M&c Saatchi Share Discussion Threads

[jakleeds] 22/3/2007 10:43

Yes you're right. I reckon there'll be market weakness in the months ahead and I will get into CFE if I can, it's always difficult to buy when the price is rising.

Made a few quid out of SNCL recently, who are restructuring :-)

[liarspoker] 22/3/2007 09:33

And Slater was in CFE at much higher, so isn't always right.

I also think that he bought much higher when Robbie Boobie was still running the show but those 10 million were picked up during the placing ( obviously at a nice discount ).

I'd actually like to meet someone who gets it right all of the time. If there is such a person it is very likely that they would have bought one or two shares which have risen and have only started investing. When friends ask me about the stock market one of the first things I tell them is 'you will lose some money at some stage' - it's just a fact of investing in the markets.

Best of luck here though Jak. :O)

[jakleeds] 22/3/2007 09:24

I know I was waiting for a bit of weakness in the price, have the funds to buy a million shares, but was busy on tuesday morning when they announced the placing, so missed out. Been kicking myself since. Still watching though. I nearly bought in after the ST article last year, but held out for some reason.

And Slater was in CFE at much higher, so isn't always right. Fingers crossed it falls a bit.

[liarspoker] 22/3/2007 08:59

No problems Jak - I am sure that the price will rise but just not as fast or as high as I'd like. A contrary view is good imo because that creates a market. Best of luck to you. :O)

Edit: Why haven't we seen you in CFE yet ? Slater recently bought 10 million shares in the placing and when I was asking a few questions to people on the inside they basically said don't worry about how many shops are being converted etc ( as I am trying to keep track ) just think that for Slater to have bought in he must have done his homework.

[jakleeds] 22/3/2007 08:55

Up we go. I'm going to hold mine Liars. We already knew that the UK was challenging, but imo the 2007 forecasts of £10.3m pbt will be beaten, with a lot of the investment for future growth already having been made.

In particular Walker Media is very strong and interesting (same sort of business as TMN), but I reckon they can roll it out internationally easier than TMN because of the presence they already have abroad.

The name itself deserves a premium imo.

Will get the mrs to have a quick once over the numbers when she gets back from the school run (she's an accountant), and comment more later.

Have a good day :-)

[liarspoker] 22/3/2007 08:14

Well I hate to say it but I just sold my initial small stake.

I can't see how the company is trading ahead on an extra 100K PTP. There are also too many mentions of challenging conditions in the results.

Also they are basically saying that they are happy to break even after losing the big contract.

I was led to believe 2 things:

1) The company was trading ahead
2) The contract loss wouldn't affect them that much as existing and new business was strong enough.

I feel the price may go higher in the short/medium term but it is definitely not the cheap stock I thought it was. Watch the price rocket now though. ;o)

[jakleeds] 21/3/2007 13:21

A few buys today and still the price ain't moving. I think we'll be at new highs this time tomorrow.

[maksud] 20/3/2007 15:00

liarspoker any views on share price after thursday.i feel this has been overlooked since it lost ba contract.

[liarspoker] 20/3/2007 11:20

RNS Number:2901T
M&C Saatchi PLC
20 March 2007




M&C Saatchi Plc (the "Company") - Holding in Company



M&C Saatchi plc was informed that on 14 March 2007 that FMR Corp. and its direct
and indirect subsidiaries, held a disclosable interest in 591,000 ordinary
shares of 1p each in the Company, representing 1.1% per cent of the issued share
capital of the Company.


M&C Saatchi plc was informed that on 14 March 2007 Fidelity International
Limited (FIL) and its direct and indirect subsidiaries, held a disclosable
interest in 5,319,119 ordinary shares of 1p each in the Company, representing
9.9% per cent of the issued share capital of the Company



This information is provided by RNS
The company news service from the London Stock Exchange

END
HOLBBGDXIGDGGRG

[liarspoker] 20/3/2007 09:17

Well done on the profits in CLL maksud and welcome aboard here. I think the results will make more people aware of this share but it's nice and quiet here for now. :O)

[maksud] 20/3/2007 09:15

guys im in after making good profit on cll today.this could run up £2.00 i recon when the results are out .i think the second update was very posotive in dec.i recon they will spend £20m cash this year.next years earnings should be very good.

