Connect Share Discussion Threads

[lord gnome] 20/10/2016 11:59

Nothing that I can see fenners 66. Thanks for the info on the negative pension deficit - I'd hadn't spotted that in my usual quick scan, I don't do detail very well.

[fenners66] 20/10/2016 09:55

So I had a 2 minute read through the accounts the other day prior to buying in at a few minutes past 8.00am. Which proved to be bad timing.
I have just gone back to see if I missed some vital component,
What have I found?

Earnings up - Dividends up - strong free cash flow and debt down. Provisions for H&S (lets hope that this is too much?)

Expectations for next year - we know that core business will decline - its been happening for years but they seem to have found a diversification that leverages their core business assets instead of wild ideas (like coffee!).

So I thought there must be a pension deficit ......... however under IAS 19 there is a surplus of around £130m !
Ok so they do not recognise this as under the actuarial valuation method using the actual investment strategy it would produce a deficit , but I do wonder how this compares to every other company.

For instance if the standard IAS 19 says another company has a deficit would they go out of there way to publish a higher deficit with a differing investment strategy?

Despite that the surplus of the main scheme under IAS has risen 16m in a year so this is good news.

Next year they expect to invest more capital - but free cash flow to remain flat.

Overall reasons for the shares to slide? Cant see them.

Anything I missed?

[prokartace] 18/10/2016 14:16

You know I thought this would happen and I had left room to buy more. I won't use this until closer to the xd date when I expect the share price to rise sharply

[edmundshaw] 18/10/2016 11:21

Now 6.7%. Enough is enough. Added.

[anley] 18/10/2016 11:07

Stale bulls slowly selling ..........I shall wait a little longer in these strange markets.

[edmundshaw] 18/10/2016 10:37

6.6% yield right now. Crazy...

[fenners66] 18/10/2016 08:13

Well I asked last week if someone had sight of the up-coming results, it seems that either they had not or they saw something that I have not spotted in a 2 minute review of the results.
So bought some around the open...
We shall see where we end up - but with about 6.4% yield that's a start.

[lord gnome] 18/10/2016 08:05

Agreed Aleman. The company is in rude health. Nothing to worry about here. So why is the share rice so weak? Just technical in my view. It has spent the last couple of years in a trading range of roughly 140 - 165. Time to visit 165 again, I think.

[edmundshaw] 18/10/2016 08:01

No reason I can see in the prelims for the price not to recover fully. Further profit growth, dividend up and a good outlook.

On adjusted earnings of 19.8p a share, unadjusted 13.7p, free cash flow 16.2p per share, we are well cheap.

[aleman] 18/10/2016 07:57

Profit, cashflow and well-covered dividend up. Debt down. Seems a pretty good set of numbers.

[wjccghcc] 13/10/2016 14:39

Likewise, got some at 134p on the dip. I'd like to see the debt start to come down but otherwise a very solid generator of cashflow.

[prokartace] 13/10/2016 13:57

Back in. This is exactly how I bought in the first place in Feb last year. Lets hope for the same result as then

[aleman] 13/10/2016 07:54

Well, you did a bit better than me. I added a few days ago - but anything under 150p should be good in the long run, with a bit of luck.

[edmundshaw] 12/10/2016 19:14

So did I.

Basically it is either a leak or it isn't. But we have dropped to this price before this year, and a trading update only a few weeks ago was OK.

Trading Update covering the 44 week period to 2 July 2016:

Total Group revenues increased 2.1% compared to the same period last year, including a full period for Tuffnells this year versus 34 weeks last year. On a like for like basis total Group revenues decreased 0.9% (normal to good for Connect with the slowly declining news and now seemingly stabilising books divisions). Parcel freight was up 10.2%. Finally, "forecasts remain in line with market expectations".

Voting machine, weighing machine...

[bisiboy] 12/10/2016 18:17

added today

[aleman] 12/10/2016 14:25

Results are on the 18th.

[fenners66] 12/10/2016 14:15

Still falling, when are results published?
Is someone already in the know or is there not much volume?

[lord gnome] 11/10/2016 08:08

It usually starts like this Aleman. Just the MMs trading quotes until the market gets warmed up and other bids and offers come into play. It's like this with a number of stocks. That's why I always try not to trade in the first 30 minutes of the session.

[aleman] 11/10/2016 08:05

Spread as 0.5p at one point yesterday afternoon. It's 9p this morning. What are they playing at?

[skinny] 08/10/2016 16:11

There you go LG -

[lord gnome] 08/10/2016 15:23

Don't tease. What did the Times have to say?

[anley] 08/10/2016 10:55

I am tempted to buy in again after the Times comment this morning.

[edmundshaw] 03/10/2016 17:06

Managed to snaffle a few under 150p this morning. Yield at the current price is 6%, which in the current interest rates is very decent; good cashflow from this company, which seems to be able to reinvent its business very effectively as some of the older ones become declining cash cows...

[anley] 19/8/2016 14:14

and look what has happened to the price since SL bought the shares......as well as a new finance director and a reasonable trading update with results due in mid-October.

[anley] 18/7/2016 17:07

Keep to the percentages = 6% which for a small company is a very high number.