1pm Share Discussion Threads

[holiday6] 27/6/2017 16:06

Share price in some kind of freefall. Accepting the concern over management's apparent disregard for shareholders, this is probably getting close to representing some value - and could be great value if we could see a positive statement. Meanwhile I wonder what the atmosphere is in board meetings between Chairman, CEO & Ron Russell...

[owenski] 22/6/2017 21:23

Trouble with this is, CEO is on the acquisition trail and if they're going to discount and dilute every time then there's no way of being comfortable with ones holding. What's the next fund raise going to be priced at?
Gone off a cliff a bit here

[shanklin] 22/6/2017 11:35

Why would one want to take the risk of being long here? I used to think OPM under its former management was very much run with shareholders in mind. It will take a lot to convince me that that is now the case.

[thetoonarmy2] 22/6/2017 11:29

drop on price hope news isn't leaking about another placing!

[p1nkfish] 14/6/2017 17:35

Agreed tta2, might have to wait a while.

[thetoonarmy2] 08/6/2017 09:33

You know definition of a longterm investment is usually a shorterm one gone wrong:)

[gdjs100] 07/6/2017 21:45

Just did a bit of maths - 52% of the basic entitlement was taken up. Haven't drawn any conclusions yet!

[p1nkfish] 26/5/2017 20:03

I've voted for all resolutions, taken basic offering and applied for any excess to maintain my % holding given the new float after the offering.

If it drops below offer price will probably look to add.

Each to their own process. Prepared to hold for 3-5 and I think there is more going on here than we will know.

[thetoonarmy2] 26/5/2017 15:22

Look out for another placing quite soon as I'm sure Ed Rimmer will be wanting to grow the Factoring book quickly,it cant be done organically at the moment too many players chasing an ever tighter and dwindling market and to be honest the only way to grow your book is by acquisition at the moment, especially when you have idiots at the likes of RBS doing business at ridiculous fixed price rates (another bloodbath for the mugs coming) they cannot give any service or make money on these deals.

Rimmer comes from Bibby who get close to its clients and give a reasonable service obviously more (Volkswagens on the road so more crashes) but in general a good service provider, so I think he will be bringing that ethos to 1pm in that its not about doing cheap deals but adding value to customers and he will be well schooled in that and I think he will follow that style.

As for another placing I can see it they will need cash to buy the equity out of any purchase, they can finance any of the debt/invoice loan books anywhere plenty of back to back lenders in the market but its the existing owners who will want the cash up front for the business, I'm sure no one would be stupid enough to take shares or a deferred consideration package no cash up front I think.

Usually I have a punt in these markets have done well over the years but I wont be rushing to buy shares at the moment, I can see the price since the placing is being massaged up so they can get another placing away unfortunately its the way the markets work maybe in a few months have a look again but I will keep this on my watch list.

[scbscb] 26/5/2017 14:30

Simon Thompson seems to see everything with rose tinted glasses, and glosses over bad news. I reckon this placing is bad for existing shareholders, and good for the directors how can load up on discounted shares and pay themselves a lot more with a new incentive plan. All shareholders should vote against all four resolutions at the general meeting on June 7. I contacted Selftrade and they e-mailed a form to enter my voting instructions and they did charge for this. I don't normally bother to vote at meetings because of the aggro in voting when shares are held in nominee accounts. However I was pleasantly surprised at how efficient and easy it was to vote using Selftrade. So I would urge all holders to vote against all four resolutions,

[b3842517] 25/5/2017 20:57

I bought in this morning. It's not without risk, but the price is compelling and even with the dilution, EPS has grown every year and is forecast to continue to do so strongly.

[p1nkfish] 25/5/2017 20:43

I am expecting a take out in the fullness of time.

Something along the lines of what happened to Inspired Capital when Bentley took it off market. Can be cash generative under a private umbrella.

[brownie69] 25/5/2017 18:51

I had a small holding and have doubled down here. Cheap on fundamentals.

I think the conspiracy theorists about management growing the company for their benefit rather than shareholders have got it wrong. The bigger danger here in my opinion is that it will attract an opportunistic bid. 65p bid at the moment would get accepted IMHO and thats only a PE of 12.

DYOR etc.

[p1nkfish] 23/5/2017 17:50

Liquidity is available, it won't be so soon.
They are just taking advantage.
Slowdown is on the cards as narrow money has been tightening.
If they miss this chance they'll have to wait a while for another.
Factoring? We don't know the bigger plan.
I suspect there is more to this than immediately meets the eye.

[mustergreen3991] 23/5/2017 16:37

The factoring market is both competitive and mature. Gener8 is a well run factoring company but I do not see major growth with so many players in the market. Edward Rimmer the MD of the factoring division is very experienced and from Bibby a major player. They mention cross selling which can be quite risky as you are lending against debtors and assets and can therefore be over exposed when things go wrong. I understand that they are looking to buy another factoring company. I will be looking at the purchase closely.

The fall in share price indicates lack of excitement in the move into a new sector.

[paleje] 23/5/2017 15:41

Simon Thompson tipped them today says at 51p are oversold on PE:8, he never touches much on fund raises though, tends to stay away from criticism on that score but of course it's important to existing investors, why put money in if management are prepared to dilute so steeply.

