Research Now Share Discussion Threads

[opportunity] 05/5/2008 22:45

Well it looks like the market research arena is starting to wake up. The big boys are trying to regroup with offers from WPP for TNS, whilst TNS wants to marry GfK. It is also rumoured that nielsen maybe proposing a merger with GfK.

All the big boys are trying to head off the new internet upstarts by merging and hopefully stripping out their inefficient oveheads.

Why don't they acknowledge that their existing businesses will never emulate the success of the rnow and yougov type companies by themselves - their management teams do not have the imagination, otherwise their companies would not be in the position they are in now.

The best way forward is to takeover these small companies and shoe horn their client services operations in these efficient data capture businesses.

[hew] 30/4/2008 18:13

I'm heartened by today's statement but I don't expect too much of a share price rise in the near term.

IMHO "Recoveries" usually have to be founded on actual results rather than the anticipation that is often acceptable prior to some problem occurring. (Hard to find a suitable word for this case.)

Also of course, SPs on AIM, and generally, are suffering from the economic gloom.

So whilst RNOW's operating margins, market penetration and overall financial situation are all improving rapidly, I expect only a gentle share price rise until at least after the Interims come out. If the bright outlook is maintained I then see a substantial rise over the rest of the year.

I do see that today's news is likely to set a floor at the current level, and also we may get some positive news coverage and even tips as a result. I will not be surprised if Inv Chron revisits its comment of 29th Jan. I've put my own note of that below. (No guarantee of accuracy - check the original!)

Of course I will be pleased to be absolutely wrong!
__________________________
29/1/08 InvChron: Good Value longer term at 258p; after de-rating due problems, '08 p/e of 14 is discount to rivals e.g. Toluna - too harsh given impressive growth profile. Adj profits +79% and impressive rev growth; overtaken rival to be European leader; online data collection market seen as $3bn+ and growing. Panellists doubled to 2m. House Canaccord Adams forecasts "headline eps": '08 18.75p(13.75p), '09 27.87p.

[opportunity] 30/4/2008 12:03

Don't these results indicate a p/e ratio of around 10?

[dosser2] 30/4/2008 08:27

me too! well done

[nurdin] 30/4/2008 07:48

Excellent trading statement..hope to see the share price capture previous heights now

[dosser2] 29/4/2008 11:12

Lets hope so

[opportunity] 29/4/2008 10:28

Looks like the traditional players are feeling the squeeze from market conditions and these new players. Taylor Nelson Sofres(TNS) are in talks with GfK.

Hopefully it will only be a matter of time before it spills over to youGov and Research Now :)

[opportunity] 26/3/2008 22:05

I guess it is simply a matter of supply & demand.

The past appetite for these shares is the same as before but with the recent increase in shares to pay for acquisitions, the supply/demand gap is smaller (more balanced).

Interesting to see that WPP's research international division acquired a market research business in China.

Rnow is building its own panels in China, India, and the rest of Asia. WPP's move has potentially removed the premium associated with buying in panels, although this is not necessarily the case. WPP prefers to centralise the data collection, and leave the client facing market research work to the individual brands such as RI, BMRB, Millward Brown etc...

We only need to look at YouGov & Rnow, Toluna to see both the growth in demand for market research and the stealing of market share from slower more expensive incumbents in the sector.

I see two options; the first rapid organic growth - which we are seeing or second, a takeover. Last year I was very bullish about a takeover, but now I see option 1 as the most likely outcome.

[dosser2] 26/3/2008 15:42

Market Research firm Research Now said it remains confident that it is well positioned to deliver profitable growth in the year ahead.

It has had a positive start to the financial year with all our markets performing strongly, it said

Price hasnt moved much after positive stuff

[dosser2] 17/3/2008 11:47

As`good as any

[opportunity] 15/3/2008 22:24

Hew, perhaps your last assertion is worth exploring a bit further.

I rate Runnicles' past experience, but both rnow and himself have a considerable amount to gain from each other. RNOW gains his financial expertise gathered from the financial discipline of WPP. Whereas Runnicles gains by having the title of FD of a fast growing listed stock on his CV. A fantastic cornerstone to build upon at such an early age.

Both parties will be aware of these factors, so what else could explain such generosity on behalf of the shareholders?

One idea could be that it is the equivalent of poison pill for just one member so that all directors are on a similar footing, if not the same level. Nothing could be worse than leave a company and then find that they or another listed plc has just bought your company. Bang goes FD role of listed company, straight back to divisional director posting. Not an ideal career move, so partially compensated by a reasonable capital gain :)

Anyone else have any other theories or ideas?

I could be wrong but I don't think the management of this company are that stupid to give away significant funds without good reason. They are entrepreneurs at heart and like to get value for money.

[hew] 14/3/2008 16:19

I agree that Runnicles' Options do appear remarkably generous. A static share price will give him over £250K in 3 years. It also seems relatively unusual to grant options at the nominal price of the share and my first thought was of an error in the RNS text.

I'm away from my "office" at present and can't check whether his salary has yet been revealed.

Most optimistically, it is possible that after about a 6 month probationary period, and in the context of the previous events, the Board sees his performance as such an asset that they want to lock him in and are confident that he will work wonders!

[markie7] 14/3/2008 11:17

wonder what eps criteria are. or whether it is on TSR

shockingly large though, and shows the underlying attitude. not good. off my watch list now following that.

[opportunity] 14/3/2008 10:42

Well, with an exercise price of £0.02, not much incentive to take the share price from £2.70 to £4.00. Even if it falls to £1.50, it will still generate a healthy gain - all the FD has to do is just to ensure the business keeps operating until 2010

It is this type of incentive structure that ruins companies.

[nessie] 07/3/2008 09:38

Missed that mini surge yesterday. Anything happen?!

[dosser2] 06/3/2008 14:15

Here we go!!

[pre] 04/3/2008 08:54

lull before news perhaps?

[dosser2] 29/2/2008 15:35

no large buys today

[pre] 28/2/2008 15:48

wonder if we'll get the large buyer snapping up more shares before mkt close:-)

[dosullivan] 27/2/2008 22:34

Same when price goes down too, some people seem to know good/bad news in advance!

[pre] 27/2/2008 20:07

well what's really interesting is that there was 2 significant buys this afternoon - 118,000 & 100,000 shares purchased...this looks set to motor from here - wouldn't surprise me if we get some positive news shortly, dyor;-))

[nessie] 27/2/2008 15:27

Up we go again. I knew I should've bought at 247p... Darn!!

[hew] 26/2/2008 15:24

Prompted by rise to check my recent notes - extracts:

28 Jan Results to October 2007:
- all units performing well.
- new year started strongly; well positioned for profitable growth
- projects in hand to capitalise on global scale and increase profits
- client feedback scores all high
- OpenVenue successful integration and performing in line
- all market segments growing and building business

29 Jan Inv. Chron.:
- Good Value longer term at 258p
- '08 p/e of 14 a discount to rivals e.g. Toluna; de-rating after problems too harsh given impressive growth profile
- overtaken rival to be European leader
- online data collection market seen as $3bn+ and growing

3 Feb Sun. Tel. Questor:
- Buy @247p
- Rev £25.8m vs.YouGov only £14.3m; fall from peak overdone

9 Feb Announcement:
- New Asia/Pac Ops Director to launch Asia panels in 2008
- New UK Commercial Director ex-AA Director Sales