Brady Share Discussion Threads

[cyberian] 28/6/2007 16:58

20,000 bought 2p over the offered (68p)...that appears positive, and suggests no sellers with this new Chairman starting on 1st July. Expect some action fairly soon after he is fully on board is my take on things....he wants the share price north of 100p in short order and needs to get the business dynamics sorted. Company are under-performing against their potential and really need this new focus IMHO.

[muttleyrules] 27/6/2007 16:58

Just back from holiday and very encouraged to see new management investing in size in the business at 60p ... i don't care if 600k is not huge money for Fullagar - noone puts 600k into a business without thinking there is decent upside or conversely that there are obvious short-term downside risks. Would have thought his discussions with existing management points to strong contract pipeline, tentative approaches from other players at materially higher share price.

One perplexing issue is the lack of recent wins ... I'd have thought that they would still announce any v600 wins. We know that the pipeline is strong but conversion has been an issue in the past. With the focus on 2008 results (2007 are in the bag) those contracts may just take a bit longer to sign up but could be juicier in size given that 2007 targets have been met.

Either way I am happy to run this one for some time yet ... the impact of new management and envigorated sales staff has yet to be felt. On the other hand we know that the product sells and is the best in the market.

[felix99] 20/6/2007 12:29

you could give him options - more of a freebie. This way he has committed hard cash , you can reprice options but you can;t reprice the 60p he has paid if price falls

[magnerita] 20/6/2007 11:14

yep - £38k nominal value - good point, so company putting a decent LTIP in place.

i agree with the commitment of Fullagar and indeed there is probably no other way to give him the share exposure than the way proposed.

Still difficult to grasp what the full potential of this company as well as how successfull there global expansion might be.

[felix99] 20/6/2007 10:32

think you will find its £38k nominal value of 1p shares = 3.8m shares in total able to be allotted

[cyberian] 20/6/2007 10:04

This shows total commitment on the part of Fullagar, and interesting that they had to effect the placement the way they propose, rather than an existing insider or shareholder selling down. Buying in the market would therefore have created a short term spike, whereas I see this as very supportive of strong growth with his influence/confidence and expertise injecting a very much needed more dynamic style of management within Brady.

[magnerita] 20/6/2007 07:56

Interesting update today - but it does raise questions.

I got this from the update:

positive is...

- cash position of £5.5m following the £263k dividend payment in May is fine. Remember that cash was already £5.5m at the end of January. So £300k of cash generated in 4 months in which no large contracts were signed.

- The chairman was clearly interested to have exposure to the business given his £600k commitment.

unclear is...

- why are they raising this money? Yes - for working capital purposes, but it is not like Brady need the money. Especially given the cash pile.... The placing dilutes the current holders. It was probably hard to buy 1m shares in the market.
- Directors allotting relevant securities up to a value of £38k. This seems to be small beer, but what do they mean. Are they allotting far out of the money options, which have limited underlying value or are they just allotting very few options...
- The ratification of past option shcems suggests to me that Brady is trying to adopt its governance standards to today's norms/standards.


m.

[magnerita] 13/6/2007 07:44

Does anybody have a view on Mr Fullagar and what he could bring to Brady? A little surprised to see that Brady was also looking for a new Chairman, but perhaps i missed that earlier.

[davidosh] 09/6/2007 16:17

I am expecting an update in early July on completion of the half year....they certainly do a trading update in January every year and with no news at the AGM and the new FD in place I suspect they will decide July is appropriate once first half sales are known and completed.

[magnerita] 08/6/2007 09:41

Good that someone breaks the silence on this board...

I thought those march/april share price rises were run-ups in anticipation of the full year results and the AGM. Both did not lead to any new news following the January announcement.

i think it is probably a little early to expect a run up for the interims...

Someone was saying earlier that the new FD could at some stage confirm the guidance for the year, but why would he not wait until the interims to make his first statements?

Unless they have to announce some new contracts of course...

I think it could well be silent around Brady until August - hopefuly i prove to be wrong

[cocl2] 08/6/2007 09:31

I'm just looking for the upswing like what happened in the beginning of March and end of April.

