Conduit Share Discussion Threads

[rivaldo] 22/4/2013 08:52

Indeed. The good news is that less deferred consideration will now be payable. At least CRE had the sense to arange a sensible earn-out agreement.

Both the UK Government appointment and the expansion of Reckitt Benckiser's services are tremendous validations of CRE's digital services offerings and should provide secure revenues for years to come.

[rivaldo] 22/4/2013 07:33

The year end trading statement is out and is pretty good:



- core trading is in line with expectations, i.e probably 10-5p-11p EPS
- net cash is over £10m! This against a £51m m/cap....
- the UK Government appointment more than offsets the Sanofi client loss in the USA, since this will now become a top 5 client
- new acquisition is performing well
- Insight division recovering nicely

Overall then, CRE looks cheap at this level imho.

[markt] 14/4/2013 18:06

...difficult to know what is happening imo inside Creston
...if I remember correctly....a prev. co. report talked of profitable growth...

but subsequent results showed a drop in turnover

and text was for expected profit to be the same as prev. year

which...after the amount of cash spent on buying businesses ..to then only produce the same profit as before....
seems a bit of a poor result as far as I can see

but in business I guess that one has to look medium and long term...

(but ...if the acquis. money had been spent on buying back shares instead....one could argue imo that the EPS would perhaps be 50% higher....and higher share price for shareholders as a result)

Don Elgie took over at 96p in 2000....now its 2013 and the share price is below 96p
DE has received excessive renumeration imo ...while so far shareholders are shouldering a loss
but one could argue that the business value is higher than the share price ..
and that the share price is undervalued compared with the EPS...depends if turnover keeps falling I guess

(the loss for anyone that subscribed for new shares is imo much higher since most share issues were done at higher prices....the return on cash raised doesnt look very good at this moment....)

so, imo ....the jury is still out
perhaps the next trading statement will fill in the picture

[rivaldo] 11/4/2013 15:52

People come and go for all sorts of reasons. Most uninteresting :o))

The list of clients in the interview I posted above is outstanding imo.

[markie7] 11/4/2013 14:20

..and interesting news that the actual MD has left to set up his own shop.

[rivaldo] 10/4/2013 11:03

Ruffer - who are rated as top-notch investors - continue to increase their stake in CRE.

Today's RNS shows them now above 9% with 5.53m shares. This is 400,000 shares more than their last holdings RNS in February.....

[markt] 08/4/2013 11:48

2012
12.3p adjusted
and 15p incl. a one-off benefit

If those analyst predictions are 10.6p and 11.45p then they expect lower than last year...and that never goes down well with the market....
and turnover perf. has I think been -ve which the mkt wont like imo.

Needs good news maybe from the sector...to support the shares a bit...

if share price is close to 77p then p/e perhaps around 7....not expensive....
but if market sees Europe falling apart then affects sentiment of course for marketing sector...
----

and so far the large USA acquisitions have been poor acquisitions in terms of financial results......which doesnt help the P/E or valuation for the bod

[c1d] 08/4/2013 07:44

If they achieve an EPS of around 11p I think that would make the shares seem cheap at current levels. There is also the possibility of Havas making a bid although things have been quiet on that front for a while now. An EPS of 15p would have been nice though!

[markt] 07/4/2013 20:26

"Maybe the Fidelity guy was looking forward to 2020 forecast profits for his P/E ratio "

....very clever these finance sector chaps...being able to forecast so far in advance ! ;-)

----

2 EPS forecasts 10.6p and 11.45p...bit of a let down perhaps compared to the prev. EPS forecasts imo...used to be 12-15p I think

[c1d] 03/4/2013 16:36

Markt,
The FT company analysis service is showing 2 analysts forecasts for 2013 EPS of 11.45p & 10.6p (average 11.03). That averages to a P/E ratio of 7.7 which is cheap in my book given they have a consistent record of making profits even though it is nowhere near 3.6.

Maybe the Fidelity guy was looking forward to 2020 forecast profits for his P/E ratio or knows something I don't

Regards

[markt] 03/4/2013 15:57

Is 3.6 correct ?

[rivaldo] 25/3/2013 14:10

CRE get tipped as a prime takeover target. Interesting that he posits this purely on the basis of the fundamentals, with no mention of the Havas stake :o))



"Fidelity touts three takeover targets
Rob St George 18 Mar 2013 | News - Comment now"

"Alex Wright, manager of the Fidelity UK Smaller Companies fund, opted for Creston (LON:CRE). This small-cap advertising agency boasts the merit of value: its shares trade on a forward price-to-earnings ratio of 3.6, which Wright described as 'extraordinarily cheap'.

He added: 'It has strong positions in attractive niches such as social media and healthcare marketing, and as such could be seen as an attractive acquisition target for larger marketing and media groups.'"

[toffeeman] 18/3/2013 08:52

Hi (again) Paul

I guess I shouldn't be surprised we keep on bumping into eachother aound these parts!

I finally have a CPR short in profit!

[paulypilot] 16/3/2013 12:34

gretel - every trade has both a buyer and a seller! So if you see lots of small buys, and the price doesn't move, then it means someone is in the background feeding the MMs with stock. But eventually the seller is cleared, and then if buying continues, then the price moves up.

PP.

[gretel1921] 15/3/2013 17:49

Something doesn't add up here,
for weeks now there have been high volume sales some days,
as today for examble : 87500 sold
1000 bought
no movement in the share price,
something is going on .

[markie7] 10/3/2013 20:30

house broker in pushing house stock shock.

[rivaldo] 10/3/2013 15:33

Liberum have been pushing CRE - this came out on Friday, and they have a 120p target price:



"Creston plc's "Buy" Rating Reaffirmed at Liberum Capital (CRE)
March 8th, 2013 - 0 comments - Filed Under - by Latisha Jones

Creston plc (LON: CRE)'s stock had its "buy" rating restated by analysts at Liberum Capital in a research report issued to clients and investors on Friday. They currently have a $1.80 (120 GBX) price target on the stock."

[markt] 05/3/2013 15:18

Mantenant le capitalization de Havas c'est 1.8 mille millon de Euros.

pas problem si Havas veut acheter le petit Creston

-----
"2012 Revenue

Full year
Revenue: €1,778 million
Revenue growth: +8%
Organic revenue growth: +2.1%
Digital weight: 26% of revenue"

[toffeeman] 01/3/2013 08:00

Loulla-Mae Eleftheriou-Smith - for real??!!

[rivaldo] 01/3/2013 07:14

A campaign win for CRE's Red Door:



"Red Door drafted in for Daylong hosiery campaign

Loulla-Mae Eleftheriou-Smith, prweek.com, Wednesday, 20 February 2013, 9:41am,

Daylong, the compression hosiery retailer, has brought in Red Door Communications to drive consumer awareness through a nine-month campaign.

etc"

[rivaldo] 28/2/2013 15:17

....perhaps it's to work out what a fortune they can make from working on Government contracts, as everyone else seems to do from the series of rip-offs I always read about.

[markie7] 28/2/2013 14:38

the cooling off period is the period in which they realise what a nightmare it will be, and how little actual profit they will make.