Begbies Traynor Share Discussion Threads

[thepinkpanther] 14/7/2009 12:14

in theory there cant be more buys than sells!

[goldenshare888] 14/7/2009 10:05

This seems stuck in reverse gear,i am out.......

[spaceparallax] 14/7/2009 09:45

RPM,

I do think that the debt is manageable, although I suspect that BEG did not originally anticipate the impact in their corporate finance division. I do recall originally being surprised by the rate at which they were snapping up smaller practises, although with the way the economy has gone they are being kept busy.

Whilst in current Mkt terms the PER is not cheap, it is perfectly reasonable for a business with a strong workload. I'm hopeful that they will, through group efficiencies and synergies, begin to eat into the debt gradually. The current share price reaction doesn't make sense to me and I'd be surprised if we don't see support around the previous recent mid 80s level.

[juju43] 14/7/2009 09:37

fall doesnt make sense and more buys than sells yesterday and today. i will look to add .

[rastapastamasta] 14/7/2009 09:01

spaceparallax
Agreed. The problem here is understanding the debt.
As I see it, the company borrowed heavily to buy up other insolvency practices. (Potentially a sound reason for indebtedness)
How much extra business this should have generated is not clear. How much more efficiency through synergies is not clear. What are the plans to pay off the debt?
Remember, this stage of the economic cycle is an ideal situation for BEG, and they are focussing all their activities on insolvency. What happens to the company (and their debt) when insolvencies start decreasing?
Do you think the debt is manageable in the short to mid term?
rpm

[gogoneko] 13/7/2009 21:38

I'm not following here that closely, but part of their results were poor which is likely to have hit confidence despite the strength of the insolvency division.

The tax division had problems and management even said that performance in the second half of the year fell below expectations. The corporate finance division equally turned in a bad set of numbers. I'm not surprised some investors are selling and waiting until the next set of numbers to indicate that they've got everything under control.

[tilmanstone] 13/7/2009 20:36

One wonders what would have happened if their results had been poor. It would be interesting to know what their house brokers are suggesting to their clients... Its dropped 25% since May for goodness sake, doesn't anyone rate this a buy at these levels? Difficult to find where support levels are if we go too much lower.

[sprattyken] 13/7/2009 16:22

Pass. Ask me one on sport.

[juju43] 13/7/2009 15:42

oh dear . my timing not too good here .back at last years low .... double bottom ?

[investinggarden] 13/7/2009 13:32

Buy/Hold recommendation from Growth Company Investor

[spaceparallax] 13/7/2009 10:25

Many companies are burdened with debt. Providing that there are sound reasons behind the debt and that it is manageable now and in the medium term then indebtedness need not be a problem.

[rastapastamasta] 13/7/2009 07:59

Despite business being up, this company seems burdened by debt.
How low can this go?
rpm

[juju43] 12/7/2009 20:50

left a gap 155-160 on the way down. i am banking on that being filled

[juju43] 12/7/2009 08:58

dont think you will get it .this is real growth in an approaching boom for such business - hard to find in todays market

[melody9999] 12/7/2009 08:53

Attracted my interest but its still not cheap I am afraid.

We have a growth of 30% ish and PE of 17.5 There are other companies out there with similar growth and single figure PE. In this market I'm looking for 60p to attract me in.

[spaceparallax] 10/7/2009 14:28

Me too, but I don't like the recent sharp dip, which to me seems bonkers. The problem we face is if we retest the 80s as a year or so ago.

[shampers] 10/7/2009 14:06

Like you tilman, and I'm still holding.All the fundamentals still hold and even the corporate side will kick in eventually.Plus business failures will ramp for the forseeable future.My belief is that it cannot be worth nearly £2 last Summer and only be worth less than half that now.I am a net buyer.

[thepinkpanther] 10/7/2009 12:32

this years low has been broken to the downside.........

[juju43] 10/7/2009 11:21

tilman
it has been a disaster but its right back at the bottom . i bought around here and mad3e a quick 60% . i see no reason it cant do the same again

[tilmanstone] 10/7/2009 10:10

I know it's a cliche but trend really is your friend in this game and the trend on this share is only going in one direction. Lord knows what would have happened had they posted poor results!! FSL should be updating this week-end : I'll be interested to see what they say

[juju43] 10/7/2009 08:50

FSL have had and continue to have this as a buy based on all the stuff you would expect them to say . results were better than expected. i bought yesterday

[sprattyken] 10/7/2009 08:45

My own experience is that the economy has had a few bouts of steroids - interest rates slashed, tax cuts, and a real focus on keeping things afloat.

But people are losing their jobs, demand feels weak (I had a lunch meeting in a hotel this week, and I think we were the only diners.....), and I know that lots of businesses are struggling. I think the steroids are going to wear off and then public sector cuts will really start hurting.

This still seems like a good long term play, but I was hoping for a spike ahead of the results. Now sat on a loss, and wondering whether to hold.

[spaceparallax] 09/7/2009 12:47

Results look better than I'd anticipated - I suppose the lukewarm Mkt response is simply down to the much reduced acceptable PERs in the market in general.

[tilmanstone] 09/7/2009 09:53

Juju : I agree: never pays to rush: But look at the chart!! The city just doesn't seem to like this much... maybe sentiment will change but if you're a holder from £1.50+ your patience would be wearing thin by now. I only have a small holding and a small loss but I'll sit it out for a few more months... Good luck