Sdl Share Discussion Threads

[johnroger] 02/3/2010 17:53

Independent
Investment Column: SDL shares are a winner in any language

Edited by Alistair Dawber
Tuesday, 2 March 2010
Our view: Buy
Share price: 463p (+9p)

Extraordinaire! Sehr gut! Excelente! Mumtaz! Whichever language you choose, yesterday's full-year results from the translation software group SDL were pretty impressive.


The company said that pre-tax profits jumped by 21 per cent to a touch over £24m, helped by contracts with a host of new customers, including Continental Airlines and the UN.

For investors, news that a dividend is on its way, albeit giving a yield of just 1 per cent, should be cheered, as should the chief executive Mark Lancaster's assessment that he is "bullish" about the year ahead.

What was perhaps not communicated quite so well by the group was that 2009 revenues fell by 8 per cent, on a constant currency basis. Nonetheless, there was plenty of good news and plenty of support among the analysts who advised investors to form an orderly queue to buy the stock.

Those at Piper Jaffray argued that "SDL's Global Information Management vision continues to gather momentum and these strong 2009 results are an early sign that SDL will, as expected, be a key beneficiary of an improving macro environment. We retain our overweight rating, and deferred cashflow-based target of 505p ... The confirmation of a first dividend for 2010 is another positive for the stock."

Whether investors speak Japanese or double-Dutch, there are few reasons not to buy the shares. The stock has put on an impressive 57 per cent in the last 12 months, and even though yesterday's feeble gains indicate that much of the good news is already priced into the shares, we would expect a jump from the stock in the coming months as conditions improve.

There seem to be few risks beyond the macroeconomic climate, which can affect any company. Buy.

[wilmdav] 09/2/2010 22:29

Today's falling knife is MCRO but I suspect that is a bit of nervousness before results on Friday.

My expectation also. I topped up on them yesterday (476p) and DPH on Friday at 465p.

[essentialinvestor] 09/2/2010 19:38

shuisky, great call - respect.

[shuisky] 09/2/2010 16:09

David,

No worries, I just hope however was selling will learn from the experience. Hastily banging them out at 403p yesterday and today he can get 427! Today's falling knife is MCRO but I suspect that is a bit of nervousness before results on Friday. I expect the results to be good.

[wilmdav] 09/2/2010 12:29

shuisky

Thanks for the helpful comments. I picked up a few more this morning at 418p on the assumption that the dump might have ended on Monday. So far, looking good.

[shuisky] 08/2/2010 15:56

EI,

Read above.

I'm looking at Level 2 and there is some idiot who is consistently on the offer at a tiny bit over the bid, and a long way from the next offer price. He is about 4-5% away from the next offer. Someone is desperately dumping this stock, and not doing a very good job of it either!

When he is cleared out than I suspect we will bounce back. He's dumping around the 403p mark, so buyers will be getting a very good entry point here.

Look out for some more dumping in the last 10 minutes.

[essentialinvestor] 08/2/2010 15:49

What the hell is causing this??

Not holding, and having just congratulated the longs here as well.

Surley this can not just be the result of index changes?.

[shuisky] 08/2/2010 15:44

Here we go again. I don't think this has anything at all to do with index changes. There is clearly some clown trying to desperately off-load a position. I suspect it is to meet a margin call, because I really can't fathom why he'she would be forced to dump at these prices for any other reason.

[flyfisher] 05/2/2010 19:15

typo, thanks for both your explanations.

[typo56] 05/2/2010 16:42

shuisky, read above. It's due to fund reweighting on index change. Probably bounce Monday.

[shuisky] 05/2/2010 16:18

FFS This is absolutely ridiculous. How idiotic can some people be? Yes the market is weak today. But sterlings decline will drop into increased profitabily to SDL, so the reaction is to mark the stock down???

It's nonsensical. Sterlings decline is GOOD news for SDL.

[typo56] 03/2/2010 17:20

CDBY leaves the FTSE on Friday and SDL is top of the FTSE250 reserve list.

[flyfisher] 03/2/2010 17:06

typo, i thought the next review was in march, where does your info come from.

thanks f/f

[typo56] 03/2/2010 16:45

Yes, SDL enters the FTSE250 on Monday (8th Feb).

[flyfisher] 03/2/2010 08:51

the next ftse 250 index review is in early march , sdl was on the reserve list at the last review in december and at current market cap it looks like it will be promoted to the index list.

[essentialinvestor] 27/1/2010 12:33

Got to congratulate the Bulls here, what a bargin the mid December 2009 price now looks.

[johnroger] 20/1/2010 10:02

UK-Analyst comment

After 18th January's trading statement from software firm SDL (SDL), Canaccord Adams reiterated its 'buy' stance and increased its target price for the shares from 380p to 560p. It noted that the company remains cautious on the outlook for 2010, with automotive and heavy engineering giving cause for concern, but added that a macro recovery would lead to further upgrades for SDL, with the company needing to increase headcount "by just 30% to service a 100% increase in sales".

Canaccord also commented favourably on the acquisition of Fredhopper, which offers targeting and marketing for online retail, as the Web Content Management business has "registered good momentum of late" and is seeking to expand its portfolio. SDL shares climbed by 4.75p to 457p.

[arja] 17/1/2010 15:55

no, but a lovely chart and NOR situation after the consolidation .

[lancasterbomber] 15/1/2010 19:01

Anyone know any reason for sudden rise?

[phillis] 16/12/2009 11:01

actually it is RWS

[johnroger] 15/12/2009 14:06

UK Analyst comment

Panmure Gordon said that information management provider SDL (SDL) should benefit from good final results from RWL, a patent services firm and a user of SDL's products. The broker commented that SDL had grown market share "in all divisions" in 2009. More business product outsourcing (BPO) deals are being done, with HP, Dell and Canon numbered among the firm's customers. SDL is also seeing year-on-year profits and revenues ahead of expectations as well as an "improving" backlog.

Translation Services saw the impact of the recession but have been "stable with some recent improvement in back order pattern". Both this division and Global Information Management also won new contracts and had positive cash flow. The stance was held at 'buy' with a target price of 446p. The shares fell by 4.5p to 371p.

[angler] 02/12/2009 20:04

Maybe a fall to 350, but the bounce-back to trend will make tomorrows buyers very happy. Perhaps, by Christmas?

[phillis] 06/11/2009 08:32

looks like the 100k buy yesterday created a bit of a shortage

[investinggarden] 29/10/2009 14:22

Hold recommendation from Growth Company Investor