Eu Supply Share Discussion Threads

[woodgate3] 14/1/2014 12:38

Looks like things are stirring!

[value viper] 08/1/2014 21:16

Miton increasing; awaiting some more news

[tipsheet] 10/12/2013 08:27

Another good contract win for EU SUPPLY...
hxxp://www.stockmarketwire.com/article/4721912/EU-Supply-in-framework-agreement-with-GeS.html

[rambutan2] 03/12/2013 12:38

Small mkt cap offers plenty of upside IF things work out. Bought in some good investors at the ipo...

[value viper] 25/11/2013 09:18

Co should have held the news for now and not put it out on the first day of dealings; pre IPO investors selling a few but I am confident this co has legs and there is more to come. Funds raised to drive sales side and mkt value too low imv when compared to other (tech) plays in similar space. ATUK for instance who incidentally share the same broker.

[philjeans] 04/6/2008 12:08

Still an opportunity here of course through GNE; once the parent holding company for EUSP and has many dual holders through the Usmanov Russian connection. Bid in progress now but still a 100% mark - up if my beliefs are correct on GNE.

DYOR - I hold both.

[cher price] 29/5/2008 19:40

Nice one philjeans.
My header chart seems to be stuck in time, so here's an up-to-date chart:

[barn owl] 29/5/2008 19:05

Blimey, well chuffed bought these on the 20/09/06 at 14p a share. Forgot all about these until todays fab takeover of 50p a share in cash. A few drinks are on order for tonight!
Well done to all long-term shareholders.

[philjeans] 29/5/2008 16:22

AGREED TAKE-OVER ANNOUNCED TODAY AT 50P cash!

Some slag heap!

[philjeans] 29/5/2008 14:30

Be nice - also well into MedIcal House and ANGLE and GNE of course - all in bid talks.

Happy days - what freakin bear market?

[8trader] 29/5/2008 14:28

Dont suppose your bid luck could extend to Amu Phil ?

[8trader] 29/5/2008 14:28

Hats off !

[philjeans] 29/5/2008 14:19

Yes - I'm absolutely thrilled skinny with that - 50p cash on the nail!

Been holding and buying for several years and will be making some very big capital gains for the family with this one.

Don't say I haven't been telling you!

[hugepants] 29/5/2008 10:09

Well done holders. I was always put off by the fact they only had one customer. My mistake was not realising this was already in the price (and more)

[daz] 29/5/2008 08:09

Well at least a story with a happy ending, wasn't expecting a takeover but offer is well over recent trading levels, so although they're getting a bargain, I can't complain too much.

[philjeans] 20/4/2008 08:46

This has held steady through the credit worries - no problem about borrowings for this one with the entire M/C now covered by cash on deposit!

No debt and making close to £700k after tax each year - historic P/E 3 ; take out the cash and the P/E DROPS TO LESS THAN 1.

This was spun out of GNE a few years ago and has a large Russian shareholding still; interesting that GNE is now in bid talks - Alisher Usmanov holds significant holdings in both companies.

I hold in both - DYOR etc.

[philjeans] 31/3/2008 10:11

I've e-mailed co today - all my shares, and that of my wife are in nominee names so I don't get direct mail from EUSP.

I'll keep you posted and try to attend as well.

[daz] 31/3/2008 10:03

Yes I'm going to make an effort to go, if I can get a day off work. Do you know where the AGM is on May 16th? Hopefully not in a steel mill in Siberia.

[philjeans] 31/3/2008 08:12

I take your point about the lack of dividend - are you going to raise it at the AGM?

[daz] 30/3/2008 19:01

Phil

Thanks for the reply, the trading record gives confidence that they know the market and haven't slipped up so far in what must be a variety of trading conditions.

Re - overheads, the turnover figure reflects the gross trade value, gross profits are £2m out of which they pay themselves £1m, which given that they only have a few employees and a small rented office to maintain, means that they are being handsomely rewarded for what they do. As a comparison the 2003 results show that admin expenses were around 400k, in 2004 600k, so they're certainly not stinting on pay rises. As a shareholder (owner), I would like to share in increased profits in the form of a dividend.

If they for instance lopped off a 100k out of their collective pay packets and paid that as a dividend, on 12.7m shares that would work out at 0.8p or 3.5% approx.

I guess it's similar to an investment bank setup, another trading environment, so I shouldn't be surprised.

[a.fewbob] 30/3/2008 18:40

I take your point but this kind of valuation mismatch seems a little extreme to say the least.

[philjeans] 30/3/2008 17:34

Daz; they trade on a month to month spot basis; there is no forward order book. I reckon that protects them to a large extent, making them nimble and able to change prices as the open market varies; they are not locked into long term, fixed price contracts for example. One supplier is a risk but makes life much simpler in many ways and allows them to pass on price increases very quickly - obviously, some trades will be more profitable than others but it's swings and roundabouts like any dealing business.

They have been trading like this for at least eight years now and made good profits on a regular basis. Yes, they buy almost exclusively from Ural Steel in Russia but have built a very good relationship there and, as I have said in the thread opening summary, Russians have a very large share holding in EUSP and won't want to damage this trade.

I think the overheads are not out of line with a £70M T/O business - I believe it's the share price and thus the m/c that needs changing!

Afewbob; if you always take the view that the market correctly prices every quoted business, you may as well pack up and go home. The game is all about identifying the mismatch in price to assets/profits and buying before others recognise the opportunity!

But, hey, do what you like - I'm in big time and buying more - DYOR.

[daz] 30/3/2008 15:31

There are a few reasons I can think of:

Traders are always lowly rated because profits fluctuate, often unpredictably.

EUSP are very reliant on their relationship with Ural steel, without them I don't think they have a business.

On turnover of £71m, they only made about 700k, a very low margin business. If a few trades go badly wrong for whatever reason, you could see them wiped out.

All that said, if they can maintain current profitability in the current year, the business will be valued at zero ex cash, you can't discount the valuation any more than that.

Phil - another question.
Any idea why operating expenses are £1m, seems an awful lot for a business capitalised at just £2.8m