Conduit Share Discussion Threads

[rivaldo] 22/4/2015 08:44

CRE have paid a net £7.7m cash for 51%, i.e £15.1m grossed up, for a company making say £1.4m-£1.5m PBT last year after "material growth".

This strikes me as pretty reasonable, though not "cheap", as I said. And the balance is measured on performance.

It's certainly extremely earnings-enhancing on these terms - and synergies and cost savings should make it even better.

[smithie6] 22/4/2015 08:37

....Id agree expensive...

But I guess such cos. are at present.

...Creston has no choice but to make occasional acquisitions where it is short...in IT areas...imo...

Made 1 before....

Helps keep existing Creston clients....which is good

..cross selling...personally I doubt any impact to plc lfl numbers

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Trading update
....meeting expectations.....although NBI said that then didnt !

Around this price looks reasonable risk/reward phps versus anything else ...but not for anyone looking for a quick double bagger



@fulltimeinvest

[spooky] 22/4/2015 08:06

'Isn't cheap' is bit of an understatement.

[rivaldo] 22/4/2015 07:14

Exciting stuff :o))

Not only are CRE in line with forecasts of 12.5p historic EPS - with a 4.1p dividend - but we have a highly earnings-enhancing acquisition from CRE's cash pile.

And it's a digital design and development consultancy, so highly complementary to CRE and its existing structure. Plus of course being in the right space for these times.

The client list is fantastic - including Barclaycard, Boots, eBay, Gamesys, News UK, Skrill, SSE and Star Alliance.

The acquisition price isn't cheap, but this looks a high quality acquisition - with the further consideration being dependent on performance anyway. Besides, the cash is doing nothing in CRE's bank account.

This should jolt the share price upwards.

[rivaldo] 27/3/2015 14:13

CRE's ICM polling division should have an extremely good few months given the election - one poll just out and an ICM expert on the BBC news just now following last night's Dave 'n' Ed Paxman debate.

[smithie6] 15/3/2015 20:45

ah...OK....now I see what you meant in your earlier post !....bit slow on that one..

[madengland] 12/3/2015 08:13

Au contraire black adder. Post reads as intended.

[smithie6] 10/3/2015 13:33

Mag.
you've made a type BTW in your post 4663...
'sell when cheap' when you meant "expensive"

if you want to modify your post....I'll then delete this post.

[madengland] 09/3/2015 08:04

I see the company continues to buy. Maybe this is as low as she goes? Hmm

[madengland] 02/3/2015 18:54

Hoping for a stab at some shares at 100p if this drop below the 200 day average delivers one of those CRE negative spikes we've seen a few times. Looks oversold that said. When's the next news date? I maintain my approach to CRE, buy when ridiculously cheap and sell when cheap and everyone recommends buying.

[rivaldo] 02/3/2015 07:41

Another new client win - this time it's Deezer:



That's a prestigious new client, making two digital/new media wins in a matter of days following the Mind Candy win. Great to see CRE making such progress in the new technology sector.

"Fever selected as Deezer's new UK and global PR agency
24 February 2015 16:56 in Technology PR

Fever selected as Deezer's new UK and global PR agencyFever has been selected as the new retained UK and global PR agency for Deezer, the fast-growing digital music streaming service.

The agency will be tasked with developing campaigns to promote the brand in the UK, as well as managing the client's global press office, influencer programme and its network of PR teams across all markets.

This follows a three-stage tender process, with Fever being selected from a final shortlist of four agencies. It replaces incumbent Pretty Green, which was originally appointed in 2013 but chose not to repitch for the account.

Deezer offers its service in more than 180 countries, with 16 million monthly active users and six million paid subscribers worldwide.

Bruce McLachlan, joint managing director of Fever, said: "The music space is very crowded, so our job will be to develop campaigns rooted in audience insight that can change behaviours, as well as deliver brand fame."

The agency has experience of working with a number of high-profile tech brands, including PlayStation, Canon, Toshiba and HTC."

[smithie6] 27/2/2015 12:36

back to Creston

surely reasonable risk/reward with its good earnings % and holding some cash

[rivaldo] 27/2/2015 09:05

Good news - CRE's agencies Fever and Nlson Bostock have won the PR contract for Mind Candy (the firm behind Moshi Monsters). A prestigious appointment:



"Mind Candy appoints Fever as retained UK consumer agency, replacing Fishburn
February 24, 2015 by Anna Reynolds , Be the first to comment

Global entertainment company Mind Candy has appointed Fever and sister agency Nelson Bostock to handle its consumer and corporate PR accounts, replacing incumbent Fishburn.

etc"

[smithie6] 16/2/2015 19:08

ah...interesting....

Do 'we' know who is behind DBAY ?

it couldnt perhaps be WPP or the German partner of CRE ?
WPP keep buying cos. every now and again....I guess using cash generated...

[rivaldo] 09/2/2015 12:41

DBAY have bought over another 2m shares - they now own almost 19% with 11m shares, and have evidently bought a lump of HH's shares.

They're quite a determined buyer it seems:

[toffeeman] 07/2/2015 08:43

Support at 100,90,80 then 50

Lots of resistance above current price!

[smithie6] 06/2/2015 17:43

It was mine !!

(sadly it wasnt...we can but dream !)

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clearly with the large volume recently....there has been some biggish sellers but also buyers.....so my theory is that the share price has good support around this price area....assuming that the big buyers still have some cash left !

(phantom portfolio at website still holding for that reason)

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@Fulltimeinvest

[rivaldo] 06/2/2015 11:16

A very nice buy of 1,163,383 shares at 116.5p just reported....

[adamb1978] 05/2/2015 11:45

Thanks for posting. I'm not sure I buy the 5% turnover increase in 2016 given the history

[rivaldo] 05/2/2015 09:18

New Edison note - confirms 12.5p EPS for the year just ending, with a 4.1p dividend.

And 13.2p EPS next year, with a 4.4p dividend.

Plus over £9m net cash...



"Valuation: Discount persists

The group has strong cash flow characteristics and should end FY15 with net cash over £9m (£7.7m after contingent deferred consideration) despite spending £1.6m on the share buyback. With a growing dividend stream and the prospects for moving earnings forward improving, a discount of over 20% to other UK smaller agency groups on CY14e EV/EBITDA seems harsh."

[smithie6] 04/2/2015 17:28

my view of the price action is +ve......large vol. yet steady or small rise after a fall....imo shows that someone is happy to buy volume


see what happens in coming months....which I guess depends on following news on trading

[madengland] 04/2/2015 09:59

Hope you are right Riv, good luck as always. Personally can't see much enticement in at this level after that update but takes more than one madengland to make a market :-)