ISG Share Discussion Threads

[lgw500] 03/12/2015 16:38

Well, Cathexis LP has mopped up all the shares it can by hitting 29%. I am intrigued as to what they think they know which none of us humbler punters do. Whilst it is possible that they are completely incorrect, there is a chance that they know what they are doing! Can anyone here shed any more light on them - they do seem to be a complete unknown?! If I were them, I would have had a few pleasant discussions with the management ahead of tomorrow's AGM. Maybe they are grateful it is not Jon Moulton after them.....

[cwa1] 03/12/2015 16:28

Interesting

[tsmith2] 03/12/2015 16:26

Cathexis LP big increase in holding surely MBO coming?

[edmundshaw] 03/12/2015 15:33

topvest is correct. The cash is prepayments for work to be done, which is how the business model works.

[topvest] 03/12/2015 10:40

You can't look at it like that. It's not their cash - its just due to progress billings exceeding trade creditors and accruals on contracts. The balance sheet is weak.

[robbie12] 03/12/2015 07:50

Hi. See the AGM is tomorrow but can't find the time and place. Can anyone help please? Thanks in advance.

[lgw500] 02/12/2015 21:28

I will attend the AGM just for the fun of it. I wonder which of the funds is selling and which is purchasing. Looking at the track record, I think the share price is acceptable value. There should be 15p of underlying earnings but, given the volatility and earnings risk from high volume, low margin contracts, I think a P/E ratio of 10 is about right. Highly simplisti but can't see how it can enjoy a higher rating when earnings visability is so poor.

[santos123] 02/12/2015 16:38

The A.G.M. This Friday, should be interesting.
Why they hold it so early in the morning, makes you wonder if they are trying to put shareholders off attending.
Is anybody here going on Friday?
Santos123

[tsmith2] 02/12/2015 16:30

2m sale worked through?

[lgw500] 02/12/2015 16:23

I wonder how smug Octopus are with their holding. They are expert AiM investors. Cathexis LP may wish to bid for the whole shooting match at £1.50. Just look at the list of significant shareholders with egg on their faces. I hope they give the management (none of whom has even built a airfix model) a hard grilling.

[lgw500] 02/12/2015 16:07

Well done, directors! You have read my post on this bulletin board but, sorry, no cigar. The purchase of 17,000 shares is absolutely pathetic and shows their joint confidence in the shambolic management. So, dear directors, if you do read this and wish to reflect on what you should do, I will tell. Get into the market and purchase 100,000 shares each - that's about £150,000 each all in and would be funded by your basic salary between now and the year end!

[mickharkins1] 02/12/2015 13:18

If they'd like to help the share price, best thing they could do is resign.

[markie7] 02/12/2015 13:16

bit of a director buy there

[markie7] 02/12/2015 08:51

Yes, would expect this to bounce today

[tsmith2] 02/12/2015 08:40

Be interesting to see today's price action - think offers great value at this level

[tsmith2] 02/12/2015 08:39

Good buy vol, must be overhang being cleared

[lgw500] 02/12/2015 03:20

This all seems so badly managed that I just wonder if their is an ulterior motive. Surely, the management cannot be that stupid. Possible MBO to disgruntled shareholders?

[lgw500] 02/12/2015 03:18

Q possible bid target once the shares drift to £1? Why don't they liquidate the company with the bad contracts and cap their losses at group level?

[topvest] 01/12/2015 20:49

Interesting. I did wonder whether they had really seen the end of the losses. Clearly the horror show isn't over yet and the £5m may just be the tip of the iceberg. The problem with construction contracts is that when they go wrong they go very wrong. It is difficult to predict what the final outturn will be and 3 months on things can look very different on a "problem contract". Really what they need to do is exit general construction altogether. Not sure why they are in that market anyway as it's not their USP. Their core business is very strong...they are market leaders. Why dabble in this other stuff? The balance sheet is still quite weak and you would not bet that more horrors won't have emerged by the time of the interims. The second half bias is also a possible H2 profit warning as we know. Not one to invest in at present. Management have lost credibility. One to watch though.

[a2584728] 01/12/2015 20:25

£1 may start the bottom fishers ...

[qs99] 01/12/2015 16:31

agreed re management, I was merely looking at the figures. Trouble is people may not believe this is the end of legacy issues really...let's see..

[a2584728] 01/12/2015 16:21

This cannot be taken seriously with senior management and a BOD who do not have a detailed knowledge of their business, changes have to be made.

[lgw500] 01/12/2015 15:49

QS99, I am perhaps harsh but the job of management is to manage provisions on loss making contracts accurately. Why did they not take a worst case scenario earlier in the year and come back today with confirmation that things were no worse or maybe slightly better? Half of investing is about confidence in management. Judging by the feedback today on this board, I would say confidence is not there.

If I were the management, surely I would want to try to rebuild confidence by purchasing a significant slug of shares? As it is, I will sit on a small book loss and not add to my holding despite compelling financial arguments.

[meganxmas] 01/12/2015 14:58

Dont know too much about this company but know lots about main contracting companies. If they maintain turnover levels within contracting and dont make losses on new turnover then cash ought to be broadly speaking safe. If turnover starts dropping then cash will disappear fast. Construction companies ... Not housing companies ... are great when growing turnover (very cash generative) but equally bad when falling turnover. Profitability will depend on reported margins and accuracy of loss forecasts on projects ... As well as commerciality of new contracts. Nai... Own opinion only.