[jakleeds] 15/3/2007 18:04

A couple of 10K buys late in the day had no effect on the share price

I'm surprised more people haven't noticed this. Fantastic brand name, turnover more than three times the market cap, loads of cash in the bank, buying shares back, reasonable/low forward per (we'll find out next week how low), two 'ahead of' statements recently, share price momentum, etc etc:-



14 December 2006


M&C SAATCHI PLC

PROFIT UPGRADE



Following a meeting of the PLC Board yesterday, M&C Saatchi is today providing
an update on the outlook for profit for the year ending 31st December 2006.


The Board now expects profits for the full year to be ahead of its previous
expectations. This reflects a further improvement on the positive outlook given
at the company's interim results on 28 September.


Forecasts are as follows;

2006 2007
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)
Investec Securities
09-03-07 BUY 7.73 6.49 2.81 10.53 11.07 3.09
Numis Securities Ltd
02-03-07 BUY 9.00 9.40 2.70 9.70 10.40 2.90

Looks good to me, I hope I'm not proved wrong next week.

[liarspoker] 15/3/2007 12:44

Watching and waiting jak. ;o)

[jakleeds] 15/3/2007 12:43

Wakey wakey, ticky uppy at long last.

Only a week to go now....

[jakleeds] 13/3/2007 08:56

Morning Liars

Yes, they've more than made up for the loss of that contract though.

[liarspoker] 13/3/2007 08:42

Yes, it is jak.

Nevermind - the results should still be good despite losing that contract imo.

[jakleeds] 13/3/2007 08:35

Very quiet here given the results are next week.

[liarspoker] 23/2/2007 11:12

Should provide a nice run up to results:

M&C Saatchi Notice of Results


RNS Number:7668R
M&C Saatchi PLC
23 February 2007




M&C Saatchi Plc (the "Company") - Notification of results



M&C Saatchi plc will announce its preliminary results for the year ended 31
December 2006 on Thursday, 22 March 2007.






This information is provided by RNS
The company news service from the London Stock Exchange

END
NOROKNKPKBKDPBB

[liarspoker] 22/2/2007 10:48

Thanks for the article Jak. :O)

[jakleeds] 16/2/2007 19:31

Ok I topped up as I said I would. The more I look at this the more interesting it looks. These guys know what they are doing, the brand name is very powerful, and so much cash in the bank that they could easily take out the likes of TMN for example. This could be the next Sage imo.

Fillyerboots

Here's what the IC said last year


19 May 2006

M&C SAATCHI (SAA)


114p - Aim: media - Maurice Saatchi, co-founder of advertising agency M&C Saatchi, reportedly once said that while the company's account with British Airways (BA) produced a small part of the firm's revenues, it made up more than half the agency's reputation. So, last October's loss of the prestigious BA account, which had been with a Saatchi firm for 23 years, was a major blow.

But like any good advertising man, perhaps Lord Saatchi was overstating the importance of the BA account to the company's reputation. It certainly hasn't stopped other organisations flocking to use Saatchi's services. In the second half of last year, the company signed up the likes of Australian Tourism, ITV and Cadbury Muller. Walker Media, its media planning and buying operation, also secured work from Weetabix and Independent News & Media. And the momentum has continued into 2006, with the company signing up the retail arm of RBS, baker Kingsmill and the Barclays online media account. Stockbroker Numis Securities concludes that "this new business momentum demonstrates that Saatchi's creative reputation remains intact and untarnished by the BA loss."

Worldwide, Saatchi has offices in 13 locations, including the US and Asia, but its UK business is the largest and most important. Despite the tough advertising market in the UK, which is hurting all the major media companies, and the BA loss, Saatchi is making good headway with UK sales, up a respectable 8 per cent to £39.5m in 2005.

