Learning Technologies Share Discussion Threads

[drsamwaa] 22/11/2018 10:58

Following FTSE woes... nothing to do with LTG....

[bulltradept] 22/11/2018 10:54

IC still Positive on still it (Nov 16):

By Harriet Clarfelt

A double-barrelled update from Learning Technologies (LTG) lifted the group’s shares by a tenth on its capital markets day.

LTG:LSE
Learning Technologies Group PLC


First, LTG is acquiring the 70 per cent of Watershed Systems that it doesn’t already own. The company bought a 30 per cent holding in Watershed – a software-as-a-service business, which develops learning analytics – in January 2016 for $3m (£2.3m). It will acquire the remainder for an initial $2.9m, and up to $8.7m in deferred contingent consideration – subject to “significant incremental revenue growth” from 2019-2021.

Watershed saw pre-tax losses of $0.5m for the nine months to September 2018, but should be earnings-accretive from 2020. Under its full control, LTG’s management anticipates the development of new routes to market for Watershed’s products.

Second, LTG revealed new objectives for the end of 2021: it now targets run-rate revenues of £200m and run-rate operating profits of at least £55. While any acquisitions or research and development expenses are expected to be funded via internal cash flows and debt financing, the group would consider shareholder financing for acquisitions if this could accelerate or amplify the cited goals.



In October 2017, LTG aimed to double run-rate revenues to £100m, with run-rate operating profits above £25m by the end of 2020. But, helped by its largest-ever acquisition, PeopleFluent, in May 2018, these objectives have eventuated two years early. We think LTG could beat its own timeline again – so, although the shares trade on 43 times forecast earnings (broker Numis’s 2018 EPS forecast: 2.8p), we remain buyers.

Last IC View: Buy, 144p, 26 Sep 2018

[auldmart] 22/11/2018 10:51

Why is the share price so volatile - it's all over the place.

[bulltradept] 22/11/2018 10:33

Jamesjjj,

"US economy is still performing strongly which is why the FED keeps raising interest rates. I would be more worried if they were lowering them."

True, but it always performs strongly right up until it doesn't. Think about that for a second.

That's not to take anything away from LTG I add.

[zipstuck] 22/11/2018 09:34

Just pointing out that the 2018 outturn is already predicted and that timelines indicated that they know that people fluent does suffer from high level of non renewal
and that new acquisition will be earnings enhancing from 2020.



So they have to cross sell to make up then short fall

I moved the time line out from original expectations as I missed this little detail

[jamesjjj] 21/11/2018 14:49

If you look at the last trading statement it says
"Following strong progress in 2018, including the recent acquisition of PeopleFluent" and"The Board is pleased to announce today new strategic objectives for the business that capture the positive outlook for the e-learning industry, the strong prospects for the Group and the current momentum we are enjoying"and "The successful integration of PeopleFluent announced at the time of our interim results remains on track, which alongside the performance of our other businesses gives the Board confidence in the outturn for 2018 and beyond"
together with a major purchase of shares by the CFO not that long ago and the track record of achieving goals before time the company and broker upgrade it is hard to find things not too like.
US economy is still performing strongly which is why the FED keeps raising interest rates. I would be more worried if they were lowering them.

[redartbmud] 21/11/2018 12:33

Tell it as it is?
Don't hold back!!

[drsamwaa] 21/11/2018 11:50

bit harsh!

[microscope] 21/11/2018 10:47

Lol. 18 hours or so ago zipstuck ended a bullish piece with 'what's not to like?' Maybe he/she had a rough night! ;)

[drsamwaa] 21/11/2018 09:50

hmm.. who are you trying to convince?... still alot good about this company

[zipstuck] 21/11/2018 09:04

I have to say I sold out this morning

I read in the accounts that the latest acquisition does suffer from renewal cancellations and this is expected to continue in 2019. While the increased margins are in the price any slow down in the US may stagnate sales and with a balance sheet full of goodwill and intangible assets could lead to impairment.

Tim Martin has sold most of his shares and now realised cash from the new acquisition which wont provide any profitability until 2020 The COO has left to work abroad and other directors have sold massive stakes.

The plan is to acquire more companies with debt and possibly placings at a time when the US economy is possibly at a turning point.

[nick_dunton] 21/11/2018 08:26

Just climbed aboard the good ship LTG.. avg entry 99p, bargain! Been monitoring for a while and like what I see. Target 140, good luck everyone

[molatovkid] 21/11/2018 08:05

I'll be quite honest, I do not understand how this one is not being snapped up at these levels.

[the patient investor] 21/11/2018 07:22

promising day of recovery

dow jones futures BLUE

[huntie2] 20/11/2018 21:34

the only thing not to like, zipstuck, looks to be the current price drop! Still, it does enable a top up!

[drsamwaa] 20/11/2018 17:09

true but no so long ago it was worth 25% more than the preceding 24 hours!

[gorilla36] 20/11/2018 16:53

well it is difficult to understand how the company could be worth 12% less than it was this time yesterday.

[zipstuck] 20/11/2018 15:22

The CFO bought a chunk at 127 and the last announcement indicated continued momentum

The last results anticipated a above expectations second half

Whats not to like

[21ant] 20/11/2018 15:19

Ha Ha.
Well I've just grabbed some more just under 100p so have to see now

[the patient investor] 20/11/2018 15:05

and I am Italian by the way

[21ant] 20/11/2018 14:17

This is all just general market sentiment. Just about every stock out there is getting battered. I'm well down but I topped up the last time it hit 100 so I will do so again. It may go a little lower but it has some good support and can bounce quite quickly when it does. It didn't take long to recover to 125 last time.

[the patient investor] 20/11/2018 13:29

why this drop?