Ite Share Discussion Threads

[yump] 09/3/2009 10:00

Well I'll just be sitting on the investment now and buying more on next results if it looks half decent. If its anywhere around the bottom, then the dividend they're paying is giving me a big multiple of the interest I'll get on savings.

I'm surprised there isn't more interest or mention generally of the (relative) safety of buying into cash-rich companies that seem to be doing reasonably well, where the share price has tanked.

Potentially a double benefit of cap growth + could well be a div that easily beats the interest rate for some years.

[geko5trade] 04/3/2009 13:21

ok i was reading the agm statement 27th Feb. Well it certainly looked like a capitulation spike of the cliff variety! However I haven't bought based on the graph. Like you I just think the fundamentals look too strong for the cap. I suppose they could always give a special divi if they wanted to support the price but since they have no need to raise cash they will probably just carry on with business and let the market sort itself out.

[yump] 04/3/2009 13:05

Got the 65% from the bottom of the 27th Jan interim statement here on advfn.

I get your point about retaining share. I guess the nature of the exhibitors makes a big difference to volumes as well, so it may be that ITE's exhibitors are more likely to keep going than for instance a consumer retailer.

Picking the bottom is tricky - always a bit of a guess as to whether its going to be a capitulation downward spike or a series of drawn out drops into a boring flat thing.

Of course, I'm hoping that the drop from 60-70p was just a capitulation one for ITE !

[geko5trade] 04/3/2009 12:35

In the last statement I think I read 73% current market expectations. Do we have a different source there? Yump I'm not saying there won't be some reduction by companies on exhibition expenditure and neither are ITE but I was putting the counter argument of retaining market share as a market shrinks. I don't accept your point that exhibitions are just about keeping up appearances! I think we agree though that the reduction does not warrant the percentage fall in share price particularly when like for like revenues are ahead.

[mundii] 03/3/2009 12:39

Well I exited the stock market completely in 08 and so this is my first purchase for over a year. Been looking and waiting for a while, but feel with this stock that the time is now right to get back in...we will indeed see.

[geko5trade] 03/3/2009 12:29

Mundii, I agree about the currency in fact is it not actively helping to offset any decline in revenues? I also take your view as I've already stated which is that companies who are still there need to keep up their marketing and exhibitions are a vital part of maintaining market share. They are currently at only 25% of their high despite buying back their own stock, expanding the business and maintaining profits. They currently have a large proportion of their entire cap in cash. They also happen to have Russel Taylor recently appointed as ceo. He has a long track record in this field and as a prudent FD he's the kind you want to steer through difficult times. Anything can happen but these seem way too cheap. I think they've been affected by some forced selling and sentiment related to the convulsions in the russian market as well as general sentiment. We'll see.

[mundii] 03/3/2009 11:45

I have been watching these for a few months and have just picked up a few sub 50p. I like that they aren't over exposed to the UK or the £. Directors still buying as well. I believe the market is now causing the share price to over-correct on the downside.

Revenues for 09 are sure to be down on 08, but actually I don't think ITE is going to be hit too hard. Many companies can't afford not to stop marketing / attending exhibitions. Its sink or swim out there, if you aren't marketing when your competitors are, you risk paying the price of going under.

I expect these to outperform the market for the whole of 09 - and hopefully that means a return to at least 70p. 50p is just too cheap if you believe the directors' statements...and they are putting their money where their mouth is.

[geko5trade] 28/2/2009 17:23

Don't know if anyone read the statement from RT. Reafffirmed 30mill in the bank and says good visibility going forward. Looks likely to me they are going to continue to acquire and integrate companies into their business model and increase revenues year on year. Paying a dividend and buying back their own shares. PE circa 5 this kind of risk looking increasingly attractive when you can get sod all in the bank. Just my thoughts nia.

[geko5trade] 26/2/2009 17:13

yump, companies do try and maintain or increase market share in recessions and a presence at exhibitions can be seen as an important part of that. So no a bankrupt company won't be there but I don't think it's just a matter of pride for those that are operating.

[snap23] 26/2/2009 16:02

good post yump.

[yump] 26/2/2009 13:31

Haven't really looked in here for a while as sold out ages ago, but quite interesting looking for the bottom, although I think there will be quite a few chances to buy in. Company basically healthy after solid performance for many preceding years.

However, in terms of their actual market, exhibition space will be one of the first things to be hit, as its not an easy marketing expense to justify £ for £ compared with other methods of marketing. Many companies go to exhibitions as a matter of what you might call pride - they've always gone, so they 'll have to go this year.

Exhibition marketing for new product launches is likely to be more resilient, but I imagine subject to delays in launch.

Without knowing how bad the hit is likely to be with some latest figures, its difficult to know whether this is really near the bottom or not.

I guess directors are looking longer term and just viewing 50p as a bit of a silly price, given how bad the drop will have to be to only manage that rating ?

[snap23] 26/2/2009 12:21

Got some more today hope it bounces from here :o)

[snap23] 26/2/2009 00:11

Handycam thanks for the posting yes I took some profit and just came back from a holiday,find it strange directors buying at a higher price and Shroders buying and the share price goes down(did I read that right the RNS??),were down bout what 20% from the highs at the min,must be a seller the background somewhere or a masive treeshake to get rid of the waek holders?

[elgordo] 25/2/2009 14:50

...and a historic yield of 10% at this level.

[geko5trade] 25/2/2009 14:27

Yes I thought these were cheap at £1.00 kito690! There must be some impact on revenues but how much now in the price. Remain in very strong cash position. Finance director with good knowledge of their market now at the helm so you would think well positioned as a recovery play.

[kito690] 25/2/2009 13:54

Testing news lows now is this baby tanking or building up steam for a push north

[darola] 17/2/2009 19:25

Good buying today and the price drops - come on ITE get through that 70 barrier...

[handycam] 02/2/2009 11:55

snap,

never let a profit slide into a loss

[volsung] 19/1/2009 12:39

Looking for at least a quid for this.

[darola] 19/1/2009 11:07

Onwards and upwards! : )

[volsung] 15/1/2009 17:34

Be careful jibba!!

[jibba_jabba] 15/1/2009 17:31

Arm,Bt,Barc,Rbs.. Playing with fire with the banks.

[volsung] 15/1/2009 16:18

Hope you spent well jibba. Got myself some TEP,WSM,FENR and SOLA today. Now what does it take for this market to bounce??