Media Square Share Discussion Threads

[deanroberthunt] 29/9/2006 12:08

bash...don't profit warnings normally come in 3's? 2 to go then!

[bashful3] 29/9/2006 11:54

CSCS have just isssued a note that maintains its BUY recommendation. The broker argues that the revenue line is more important than the income line at this stage in MSQ's development (I agree) and also believes that it is ripe for a takeover (I disagree).

It has halved it PBT for the full year to £5m, and assumes year end debt of £26m. Turnover is maintained at £114m.

So, there's your benchmark.

[spaceparallax] 29/9/2006 11:51

I'm equally disappointed by the profit warning, but remain confident in the medium to long-term future. All that remains is for 'significantly' to be defined.

Despite having just topped up at 18.5p, I'll continue to invest at these lows because I genuinely believe in the Company and its prospects.

[addas99] 29/9/2006 09:22

Good post bashful, you takes your choice to ride out the next six months or so or you bail out at a far greater loss than you imagined to hopefully do better elsewhere. Personally I think disposals and a wiser, sterner approach will bring the ship back on to course during next year.

[deanroberthunt] 29/9/2006 09:01

bashful.....so WTF was KM doing buying 415k of shares @23.5p.....he must be out the loop or just plain stupid.......

[addas99] 29/9/2006 08:56

Bit early in the day but perhaps we've seen the worst and from here a steady trickle up over the next few weeks as bargain hunters strike. Could be reaction from one or two of the instis that may prove decisive but this is worth much more than the present 45M mkt cap and they'll know it.
More buys than sells so far, unsurprisingly at these prices.

[bashful3] 29/9/2006 08:52

edit: smelt a rat here a few days ago and last night's fall before the close was a tell tale signal that today's bad news was imminent.

MSQ is no tinpot company, but it's going to languish around this level for at least six months, unless Middleton produces a strong outlook statement with the interims, which is very doubtful.

So, MSQ is dead money for a while. Directors might buy some more, it might go a penny higher to 16p, but any fizz it had which made a good trading range has certainly gone.

Cold storage for a while if you hold, I'm afraid.

[ianst99] 29/9/2006 08:50

From trading statement
Sales 100m Rev 52m over 6 month period
From Final results
Sales 126m Rev 73m over 16 months
Earning per share 1.63p
Looks like they are spending much more on setting up new structure than was thought but this will reduce when everthing is completed.
To me if sales and Rev can be maintained then profits will improve later.
Using above figures Sales 126m for 16months say 120m over 12 months very conservative.
100m over 6 months say 200m over 12 months
increase 200/120=1.67
earnings per share 1.63p say 1.5 over 12 months
1.5*1.67=2.5p if same margin is applied
say per ratio of 10 would equal a share price of 25p


Holding

[deanroberthunt] 29/9/2006 08:49

I think the NAV = 60m is saving it.....plus sales and revenues are well up, so they just need to sort out "costs" with the integration/s......plus decent new contract wins....so overall business model is sound....looks like peeps think its just an integration blip.......think I'll add myself.

rgs

[deanroberthunt] 29/9/2006 08:05

Shame they didn't tell KM.....lol

[chap1889] 29/9/2006 07:58

Clearly more leaks in this company than a seive. Will be out until the air clears.

[addas99] 29/9/2006 07:47

Anyone new coming in at around 15p with the intention of running for a couple of years will collect a bargain....just wish funds permit I could average down, but unfortunately portfolio taken a nasty knock just lately.

[deanroberthunt] 29/9/2006 07:44

Well, will punters see this as an opportunity to buy in, with this being a blip and a recovery from now on in, and it may recover some of the opening loss, or will the peeps left in see this as the start of more profit warnings and bail out, sending the share price further down?

[rcktmn] 29/9/2006 07:38

Agree... we've seen a large drop in the share price already so can't be much more of a drop to come... if there is a further large drop it'll be worth buying some more as next year will be good. lots of potential for substantial profits....
However, I bought in a month or tow ago on the back of lots of buy rec's and a strong buy for CGI... just goes to show they know nothing !

Iwould tend say that I bought into another duffer... but in this case it'll come good. (imho)

[addas99] 29/9/2006 07:32

dean, I'd be guessing but of course it will be overdone, some of today's news is already priced in. We just have to accept interims are not going to look to good and those intending staying banking on a full recovery plus next year.

[deanroberthunt] 29/9/2006 07:29

another good tip from GCI......

[deanroberthunt] 29/9/2006 07:26

so why on earth did KM buy 415k shares two months ago....he could have waited till....today, and got them much cheaper.....no wonder HHO sank!

[deanroberthunt] 29/9/2006 07:23

what price on opening Addas?

[addas99] 29/9/2006 07:22

Looks like full integration has someway to go and acceptable profitability much further. Think we could see one or two poorer performing companies being sold in the near future, and locations. It's not going to happen this year chaps, might have to change the thread title to 'Year of Over Expectations' :-(

Edit: as we've seen a downward spiral over the last 3 weeks this must be one leaky boat.

[bletherer] 29/9/2006 07:13

Profit warning ahoy!

[bletherer] 28/9/2006 20:27

Cheers, addas. I hope it will be reassuring.

[addas99] 28/9/2006 20:18

A little moan to JM regarding lack of company comment on not inconsiderable fall over the last three weeks has been answered with the promise of a statement first thing tomorrow. Friday it may be, but not the 13th!!