the Telegraph too...

Contract wins attracted buyers to shares in Active Energy, up 0.625 – 25pc – to 3.125p, and Pilat Media Global, 6½ better off at 56½p. Active, a supplier of woodchip for biomass power generation, revealed that it had secured a contract with Biomasse Italia to supply at least 240,000 tonnes of biomass over two years, from the beginning of 2014. Business management software group Pilat, which supplies media companies, said it had won three contracts worth about £3m in licence revenues and implementation fees over the next 18 months.

[techno20] 15/8/2013 07:27

Still awaiting my paper boy (who's about 90!) to arrive....but looks like PGB gets the Tiddler to Watch comment today in the Times....

Onwards and upwards!

Techno


The Times

Tiddler to Watch: Pilat Media Global, an AIM-quoted supplier of business management software to the media industry, leapt 6½p, or 13%, to 52p after it announced three contract wins in South America and Turkey. The projects are expected to bring in £3 million of revenue over the next 18 months. Last year the company made a pretax profit of £2 million.

[techno20] 14/8/2013 17:42

Positive commentary from Paul Scott.....

Pilat Media Global (LON:PGB) announces three new contract wins. This company really does seem to be on a roll. They are an Anglo/Israeli software company, whose software is used by television companies globally, with a lot of big name clients on the books

The striking thing about Pilat Media is the amount of cash it has on its Balance Sheet, although it is not clear what management intend doing with it, since oddly they do not pay a dividend. I imagine that the broker consensus of 2.54p per share is probably now too pessimistic for this calendar year.

[techno20] 14/8/2013 17:02

Just catching up on the news.

Excellent announcement and clearly strategically important in terms of extending the geographical footprint.

The trading commentary was a tad vague, but we won't have to wait long for more details as the H1 results should be out in a couple of weeks. Suspect that's why they chose not to say too much.

If you strip out the cash, PGB is trading on a p/e of around 11, so given that it is now clearly on a roll in terms of sales, there's a potential cash event soon and an outside chance of corporate activity (surely you can't have a competitor on your share register forever!), I do think 70p+ is possible within a matter of weeks.

May even be faster if there's positive comment in the press from ST / others.

GLA

Techno

[hyperboreus] 14/8/2013 07:16

Positive news this morning as Techno20 predicted.

[techno20] 09/8/2013 15:17

MM's have a track record of moving these with little or no volume. Expect we'll see a move up ahead of the end of the month. Still think we might also get some more contract news soon and potentially more info. On plans re.cash surplus.

70p+ remains very realistic IMHO.

Techno

[deanowls1] 09/8/2013 11:38

Q2 results due this month.

[deanowls1] 12/7/2013 05:56

I bought back in yesterday after selling last month, it is the cash that has kept me interested tbh, a nice special divi would be nice, can't see share Buybacks due to the amount that would be available to purchase and the size of the cash pile.