Gattaca Share Discussion Threads

[casholaa] 03/11/2021 15:40

Here comes the squeeze before results

[space_bob] 02/11/2021 09:41

Looking forward to this weeks results. I think this could jump 20% in the short term.

[casholaa] 28/10/2021 10:37

Explained like a pro! Thank you. I am going by the falling wedge, hence my enthusiasm.

[thorpematt] 27/10/2021 19:04

firstly a "channel" drawn using a parallel drawing tool. Such a trend should have lower lows and lower highs and predominantly bouncing off those lines.

Today's close breached that to the high side. With such a breach you would want to see volume really and that was modest.

The second chart possibly fits better. It's a falling wedge and typically the volatility in price action shows an increasing lack of volatility before breaking out. These are common continuation trends in my view and after a retrace such as is recent can be pre-curser to a tidy bounce north. As per my lines the point of the wedge could be a little further down below £2 as yet but 200p is a significant level of support here.

So, there's a view for you...just my view of course. I hope it is of use / interest?

FWIW I recently bought some of these at circa £2 since I saw that as likely to be strong support and I believe there is a way to go in this recruitment cycle as yet.

[thorpematt] 27/10/2021 18:55

Casholaa,
Important to wait for the close before we look at the daily chart.

I have drawn 2:-


free stock charts from uk.advfn.com
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free stock charts from uk.advfn.com
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Which I will explain below

[casholaa] 27/10/2021 14:47

Look's like it may be primed for a step-up, I think it's also broken out of it's channel, anybody have a view?

[sev22] 19/10/2021 09:45

Recruiters profiting from exceptional labour market.

Wage inflation is concern for lots of business but for recruiters it just means higher profits.

October 18, 2021
By Arthur Sants @ Investors Chronicle.

Recent trading updates show a jump in profitability.

Recruiters offer a good way to hedge against wage inflation.

Tight labour markets are a mystery and a concern for businesses across the world. In recently released ONS data, total job vacancies in the UK were 1.10m, the highest on record but total hours worked per week were still below pre-pandemic levels. This data paints a disturbing picture of the UK but difficulty filling roles is a global phenomenon. Businesses need workers and are struggling to find them, which will lead to a rise in wages and a reduction in earnings. Not good news, unless you are a recruitment consultant.

PageGroup (PAGE), Hays (HAS) and Robert Walters (RWA) have all posted strong trading updates recently off the back of an exceptional labour market. “This is the hottest market for permanent workers I have seen since I started here in 2007, particularly technology, marketing and life science, which are well above pre-pandemic levels,” said Hays finance director Paul Venables.

For the three months to September, Hays’ revenue increased 36 per cent and it saw growth across all regions. The UK grew the fastest, expanding by 44 per cent. The high demand for new employees, especially in technology and life sciences, means Hays’ consultants are placing candidates more quickly than ever. “Companies don’t have time to deliberate on candidates because the competition for them is so high,” explained Venables.

With employees working harder to keep up with demand, the company is boosting headcount. In the last quarter, it increased by 8 per cent, 19 per cent year-on-year, and it expects headcount to increase by c.2-4 per cent in the second quarter.

Broker Numis is impressed with its recovery and increased its full-year 2022 cash profit (Ebitda) forecast by 3 per cent to £183m. However, it thinks the “shares are up with events for now and see greater value elsewhere in the sector”. Hays trades on a forward PE of 22.

The “greater value” it sees could be at Page Group, which is currently trading on a more affordable forward PE of 18.4, according to FactSet consensus. Page Group saw its gross profits jump 58.9 per cent to £228m in the third quarter of this year compared to 2020 and, against 2019, its gross profit was up 12.9 per cent.

Efficiency rates are also well ahead of last year. The recruiter increased its total fee earner headcount by 329 to 5,772 but it is still below the 6,081 during the corresponding period in 2019. With higher profits and lower headcount, its gross profit per fee earner was up 21 per cent.

