Tellings Golden Miller Share Discussion Threads

[m.t.glass] 07/11/2003 16:25

They certainly seem to have come to the market with a purpose.

[marvelman] 07/11/2003 14:28

Glassy
This is not a company that is going to lie down and wait for the world to pass it by.It is going to be a force to be reckoned with in my opinion.I have noticed there is a lot of momentum in the trades today and the dip was soon filled by the 29k buy which is a hell of a chunk of money for someone to invest in a small AIM listed company unless you know exactly what you are buying into.

[m.t.glass] 07/11/2003 10:52

TGM up 43% this past month. Impressive.
More than doubled in its first 3 months and looking strong.

[advisor] 30/10/2003 14:28

Get your dosh into 2 travel group (tlg)dyor.

[marvelman] 28/10/2003 11:54

Thanks guys.I think there is some great upside potential in this stock.It is aggressive and highly cash generative.In addition their market is regarded to be an important growth area by both government and Ken L. as the motor car is being penalised to the extent of being a luxury in our inner cities.TGM is doing everything right so far and I have recently topped up with another 2000 to add to may original modest 5000.I have to say when I look at my exposure on stocks such as EPE and ENU this stock gives me a warm secure feeling and I am currently very tempted after that bit of news to buy more - what do you think.

[mad mike] 28/10/2003 11:04

It was the Times, see the article below:-

October 25, 2003

Stock Markets

Smaller capitalistation shares - TGM, National Express, Xansa, BTG, Acambis
By NICK HASELL

TELLINGS Golden Miller (TGM), the London bus and coach operator, settled at its best level since its August flotation amid speculation of possible bid interest from National Express.

TGM, which made its AIM debut at 70p, has made no secret of its own acquisitive intent, having already expanded its London route network since flotation through the purchase of a Dartford coach operator. It now runs 17 routes in London and 20 for Surrey County Council, and is expected to tender aggressively for the 140-odd which come up for grabs in the capital every year.

However, it was TGM's role as a potential target rather than bidder that caught the imagination of investors yesterday, with National Express cited as a likely acquirer. They point out that the FTSE 250 bus operator is conspicuous among the "big five" for not having a presence in London.

However, National Express said last month that it would re-enter the capital after being encouraged by Transport for London to bid for routes to raise competition.

In that context, a move on TGM, up 9½p at 139½p, would give it instant critical mass against the rival Go-Ahead. But the fact that 72 per of TGM is held by directors means only an agreed bid would succeed. National Express fell 5¼p at 629¾p, with the FTSE 250 up 3.4 points at 5,634.1.

[m.t.glass] 28/10/2003 10:54

MMan - there were press hints that a national operator, lacking a strong presence in the s/east, may well be running the rule over TGM.

[marvelman] 24/10/2003 10:59

Some more significant movement on this share in the past 2 days.Has anyone heard any news.

[m.t.glass] 17/10/2003 14:51

You implying somebody leaked an IC tip? ;-o



Found this from today's IC on another BB:

105p - Aim - London and Home Counties bus operator Tellings Golden Miller runs 17 bus routes for Transport for London (TfL), and 20 routes in Surrey for Surrey County Council. And its most recent set of results for the six-months to June 2003 - before it floated on Aim in August - show the company trading well, with margins on the bus routes higher than analysts had expected, at 13 per cent.

There's scope for further margin improvement there, too. Research house Hardman & Co thinks that it is possible to run London buses at a margin of 20 per cent, and says that Tellings Golden Miller is by far the most efficient bus operator. With mayor Ken Livingstone pressing ahead with major improvements to London's bus services, there should be plenty of room for growth through the addition of new routes and contracts.

Tellings' contract to run route 235 in London was recently renewed for five years - and it now runs 19 buses on the route, as opposed to the previous 12. The increase equates to an additional £1.5m in sales. Further growth is likely with the integration of new acquisition Crystals, which will be renamed Tellings Golden Miller Dartford. New operations are also planned in north-west London through the company's Linkline subsidiary.

Even though profit forecasts for Tellings don't take into account the potential growth from new routes and contracts, analysts still predict that profits will increase to over £3m in 2004. Earnings growth will be less marked as Tellings starts to pay tax but, at a forecast 9.6p a share, the price-earnings (PE) ratio of 11 times remains undemanding.

