Gattaca Share Discussion Threads

[spooky] 27/2/2019 09:23

Providing employees to Huawei, mainly prior to acquisition, who are being investigated by US authorities. Acquisition occurred in 2015, they terminated arrangements in 2016. Should be covered on what happened prior to acquisition, how much of an issue can it be?

[pugugly] 27/2/2019 08:49

Thanks Spooky and checkers2 - Looks as though may well be toxic for the moment - The yanks know they rule the world and will be looking for far more than a pound of flesh (imo) if Trump has anything to do with it.

[spooky] 27/2/2019 08:34

HSBC also told the Justice Department that it was aware of another company linked to Skycom in Iran. In August 2016, the HSBC documents say, the bank was notified by a British engineering recruitment company, Matchtech Group Ltd, that a Matchtech subsidiary had provided contractors to support telecommunications projects in Iran from 2010 to 2016.

The subsidiary, Networkers International, had contracted with Skycom and Huawei, and had received payments in U.S. dollars from Skycom, the HSBC documents state. The payments totaled about $7.6 million, the documents show. Networkers terminated its Iran-related contract with Skycom in October 2016, Matchtech told HSBC.

How much of a problem can that be?

[dangersimpson2] 07/2/2019 13:12

Trading statement steady as she goes, which is ok given the trading environment.

HRnet group should report full year results at the end of this month, will be interesting to see if they mention their holding in GATC at all in their results narrative.

[sphere25] 07/2/2019 12:47

Picking up stock here this morning - offer of 114 has been available all morning. Just bought through now. This is another stock that strikes me as a value play. Not suggesting the multiple should be too expansive, but it certainly needs to expand.

There is alot of bad news already in the price and that statement today was more than adequate to justify at least a 20% move higher from here.

Risk-reward stacks up personally.

[stemis] 07/2/2019 08:26

It can probably be considered management's view, rather than independent.

[quepassa] 07/2/2019 08:23

is this deemed impartial research?

[edmonda] 07/2/2019 08:06

encouraging H1 update with evidence of new team making a difference: best LFL growth in NFI since 2014 at £36.6m, and net debt sharply reduced to £29m (from £40.9m).

Updated Equity Dev research note out with forecasts held, but fair value raised:

[dangersimpson2] 12/12/2018 15:35

The DBAY model is quite successful, buying from an all time low and slowly adding before making an offer. Their average holding cost ends up much less and they strengthen their hand when it comes to getting their offer accepted e.g. they switched to a takeover offer for HVN when they realised that their scheme of arrangement wasn't going to get 75%. If they had just come out with an offer they would have had to pay more than £1.30 because holders would have had enough to block them. DBAY could play it quite well because they had taken Creston over before by the same method and got it cheap too, but people were still unsure of them as primarily an investment fund not a business owner. I think the next time they appear on a share register in increasing size they may find their element of surprise is much reduced.

Maybe HRnet think they know the sector well and can just speculate on which companies are undervalued or likely to receive an independent offer. Sounds like they guessed right for HVN if that was the case. However, given the amount they mention M&A in their results presentation I don't think it is unreasonable to deduce that their interest is at least a pre-cursor to considering if the company is a good target for them. Doesn't mean that they will make a decision any time soon, or indeed decide to make an offer, but it seems unlikely that they are simply playing a game of roulette with their shareholders money.

[quepassa] 12/12/2018 15:18

This share is at a TEN YEAR LOW.

And it looks highly likely in my view to be going sub 100p in short order.


This share has been a complete disaster zone for shareholders over the last 5 years and in my view, there is still a lot more pain to come.

Good Luck All.

ALL IMO. DYOR.
QP

[stemis] 12/12/2018 15:00

At the time of the Harvey Nash buyout, HRnet disclosed a 2% holding. They didn't say when they acquired it but clearly didn't want to make their own bid.

