Clarkson Share Discussion Threads

[james111] 16/3/2005 18:04

what can one say
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[andrbea] 16/3/2005 16:39

sector interest

[ashtongray] 16/3/2005 15:12

steepljack

re year end cash of £44m, bear in mind that there will be payment in February of £21.9m of staff bonuses earned in 2004, plus a one off top up of £10m into the pension fund.

[rivaldo] 16/3/2005 15:03

Here's Tradewinds' verdict (from CKN's web site):



Nice to see mentions of both the LNG and LPG involvement. Can't blame madskt for taking a profit, but imo these still have decent upside and only minimal downside. There's potential acquisition interest, a possible re-rating by investing institutions to account for CKN's new diversification, and, above all, powerfully cheap fundamentals and a strong, ambitious and incentivised management.

[madskt] 16/3/2005 12:36

I've sold my small holding this morning.
My thoughts are that the grwoth in sales seen in 2004, will be difficult to sustain - true, rates are at historic highs and may go higher, but I would think we'll be unlikely to see the %age increase in rates we've seen in recent years. As this currently provides the bulk of profitability, I'd expect we'll see a slowdown in headline EPS also.

I would think they'll continue with their strategy, and that adopted by James Fisher, whereby they try to avoid the reliance on shipping, and focus on developing the service side.

Without the exceptional items mentioned above (£2.5m profit from the sale of a tanker and pension issues, which may or may ont impact the bottom line), the business could grow 20% this year. If we see a 20% rise in the EPS, that takes us to 100p EPS for 2005, so at 985, its a forward PE of 9.85, which sounds low for the growth, but the markets have assigned lowish PE's for CKN for a while.

I expect we may see the 1100p target reached this year, but I'm happy to have got within more or less 10% of that.

[rivaldo] 16/3/2005 12:25

Excellent volumes today - £4m of stock already traded and the price is holding nicely.

Can we make it through a tenner is the question? Perhaps a tip or two tomorrow will give the price more impetus.

[williemanjaro] 16/3/2005 11:42

clompie haven`t heard that for a while-love that expression "In the lolly"-wonder where it comes from :¬)

[clompie] 16/3/2005 11:14

So where is it going to go then,six month target and 1 year target.
I am not even thinking about it, just nice to be in the lolly again.

mb

[steeplejack] 16/3/2005 11:02

Cash at year end has grown to £44m.At 980p the market cap is £157m on some 16m shares in issue.Thus the underlying business is currently being valued at £113m ex cash placing the stock on a current PE of 7.6x on reported eps of 83.8p.Evolution,back in Sept,were forcasting a dip in 2005 eps of some 14% but that was a long time ago given the movement of rates since then.If the company maintained eps in 2005,i'm sure they'd be delighted but clearly they're well chuffed with the first 10 weeks.Thing is,i sold too early and i'm going to hope for a drift back to 900p odd...........but i fear i might be disappointed!!

[edmundshaw] 16/3/2005 10:52

mcooke, using the new internation accounting regulations, the pension fund deficit is on the balance sheet, so that at least is unaffected; it might be just be a movement in the balance sheet from cash to pension, but not sure ifg it goes throught the P&L now (it didn't under UK GAAP). Still, only an exceptional item I should have thought... normally a co would be reducing the deficit a bit each year, but CKN is awash with cash.

[mcooke01] 16/3/2005 10:39

I noticed they have said they have said they will have to spend £10M next year to repair a pension fund deficit. Will this affect the profits for next year, or is there some cunning accounting convention where a company can spend £10M on this and it not affect the bottom line?

[rivaldo] 16/3/2005 09:54

Maksud, forward EPS for CKN is obviously difficult to forecast due to freight rate volatility. But:

- CKN have a number of other income strings to their bow now
- freight rates have been (from memory) higher so far this year than for the equivalent period in 2004 on average
- CKN appear to have made a one-off windfall profit of £2.5m already, which should ensure a good 2005

[lafiamma] 16/3/2005 09:43

See other thread:

[edmundshaw] 16/3/2005 09:41

Wot no comments on the results?

I guess none is needed, though :-]

[hawks11] 16/3/2005 09:31

A super rise on the results which might even be tempered due to todays budget. I am still adjusting to the volume in increases and further potential. I should have got up earlier.
As Cat suggests there is plenty of movement in the share price yet, just wish I had a bigger stake in this company which I have been following but not held for years - always chasing another rainbow.

[andrbea] 16/3/2005 08:51

LONDON (AFX) - Shares in Clarkson, the holding company for Clarksons, the world's largest shipbroker and shipping services group, steamed ahead 50 pence to 980 following record full-year profits, a near 43 pct dividend total hike, and after the company said it has made a good start to 2005.

[maksud] 16/3/2005 08:18

any views eps for next year.well done every one

[rivaldo] 16/3/2005 08:11

Is that today's price target Cat? :o))

I still can't believe that £2.5m profit! Looks like 2005 will be another record year then.

[justjules] 16/3/2005 08:07

Cat, careful, you will be accused of ramping:-)
Great results !!

[cat] 16/3/2005 08:01

£11+ still my target
:-)

[doubleorquits] 16/3/2005 07:59

Hi Rivaldo. I mustlearn to be more cautious :0).
Excellent results and a strong start to the year. A strong start to the morning as well!

[williemanjaro] 16/3/2005 07:58

Strong results-well done CKN-Full Steam ahead Captain :-0

[figis] 16/3/2005 07:46

Yes Rivaldo I spotted that one. Where is the share price going to day I wonder. Onwards and upwards hopefully.