Connect Share Discussion Threads

[eastbourne1982] 22/1/2018 08:52

Yes I agree, this could be a takeover candidate now as relative to it's market cap it's very profitable and highly cash generative.

[prokartace] 22/1/2018 08:48

I think if you look at the overall valuation now there is a potential for a predatory raid on the company. This valuation would allow the predator to keep the good bits and drop the bad(der)bits and make lots of money

[runthejoules] 22/1/2018 08:48

Anyone know to hand which funds are in here? Is possible they could be distressed but I made a quick gamble it would mostly be income funds. And income has just steeply risen in % terms!

[masurenguy] 22/1/2018 08:43

Topped up.

[pugugly] 22/1/2018 08:41

Falling knife gamble but 50/50 chance (imo) of a bounce from 78.84p BUT could easily drop another 10% if a fund deciding to exit - PYM -

[edmundshaw] 22/1/2018 08:40

Agree, an over-reaction. On the basis of the RNS, expected EPS (underlying I assume) is around 12.5p, and cash generation is still good. No particular reason to expect further deterioration - the books non-sale is disappointing from the point of view of boosting the balance sheet and simplifying the business, but it is still a profitable division.

Good appointment on the face of it. Lots of ongoing iussues. As ever, PMP will either take off at some point or be dropped. A new broom should have the freedom to make the right decision there, without personal loss of face.

Some of those cost efficiencies may be harder than expected; but the business is still basically strong, even if for now a little less profitable.

[davr0s] 22/1/2018 08:38

Got stopped out. Back to multiyear lows so I shall be staying out whatever people's views are. Plenty more fish out there

[runthejoules] 22/1/2018 08:35

Having got stopped out of most of the holding at 86p, just got back in at 76.06p. A dividend of 12% is worth holding for a turnaround even if it does take 2 years. Will be interesting to see what Paul Scott & Graham Neary say on Stockopedia.

Asagi if those are the worse statements from a co you've owned in, congrats on your non-disastrous stockpicking so far (or your youth!) :-)

[eastbourne1982] 22/1/2018 08:28

Bought more at 77p, shouldn't be down 26%.

[danieldruff2] 22/1/2018 08:27

Ugly, but many of the issues are in the small bits of the business. Overreaction.

[mister md] 22/1/2018 08:26

Had this on my watchlist, but despite the attractive dividend I find it hard to find many positives after reading that RNS statement ...

[prokartace] 22/1/2018 08:26

No idea how this is going to come out but I have just chanced my arm at 77p

[asagi] 22/1/2018 08:21

in aggregate, those may be the worst statements I've ever seen from a company that I owned shares in. Hard to read and not think "can't these people get anything right?".

Asagi (long CNCT)

[neilyb675] 22/1/2018 08:20

its the uncertainty over the books disposal....gives the MMs free reign to drop huge amount

[masurenguy] 22/1/2018 08:18

Heavily marked down and with a 20% spread. If the current dividend is maintained then the yield at the current buying price of 80p is 12% !

[masurenguy] 22/1/2018 07:39

RNS Number : 4644C
TRADING UPDATE
22 January 2018

Connect Group is issuing its Trading Update covering the 19 week period to 13 January 2018.

Overview

Total Group revenue for continuing operations of £564.5m (FY2017: £584.9m) has decreased by 3.5% year to date, with the anticipated decline of newspaper and magazine sales more than offsetting revenue growth in Mixed Freight and Pass My Parcel (PMP). While overall revenue performance has been in line with our expectations, a combination of delays to contracts in PMP, weaker margins and market uncertainty in Mixed Freight, and slower than anticipated realisation of cost reductions from the Group's integration strategy in order to preserve current service levels, mean that we now expect full year adjusted profit before tax for the continuing operations to be in the range of £42m to £45m, with current dividend expectations underpinned by a continued good cash performance.

[cwa1] 22/1/2018 07:25

Overall rather uninspiring stuff, with the only bright spot being that the dividend looks secure.

[masurenguy] 22/1/2018 07:05

RNS Number : 4943C
22 January 2018

Update on the Disposal of the Books division to Aurelius Equity Opportunities

We refer to our announcement of 21 December 2017 that we had signed an agreement ("SPA") to dispose of our Books Division to the listed pan-European mid-market investor Aurelius Equity Opportunities SE & Co. KGaA (together with its subsidiaries and affiliates, "Aurelius"). The disposal was conditional only on anti-trust merger approval from the German Federal Cartel Office which was subsequently received (as expected) on 17 January 2018. As a result, the SPA is now unconditional and under its terms completion is obliged to occur by 31 January 2018 at the latest.

Despite this, Connect Group has been notified by a letter received on Sunday 21 January 2018 stating, inter alia, that Aurelius Omega Ltd (the purchasing vehicle) "can no longer complete on the current terms (as we, the Directors of Aurelius Omega Ltd, can see no way of financing this transaction)". Connect Group has sought urgently to clarify Aurelius' position‎, including the legal basis, if any, upon which it purports not to complete on the transaction and we have reiterated in writing that Aurelius is legally obliged to complete the transaction on or before 31 January 2018. Further, Connect Group has reserved its right to pursue legal redress against Aurelius in light of this development. Connect Group will make a further announcement in due course when appropriate.

[cwa1] 17/1/2018 12:33

Afternoon

Gone for a few at 106p in the hope that there's a decent balance between hope and fear here. Good luck all.

[retsius] 16/1/2018 12:44

DR
Don't be daft,all info freely available to all under 'Trades'(from main Cnct page)
R.

[davr0s] 15/1/2018 19:10

Ok so I didn't post that - have I been hacked?!

[retsius] 15/1/2018 12:02

Two large trades in the last 15 min.
One buy for 100k and one sell for 300k.
I trust the sell is in his/her ISA ,otherwise large extra tax liability will have to be settled on the Divvy.
Why sell now so soon x div. after great news of selling the Book div. early in the financial year and before Trading Update next week.Selling x div. produces zero profit and makes one liable for extra tax.(if over

£5000.00 div. 2017/2018 financial year)
R.

[retsius] 15/1/2018 10:45

Hope to see a positive Trading Update next week.
R.

[grahamg8] 10/1/2018 17:31

Kazoom I too had to decide how to treat my holding. I like Connect with its stable income and high yield which is usually well covered by earnings. My solution was to trade for modest capital gains while happy to hold for income if the price went down. This so far has worked pretty well.

I've been holding since July 2013 but have sold out three times, making a profit each time. My present holding began with a buy at 146p in October 2016 despite the current price being well below this, buying and selling at my trigger points means that I am actually in profit at the current closing price.

I'm not making a fortune this way but it is above the dividend yield, so better than buy and hold indefinitely.

[davr0s] 10/1/2018 13:55

I've bought back in - nice constructive chart and decent divi coming up