While the UK dominates, expansion into Europe should fuel Saatchi's future growth. The company opened in Paris in September, signing up clients such as wine and spirits company Pernod Ricard, and the Branly Museum in the French capital. Like the rest of Saatchi, the Paris office has had a good start to 2006, securing work from Bordeaux Wines. Saatchi also plans to open offices in Germany and Spain.

Expanding into Europe will not come cheaply, though. It cost £1.4m in 2005, and that figure is likely to rise to £2.1m in 2006. But Saatchi may be choosing a good time to move there. While growth on the Continent has been sluggish, there are signs of improvement, particularly in Germany. The German economy is rebounding, helped by confidence that Germany's new chancellor, Angela Merkel, will implement the economic reforms that the country so badly needs.

Saatchi is also looking to further exploit the fast-growing economies of Asia, with plans for offices in Bangkok and New Delhi. Its Asia Pacific business is already performing solidly, with account wins from eBay, Alliance Bank and Australia Tourism. And, while small, Saatchi's US business also provides growth, with revenues in 2005 up 26 per cent to £3.2m.

Apart from geographic expansion, the company is setting up new businesses to target niche advertising markets. Last year, it launched luxury brand specialists Provenance, and Walker-I, a subsidiary of Walker Media, which specialises in digital media.

In 2005, Saatchi posted a better-than-expected rise in underlying pre-tax profits of 11 per cent to £9.1m (from £8.1m in 2004), which excludes the £1.4m cost of expansion into Europe. But the loss of the BA account will be felt most this year, so 2006's profits are going to be hit - broker Numis Securities forecasts that underlying profits will fall by a third to £5m. Even so, Saatchi's shares look attractive. Exclude Saatchi's £20m of cash from the valuation equation, and its shares are rated at about 15 times 2006's depressed profits. And that rating falls to about 10 times 2007's possible profits.

Saatchi remains a formidable brand and, by targeting niche areas and expanding offshore, it should generate healthy organic growth. The loss of the BA account, while a major negative, provides an opportunity to buy the shares cheaply. Buy.




--------------------------------------------------------------------------------
Ord price: 114p Market value: £62m
Touch: 112-116p 12-month High: 130p Low: 92p
Dividend yield: 2.4% PE ratio: 26
Net asset value: 58p Net cash: £20.3m

[blackbear] 15/2/2007 10:46

Sold at 168, will rebuy on its return up to 170p.

Bb.

[jakleeds] 15/2/2007 10:26

Perfect timing as aways :-(

[jakleeds] 15/2/2007 08:32

Ok, I bought a few this morning, surprisingly easily in fact. There may be some stock about, and there may be a short term fall, but I will top up.

They've said they are ahead, and then said they are even more ahead of their earlier expectations. Loads of cash in the bank, PSR of only 0.3. Strip out the cash, and how cheap do these look, as CR would say.

They bought 700,000 shares back in October to be held in Treasury, at a price of 112p per share. These can be sold later to institutions at a profit, as demand for the shares rises, in the same way CCT (Character Group) have done.

I expect these to double this year, at the very least.

[liarspoker] 08/2/2007 21:17

I think that sieves can be misleading. I hate using the ADVFN sieves as the info is searches is incomplete imo. The best sieve I know of is yourself. Look at market forecasts and see if the company you want to invest in can beat that. Usually this means a high EPS growth company with a low P/E. Check the cash position, director buying etc. Basically follow the Zulu principles but allow for future earnings increases instead of using the past 5 year model ( although the bull market started in 2003 so it should be easy to find 5 years of hisatorical EPS growth. The trick is to find companies before others find them imo. Everyone uses sieves like the above - I get a list of AIM stocks and go through it company by company. It's more work but much more rewarding imo.

I'll have a look at ATG tomorrow and will let you know by Email.