I just listened to an interview with Paul Welch of SDX, they raised at a significant discount a few months back but the share price recovered to almost double within a month and today he said clearly no more raises unless they are immediately accretive and offer value to existing holders. That I like.

[owenski] 19/5/2017 09:43

The company is profitable and growing organically. In principal it's an attractive company. The problem is the CEO - who I think is a competent man who knows his business - has stated they are on an acquisition trail and because this creates uncertainty with regards to forward funding, the share price has gone nowhere for 3 years and is currently back below 50p, which is very weak.

So far they have raised funds at 60p and now at 45p - which is a significant discount to the previous trading days let alone to the previous fund raise, the question obviously is, what will the next fund raise be pitched at.

Be worth looking at when they end the buying spree, the current discounted fund raise also suggests the market is pricing in higher risk here and this should not be ignored by any PI. If and when they need to raise funds again - likely - the risk is not likely to be priced at any improvement.

Unfortunately it's an avoid for me until the dilution issue has clarity, I used to really like the company but I made my money here when Maria Lewis was CEO and now just keep it on my watch list.

Regards

[p1nkfish] 18/5/2017 22:17

Three things you can do.

1) sit it out, or,
2) sell, or,
3) take part if fortunate enough to have the necessary capital available.

It's done.

Ultimately it could be very rewarding.

I made a good return on Inspired Capital and very much hope to do the same here. Give it 3-5 years.

[scbscb] 18/5/2017 17:51

Looks like the directors are empire building with no thought for improving profits or shareholder returns. Obviously they have been egged on by their advisors – who are just thinking of their fat fees. For the directors the bigger the company the bigger their pay whether the company makes a return for shareholders or even makes a profits is not really a consideration. This is the classic agency problem where on paper the directors work for the owners of a company, however because the shareholders are diverse the shareholders have no power to sack the directors. These directors should be dismissed for destroying value on an epic scale.
Another problem is that most private investors have their shares in nominee accounts so it is difficult to vote and attend company meetings. Of course this was decided by the liberal establishment to give even more power to the elite directors.
All shareholders should make sure that they vote against this empire building take over. The fact that the share have today dropped 13% shows how value destroying this purchase is. The announcement gives no details of the purchase and I cannot find the details on OPM’s website.
As evidence of the directors greed the Remuneration Committee has undertaken a review of the Company's existing executive incentives to ensure that they are aligned with 1pm's commercial strategy and the interests of Shareholders. If this was the case then the directors pay will be reduced because of this value destruction.
While there has been a bull market fuelled by quantitative easing and central banks creating money like there is no tomorrow OPM has fallen from its high of around 76p in June 2014 to 48p now. Will the directors pay be aligned with this?
I would even vote for that communist fruit cake Corbyn if he would root out incompetent directors that are paid too much and put them against a wall a shoot them. The £8m that the CEO for HSBC got so much is ludicrous, but they set their own pay. Okay rant over.

[scbscb] 18/5/2017 17:50

Looks like the directors are empire building with no thought for improving profits or shareholder returns. Obviously they have been egged on by their advisors – who are just thinking of their fat fees. For the directors the bigger the company the bigger their pay whether the company makes a return for shareholders or even makes a profits is not really a consideration. This is the classic agency problem where on paper the directors work for the owners of a company, however because the shareholders are diverse the shareholders have no power to sack the directors. These directors should be dismissed for destroying value on an epic scale.
Another problem is that most private investors have their shares in nominee accounts so it is difficult to vote and attend company meetings. Of course this was decided by the liberal establishment to give even more power to the elite directors.
All shareholders should make sure that they vote against this empire building take over. The fact that the share have today dropped 13% shows how value destroying this purchase is. The announcement gives no details of the purchase and I cannot find the details on OPM’s website.
As evidence of the directors greed the Remuneration Committee has undertaken a review of the Company's existing executive incentives to ensure that they are aligned with 1pm's commercial strategy and the interests of Shareholders. If this was the case then the directors pay will be reduced because of this value destruction.
While there has been a bull market fuelled by quantitative easing and central banks creating money like there is no tomorrow OPM has fallen from its high of around 76p in June 2014 to 48p now. Will the directors pay be aligned with this?
I would even vote for that communist fruit cake Corbyn if he would root out incompetent directors that are paid too much and put them against a wall a shoot them. The £8m that the CEO for HSBC got so much is ludicrous, but they set their own pay. Okay rant over.

[maiken] 18/5/2017 11:35

hi Glasshalfull,any idea about Cenkos new forecasts?

[shanklin] 18/5/2017 10:07

It would now take a great deal for me to believe that management have any interest in building value for shareholders. On that front,IMHO, they have been deliberately and actively destroying value for at least the last 21 months.

[b3842517] 18/5/2017 09:54

This has come on to my radar in the last few weeks, and while I have every sympathy for holders, it does strike me that the current price offers a very good entry point for a long term hold.

I don't know what the catalyst would be for a re-rating, but if management had a good couple of years with no further dilution and back to strong organic growth, this would be a great start.