Of course, the growth expected from the implementation of Mr Livingstone's plans may not materialise. In particular, if London's congestion charge fails to deliver the anticipated cash, then funding for improvements to London's bus services may come under threat. That is some time away though, and Tellings does not rely on London alone. It also operates buses in Surrey, where one new route - run with the help of a subsidy from Surrey County Council - runs across part of the county to Heathrow. So far, takings from the route have exceeded expectations by £2,500 a week.

Tellings also generates a profit margin of 8 per cent on a coach business that accounts for just over one-fifth of the £26.4m sales forecast for 2003. Hardman & Co reckons there is scope for these margins to improve to 9 per cent over the next year. That said, a drop in tourist numbers in the UK this year means that the business has struggled just to keep margins steady.

However, there has been strong growth on routes that don't depend on tourism, including one between Portsmouth and Perranporth in Cornwall.

Seasonally, the second half of the year is weaker than the first, so investors may have to look at next year's first-half results to get a real sense of where Tellings is going. But the momentum shown in sales is clear enough and, with £1.7m in the bank, further acquisitions are likely. Discussions with possible targets are already under way. Interest costs are covered more than six times by operating profits, so there is also room for more borrowing should the company set its sights on a larger deal. However, because the shares are so new to the market, the current net debt level is a company estimate, and an audited balance sheet, since listing, is not yet available.

A modest dividend is also planned at the end of the current year, but Tellings shares are far from becoming a yield stock. Their attraction is the undemanding PE ratio of 11, which doesn't reflect the potential for picking up new routes and contracts under the mayor of London's bus-friendly regime. Buy.

BULL POINTS
- Profitable and cash-generative
- Growing market in London
- Improving profit margins
- New routes performing well

BEAR POINTS
- Plans for London's transport system may not materialise
- Sluggish demand in coach division


PS: Glen - any chance of pasting company website link into your opening post? Always useful.

[marvelman] 17/10/2003 14:48

Thanks Glassy - I wondered why there has been such an upsurge in this stock over the past few days.

[m.t.glass] 17/10/2003 14:44

Yep I'm a TLG holder.

TGM a 'BUY' tip in this week's IC.

[advisor] 16/10/2003 15:07

Has anyone had a look at 2travel group (TLG)I'm a holder and would like
anyones comments on the company as I think (hope) they have a long
way to rise once the next set of results come out.

[marvelman] 15/10/2003 17:27

There has been some positive action on this share of the last couple of days and am now getting quite excited after a stint at watching paint dry.This is a company in the right place at the right time and if they continue to be agressive consolidators the only way must be up.Long live Ken Livingstone.

[divina] 23/9/2003 07:15

Good Results

[ze fuzzio] 21/8/2003 16:11

CHECK OUT TODAYS SHARES MAGAZINE

more acquisitions to come in the next few months as they got Crystals Coaches cheap and which has given them links to further routes

Peter Webb is backing this one for Unicorn VCT

[ze fuzzio] 20/8/2003 09:50

Dr Tom, I have my £1 wish but not ready to get out yet, this has a way to go yet and results are mid sept ... does anyone know exact date ?

[m.t.glass] 20/8/2003 08:34

This week's bus drivers are:
M.Schumacher
R.Barichello
JP.Montoya
R.Schu..

[m.t.glass] 19/8/2003 10:55

Bought 2500 this morning..

website
(no investor-related page yet though)

Market seems happy enough with the company's latest acquisition.

[ze fuzzio] 15/8/2003 16:49

nice to see someone else on this thread ... I got in early too, do you know exact date ?

any other info you have on TGM please share Dr

[dr tom] 15/8/2003 15:01

you did'nt get your wish of £1 then, results are in Sept sometime and your wish should come true, I like TGM and happy to have got in so early, I usually miss ops like this

[ze fuzzio] 15/8/2003 14:50

anyone know date of next results ?

[ze fuzzio] 05/8/2003 11:06

I see some very big blue in the future ... this could be at £1 today

[ze fuzzio] 04/8/2003 10:56

some action here ... finally

can safely say TGM is good to hold ... fund managers were fighting over this one prior to float