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Real-Time news about Plusnet (London Stock Exchange): 0 recent articles
|slapdash: yes indeed... but the original analysis was sound... BT only paid a slight premium to the share price.... so the loss from this would of been small and the gain if it had of fallen through would of been high..
So probably still right to have gone short but obviously glad I didn't
|cockneyrebel: ABN Amro's £2 valuation or better imo.
They said this last month:
MARKET TALK: ABN Amro Still Bullish On Plusnet
0914 GMT [Dow Jones] ABN AMRO lowers Plusnet (PNT.LN) forecasts saying the UK broadband market is sitting in the "eye of the storm" as new offerings have lowered Plusnet's valuation. However, believes this is just a "trough" in Plusnet's evolution, as the company's share price can recover, and continue to survive the new broadband world. "We believe the key to the Plusnet story is its unique operating platform and its industry-leading churn figure." Predicts share price should recover to around 200p. Maintains buy rating. Shares -4.6% at 103p.
I think a few will get home tonight and be closing any shorts that are left on Monday.
|nwmadden: Fortunes have to change with this share price. All of my friends an I are with plus net, and we're all more than happy with their service. And yes we did all refer each other! :) That's been a monumental slide from £4 back to share price levels of 2 years ago, despite all that growth.|
|cockneyrebel: DJ MARKET TALK: ABN Amro Still Bullish On Plusnet
0914 GMT [Dow Jones] ABN AMRO lowers Plusnet (PNT.LN) forecasts saying the UK broadband market is sitting in the "eye of the storm" as new offerings have lowered Plusnet's valuation. However, believes this is just a "trough" in Plusnet's evolution, as the company's share price can recover, and continue to survive the new broadband world. "We believe the key to the Plusnet story is its unique operating platform and its industry-leading churn figure." Predicts share price should recover to around 200p. Maintains buy rating. Shares -4.6% at 103p. (HJE)
I still have no position
Yeah but it's not just Sky is it, it other companies too and no doubt there will be more offering bundles too. All this will undoubtedly take customers away from PNT and also prevent new customers from considering PNT as an option. I fail to see how all this can be good news for PNT. I accept that PNT share may be worth more than they are currently trading at but the idea that this is long term play just doesn't wash with me.
I have just emailed all my friends, most of who have Sky TV and I have no doubt that many of them will be switching to Sky broadband, the saving is simply too much to ignore and that I am afraid is the bottom line for PNT.
|cockneyrebel: No, I don't have a blinkered view.
What I'm saying is if you actually sit down and calculate how many PNT customers Sky take as a maximum per annum you'll see a disaster of huge proportions is not what is going to happen, but the share price factors it in.
I'm saying the punters have all heard someone shout BOO! in a dark room, when the lights are turned on it's actually only Granny with a Scream mask on imo.
Of course you're free to panic like most of the punters have done but do people sell rationally under panic?
Have a look at the funds in PNT since the CPW news, HSBC have sold about 1% of the company, Lloyds have bought about 1%, Fidelity have bought about 3%. The stock is full of panicking private punters that do very little research imo. Those that have done thorough research (well a lot more than your average punter) and hold 5% or more in the company, haven't been selling.
|cockneyrebel: techmark - badwidth isn't free. Managing the bandwith to sell it at the cheapest rate possible is key and PNT are leaders at that. those that are not efficient might go to the wall just leaving the most efficient players or those that can afford to keep pumping it out at a loss. It's all very well having loss leaders as a headline but when that has burdened the share price for a year or two investors get unhappy.
CPW - share price tanking - a strage reation to their 'great deal' ah?
BSY tanking - a good deal again?
You're locked in for a year with BSY techmark - make sure the deal's good and it works. I reckon it will only take a few disappointed buyers to make everyone question whether they want a 12 month tie in.
|slapdash: Companies and share prices don't have to turn... they can be in long-term decline..
that may well happen here....
Also notice how the share price rises only to fall back towards the end of the day...
Suggests someone is taking advantage of any buying to sell out each day there is sufficient demand to support it..
|blue_max: Latest Broker Recommendation
PlusNet - 300p - BUY
Shares in PlusNet have been on a rollercoaster ride since our previous update in mid-March. Although the shares had gained more than 80 per cent since our original recommendation in July last year, we felt they were still undervalued at 402.5p on account of forecasts that estimated earnings per share to rise from 20.4p this year to 32p in 2007.
However, events in the internet service provision sector have spooked the market and the shares are now trading for around 300p each. On 11 April the day Carphone Warehouse confirmed the launch of a new service that combines unlimited landline calls with broadband access to customers for just £21 per month (including line rental) PlusNet's share price fell as low as 268p.
The company responded by immediately issuing a statement pointing out that its strategy had been designed to meet the challenges of a competitive and changing broadband environment and that as a consequence it 'remains unaffected by the Carphone Warehouse initiative'. PlusNet argued that it does not target the mass market. Its referral-based marketing strategy focuses on the experienced broadband user and it has never invested in high-cost, low-return advertising. As evidence of this, the company pointed to strong customer satisfaction ratings and an industry leading churn rate.
Meanwhile, house broker Bridgewell Securities issued a note stating that it believed the 25 per cent fall in share price represented an excellent buying opportunity. Bridgewell pointed out that PlusNet itself should be able to offer a combined line rental, voice and broadband package for around £25 to £30 per month. This would be competitive with Carphone Warehouse and, because of the company's reseller strategy, would not involve an investment in local loop unbundling.
Bridgewell believes that while Carphone Warehouse will target first-time users of broadband, as well as its existing voice customers, PlusNet's two per cent market share and its focus on educated broadband users mean it is relatively insulated from the "land grab" for new broadband customers.
Our view is that the entry of Carphone Warehouse has undoubtedly made the ISP sector more competitive, but that the fall in PlusNet's share price is overdone. Bridgewell's 450p price target is perhaps a little optimistic (at least in the short-to-medium term), but with the shares now trading at less than 14 times this year's expected earnings per share and just nine times 2007's forecast EPS, they should head up again in the near future.
Meanwhile, the UK's ISP sector now has enough players for a round of consolidation to occur. And PlusNet, particularly with the recent weakness in its share price, could become an acquisition target. Buy.|
|cockneyrebel: Over 300K today - that's higher than Friday - think there's still some funds buying this too in the background.
Look forward to Shares or IC tipping these later in the week imo.
40% earnings growth forecast for each of the next two years and that is likely to be surpassed imo.
PEG is just 0.48 which is pretty desireable.
I expect PNT to actually do better than 12p eps this year without doubt with the tie in with BT bearing fruit for them. By year end I'd expect 2006 forecast to be upped to more like 18p or more. If PNT share price stayed where it is then in 12 months the forward PE is likely to be 11 or so. That won't happen imo, the stock will re-rate over the course of the year so that these continue to trade on a forward PE of 20 or more for this sort of growth which means in 12 months time these will be somewhere in the range of £4, perhaps more if the funds keep piling in.
One bagger over 12 months - might even do somewhat better imo.
Plusnet share price data is direct from the London Stock Exchange