Computacenter Share Discussion Threads

[imastu pidgitaswell] 27/6/2012 16:02

Watching with a view to buying, for those reasons.

Just a bit weak on that recent RNS, which was a bit odd, and raised the questions posted on here at the time. Not sure those have any good answers (why did they not know the additional costs would be incurred earlier, how good is their costing of contract bids, what else may come up that they did not know about)?

But everything has its price, and for the valuation noted above, and the net positive cash (excluding customer specific financing, which nags at me a bit...) I'm certainly interested. But maybe not yet, it's still weak.

[uhound] 27/6/2012 15:55

Just bought some here having watched for a while and being a previous holder.

Recent drop overdone imo.

Company offers Good divi, no debt, good cash flow, continued growth.

Market cap only 6 times FY profits - massive value here even if profits now slightly less than first forecast.

[rathlindri] 21/6/2012 16:16

things not good here....going to get worse??

[salpara111] 14/6/2012 10:51

Genuinely odd statement.
In theory what should be good news in terms of growth is turned into a bad news story.
The implication that this new business is at substantially lower margins than current work.
Not at all sure what to make of it..... a buying opportunity or a shorting one?

[pj 1] 14/6/2012 09:54

Agreed, it could be a poorly worded statement. But who will take that risk is this environment/.?

[ed 123] 14/6/2012 09:51

From the statement,

... it has become apparent to the Board ...

This reads like they are not fully in control of the business. The impact of winning these contracts should have been thought through before submitting the bids, not after winning them.

Perhaps I am being unfair on the Board? This may yet turn out well for shareholders in the medium term. But, for now, the market is concerned (currently down 15%).

I was watching here, having held in the past. Will leave this alone for a while to see how things unfold.

(edit. WJCCGHCC, we're thinking along the same lines.)

[pj 1] 14/6/2012 09:34

''Investing'' in staff is not like ''investing'' in new machinery for a new product.

Wages come straight off the P and L.

Its also another ''intangible'', if the company's not wanted its worthless

My opinion only........

[trademap] 14/6/2012 09:30

It lost me too.

I thought it actually read ok.

Isn't new investment a good thing? Sorry for sounding naive!

[pj 1] 14/6/2012 08:29

700 JOBS @ £20K per annum, plus 11% PAYE,NI Contributions , plus possible Pension liabilities, in a falling margin market?

Its lost me, too complicated in these recessionary times

[jon827] 14/6/2012 08:25

it sounded good to me up until the 'However we need to add 700 jobs" bit

i'll have to have a look at the map

[ed 123] 14/6/2012 08:10

No. It's an undisguised profit warning. They all have a story with them.

[pj 1] 14/6/2012 08:09

Is it a disguised profit warning?

[jon827] 14/6/2012 08:02

Badly then!

[jon827] 14/6/2012 07:30

Hows the share price going to react to that statement then?, iv never seen a company add jobs before!

[jon827] 24/5/2012 16:16

whys this getting no love?

[ed 123] 17/5/2012 14:23

Not so lucky with that post. Wrong board.

[lucky_punter] 17/5/2012 13:46

Continental Coal in option deal to take 50 pct of Colombian coking coal mine

Continental Coal (ASX:CCC, LON:COOL) said it has entered into an exclusive option for the potential acquisition of a 50 per cent joint venture interest in a producing hard coking coal mine in Colombia.

[blondeamon] 15/5/2012 10:38

Nice divis tomorrow

[northernlass] 11/5/2012 14:57

Long-Term Picture Looking Rosy

Services Continue To Deliver For Computacenter

The services business continues to deliver for Computacenter with the long-term picture looking rosy for the channel player, despite some current margin erosion.

The firm revealed the state of its affairs in an interim management statement that indicated that since the start of the year its services business has increased by 9%, the same level as overall group revenue had climbed by.

Some margin erosion had happened with the services business because of the on-boarding of contracts but the expectation was that in the long-term this would settle down and not be a feature.

Specifically in the UK the revenues remained flat with an 8% increase in services revenue but a continued weakness in the supply chain revenue, which suffered a 5% decline.

"Whilst Government IT expenditure remains weak, we have previously explained that this does not have a material effect on our profitability. We have however seen a capital spending freeze during the period, from many of our investment banking customers and this adverse customer and product mix has had a negative effect on our profit," the firm stated.



P.S.

Here's a couple of links about SCLP, one of the hottest stocks at the moment:

[northernlass] 11/5/2012 14:56

Data Centre Services

How Computacenter provides hosting options for customers who like their data and networks managed for them. More and more business users are opting for this; reducing there site requirements to encrypted links to an outsourced data centre from simple inexpensive terminals thus eliminating the considerable cost of having their own dedicated network infrastructure.

[northernlass] 11/5/2012 14:56

Remote Infrastructure Management

Service Centres: Remote Infrastructure Management

A video describing how Computacenter helps clients resolve IT infrastructure problems remotely:

[northernlass] 11/5/2012 14:55

IT For Global Law Firm

Case study: Eversheds and Computacenter

This video describes how Computacenter's services are used by a global law firm: