Discoverie Share Discussion Threads

[mfhmfh] 06/9/2018 11:51

top-up opportunity. IMHO.

[rivaldo] 06/9/2018 11:27

Good stuff - Berenberg have increased their target price to 525p (from 460p):

[rivaldo] 28/8/2018 16:17

Looks like a steady recovery happening now.

[f1araway] 17/8/2018 16:50

Can they really be 1/2 a million, "buys" resulting in down 5p?

[f1araway] 10/8/2018 17:15

Looks like they shook numbers in a bag & came out with + 17p

[torarory] 10/8/2018 17:06

What happened to result in this rise ? Obviously buying but cannot see any news

[eggbaconandbubble] 07/8/2018 14:59

"but there's no news here until October....."

Says it all! No real reason for the drop except blatant manipulation.

[rivaldo] 07/8/2018 14:08

Nice bounce now, with the mid-price back above 400p.

I agree with the above posts. A good opportunity at these prices assuming markets remain relatively stable, and given the group's continuing and successful transformation potentially a very, very good opportunity.

[mr_spock] 07/8/2018 13:29

eggbaconandbubble - I agree. Increased likelihood of no-deal Brexit and Trade War has spooked investors and many small/midcaps are experiencing 'strange' selloffs. Distinct lack of good news to balance out the bad (although world economies generally doing ok).
See this as a buying opportunity (DYOR), but there's no news here until October so no rush.

DSCV doing very well. Summary of Q1 update:
- Group sales in the period increased by 12% CER
- Orders increased by 16% CER.
- Group order book, of which over 80% is for delivery over the next twelve months, rose to a record high of £135m, up 20% CER year-on-year and up 13% organically.
- Design & Manufacturing division, which generates around 75% of Group profits, saw broad-based organic growth with sales increasing by 5% and orders by 13% on an organic basis.

[eggbaconandbubble] 07/8/2018 12:48

Sell now by all means as I guess it may drop further, BUT a trend I have noticed of recent with mid-caps is that despite the company concerned doing well commercially the share price has dropped almost alarmingly over a short period, THEN oomph! back up it goes. Just market manipulation, pick up a load on the cheap, trigger stop losses etc. and then back up again cos the company is actually doing well.
I guess best time to do such a manipulation is in the summer season, May thru St.Leger.

DYOR etc. but either sell now and hopefully buy back cheaper or just load up when the trend reverses!!!

[davr0s] 07/8/2018 11:47

Happy with my decision - opinions don't move markets, liquidity does and at the moment the sellers are winning. No one knows where it's going. It could be a top up opportunity in hindsight but could equally be moving into stage 4 of a trend ie a full retrace, in which case the top up would increase the rate of loss

[mfhmfh] 07/8/2018 11:39

crazy selling and great buy/top-up opportunity IMHO.

[davr0s] 07/8/2018 11:31

This is one of my longer term holds but I always trail exit points these days no matter how good the story appears to be. Been a little concerned in recent days that it's been weakening and under distribution and it was clear at the open there was increased weakness and downside risk so exited before the price dropped. Big trade came in and that was enough to upset the applecart. Been a lovely winner but all good things (trends included) tend to come to an end at some point. For me the trend is now broken so will move on elsewhere

[rivaldo] 07/8/2018 11:00

Looks bonkers to me given the prospects - perhaps some badly handled selling from Standard Life who've been reducing.

Now on a current year P/E of only just over 14 given Finncap's 27.1p EPS forecast.

[mfhmfh] 07/8/2018 10:43

or stop losses being triggered at 400p?

[mfhmfh] 07/8/2018 10:42

placing coming?

[rivaldo] 27/7/2018 10:43

New Edison report just out - supports a share price of around 500p or so given the hefty discount to peers which is no longer warranted given the shift to high-margin, own-designed products:



Extracts:

"Outlook and estimates unchanged

In Q119, group orders increased by 16% CER and 7% organically. The group order
book increased by 20% CER/13% organically y-o-y to £135m at the end of Q119,
with c 80% due for delivery in the next 12 months. Management anticipates that it is on track to deliver earnings in line with its expectations; we make no change to
forecasts. The company noted that it has an active pipeline of acquisition
opportunities.

