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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Connect Group Plc | LSE:CNCT | London | Ordinary Share | GB00B17WCR61 | ORD 5P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 25.60 | 25.70 | 25.80 | - | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
Date | Subject | Author | Discuss |
---|---|---|---|
07/3/2018 22:01 | Off the top of my head: Private equity via cash shell carrying losses. Operating cashflow preworking cap £60m. Close PMP makes £65m. 1/3rd premium bid to current price, funded by £200m debt to buy CNCT plus existing debt = £280m. Interest £20m. Tax £0. Capex/depn £9m. Free cashflow £36m to pay down debt or make aquisitions. Might be feasable. Somebody with £280m cash and tax losses would save £20 interest and get £56m free cashflow. With £280m cash but no tax losses, they'd pay £8-9m tax, so £47m free cashflow. Tempting all ways around, even allowing for some attrition of newspapers and magazines. The shares ought to be rather higher. The discount suggests the market does not have great faith in the boards ability to utilise cashflow wisely. Perhaps shareholders should insist it is all paid out to them and forget expanding the business. £65m -£5m interest -£9m tax -£9m capex, leaves £42m for dividends. We get current share price back in nearly 4 years - a bit longer with dividend tax - and what's left over is value in the business not reflected in the current share price. | aleman | |
07/3/2018 19:48 | Is, or could there be, anybody interested in acquiring CNCT ? | colonel a | |
07/3/2018 17:26 | Added today. Based on the expected underlying EPS for the year of 14p (as at the recent trading statement) we are on a PER of 14/60= 4.3 and a yield of 16.3%. I am not sure what is the expected catastrophe that is making people sell, as 2017 debt is considerably down on 2016, the effective pension deficit is small and getting smaller, and cash flow is good. Given that the £42-45m expected results include a £6.3m loss in Pass My Parcel, which has to correct sonner or later, the company is in fact an absolute bargain for anyone interested in acquiring it and either stripping out the loss-making businesses or bargaining for better terms with the relevant customers. | edmundshaw | |
01/3/2018 14:02 | Ok, I'm just read the recent powerpoint presentation and I conclude the company has alot of eggs in one basket, so it's going to be one of those stocks on which you will make a lot or lose a lot. I'm not really looking for risky stuff at the moment so I'll pass. I think the dividend is likely to be cut going forward but even if it's cut by say 25% it's still a great yield. Good luck all | cc2014 | |
01/3/2018 13:30 | There are multiple contracts, the earliest expiry is next year. Connect are not doing so well, but 63p not well ?? | colonel a | |
01/3/2018 13:22 | Does anyone know how long the contract has to run on Smiths news wholesale business? Did I read 2019 about 200 posts ago or I am imagining it. | cc2014 | |
01/3/2018 12:23 | There is a big problem at Connect, their strategy has failed. They have wasted millions on acquisitions that haven’t worked. Everything is funded from the cash that the smiths news wholesale business generates. | the pilgrim | |
28/2/2018 15:10 | I'm going to have to spend a couple of hours looking at this tomorrow as something is spooking the market. It's back to the 63 area where all those large trades went through | cc2014 | |
28/2/2018 11:22 | Manage facts not faces, profit tells all | ls24 | |
28/2/2018 10:00 | Thank you ls24. In your judgement, is this disaffection much more than usual tensions arising after a merger? | profdoc | |
27/2/2018 10:38 | Just need to look at who's gone since the buy as a start point. Not one Tuffnells owner is left, the last departing about 6 months ago. Complete lack of knowledge from the top after the Crusade to get rid under the first MD. Connect experience is managing costs in a shrinking market, Tuffnells was growth in a unique sector. Most of the Tuffnells old boys are slowly turning up at DX, so expect a Tuffnells success story there soon | ls24 | |
27/2/2018 10:04 | Chickenvindaloo, can you expand on the problems at Tuffnell's please. | profdoc | |
26/2/2018 17:23 | Any chance of a Tuffnells independence referendum? I wish Lloyd Dunn would buy us back. I wouldn't buy shares in Connect at any price outwith the Sharesave scheme. Could be looking at a ridiculous price this year when the option price is set, possibly around 50p if the price doesn't recover. I'll be in again but only because it's a no-lose gamble. A lot wrong with Tuffies nowadays. I've been there 15 years thru good and bad but now actively looking for an escape route. | chickenvindaloo | |
26/2/2018 16:06 | I understand what you are saying - but despite the fact that it is a declining business, a consolidated industry and ability to cut costs has allowed them to continue growing profits in the core business from what I recall? Dividend is sustainable - the biggest risk in my view is management's capital allocation in terms of their acquisition of Tuffnells- shareholders might have been better rewarded had they just paid down with that cash or returned it to shareholders. Their historic M&A track record has been less than perfect - that in my view is the biggest risk. Agree with you that patience will be key and if they can show that the Tuffnell's acquisition has been bedded down properly, we might get some re-rating. | fahads | |
26/2/2018 15:47 | I don't know that you are missing too much fahads, except that these ridiculously cheap valuations are relatively commonplace in declining businesses, they can sometimes take ages to correct & other times the doom & gloom about the declining sector can prove correct. On balance I *THINK* positions like this are profitable, but they can require a lot of patience and tie up your capital. Not meaning to discourage you as I am long here. I had the "good fortune" to exit above £1 previously. The same "ridiculously undervalued" argument applied then also imho but I took the view there was no imminent trigger to release the value. Rightly or wrongly, I have been tempted back in because I DO think the falls since then have been extra overdone, but who knows? Despite the price saying something different, I think there is a strong case to suggest the dividend may be maintained. | kazoom | |
26/2/2018 15:18 | I wonder what I am missing out on Connect Group - the only thing I am scared of is that Tuffnell's losses and problems are structural and worse than expected. Valuation is ridiculously cheap, especially in context of how the business has deleveraged. | fahads | |
26/2/2018 11:43 | I am rather surprised to see this one slipping back as I missed the boat at 60 as at the time there were bargains everywhere. I still can't quite figure out why the share price is so low unless there is real risk they will lose some of the contracts due to expire in 2019 and be left with a big hole to fill. This stock is on my "really don't know what to do with list". At the moment I'm looking for safe secure stocks with a dividend stream so this doesn't fit the bill but the share price does look attractive | cc2014 | |
22/2/2018 09:12 | Is the dividend secure? | dolmak1 | |
20/2/2018 13:28 | Oops, and it's way too big to be rolled into a tax shelter. But rolled I suspect it was. | colonel a | |
20/2/2018 11:31 | By definition, if it is a rollover, however large the connected trades are, that will not trigger a holdings RNS. The end result doesn't change percentages. | grahamburn | |
20/2/2018 11:28 | Rollover I suspect. Hopefully big enough that we'll find out who. | colonel a | |
20/2/2018 10:37 | Two massive sells of 2m this morning. Price seems to have held up well. | retsius | |
16/2/2018 18:56 | Good to see the price recovering from the depths. I am here for the yield, this is an income stock for me. | rcturner2 | |
16/2/2018 08:43 | up 5% so far | mister md |
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