[arthur_lame_stocks] 12/12/2018 14:42

I guess it depends how big a stake they take, DBay seem to build 30% stakes before eventually launching an approved bid for the companies they are interested in as an example and it would make sense for HRnetGroup to build a stake at these prices if they're planning an eventual offer to gain influence and maybe representation on the board.

[stemis] 12/12/2018 14:38

Hard to see the board recommending an offer below 200p surely and they hold 26.6%. Not sure why HRnet would take a stake, if it was a precusor to a bid, unless they are planning to go hostile.

[dangersimpson2] 12/12/2018 14:00

Things could start to get interesting here:



HRnetGroup taking an initial 3.74% stake. They are a £460m market cap Singapore-based recruiter.

Their latest Q3 results presentation contains 1 slide titled 'Strong Balance Sheet for Expansion and M & A', and two slides simply called 'M&A'.

hxxp://investor.hrnetgroup.com/newsroom/20181108_172610_CHZ_8ECF3QIWIJRLI54E.2.pdf

They have S$275m in cash on their balance sheet at 30th September = £159m.

Gattacca would be a small bolt on for them and on a fwd P/E of 13.9 vs Gattaca's 4 this would be immediately earnings enhancing even on a 50% or so takeover premium.

[wilmdav] 09/11/2018 16:46

Thanks, SteMiS. That PBT reconciliation was not in the RNS.

[stemis] 09/11/2018 15:54

Not sure where their quoted H1 underlying PBT comes from.

Subtract £1.197m net finance costs from £7.728m underlying operating profit gives £6.531 PBT.

According to the interim presentation

hxxps://www.gattacaplc.com/sites/gattaca/files/wysiwyg/Gattaca%202018%20Interim%20Results%20Presentation.pdf

they also add back £0.4m to interest, which I guess is the exchange losses.

[quepassa] 09/11/2018 15:27

This is now trading on a historic yield of under 3% based on the half year 3p divi and the final divi which was slashed to zero and announced this week.


Given the risk involved and the good likelihood of negligible divi's next year, there is no way in my view that this share warrants a price of 100p+.

You can pick up so many FTSE 100's at a yield of 5%++ .

Nor does this share warrant a premium as a growth share in my view when they have been shrinking the business, pulling out of overseas market and slashing the dividend.


Watch out.This share has the potential in my opinion to fall a lot more.

Good Luck All but remember the shamrock.


ALL IMO. DYOR.
QP

[wilmdav] 09/11/2018 14:42

Tax should come down a bit with expected reduction in irrecoverable withholding tax.

Not sure where their quoted H1 underlying PBT comes from.

Subtract £1.197m net finance costs from £7.728m underlying operating profit gives £6.531 PBT.

[stemis] 09/11/2018 10:15

Outlook says that first quarter trading was in line with previous year. Just a reminder of what the interim results were

Underlying PBT 6.9m Tax -2.2m Underlying PAT 4.7m Underlying EPS 14.5p

The actual result was a loss, of course, due to the large goodwill write off. Without that the figures should look a lot better.

[pugugly] 09/11/2018 08:51

Heading back towards 1 year low of 98.2 - Given mark down this morning to 105 not far to go (imo) Then free fall ??

[stemis] 08/11/2018 09:01

When looking at the increase in debt of £0.6m it's worth bearing in mind that the company

Paid £6.4m in dividends
Paid £3.6m to buy out minority shareholders in RSL

Target debt is 2 x ebitda which on current numbers is £30.6m or £10m lower than now. Hopefully that should be achieved by the end of this year and dividends can be restored.

[stemis] 08/11/2018 08:50

Underlying EPS is 22.6 so currently a P/E of 5.3

[stemis] 08/11/2018 08:39

Agreed Arthur

Underlying EBIT of £14.3m
Debt increase of £0.6m after payment of £6.4m of dividends
New debt of £40.9m v facilities of £90m and receivables of £109.7m
Trading in first quarter in line with last year

Underneath the numbers there is a solid business waiting to get out. Hopefully H1 2018 will see a clean set of numbers