Gordon Dadds Share Discussion Threads

[danieldanj] 26/6/2018 00:28

Gordon Dadds (GOR) Earnings-Reaction to Keep an Eye

[jonwig] 25/6/2018 06:32

Results Thursday, 28th.

[gopher] 30/5/2018 20:00

very lightly traded - results need to be good to generate interest; picked these up as the outsider of three in an emerging sub sector

[jonwig] 29/5/2018 07:44

Year end was 31/03. H1 results were eight weeks from the accounting date so I'd expect FY to come within a fortnight. (Can't find a date on the website.) No trading statement is probably a good sign.

[eggbaconandbubble] 28/2/2018 19:18

Bit of a desperate trade to get that price!

Fat finger or liquid lunch????

[battlebus2] 28/2/2018 18:56

Looks like that 20k late reported trade at 158 was the culprit, doesn’t take much to move these in either direction.

[battlebus2] 28/2/2018 16:38

No idea, bit unusual unless there’s a big sell in the background.

[eggbaconandbubble] 28/2/2018 16:34

What's caused that then?

[quant_investor] 19/2/2018 11:26

Another acquisition on a low exit multiple. Additional costs stripped out from the acquired business with the use of GOR premises. Payment to be spread over 5 years. Future revenues effectively guaranteed. Seems like a very good deal for GOR with the firepower for more to follow. Still under the radar judging by the (lack of) market reaction

Some similarities with AFHP who are somewhat further down the line.

[battlebus2] 25/1/2018 22:18

Really like this co, nothing I’ve seen especially management says any different.Slow and steady acquisitions will continue to see the share price appreciate imv.

[costax1654x] 25/1/2018 21:04

I think after FFI with Massive directors buys this one is one to watch as well!

[jonwig] 25/1/2018 20:34

Looking at just UK law firms, Gateley floated two-and-a-half years ago and to date has performed very creditably. It's only recently that LLPs have been allowed an ABS, and this fits in well with demands from clients for alternatives to hourly billing. At Gateley's last AGM it was mentioned that 'hourly billing' of clients was hardly ever used.

A PLC structure allows unsecured borrowing and lending, better capitalisation to extend clients credit and the ability to use shares as consideration for acquisitions. Share-based incentives appear to have lured partners from other firms in considerable numbers.

Gordon Dadds has a slightly different business model, one aspect of which is to offer a common standard platform for independent small law firms. In the takeover of Metcalfes announced yesterday, it's worth noting that the 'target' appeared enthusiastic about the deal and future prospects. The expectation that it will be earnings enhancing suggests they haven't overpaid.

Basically, the way law is delivered is changing rapidly thanks to client demands and the rise of litigation funding. In the medium term, good firms will succeed in adapting, bad ones fail. Slater & Gordon is a striking example of a badly run firm which was taken in by a group of shysters (Quindell). RSM Tenon was over-geared: a firm of accountants which seemingly couldn't read its own balance sheet.

I think Gateley already has a track record which suggests it will continue to be a good investment, and, whilst it's too early to say the same of Gordon Dadds, I'm happy to give it a chance. Keystone Law I know nothing about. Burford Capital, not a true law firm but in 'financial services' has ten-bagged for me. So I'm wary of too sweeping a generalisation.

[bookbroker] 25/1/2018 20:30

To be honest, I am slowly moving entirely into cash, this market does not allow for any disappointment whatsoever, I wish everyone luck with their chosen investments, but I think it wise to be a contrarian these days even if you miss the party!

[iamnotanumber6] 25/1/2018 20:15

Someone's been watching too much Dragon's Den..... :-)

Someone also obviously wants these to come down so they can get on board... :-)

[bookbroker] 25/1/2018 19:01

Sceptical, been around stocks long enough to understand the ebbs and flows of business, particularly ones where the goodwill, i.e.the staff, tend to determine the future within professional services businesses, and very often acquisitive businesses of this kind find it very hard to grow the bottom line. As they say, turnover is vanity, profit is sanity!🤡

[elmfield] 25/1/2018 18:55

All about good management,
Dyor. Personally I think you are wrong to be so negative.

[bookbroker] 25/1/2018 18:51

Allon, who are you, you are just another poster, and probably ill-informed about this company’s predocessor’s as listed entities, experience of Tenon, Slater Gordon tells me all I need to know!🤡

[allonblack] 25/1/2018 18:11

Thats not really worth considering as a view on the stock and swearing just makes you look poorly informed and like someone no one listens to.

[bookbroker] 25/1/2018 13:03

Don’t be such a big woman’s blouse baldy, the facts are there, good luck to you, hope u make a shilling or two!

[jonwig] 25/1/2018 12:59

bookbroker - foul language doesn't encourage me to read the rest of your post.

[allonblack] 25/1/2018 11:29

Based on current acquisition rate and the forecast margin increase towards 15pc this stock looks set to be a multi bagger. Management own alot of stock, communicate clearly and are executing as stated. Anyone got a good view to share?

[jonwig] 08/1/2018 11:55

@ battlebus - thanks. One of the three top tips for 2018. Link:



EDIT: KEYS has risen in sympathy. Similar business model I think.

[battlebus2] 08/1/2018 11:32

Tipped by midas in the MOS.