[cyberian] 25/5/2007 14:19

Well I saw what happened and added at 55.5p quite early today(8.55am approx.)as I suspected MM's trying to stimulate some activity or a mild dump by someone. The share price has been very steady recently and personally expect to see some further management strengthening to move the product along at a faster pace and to be a little bit more dynamic. Just an opinion.... (ps...my trade shown as a sell and like a few of the others it is difficult to tell what the MM's were trying to achieve....still could be a largish "T" trade but after 9.30am the share price levels appear to undermine that possibility)

[wjccghcc] 25/5/2007 10:07

The fall was probably me selling 10k at 60p. No reflection on the company but I had a 50% profit in a few months and wanted to raise some cash in case the China bubble bursts. If that happens, illiquid low news stocks like BRY will suffer irrespective of the fundamentals IMHO.

[felix99] 25/5/2007 09:34

NMS is still 500.

You might be talking about the online trading limits. They were 25k either way first thing before it tanked. Suspect someone lobbed 25k and the delayed sell not yet shown

[cocl2] 25/5/2007 09:18

I had just withdrawn my dividend before I got this alert. When I went back into my trading account I could see that I had dropped a few thousand in notional profit and that was a bit of a shock. So, back into the account goes the dividend to prop the share price up. I'll never be able to buy that tropical island if people keep selling.
Also, did anyone notice that the NMS has gone from 500 to 25,000 or is that just a choice of my broker?

[hewhodares] 25/5/2007 09:09

No idea what is going on, has come back a bit, bad news? big sell?

[muttleyrules] 25/5/2007 08:47

Shares off 7p (11%) ... any story out there ... top up opportunity?

[muttleyrules] 22/5/2007 11:34

COCI2 ... i agree I wouldn't be over the moon to see BRY buy another company of similar scale given there much still to be exploited by focusing purely on v600 sales and building the existing sales capability across several geographies. I can see others attracted to BRY given the product quality and the lack of genuine competition in this space. A bigger player with stronger distribution channels could make BRY look a very cheap acquisition (before considering the growing cash pile) ...

[cocl2] 18/5/2007 23:42

Buying a similarly sized company would be dangerous. It could easily give them corporate indigestion and distract from what they are doing at the moment, which is play their own game and (apparently) play it well.
I can only see them merging if they feel that they can not let the competition buy Company X; if they feel that they need to customer base of Company X to see their products to; if they feel that they themselves might be subject to a hostile take over and want to grow by purchasing a different Company X; if they run out of potential buyers of their current products and want to buy a similar product range instead of developing one from scratch. None of those scenarios seem likely to me but surprises are not uncommon.

[muttleyrules] 16/5/2007 08:37

Good point Cyberian ... given that BRY's accounting is pretty conservative anyway I would imagine he is very unlikely to find anything nasty. A nicer start would clearly be to confirm guidance for 2007, announce a few more contracts make reference to optimism for 2008. They could also be reviewing M&A opportunities - BRY could easily buy a similar sized business but I could easily see it getting swallowed too. Either way the shares look well supported at current levels and the valuation is attractive.

[cyberian] 15/5/2007 21:53

New FD has got to review latest contracts (and probably have been some new ones) and impact on forecasts which he will attach his name to...so guess we should await an update from him which could be over the next few weeks. Also like you, sense that other moves/changes are afoot which could add a bit more action/vitality dare I say!?

[magnerita] 15/5/2007 10:32

2007 is very thin on newsflow so far... It is positive that the share price is so well supported, but i am slightly surprised that the rate of contract conversions has not been maintained.

Perhaps, the new organisational structure has more impact on the group's activities than thought.

Perhaps, there are other things going on. I still have doubts on Brady as an independent company.

[muttleyrules] 04/5/2007 08:16

I have heard that management said at the AGM that they were confident about meeting their broker's forecast. Suggests BRY is on c10x PE.

With new management on board, enhanced sales capability and a benign competitive environment BRY still looks like a good investment.

[muttleyrules] 03/5/2007 09:06

Any AGM attendees, please feed back any thoughts.