Chime Comms. Share Discussion Threads

[qs9] 03/9/2009 07:17

CR have you seen the new broker notes? Wouldn't be surprised to see upgrades in due course depending on the economy of course, but it has held up very well at these levels despite the market coming off which IMO bodes well.

[cockneyrebel] 29/8/2009 12:14

* Rumours of Chime Communications bid for Essentially Group



It's the Express so take it with a pinch of salt, but if they do put some of that cash to use that's only making 1% on deposit it's going to be pretty earnings enhancing :-)

CR

[gswredland] 29/8/2009 06:48

Agree, no way i am selling.

[cockneyrebel] 28/8/2009 17:51

I'll be disappointed if it takes to Dec to get to £2.

The trades recently are very large - that's someon taking all they can get off of stale holders imo - should mean there isn't a lot of sellers left in size imo.

Also, we are right at the start of a new business cycle and these are very cyclical. These might be trading on a PE of 8 at the moment but as we start to move into the business cycle they will re-rate to a higher PE as well as growing earnings.

Investors start to look to next years earnings now. Charles Stanley have just upped CHW eps for this year to 22.5p and 23p for next year. Wha that's not accounting for is next year we have the Election and the World Cup among other events that are big earnings drivers for CHW.

23p looks a light forecast to me but that's still just a fwd PE of 7.7. To be honest these should trade on a PE of 15+ as the cycle starts to pick up.

Definitely not selling any of these at this stage in the cycle.

CR

[gswredland] 28/8/2009 15:53

Very nice ..these are still undervalued i feel. 200 by the end of this year should EASILY be achievable imo

[crawford] 28/8/2009 15:47

Steady rise.

[cockneyrebel] 28/8/2009 14:19

Seen the buying?

These are going to fly away again soon imo.

CR

[cockneyrebel] 28/8/2009 11:48

Someone has been picking up huge amounts here recently - looks like they've seen their supply drying up now tho, no more sellers at this price - reckon they will have to start moving the price up now to get more.

CR

[tom111] 28/8/2009 10:14

Just a mention HNT are coming good after results

[cockneyrebel] 27/8/2009 11:53

Big volume the past two days, there's a buyer for every sell going in big size.

CR

[cockneyrebel] 26/8/2009 10:38

:-)

Have you seen WPP's results?

CHW are knocking spots of WPP.

CHW = PE way way lower and £18m net cash and growing sales and profits in a recession. Someone is sucking up every sell going today - these are going way over £2 imo.

CR

[arfi] 26/8/2009 09:23

Ever so slightly embarrassed to admit to my early morning choice of reading material, but this even had a spot in the business section of the Metro this morning

[cockneyrebel] 25/8/2009 20:05

Chart actually says 200p+ coming here to me, over the short term imo. 215p is resistance.

CR

[qs9] 25/8/2009 20:02

CR, agreed...a shame I have been in and out of these, but back in at £1.30 and looking for £2+ once market digests the great cash position and earnings potential.....

[cockneyrebel] 25/8/2009 20:02

Chime Communications (CHW, 171.5p, £97.85m) Interims to June saw the group confirm our optimism, Buy at 88.5p on 06/05/09, with record pre-tax profits of £8.5m (£8.2m) on sales of £137.5m (£115.5m) giving EPS of 10.44p (9.98p), DPS of 1.6p (1.54p) with net cash of £18.1m.

Public relations, which accounted for 55% of revenues, saw a 10% growth in revenues with a 25% improvement in operating profits. Advertising & Marketing Services accounted for 40% of revenues which also reported a 10% growth though operating profits slipped 4%. Chime expects the year to show overall growth for this division. Research, which accounted for 5% of sales, saw revenues fall 26%- The division only broke even with operating profits down £0.5m but a profit Is expected for the year. The group has 90% of the budgeted revenues for the second half already committed. Forecasts for the year are cautious at £16m and we expect them to increase by at least £1m to £17m if not higher. At £17m pre-tax profits for December 2009 with EPS of 19.8p the group is on 8.6x prospective PER, giving an upside towards 200p, still a BUY.

[cockneyrebel] 25/8/2009 20:00

Cheers GhuRAh - just found that and was going to post it :-)

Like this bit re Evo:

"We started the year with a cautious view on earnings for all of the marketing agencies, Chime included. While our nervousness on industry trends has borne out, the company is clearly outperforming and we are in the process of changing our FY09 and FY10 estimates."

If these don't get tipped all over the place now I'll be amazed.

CR

[qs9] 25/8/2009 13:14

Some large sells and all have been swallowed up and now moving higher.....+ve IMO

[gswredland] 25/8/2009 12:16

Interesting that these rose strongly towards results. BRAM doing the same this morning ahead of Friday's results.

[cockneyrebel] 25/8/2009 10:54

EVO and Numis are having a laugh!

Peel Hunt have hit it on the head - 20peps is screaming obvious here and I say they'll do 21p.

Big volume today too cross-trading - no doubt Numis and EVO getting their clint's in before they publish their real feelings :-)

These are going way higher imo.


CR

[gswredland] 25/8/2009 10:43

Thanks for that GhuRah

[ghurah] 25/8/2009 10:41

Analysts were bullish, with Evo Securities praising Chime for "gliding effortlessly through the carnage" in the sector and Numis saying "the smaller agencies are materially undervalued as recovery plays."

[ghurah] 25/8/2009 10:09

keep them coming:
Shares in Chime Communications gain 2.2 percent after the marketing services company reports a rise in first-half pretax profit and says it remains optimistic on its outlook, which prompts KBC Peel Hunt to repeat its 'buy' rating.

KBC Peel Hunt says the firm's first-half results are strong and 'suggests upgrades are inevitable' and thinks that 'despite the strong run in the shares, the implied valuation looks undemanding.'

The broker says it will be upping its target price for Chime as a result of the numbers and adds that even cautious H2 pretax profit forecasts 'implies EPS of around 20 pence, over 10 percent higher than our current estimate. We expect consensus to move in this direction today.'

[gswredland] 25/8/2009 09:52

Just added some more. Excellent results.Broker recommendations coming and the press tomorrow may help.