Valuation: Growing D&M business drives upside

The stock is trading on a P/E of 17.0x for FY19e, at a 13% discount to its peer
group average. With continuing growth and higher margins, further progress in
increasing the weighting of business towards D&M (including accretive acquisitions), combined with good control over the profitability of the CS business
should help to close the valuation gap further. The stock is also supported by a
dividend yield of more than 2%."

[rivaldo] 26/7/2018 19:54

Cheers (and it's Rivaldo!).

Nice coverage and analyst comment here:

http ://www.proactiveinvestors.co.uk/companies/news/201613/discoverie-makes-a-strong-start-to-the-financial-year-201613.html

Extract:

"discoverIE makes a strong start to the financial year
11:43 26 Jul 2018

The maker and supplier of customised electronics ended the quarter with a record order book of £135mln"

" Broker upbeat

The shares, up just under £1 in the last year, were trading sideways at £4.24. Broker Peel Hunt reckons the stock is worth £5 and rates it ‘buy’.

It expects 2019 sales to be £428.1mln, up from £387.9mln, while adjusted pre-tax profit is expected to be £25.7mln, 17% ahead of the year-earlier number.

“The outlook is solid, with management confident of further progress,” said Peel Hunt analyst Henry Carver in a note to analysts.

“This is underpinned by the strength of the orderbook – not just the percentage increase, but the concentration of high quality design wins in the key target markets. Our forecasts, which are in line with consensus, remain unchanged.”

[torarory] 26/7/2018 16:54

Great uppdate from DSCV and I am surprised at small uplift in share price
I think you are right Ricardo in that it is seen as a boring company. It will continue to grow though and I have no doubt the share price will gradually rise. A couple of newspaper articles wouldn’t go amiss ! Still a long term hold for me.

[rivaldo] 26/7/2018 10:48

And Peel Hunt reiterate their Buy and 500p target:

[rivaldo] 26/7/2018 08:46

Finncap reiterate their 487p price target:



No doubt as usual it'll be the institutions who drive the price up on reflection of this excellent update, as PIs don't seem interested in "boring", high quality companies which have transformed their earnings profile and are involved at the highest end of technology.

[rivaldo] 26/7/2018 07:09

Cheers Toraroy! Looks like today will be a good day here - order books at record highs, margins up, a rosy outlook going forward.....

An excellent update...and also great to see D&M now up to 75% of profits.



Extract:

"The positive trading momentum seen last year continued into the first quarter, with the Group on track to deliver earnings in line with our expectations.

Group sales in the period increased1 by 12% CER2 and 3% organically3 against a strong prior year comparator, and orders increased by 16% CER and 7% organically. The Group order book, of which over 80% is for delivery over the next twelve months, rose to a record high of £135m, up 20% CER year-on-year and up 13% organically.

New project design wins, a key driver of future organic growth, also grew strongly with a number of successes in our key target markets, in particular, the renewable energy, transportation and industrial markets.

The Design & Manufacturing division ("D&M"), which generates around 75% of Group profits, saw broad-based organic growth with sales increasing by 5% and orders by 13% on an organic basis as the division continues to benefit from its focus on key structural growth markets and cross-selling."

And:

"Group gross margin increased over the prior year, reflecting the continued focus on products with higher added value.

With a clear organic growth strategy and an active pipeline of acquisition opportunities, the Board expects to make further progress throughout the year."

[davr0s] 25/7/2018 18:52

I held RCDO and also still hold DSCV. RCDO was a mild profit warning as far as I was concerned so exited at the open. I won't be impressed if ACAL does the same!

[torarory] 25/7/2018 18:45

Big day tomorrow. Hoping for good results and a positive reaction. Looked at shares in RICARDO today, their results, which were ok TBH, and they dived to 12% down ( 18% at one stage ).
That said, I have every faith in DSCV as a long term hold. ( as with SOMERO too...thanks for tip some time ago Rivaldo )