Connect Share Discussion Threads

[gaffer73] 05/6/2018 10:45

Well I expected a fair bit of buying with the ex divi coming this Thursday but it looks no one is bothered!

[fahads] 30/5/2018 12:22

chickenvindaloo: are you seeing any steps in the right direction by management and has employee morale improving or getting worse?

[chickenvindaloo] 29/5/2018 18:32

43.6p that should be

[chickenvindaloo] 29/5/2018 18:30

Option price will be £43.60. I'll take a no-lose punt at that. I've ended up cancelling all the Sharesaves I've been in so far. Surely it can't go much lower!

[gaffer73] 29/5/2018 17:58

£1 hopefully

[chickenvindaloo] 29/5/2018 13:03

Option price for the next Sharesave scheme is set today. 20 percent discount on ???. The application pack is a lot more muted this year. No smug picture of Cashmore thankfully. Who knows where the price will be in 3 years? Guesses?

[podgyted] 21/5/2018 18:06

The decline is factored in - in spades!

If they can move to stability and then a slight bit of growth this is so undervalued, its painful.

[gaffer73] 19/5/2018 08:36

Should get a boost from the Royal Wedding and the World Cup which will offset the general decline. Can't see this staying at these levels if the £42m guidance is met at FY.

[fenners66] 18/5/2018 12:06

I'm not paying £19 for a magazine !

[danieldruff2] 18/5/2018 11:50

Magazines will become the new vinyl

[kazoom] 18/5/2018 11:25

Unlikely, its a well embedded trend

[gaffer73] 18/5/2018 11:19

Roughly in line with Connects half year recline figure. Hopefully the decline will stabilise for the second half.

[speedsgh] 18/5/2018 07:20

John Menzies plc have released a Trading Update today. As a sector peer to CNCT, it is interesting to read the commentary on their Menzies Distribution division...

Trading Update -

Menzies Distribution is trading positively. Within the print media category sales decline is 5% against the same period last year, with newspaper volume in line with expectations but magazines trading better than forecast. Cost saving initiatives are delivering against plan and we continue to make progress with our new revenue initiatives where we are seeking to optimise our existing assets during daylight hours.

As detailed in our final results a sale process for Menzies Distribution is in progress, this process is taking longer than we anticipated but we remain fully engaged with a number of potential buyers. We remain hopeful that we will be able to reach a satisfactory conclusion and will update shareholders at the appropriate time...

[gaffer73] 17/5/2018 11:21

Probably see a fair bit of buying in the next couple of weeks ahead of the ex divi.

[gaffer73] 08/5/2018 15:17

If its part of the same order they notify when it's complete as far as I'm aware.

[speedsgh] 08/5/2018 14:21

Do we know if Aberforth have to notify at each 1% threshold or every 5% threshold? It seems to vary in different cases but I can't remember the rules. If the latter, then they are likely to have been accumulating for some time.

Connect Group website is still showing Aberforth holding 5.32% as at 1/7/2017...

[gaffer73] 08/5/2018 14:20

It also shows that they think this is a good buy at these levels.

[edmundshaw] 08/5/2018 14:04

It shows there is a/some more-or-less matching seller(s).

[rcturner2] 08/5/2018 13:44

That just shows how weak the price is if someone can pick up 5% of the company without the price moving.

[speedsgh] 08/5/2018 13:39

Aberforth move from 5% to over 10% threshold...

Holding(s) in Company -

[masurenguy] 08/5/2018 12:58

Letting the cat out of the bag about Connect Group in Omaha
Professor Glen Arnold: 08 May 2018

"Connect Group (LSE:CNCT). Since I bought these shares they had almost halved. I explained to the audience that I had not sold, and was looking to buy some more. My recent analysis convinced me that it was even more of a bargain than when I first bought. I thought this was just a passing comment, and I did not actually give away the name of the company during my talk – what would be the point, these people were from the four corners and nobody would have heard of Connect anyway. But after the talk three fund managers, in sequence, asked me to name the company. After some resistance, I figured that they could work it out for themselves from the public bits on ADVFN’s newspaper pages even if they could not access the full Newsletters I’ve posted for you."

[kenmitch] 06/5/2018 11:50

Chickenvindaloo.

A very helpful post. Thanks. I've just looked at your earlier posts about Tuffnells and the results show how right you were. And you even feared the share price falling to around 50p as a result. Wish I had seen/taken more notice of your earlier posts.

I still hold Connect but am pondering selling out. Their turnaround plans sounded woolly so presumably unless they sell the business things are going to get worse rather than better, as Management sound incompetent. A real shame for people like you who work there and presumably a danger of job losses too if things don’t improve.

For shareholders (we’re lucky as unlike for you the only worry for us is the share price) the question is whether the bad news is priced in now. The PE is very low and they’ve held the interim dividend. Even if they were to halve the final the yield would still be very high.

Do please post again, especially if any hint of things getting any worse, or (sounds unlikely) better.

[chickenvindaloo] 06/5/2018 07:13

@4bigmac I didn't know Dunn was now CEO at DX. I've just had a look at their latest filings at Companies House and noticed Paul Ibbetson is now MD at DX also. He was 11 years at Tuffnells. Both appointed Nov 2017. It's surely no coincidence that these two appointments correspond with one of my previous comments that business was dropping in the last few months.
Tuffnells need a back to basics campaign. Lloyd Dunn used to visit every depot at least once a year and kept people on their toes. I've never seen anyone from Connect or TPE since the takeover at our depot EVER. Culture is all wrong. Poor management, poor leadership, poor discipline.
I've no confidence in Connect to turn things around.

[gaffer73] 05/5/2018 13:38

It is something they have identified and are now addressing though. The fall in share price seems a bit overdone if they can hit the yearly target. I notice they have paid the divi for at least the last 5 years with a similar revenue.

[4bigmac] 05/5/2018 12:14

Cannot say I agree about this company being a good buy, the purchase of Tuffnells has
proved a purchase to far. After a year they removed a large number of junior and senior management, this was done at a fast rate and removed a vast amount of experienced personnel.
In many cases they have been replaced by management who have little or no experience
in the market that Tuffnells trade in . Some management have been drafted in from the
magazine side of the business, very different to the type of business that Tuffnells
has been in.
One of the new depot managers was overheard asking "what is freight" that says it all for me. Business is being lost on a weekly basis most of it lost to DX , under the management of Tuffnells previous owner.
Would not invest until its poor and inconsistent management are replaced.