Gattaca Share Discussion Threads

[spectoacc] 17/3/2017 14:50

Not seen much evidence of the infrastructure splurge yet, but would expect Gattaca to benefit.

Pity about the recent stupid name change, but it's cheap enough & high-yielding enough to keep me in.

[grahamburn] 17/3/2017 14:00

The other side of any slowdown is that companies (Gattaca's clients) may just more inclined to utilise temporary contract staff rather than longer term contractors. That might just give Gattaca another source of income to replace the semi-permanent contract staff.

However, even if there is a slowdown in the general economy, infrastructure projects are still likely to proceed, so IMO Gattaca should continue to thrive.

[galeforce1] 17/3/2017 12:41

Maddox

I agree that GATC looks attractive at this price. But I think the reason to be cautious on this company is entirely Brexit-related. There's a big exposure to London the UK economy generally, and it's really not clear what's going to happen. But if there is a slowdown in London, which is quite possible, Gattaca is is just the kind of business that's likely to suffer IMO.
I think I read yesterday that RObert Walters was trying to diversify away from UK-related risk.

[che7win] 08/3/2017 09:02

The 900 trade is showing as a sell, but it's a buy.

[che7win] 08/3/2017 08:58

Added more.

[che7win] 22/2/2017 08:39

Specto, I would say an MBO is a high possibility, they could offer 100p more than current price and still be cheap IMHO.

[spectoacc] 19/2/2017 08:34

An uninteresting Director Shareholding RNS on Friday, but did remind me how much of GATC is in private hands. What odds on an MBO eventually, if the market persists with the low rating?

Unfortunately there's no saying it'd be at a good price - I held Northern Recruitment Group many years ago, and that got taken out at a pretty poxy premium, pushed through by the larger shareholders.

[shoee62] 10/2/2017 09:36

Is the seller that has been in there since the results finished? They were selling 293-295 area

[che7win] 06/2/2017 16:39

About 39 '1182' trades bought by a bot?

[che7win] 06/2/2017 16:30

Bot buying loads into close.

[spectoacc] 04/2/2017 09:36

Quite happy to continue sitting on GATC here - can't fault the divi. Will they p/w at some point? Possibly. Will they benefit from infrastructure ramp-up and latest acquisition? Probably. Risk/reward seems good when they're already so cheaply-rated. The bear points seem valid, but a lot's priced in already down here.

[stemis] 03/2/2017 12:03

The geographical analysis relates to the domicile of the subsidiary involved not the customer...

[melody9999] 02/2/2017 20:04

QP 93. As you suggested I did some research. From the prelims in Nov 16, GATC exposure to Europe seems very small. Have things changed since then?

Edit - the table as below did not post well but the Europe revenue is £1.378M out of global total £617.604M

Geographical Information
Revenue Non-current assets
------------------ --------------------
All amounts in GBP'000 2016 2015 2016 2015
----------------------- -------- -------- --------- ---------
UK 586,842 488,611 49,940 54,582
Rest of Europe 1,378 1,575 - -
Middle East and Africa 5,532 4,298 227 199
Americas 20,594 6,103 138 57
Asia Pacific 3,258 1,706 160 164
----------------------- -------- -------- --------- ---------
617,604 502,293 50,465 55,002
----------------------- -------- -------- --------- ---------

[che7win] 02/2/2017 15:49

BOT buying

[che7win] 02/2/2017 15:34

Market seeing a bit of sense and deciding we should be higher from here?

[che7win] 02/2/2017 12:29

Thanks Gostevie,
I like this bit:

"Revised forecasts today from ED, for Gattaca show current year profit forecast raised by 4.2% to 41.2p EPS, and next year to 45.4p EPS. It's important to stress that the main reason for the forecasts being raised is an acquisition announced today "

[gostevie63] 02/2/2017 12:16

I bought in again this morning.

Positive write-up from Paul Scott here:



Gostevie

[roundup] 02/2/2017 10:24

Well, after someone sells out, we don't want to take too much heed to what he says.

[quepassa] 02/2/2017 09:52

I have voted your post. Thanks.

This is my take-away from your good post: "I work in recruitment in a similar sector to Gattaca so I know it's a difficult market."


ALL IMO. DYOR.
QP

[jimmywilson612] 02/2/2017 09:40

Ive sold out this morning spooky for a nice -28% loss. Ultimately I got sick and tired that 'Solid results' can equal -5% in income. I work in recruitment in a similar sector to Gattaca so I know it's a difficult market.

"However, Telecoms declined 14%, with a flat year-on-year performance in the UK offset by delays in a number of client projects internationally". See that the Networkers acquisition was to bring this onboard. -14% from the acquired business means that hasnt gone well - would imagine consultants from Networkers leaving the business. Therefore - what is going to change with this new acquired business?

[quepassa] 02/2/2017 09:34

This company will be caught in my opinion in the cross-hairs of Brexit negotiation shenanigans on employment law and cross-border works rights as far as its mainland European operations are concerned.

The thing is the following.

If you are running a business or in HR in mainland Europe, how comfortable would you feel to give recruitment business in a Brexit world to a UK headquartered recruitment specialist?

Good Luck ALL but in my opinion some major challenges ahead here in my view for its European business.

ALL IMO. DYOR.
QP

[spooky] 02/2/2017 09:24

Jimmy, do you still hold?

[jimmywilson612] 02/2/2017 09:13

500 sales staff generating £35.1M = £70,200 per consultant. Top Consultancies with over 100 people is £158K per head.