Chime Comms. Share Discussion Threads

[kimball808] 13/10/2011 20:07

WPP increase their holding...which is nice...

[kimball808] 12/10/2011 20:38

yum yum...

[aspex] 21/9/2011 08:13

Just a tiny sign of life coming into the market.
They seem well undervalued right now.

[kimball808] 02/9/2011 16:36

Bravo CHW...on a day when fear had to stick his big conk in to the markets...

[kimball808] 31/8/2011 11:12

Ok...maybe if they dug a little deeper...;-)

[kimball808] 31/8/2011 10:14

Directors say 'tis chime to grab a bargain'...;-)

[kimball808] 28/8/2011 19:16

Yep a nasty looking chart and akin to catching a falling knife. But one wonders if the weaker performance from its PR division is now priced in???

Just looking at their H1 Divisional performance against H1 2010

PR has shrunk in size by 13% where as Ad & Mark has grown by 12% and Sports has also grown by 14%

Same for Op income. PR shrank by 5% but only lost £1.8m. where as Adv & Mark grew by 24% and gained £4.4m and Sports grew by 29% and gained £4.3m.

Is Sports Marketing to be the new PR???

From the horses mouth...

'The ability of major sporting events to reach mass audiences is continuing to increase. We have invested heavily in sports marketing and we see this as a major driver for growth for us in the next ten years. 2012 should be a very good year for us in sport and sponsorship with a number of significant opportunities coming from the London Olympic Games. Having now invested in Brazil, hosts to the 2014 FIFA World Cup and 2016 Olympic Games, we think that momentum can continue in 2013 and beyond. Their core activities of player representation, sports sponsorship and sponsorship activation continue to expand. We expect Sports Marketing to become a much bigger part of our Group'

[tom111] 28/8/2011 16:23

Looking at the chart i think not imho

[kimball808] 28/8/2011 09:50

Yes...

At today's price I have a 126% upside against the sector...

Is it Chime to buy...:-)

[qs9] 27/8/2011 10:17

Kimball you are best taking the CHIME investor relations slides not digital look! CHW IMO have just posted very credible and solid results. They are pretty well debt free so comparisons to 2008 are wrong. They have also increased the breadth and depth of their offering IMO and therefore at £140m market cap the valuation now looks extremely odd and IMO attractive. Pity we have not seen any management putting their money in to say the same!!

For this stock to be yielding well over 3% says it all.

Cheers for now

[qs9] 27/8/2011 10:17

Kimball you are best taking the CHIME investor relations slides not digital look! CHW IMO have just posted very credible and solid results. They are pretty well debt free so comparisons to 2008 are wrong. They have also increased the breadth and depth of their offering IMO and therefore at £140m market cap the valuation now looks extremely odd and IMO attractive. Pity we have not seen any management putting their money in to say the same!!

For this stock to be yielding well over 3% says it all.

Cheers for now

[kimball808] 26/8/2011 18:40

Thanks Muangsing... Digital look are inconsistent with their revenue figures for actual and forecast.

Digital look are showing the true top line revenue (e.g. 2010 299.80) as you said which is pre cost of sales.

But when they show the forecasts for 2011 and 2012 they are showing the operating income. 2011 169.68

But I think they are given the forecast figures by CHW as op income and update their fundamentals data taking the top line revenue from the published accounts.

[muangsing] 26/8/2011 17:42

Kimball808

I think you and/or the brokers are comparing apples and oranges.

There is a difference between operating income and revenue.

Revenue (if my understanding is correct) of 153.4m in H1 , includes cost of sales of 75m. (these cost of sales are advertising costs passed on to the client)

Operating income of 78.4m is akin to fee income, ie earned by Chime

I hope this is of some help , but I am not going to post further because i am travelling in India and do not often have access to the internet.

Regards

[darlocst] 26/8/2011 09:30

Kimball808 - relax. I don't know where the revenue forecasts are coming from but they are erroneous. All key metrics were up at the HY and full year revenue will be coming in at or above the £300m mark. Consensus forecasts look achievable (pbt £31.4m & EPS 26.7p) if there is no significant deterioration across the industry in general.

Read the interim presentation for reassurance:



The share price is down due to the poor outlook for the PR division (the US gov. is cutting spending with Chime), general sector sentiment and clearly there is a holder who is looking to cut/exit his position with a lack of buyers around.

Some people think this is a replay of 2008 and back then the PR companies share prices got smashed so clearly they are looking to sell out ASAP. Personally I don't believe that its going to get that bad plus Chime's balance sheet is now a lot stronger.

I sold my position in CHW back in March around the 270p level. At the current price its starting to becoming interesting again and its back on my watchlist.

[kimball808] 26/8/2011 08:44

My mistake forecast rev for full year (2011 is £170m) and for (2012 £185m) per Digital Look. Which is even worse. I had 2011 and 2012 around the wrong way. school boy error...

Agree revenue for H1 was £153m. So for H1 2011 they have booked (£153m) 90% of full year forecast (£170m) in H1....that is one serious strong half.

So now we have a drop in forecast full year revenue (£170m) of 43% for year ending 2011 compared to 2010 which was reported £300m

[wjccghcc] 26/8/2011 08:31

I think your forecasts are very wrong. H1 revenues were 153mm.

[tom111] 26/8/2011 08:30

Kimball1808 are u sure u havnt made a mistake with the 12 month and 6 month figures?

[tom111] 26/8/2011 08:16

Well spotted Kimball808 i didnt see that will do further research.Any comments about Kimball808 observations?

[kimball808] 26/8/2011 07:03

I would consider buying but. something is not quite right here. How can they generate revenue of £277m 2008 £301m 2009 £300m 2010 then forecast £185m 2011 a drop of 38% losing over a third of their revenue. Yet expect to increase profits by 49% their biggest increase in 4 years. Also operating expenses have been rising year on year, increased by 22% last year.

I think the forecasts are wrong, but would need to see some hard proof of what they should be...for that reason I'm out...;-)

[tom111] 25/8/2011 17:36

I was considering buying in today cant believe how far this has fallen,just keep holding off waiting for an entry point,nearly got caught out on the sharp drop today.Must come a point when this is a sitting duck.

[kimball808] 25/8/2011 06:56

I sent an e-mail to investor relations re revenue forecast for 2011. Not had a response yet, but to be honest not sure they would discuss forecast figures. But at least a response would be seen as polite.

[alphahunter] 25/8/2011 01:08

WPP, who owns a fair bit of Chime has their Q2 today and is up 7%. Could it be that WPP said something that worked against Chime, which is down 10%?