Constellation Healthcare Share Discussion Threads

[rivaldo] 05/10/2016 12:33

250,000 just bought at 174p. Good to see decent size trades - maybe more still to be reported.

[melody9999] 04/10/2016 21:27

Bought a few in my TD ISA. But surprised that idealing cannot deal in them.

[dave2608] 30/9/2016 15:12

Thanks for that Melody.

[rivaldo] 30/9/2016 13:21

Interesting - 413,000 shares just through at 175p.

[melody9999] 30/9/2016 00:01

Dave - these sort of things happen on many stocks. Probably because you are not seeing the full picture. For example if you are seeing sells going through, but MMs are filling a large buy order in the background (which is reported later), then the share price may rise despite the fact you are seeing share sells. And vv.

Also there is no certainty that a buy is actually a buy because the monitor you are using just looks at the mid point and assumes a trade above this point is a buy. But if the share price goes up before the buy is reported, then it might appear as a sell.

And then the MMs might be manipulating the share price for their own benefit - which mean they do not move the price despite a volume of buys (or sells) going through.

[rivaldo] 29/9/2016 22:54

Yep - I wonder if given the afternoon surge CHT is perhaps attracting some American buying interest?

Either that or the merits of the acquisition are sinking in. Finncap will presumably be increasing next year's forecast from the current 18.84p EPS.

[battlebus2] 29/9/2016 17:14

Moved up strongly this afternoon for some reason.....

[eezymunny] 26/9/2016 11:29

A buy is a sell and a sell is a buy. Lesson 1.

[dave2608] 26/9/2016 11:04

Now a £255k buy and a £623.05k buy. Can someone please tell me how the price can fall quite a bit on a few volume of sells, yet doesn't budge on a huge volume of buys? Volume of buys so far 626,500, sells 10,950.

[dave2608] 26/9/2016 10:17

£170k buy. Somebody's confident.

[deltrotter] 26/9/2016 08:08

Tx Rivaldo

[rivaldo] 26/9/2016 02:03

Finncap retain their Buy and 310p target:

[adamb1978] 23/9/2016 17:28

Why would a company ever announce the amount of synergies which could be achieved over a 2 year period?!?!? Why not 5 years? Or 10 years?!? In the same vein, why not announce the turnover achieved over the last 2 years or 5 years?!?The figure will be the amount which they're expecting to generate on an annual basis after 2 years of work extracting those synergies. Agree that the wording is clumsy but it's pretty obvious what they mean given that the alternative (total synergies achieved over two years) is nonsense!

[eezymunny] 23/9/2016 15:46

Dave you say "The bit where you say "Is it really credible that a company with last year EBITDA of $0.8m on turnover of $15.6m can produce $7.8m EBITDA pa?" Nowhere do they say that."

Indeed, I never said they said that. That was the interpretation of Riv's understanding that the $7m EBITDA uplift was ANNUAL. It always seemed highly unlikely to me.

Just to be clear!

[dave2608] 23/9/2016 15:35

Or to put my last post another way, they are basically saying that $7 million of additional EBITDA as a result of the new acquisition is already in the bag, with maybe more to come.

[battlebus2] 23/9/2016 15:29

From a first search it seems to be a very well run company with high calibre management but as ever dyor....

[rivaldo] 23/9/2016 15:26

Dave, cheers re the info from Finncap on Allegiance Billing. Good to get these queries sorted out quickly.

The $7m savings wording is ambiguous imo and could be read either way. Whatever the case, it's clearly very earnings-enhancing.

[spooky] 23/9/2016 15:26

Crest or no crest, i would have been surprised if you did.

[dave2608] 23/9/2016 15:21

Eezy

I agree, it pays to be cautious.

I'm quoting you below from your post 627.

"What it says Riv is "The directors anticipate that the synergies between the two businesses will result in at least $7.0 million of additional EBITDA on a proforma basis being achieved in the first 24 months of ownership". Which could mean anything I guess. It certainly doesn't say "per annum". Is it really credible that a company with last year EBITDA of $0.8m on turnover of $15.6m can produce $7.8m EBITDA pa? So going from a 5% EBITDA margin to 50% margin simply through synergies? Possible I guess but sounds highly unlikely?"

Now people seem to be misreading this. I agree with you, it appears to be over 24 months. That's quite clearly what it says. The bit where you say "Is it really credible that a company with last year EBITDA of $0.8m on turnover of $15.6m can produce $7.8m EBITDA pa?" Nowhere do they say that. They quite clearly state "synergies between the TWO businesses will result in at least $7.0 million of additional EBITDA". Another point to note is the comment "in at least $7.0 million of additional EBITDA" To me "at least" means the bare minimum. So potentially there's a fair bit of upside.

At face value it looks a good deal but people are misreading the RNS and consequently drawing false conclusions.

[wjccghcc] 23/9/2016 15:04

No spooky. Don't like the lack of Crest membership.

[spooky] 23/9/2016 14:34

WJ - You don't own these do you?

[battlebus2] 23/9/2016 14:16

Thankyou Dave, i was about to pour the Jamesons a tad early :)))

[dave2608] 23/9/2016 14:14

Just phoned Finn Cap. VEGA is a holding company. The underlying company they have bought is Allegiance Billing & Consulting, LLC.

[battlebus2] 23/9/2016 14:08

It's also strange that in the RNS there was no note from the CEO of VEGA explaining the takeover not even to say they look forward to joining the CHT family.....just who is the CEO of VEGA????

[battlebus2] 23/9/2016 14:08

I'm guessing theres been a name change in recent months.......