Frp Advisory Share Discussion Threads

[speedsgh] 27/2/2015 09:25

Hope not. Haven't got my full allocation yet :o(

[cwa1] 27/2/2015 09:23

Finally moving in the right direction?

[snadgey] 23/2/2015 18:31

Looks like we could be heading towards the £1 mark?

[snadgey] 20/2/2015 23:01

Gervais Williams still has over 2% of his Miton fund invested here. Results should confirm the current undervaluation by the market. Management confident enough to raise dividend by 7%. All the best.

[speedsgh] 20/2/2015 12:09

Likewise. Plenty of stock about. Able to buy in quantity below mid.

[gostevie63] 20/2/2015 10:50

FRP has been on my watchlist for a while and I finally dipped my toe in the water this morning at 110p.

I can't see it doing much in the short-term but I like the generous and well-covered dividend.

[snadgey] 11/2/2015 23:39

Not seen post previously cwa1 so many thanks.

[snadgey] 09/2/2015 18:38

Hi cwa1, welcome aboard! tough going at the moment, though I'm optimistic about the outlook. Am down 12% but willing to give a bit more slack...

[cwa1] 09/2/2015 12:25

Afternoon All

Just joined the merry band here with a few at just under 112p, on a medium term view. Hoping it is a bit oversold and just some clumsy selling/minor stock overhang. recent TS was reasonable if unexciting and things certainly SEEM to be in line.

Fingers crossed and all that stuff....

[snadgey] 06/2/2015 23:59

Am still holding. Markey has this company valuation plain wrong imo...

[fruitninja84] 22/1/2015 15:04

Buys showing as sells imo, read the statement lastnight and bought in this morn at 120,

[pj 1] 22/1/2015 14:41

I was going to join you today but looking at L2 think I'll wait a while

I note at year end 2013 it was trading on a P/E of 11, although it pulled back sharply.

[jakedog2] 21/1/2015 09:48

Adam,

Agree reference historic rating.

Took a position at 113p based on decent risk reward IMO

Think there is 20% in this, with minimal downside, with attractive yield as a safety net. Happy to wait for 135- 145p ish..... or / & collect 6%.... if it takes that long.

[adamb1978] 20/1/2015 21:29

Only problem with argueing that FRP is cheap on the basis of its multiple is that its pretty much always traded between 5x and about 7.5x. So in order for the share price to grow much quicker than earnings, you need the market to decide to re-rate it despite it not having done so before. And I'm not sure why that would happen.

I guess though you could say that you're going to pick up the 6% yield plus some share price growrth and hopefully not too much downside....

[morph7] 20/1/2015 16:48

Back in today. Think it has bottomed out. Gl all

[jakedog2] 20/1/2015 14:58

Interesting review of FRP by paulypilot.........


Fairpoint (LON:FRP)
Share price: 113.5p
No. shares: 43.8m
Market Cap: £49.7m

I'm not at all keen on this company's range of activities (e.g. debt restructuring for individuals, PPI claims, legal services, etc). However, the shares are now starting to look so cheap that I'm tempted to hold my nose and look more closely at it.

The group is morphing into something a bit more palatable actually. Looking at the acquisition of Simpson Millar LLP in Jul 2014, checking their website, it seems to be a fairly regular firm of solicitors. Legal services represented 40% of turnover in H2 of 2014, and more acquisitions are planned, so perhaps in time the market might view this company more favourably, and hence be willing to re-rate it onto a less bombed out PER?

Trading update - today the group says that it traded in line with expectations in 2014. This is at the adjusted profit level, stripping out goodwill amortisation and exceptionals, which sounds alright.

Net debt - was £7.6m at 31 Dec 2014, well within the £20m bank facility. There are possible deferred consideration payments that might fall due though.

Valuation - this is where it looks interesting! You don't often see a PER and divi yield almost the same, at around 6! There's not a lot of debt either. The shares are around their 12-month low, which seems anomalous to me, given that the company is today reporting in line trading.

My opinion - I'm not keen on the company's activities, but this is looking remarkable value at 113.5p.

Whilst income from its traditional activities is declining, Fairpoint seems to be doing a good job in bolting on new companies in the legal services area, thus not just maintaining, but growing profits. This is being done without issuing new shares either - I note from Stocko that the average number of shares in issue has hardly changed in the last six years. Shareholders have been collecting rising dividends since 2010 too.

It has a very high StockRank of 96, so the computer algorithms like it. I don't like the company, but I do like these numbers.

[aspex] 20/1/2015 07:10

Steady does it.

[cordwainer] 15/10/2014 20:00

.. afaik, they tend to be funded by the creditors, presumably more competitive fees since they're aiming to break even rather than make a profit, which also means the consumer debt gets paid off faster. Benefits for creditors are fewer bad debts and the donated amount can be offset against tax.

As a last resort, or as an option to the debtor when there's a backlog, I imagine the charities would turn to fee based companies if they could strike the right deal to enable more debtors to be helped - economy of scale processing with reduced fees. Otherwise those stuck in the queue are still building up interest and charges or else they might otherwise go elsewhere and be charged the full fees.

Eventually I think debt management companies only survive from either charity outsourcing or a few unwise(?) consumers.

[bookbroker] 15/10/2014 12:26

Have a word with Gervais Williams, Miton Group, he evidently believes in the story here, got a fairly substantial holding, mind you Chris Moat should have just exercised his options and sold to David Harrel, appears they both struck at the same price so one assumes they did just that. This co. shows slow but steady growth, they are diversifying away from PPI claims, I'd say that debt management is always a good business, but share price reflecting a deflationary world, pretty shambolic performance this year, above comment saying not-for-profit debt charities, to many charitable organisations about, whose funding them, you, me and anyone else, I don't mind giving, but i don't expect I'll receive much help myself should the need arise!

[cordwainer] 14/10/2014 13:32

p/e only 8.2 if using adjusted eps / before amortisation.

perhaps currently enjoying the benefits of survival in an industry with headwinds.

i'm very unimpressed by the look and feel of moneyextra.com

the growth and diversification strategy is unclear to me.

the numbers tick all the boxes but unfortunately the great fundamentals are historical and near-term

[tanelorn] 14/10/2014 11:28

Cordwainer> It's on my radar as well, and i think you summed-it-up nicely.

I'm watching for now, think it's got a lot farther to fall.

[cordwainer] 14/10/2014 10:35

I'm new to looking at this company and just scratching the surface so to speak, so apologies if I sound too obvious ..

Despite very good fundamentals, there appears to be threats on the horizon:
e.g.
Competition with not-for-profit debt charities
Eventual winding down of PPI claims

Also, mcap's a bit small and illiquid for my liking, erratic share price action.

Still, it's been cash generative and can simply acquire new business within the above.

Wondering how much of Claims Mgmt division relies on PPI and what other types of claims are dealt with ?

[santangello] 07/10/2014 10:41

Nice Director buy, to add to growing confidence here.

[jeff h] 21/9/2014 13:48

Will have to see if SM acqn works out...the management seem confident so far with it.

DMP side will motor in H2, Claims and IVA far more mediocre.

Overall company seems ok especially as debt only £8.4m by the end of August despite the £3m cash cost of Topco acquisition.

Yes I'm doing fine thanks Santa...meeting up with a Fund Manager and a buddy who works for EMR at the end of the week...should be interesting.

RNWH a 10 bagger for me if it gets to 320p !

See you when you get some spare time.