Safestyle Uk Share Discussion Threads

[buffetteer] 19/7/2016 10:28

I guess it helps that SFE are wholly focuses on replacement windows- they are not diverted by other businesses. The Ceo is v down to earth and on the ball. V trustworthy too .

[discodave4] 19/7/2016 10:18

ENTU down 25% on a profit warning, ouch. Glad SFE didn't get into solar panels!.DD

[imranawan] 19/7/2016 08:22

Cheers DiscoDave - that makes sense. SFE seem to be well run and managed. I had a quick look at the ENTU results this am, and the contrast between the 2 companies is light and day.

[discodave4] 19/7/2016 08:20

For last year compared to previous year it was +7%.

[imranawan] 19/7/2016 08:16

Hi Discodave - how did you work out order intake had increased three fold on a like-for like basis? I thought they said order intake had increased by 19% in this mornings RNS.

[discodave4] 19/7/2016 07:43

Excellent numbers yet again.Order intake has increased nearly three-fold on like for like. They are generating cash at a phenomenal rate, nearly double last year - nearly £8m in 6 months (whereby cash had increased by this amount over the entire FY15).Quick calcs eps about 21p for FY16, this is still undervalued on a PE of only 11, should be at least 315p. This excludes the planned expansion programme which will kick in H1 FY17.DDps Tintin, they only mention that Brexit has had no short term impact, they have no indication for the long term.

[tintin82] 19/7/2016 07:14

Superb! Brexit having no impact.

[discodave4] 13/7/2016 19:11

Dividends or buybacks:hTTp://www.investopedia.com/articles/active-trading/073015/dividend-versus-buyback-which-better.asphTTp://www.dividendmonk.com/dividends-vs-share-repurchases/hTTps://www.bloomberg.com/view/articles/2016-04-11/dividends-are-a-better-bet-than-share-buybackshTTp://www.baskinwealth.com/stop-paying-me-a-dividend-and-start-buying-back-shares/hTTp://www.dividend.com/dividend-education/dividends-vs-share-buybacks-its-a-no-brainer/One of the articles mentions that as a rule buybacks should only happen when the PE is less than the ROE (which makes sense). My only concern is that this doesn't always happen and that in a way buybacks are falsifying comparable earnings, like suddenly using EBITDA to derive eps. Can also see the benefits as well, guess it depends on the timing, the company, whether your a long or short term investor, tax, etc., etc. Tend to side with dividends at the moment, but will seek further guidance from the sage of Omaha!DD

[discodave4] 13/7/2016 17:24

Thanks Buffetteer.I do see what you mean I just can't see which is better for a shareholder, divi or buyback.I will read some more. Have already read bits on Next and Wolfsons reasoning as was in NXT for a while. To be honest never really saw them only buying back on "the dips". Likewise hold AHT who are doing a buyback and basically they only seem to be buying 100,000 shares every day irrespective of the share price until the allotted capital has been spent.Thanks again.DD

[buffetteer] 13/7/2016 16:58

Maybe it's best explained by saying that a buyback is only value enhancing ( for existing shareholders)if the company buy back shares for less than they are worth (in the event of sale let's say). Next , for example, who are regarded as arbiters of good corporate governance ,regularly buyback shares when they believe the shares are undervalued .this has the effect of increasing the value of the shares for the remaining shareholders who will benefit from higher earnings per share (fewer shares in total).
It's a good way of utilising excess cash if A. It can't be reinvested for higher returns internally and B. The shares are undervalued by the market.
Maybe read up on SIMON Wolfsons reasons for buybacks or warren Buffetts. Hope I haven't confused you too much .

[discodave4] 13/7/2016 16:31

Still don't follow.If they buyback say 5% of the issues shares, then the "perceived" value of the remaining shares should increase by 5%. Or they can have a div yield of 5% and shareholders receive cash or shares to that value, either way shareholders gain the same surely.If the market is undervaluing a business by 20% then buy the suckers and wait for a rerating :). It would only increase in value by 20% if the buyback was for 29% of the issued shares?.Thanks for taking the time to explain, perhaps I'm better off doing a bit of research on the subject to try and understand better.DD

[buffetteer] 13/7/2016 14:56

If you can buy 100p of value for 90p then it's building the per share worth for the shareholder whereas paying a divi is simply paying a percentage out.
Or put another way if a businesses true value is say 12x earnings but the shares are trading on 10x then with excess cash it's worth buying them in thereby enhancing shareholders worth by 20%.

[discodave4] 13/7/2016 14:20

BuffetterNot so certain I understand, why is a share buyback better for shareholders than a dividend? - are they not both equally beneficial albeit in different ways?Thanks, just trying to learn more.DD

[buffetteer] 13/7/2016 10:29

Mr THOMAS
SFE mainly owned by income funds this the high payout ratio . I asked them to buy back shares last year when they were under200p but the Chairman thought it was better to pay it out . He was wrong because he would have added discounted value to the shareholders . He is of course only a non exec with a tiny holding so not acting in the interests of shareholders for long term value .

[mrthomas] 13/7/2016 10:15

Agreed nice dividend wonder if they ever consider going private given no debt etc hope trading holds up as that mean a nice div net year

[pyglet] 12/7/2016 09:50

Not sure why this is falling - it should be rising with the house builders recovery. STRONG BUY IMHO

[tintin82] 11/7/2016 16:49

Agreed, nice to see the bounce, and the divi land. Today was certainly a very blue day, probably the best in months, but small comfort after the beating that Brexit did to my portfolio. IMO bright future ahead, both for sfe and uk in general.

[imranawan] 11/7/2016 14:24

Agreed nice to see SFE bounce back a little. My largest holding by some way, and I received the dividend today - so happy days. Hopefully the share price can kick on from here.

[discodave4] 11/7/2016 14:19

At last some signs of life!DD

[tintin82] 11/7/2016 08:17

Hefty dividend to be paid today. Would expect many will plough this straight back in today. Suprised the price is hovering at this level, clearly concerns with consumer confidence post Brexit. Not concerned though, such a stellar cash machine with bundles of growth opportunities still to come. If anything a top up opp, my 230 top up not looking to clever, but dont think many expected the ref to go how it did. Confident for the future

[shakeypremis] 30/6/2016 01:50

Has to some value to be had here at these prices.

[mrthomas] 25/6/2016 13:58

i hold EZJ at a loss am not sure it a good buy think may be others worth a look at

[imranawan] 24/6/2016 15:24

Thanks for your thoughts Buffetteer and all valid points. I've held for now, should have pressed the buy button at 224p this am. Already hold a fair chunk so am happy with the current holding. Will look to add on any weakness. SFE looks well managed compared to others in the sector.

[buffetteer] 24/6/2016 15:00

Imran
SFE could suffer from reduced customer demand if they put off the purchase due to all the negative press - uncertainty . If inflation rises which could increase interest rates it might affect their lending rates . On the other side it's good value cash generative makes an excellent Roce so probably worth buying. I sold s chunk at 276p and am tempted to. It back but will sit on the fence for now . Do t think thres Amy rush until new PM is announced nearer October.