Robert Walters’ third quarter update looked similar. Its group fee income was up 26 per cent and it expects profits to be comfortably ahead of guidance. Asia-Pacific was its fastest growing market, where revenue was up 46 per cent. In the UK, it grew a more a modest 17 per cent, while its overall consultant productivity was up 16 per cent.

Recruiters are usually a nice bellwether for business confidence. Firms don’t hire people unless they are confident that demand for their products and services will remain positive. A recent speech from Bank of England governor, Andrew Bailey, however suggests this spike in recruitment could be a pandemic-specific oddity. He believes that companies might have increased hiring in anticipation of an economic boom and want to move quickly in case their competitors get the best candidates before they can. It’s essentially panic buying, except instead of petrol or loo roll, it is people.

If Bailey’s hypothesis is true, then this could be the peak for the recruiters rather than the beginning of unprecedented growth. A structural rise in wages seems possible though. From June to August annual pay growth in the UK was 7.2 per cent. Even if the volume of candidates falls from recent highs, recruiters should continue to profit more from each candidate placed.

The recruiters themselves aren’t suffering from the same squeeze on salaries. “[Hays] consultants are on low salaries but get paid a high commission, so we have a natural hedge,” said Venables. Recruiters aren’t flashy businesses, but as a beneficiary of wage inflation, they suddenly look at lot more appealing.

[alpineinvest] 18/10/2021 17:02

There is no softening of the labour market to come IMO. GATC also relaunched their 'mission' in the last week or so talking much more about their focus on STEM, which is going to remain a sector in demand. Robert Walters, Hays, plus plenty of the other international recruiters have all been quite bullish, and GATC will follow. The board are clearly still in recovery mode trying to get another quarter or two of positive updates out, hence remaining quietly confident.

[adorling] 15/10/2021 19:31

Good to see price back within the descending triangle chart formation. Looking like we are going to see a big move up next week IMO.

[deadly] 15/10/2021 15:01

Some sense is returning to the price. Still too cheap.

[deadly] 14/10/2021 09:59

Strong TU from HAS today

[dcfn] 14/10/2021 09:32

This is from Robert Walters (RWA) Q3 TU last week:- "With candidate and client confidence accelerating across all recruitment disciplines and candidate shortages becoming ever more acute, the competition for talent is fierce. Significant wage inflation has emerged particularly for the most sought after skill-sets. In short, the jobs market is hot.” - Whilst not directly referencing 2022 I wouldn’t imagine there are any concerns of a slow down in the coming months with such a bullish statement.

[gus111222] 13/10/2021 16:14

I was looking to invest in the dip this morning. The interaction with daily 200EMA caught my attention.
As far as I can make out the 4th Nov update will reiterate 17th Aug update FY21 and include a generic comment on 2022 outlook without any numbers.
Has anyone come across any comments from the other STEM recruiters indicating labour market softening in 2022?

[johndoe23] 13/10/2021 11:30

14.3 x forward earnings RWA 17.9PAGE 17.4HAYS 21.8IPEL 24.6

[dcfn] 13/10/2021 10:59

Yeah they're just mopping up the stops under 180 and coming back up again

[investing2retire] 12/10/2021 14:07

indded JohnDoe23. spread is wide on this one on IG and likely newbies stops getting hit

[johndoe23] 12/10/2021 11:41

Strange this is falling as other recruiters are reporting positive updates and share price are rising...

[insideryou] 06/10/2021 20:26

Getting cheap...

[deadly] 06/10/2021 16:51

so are buyers

[johndoe23] 06/10/2021 11:36

Large fall on no volume. The MM are loving these market conditions

[deadly] 22/9/2021 12:39

very lively today. Any news?

[jonny_wright] 20/9/2021 11:54

Need to close above 200 else it's a sell for me

[rolo7] 15/9/2021 10:27

A tasty tree shake bidding war here with two big stakeholders?