Compass Share Discussion Threads

[scorpionwinger] 29/9/2005 12:48

Eastbourne

I stand corrected, limitedrather tahn none.

Mind you a £6m ticket from Franklin means I'm not alone in my thinking

[eastbourne1982] 29/9/2005 12:36

scorpion

there is potentially always downside however I feel that risk/reward at these levels is reasonable.

[grupo guitarlumber] 29/9/2005 12:33

Compass "in-line," fair value reduced

Thursday, September 29, 2005 6:51:30 AM ET
Goldman Sachs

LONDON, September 29 (newratings.com) - Analysts at Goldman Sachs maintain their "in-line" rating on Compass Group Plc (XGR.BER), while reducing their estimates for the company. The fair value has been reduced to 197p.

In a research note published this morning, the analysts mention that Compass' efforts to boost its long-term returns have been adversely impacted by the underlying deterioration in its trading. The EPS estimates for FY05 and FY06 have been reduced from 19.47p to 18.77p and from 20.32p to 15.64p, respectively.

[scorpionwinger] 29/9/2005 12:07

I think it's a no brainer to hold CPG at this price.

5% yield provides solid floor to support current value.

With the free cashflow, this is on the radar screen of every private equity firm to take out - probably at 275p - because once fixed it should be back to 350p

So either a new management comes in and does it or a predator will. Either way as a holder today, I can see plenty of upside and no downside

We'll see

[i maximus] 29/9/2005 11:31

perhaps he knows this is a can of worms and is stearing clear ? perhaps RTO will be the same when hes finished with that one ;)

[patricktrfc] 29/9/2005 11:24

Anyone ask for Gerry Robinson to take over??

P

[simon gordon] 29/9/2005 10:03

After three profit warnings and a board that is dead beat, a new Chairman and CEO are yet to take control and will not for ???? who knows ????

It is highly possible a fourth profit warning could happen in early 2006. The share price is around the same price as a year ago yet CPG have issued two more warnings.

Until CPG have a new Chairman and CEO and they have cleared the decks (another warning?) the risk is to the downside - look at Rentokil, they keep reducing numbers - all that keeps the price up is a vague bid.

This one is for the brave - better to buy a stock in an uptrend - as this is yet to hit vulture value.

Good fortune!

[graniteboy] 29/9/2005 10:01

........anyone know what the next tecnical support is on this one. Not to smart at working it out here myself ??? GB

[i maximus] 29/9/2005 09:54

well they just about made 210 ;)

if the FCF target is £800-850m for 2006-08, i guess that translates to £275m a year. is this right? its only about 6.2% FCF yield

[gulliverr] 29/9/2005 09:49

Sensible point of view, mainly because it agrees with mine!
There's only a little more on which to build a bearish case, hence my view that the current price is the result of manipulation. Clearly it's worth more than it's trading at now, even if present profit levels are merely maintained.

[grupo guitarlumber] 29/9/2005 09:42

Lehman Cuts Compass Targets;Yield Attractive

Thursday, September 29, 2005 4:06:59 AM ET
Dow Jones Newswires



0754 GMT [Dow Jones] Lehman Brothers reduces its Compass Group (CPG.LN) forecasts following the trading update. Cuts '05 EPS by 2.1% to 18.9p, cuts '06 EPS by 12% to 17.6p. Notes management retains guidance of GBP1B of free cash flow in '06-'08, excluding the impact of the proposed disposal of SSP in the UK and Europe. Cuts price target to 230p from 260p. Admits there is little in the trading statement on which to build a bullish case, but retains buy rating as shares now offer a 4.8% F05 dividend yield. Shares +1.1% at 208.25p. (PBA)

[psps] 29/9/2005 08:34

i would buy IF it drops to 200p
but that looks unlikely,,,,,still watching though

[i maximus] 29/9/2005 08:29

im punting it creeps up to around 210 then keels over again. "trend is your friend"

[psps] 29/9/2005 08:29

this will rise
when the downgrades are over
cause these same ANAL-YST will buy the stock
when it hits rock bottom

[elsworth] 29/9/2005 08:15

....easy money back to £2.30.........new management needed then back to £3...

[grupo guitarlumber] 29/9/2005 07:47

Deutsche Downgrades Compass Group To Hold

Thursday, September 29, 2005 2:32:26 AM ET
Dow Jones Newswires



0616 GMT [Dow Jones] Deutsche Bank downgrades Compass Group (CPG.LN) to hold from buy. Cuts target price to 220p from 260p. Shares closed Wednesday at 206p. (PBA)

[nirag patel] 29/9/2005 07:12

Smith Barney Cuts Compass Target to 230 from 300p, Keeps Buy

[satan 666] 28/9/2005 21:56

nothing wrong with this company mm's playing games...back up to £2.40-50 rang soon ,wait for the PRESS....it goes like this after crashing wendesday,shares in cpd rose 30p on take over rumors....

[dhb368] 28/9/2005 14:58

At least the staff get their money back bahtat!

[psps] 28/9/2005 14:46

bet you that the CEO will get an excellent golden handshake

[bahtat] 28/9/2005 14:17

I wonder how many of their 400,000 staff are paying into 3 or 5 year Share Save schemes at the 'deeply discounted' price of £2.70 odd.

I bet they're not happy bunnies either.

[simon gordon] 28/9/2005 14:09

What shocks me is that they have been on the skid for one year but the Chairman and CEO have yet to be operationaly replaced. Amazing!

[i maximus] 28/9/2005 13:56

dont count on it. cash flow target of 800-850 might just be dreaming, market seems to think so

[scorpionwinger] 28/9/2005 13:45

5% divi yield - tons of cashflow - lame duck managemnet .I'd say now is a terrific buy - a bid at 275p can't be far away