Kcom Share Discussion Threads

[warranty] 07/4/2017 22:06

There is though something to be said for having such a safe share in a long term portfolio for the dividend alone. Let's face it, they're never going to shoot the lights out Capital growth wise but this looks a pretty good entry point for non holders.

[cityconindex] 04/4/2017 08:39

If it gets too cheap and starts a buyback then there could be a jump, or a takeover. It's management has shown no catalyst/imagination in driving the buisness forward. Stuck in a rut.

[gretel1921] 30/3/2017 12:20

Hang in there and collect the diffi !!

[davr0s] 29/3/2017 19:06

Crickey this share is hard work - it neither falls nor rises in the last 6 months - so which way is it going to break... eventually

[grahamite2] 14/3/2017 13:49

Thank you speedsgh.

[speedsgh] 14/3/2017 13:22

andrew - I think lowlights is probably more appropriate over the last 6 months...

KCom posts declines as transformation takes hold -

Having netted £90m from the sale of its national fibre network, KCom (KCOM) wasted no time in streamlining its business, consolidating its brands, expanding the regional network that it retained and shifting its focus towards higher-margin offerings. Lower sales and nearly flat costs drove adjusted cash profits down 14 per cent to £32m.

Comparable sales fell across KCom's three divisions, and underlying cash profits only rose in the unaffected Hull and East Yorkshire business, partly due to a one-off supplier credit. More positively, management extended its regional fibre network to 104,000 premises, increasing total connections to 33,000. It expects to reach 150,000 premises or two-thirds of its customer base by December 2017.

Underlying revenue slid 9 per cent in the enterprise segment due to flagging sales of older network products and a large early payment from key customer HM Revenue & Customs. Nonetheless, concentrating on more lucrative cloud and integration services helped it win work with Bupa, Shoosmiths and others. Management has ceased investing in the third division, which serves small- and medium-sized businesses outside the group's heartland.

The downside of KCom's hefty spending was that its investing cash outflow ballooned by more than half to about £26m. Broker finnCap trimmed its forecasts and now expects adjusted pre-tax profits of £37.3m, giving EPS of 5.9p, down from £47.9m and 7.5p in FY2016.

IC VIEW: KCom's shares are up 27 per cent on our buy tip (85p, 26 February 2015). They now trade on 18 times forecast earnings, which looks punchy for a company in transition. Downgrade to hold.

NOTE: Share price at the time of the above article was 108p. PE is still 15x forecast earnings even at current share price of 89.75p

[toffeeman] 14/3/2017 12:50

Over the last 6 months the share price has dropped 20% :)

[andrewsmith3] 14/3/2017 12:02

All,

I am new to this one. I was wondering if anyone could share any highlights over the last 6 months. I shall of course read up too.

[toffeeman] 17/2/2017 12:55

Also odd because

FL BlackRock UK Smaller Companies Equity Index (Aquila C) EP

had an long worth £2.4m at Dec 2016

So is this just a hedge in case there is a global crash?

[alamaison5] 16/2/2017 03:47

Toffee: That was 2 weeks ago = to 2,5m shares.
At this rate, 350,000 traded a day, we should be cleared within a week or so.
By the way Raysor. I spell it the same way as you do. I T, lol.

[alamaison5] 16/2/2017 03:42

Raysor: Check the RNS, if you know how to read...

[toffeeman] 14/2/2017 12:49

I see Black Rock have just declared a 0.5% short position.

[raysor] 14/2/2017 12:36

Guaranteed? Probably wrong whichever way you spell it.

[raysor] 26/1/2017 16:16

Bit of both, LOL
Under the heading: the UK's little known gems.

Interesting option for income.
Ambitions to bolster low growth operations with enterprise data, cloud and mobile services.
5-5.5% yield
Challenges.
Failure to deliver growth from newer services could seriously limit capacity to continue to increase dividends and would most likely trigger an investor exodus.
The piece coupled KCOM with Manx Telecom.

[clivell] 26/1/2017 15:14

Good or bad?

[raysor] 26/1/2017 11:09

sMALL PEICE IN TODAY'S sHARES mAG

[mayers] 18/1/2017 23:05

Not recovered as quickly as I had thought likely (see 9014) but looks as if recent activity is offering a support platform. We will see.

[skinny] 10/1/2017 15:57

Barclays Capital Equal weight 90.25 105.00 105.00 Upgrades

[saltaire111] 10/1/2017 15:39

For those of you who follow Salty's investments you'all know that I like companies that are established, good track record in paying dividends, attractive to potential suitors and throwing off a lot of cash. KCOM has arrived on my radar and I like the look of this. Sure The market didn't like the surprise in November but management has explained its reasoning and I quite like the new direction they're taking.

The Divi looks safe for the next couple of years and I'm more than happy to take 6% on my money when I can finance at 2%. Buy.

Salty.

[nofool] 22/12/2016 15:45

Got that right anyway 10!

[10p here we come] 21/12/2016 09:53

wrong thread!!

don't worry peeps!

(KCOM looks more like it's about to go UP big time, not any lower)

gla

[roofer2] 17/12/2016 08:52

I'm thinking this looks like a little bargain here, nice little dividend at 6% that is well covered by bread and butter income plus the small chance of a new year takeover, one on my watch list for the new year !

R2