Computacenter Share Discussion Threads

[boadicea] 15/3/2022 19:50

Good results were comprehensively flagged in the last update (24th Jan) so should be in the price. What is not yet in the price is the verdict on the past 10 weeks and the forward outlook with specific comment on supply line difficulties and recent pricing power vs. cost escalation. Logically, those are the factors which should determine the market response tomorrow (but logic gives way to gut reaction in current turbulent markets.)

We know that the company has increased stock provision to mitigate against potential shortages so I look forward to hearing how successful that has been.

[bigbertie] 15/3/2022 11:54

Sudden upward burst!!
It's results tomorrow I think.

[aewail] 05/3/2022 08:44

I have been following this company for a number of years. Especially as it had some big customers e.g.bp. I wish I had bought in sooner. Currently 'CCC' has 587 open vacancies. Wow! This is such a World Wide growing company. In conjunction with its later financial results. Happy that I have now invested. On wards and upwards.

[mazeltov] 04/2/2022 09:48

Very undervalued company performing well with low costs and high volumes achievable

[boadicea] 25/1/2022 16:20

//bathcoup - "[having] a higher level of inventory" is not seen as something positive// ... but being in a position to supply from stock when a product elsewhere is on an uncertain extended delivery most certainly is a positive.
It's good for reputation and may command a price premium. With money in the bank earning a negative (inflation adjusted) return, it's a no-brainer for companies with sensibly predictable demand and a positive cash balance. The effective reputational and actual cost of delayed contracts due to a shortage of critical components can far outweigh the temporary cost of some extra stock. I trust the management to have worked this out!

[imastu pidgitaswell] 24/1/2022 15:52

Well it depends - high tech and prone to being overtaken technology, no.

Stuff that your clients need and without which your jobs would be delayed and reduce profitability - yes.

It's just exchanging cash for essential supplies. Quite sensible - provided you use them.

[bathcoup] 24/1/2022 15:19

"[having] a higher level of inventory" is not seen as something positive.

[imastu pidgitaswell] 24/1/2022 13:08

I would agree - and note one of the benefits of having a strong balance sheet, being they can manage inventories to suit the business.

[boadicea] 24/1/2022 12:56

On a more normal day this encouraging update should have boosted the share price As it is, in the midst of an avalanche of selling elsewhere, we shall probably be lucky to finish in the blue. That said, CCC is looking distinctly good value compared to some of its higher flying competitors and imo, any weakness could be a gift to longer term investors.

[hawaly] 19/1/2022 10:04

Trading Update Monday

GLA 😎

[woodyjmw] 11/1/2022 13:38

Another Broker recommendation:
JEFFERIES INITIATES COMPUTACENTER WITH 'BUY' - TARGET 4,100 PENCE

[woodyjmw] 22/12/2021 10:44

Reported today:
STIFEL RAISES COMPUTACENTER PRICE TARGET TO 3,219 (3,189) PENCE - 'BUY'

[woodyjmw] 18/12/2021 22:52

Chart and prospects looking positive for ccc, should continue with the IT support required for working from home. One of the better tech performers at the moment.

[mammyoko] 29/10/2021 07:25

Beat would have been bigger if not for supply constraints. Order books correspondingly healthy. Bodes well for continued momentum into next financial year.

[hawaly] 28/10/2021 15:26

Trading Update tomorrow ......

GLA

😎

[shammytime] 15/10/2021 16:07

Have CC suffered a cyber attack today?

[imastu pidgitaswell] 09/9/2021 16:09

Ah. Carry on...

(Bet they weren't best pleased with Carillion going under...)

😳

[boadicea] 09/9/2021 14:59

Cerillion (CER), NOT Carillion!
They both appear in the same sector comparisons, as does NCC, again on a much higher P/R rating but not excessive.
In other respects I tend to agree.

[imastu pidgitaswell] 09/9/2021 12:29

How can you compare CCC with Carillion?!

It has always had a low valuation - for reasons we can only speculate on. I remember back when it was 300-400 pondering it (and it's on this thread - in 2012-13 or so). My view at the time was that the City just wan't interested as it was well funded (never had net debt), its activities were organic, and there no fees to be had - always the cynic...

[boadicea] 09/9/2021 12:11

Tbh, I find this a rather difficult company to value objectively. On an earnings basis it appears to be fairly valued - not generous compared to its sector peers (but who are its peers realistically speaking?).

On a price/revenue basis its valuation seems distinctly lowly (the prospective figure is around 0.6, I think) implying meagre margins. Its range of products/services is more comprehensive and complex than many more 'glamorous' outfits which are often successful one trick ponies and easier to analyse if lacking depth. High bought in costs appearing as turnover are probably the principal reason for this. It is therefore not fair to compare it with, say, DOTD or even Cerillion with price/revenue ratios in double figures! (The latter make me nervous of the potential effects of any glitch in their progress.)

Computercenter is Main market and should have significant analyst attention - but does not seem entirely happy with it! It is worth noting that it has consistently beaten concensus forecasts and seems likely to continue this happy trend.

Supply side tightness may have short term cost implications and will similarly affect competitors (delayed completions, or cost premiums to avoid them): equally the longer term pricing effect may be positive.

I see no reason to quarrel with the current market view (seldom a good idea) but feel the company should probably ease up its margins over time to justify accelerated share price advance.

...And my previous suggestion of a share split is still on the table.

[phillis] 09/9/2021 11:39

P/E of 20+?

[deanowls] 09/9/2021 10:34

On the above numbers it really isn’t.

[phillis] 09/9/2021 10:21

Great results but the share price is asking a lot

[boadicea] 08/9/2021 18:10

Clearly, there is great excitement about the prospect of tomorrow's interims - not.

In fact we have the usual pre-announcement dip as noted by imastu a while back.