Msb Share Discussion Threads

[stemis] 02/11/2005 15:48

Now on a yield of nearly 6.0% with market capitalisation of less than 75% of net current assets.

30p would leave the company on a yield of 8.3% and valued at just over 50% of net current assets.

[1bensons] 02/11/2005 15:29

I still think that they are cheap.......trading at a 1/3rd discount to NAV

Saying that I have never known such a non-committal trading statement from a CEO. You can tell Mr Zelinski is from a FD background. It would be nice if for once he could talk his company up a bit !!!!

[cornelious billy bee] 02/11/2005 14:54

hi snappy seems to be definite downgrading of the sector, I am hoipng that we see the traditional xmas rise.

AS you know I am into HVN and they have been hit very hard recently butlike MSB were higher when making a loss!

[snappy] 02/11/2005 14:08

2006 Estimates 2007 Estimates
Date Rec Pretax Eps Dps Pretax Eps Dps
£m p p £m p p
Baird
31-Oct-05 NEUT 1.10 - 3.60 - 2.50 1.60 + 5.30 + 2.50 -
Consensus 1.10 3.60 2.50 1.60 5.30 2.50
1M change -0.13 -0.74 - +0.10 -0.18 -0.11
3M change -0.13 -0.74 - +0.10 -0.17 -0.11

Period
Consensus (Base eps 3.56p) 06 07
eps p 3.60 5.30
3M Change p -0.74 -0.17
brokers n 1 1
std dev n - -
growth n 1.12 47.2
prosp p/e % 12.8 8.68


Broker forecasts (revised 31 Oct) for this financial year and next look ok still, albeit this years pretax has been reduced from 1.3m in April to the current £1.1m.

2006 pretax has been increased. I can't see any reason for the sharp drop/re-rating in shareprice of MSB and peers. Just a case of waiting for the shareprice to pickup again.

HVN, GLO, QTA, PTY and others falling back sharply of late.

30p I doubt it, but never say never! If somebody had suggested 42p a few months ago I would have doubted that too!

[cornelious billy bee] 02/11/2005 12:21

new bottom found 30p entry level

[1bensons] 17/10/2005 14:51

Snappy,

On a second look at the numbers, I can see your point.....Will have to wait until April next year to see if there is a tangible benefit.

I think they are undervalued, but it comes down to the fact that the company is really controlled by 3-4 individuals and institutions, therefore, I don't expect to see a huge upturn in the next 3 months, unless a couple of these larger holders want to sell up...to a 3rd party

[stemis] 17/10/2005 14:11

Billy bee, you really must learn to read a set of accounts :)

Turnover from interim statements (covering the same period actually):-

HVN £92.7M

MSB £47.1M

Hardly huge vs tiny

I'll grant you that HVN is more profitable, although it has a weaker balance sheet. However HVN market cap is £33.5M whilst MSB is £9.5M. More upside in MSB I think.

[cornelious billy bee] 17/10/2005 13:44

HVN is a successfull International recruitment firm, MSB is a small local provider,

HVN ha gone through the pain of that process, MSB has a limited market

[empirestate] 17/10/2005 12:01

this looks cheap at this level

[stemis] 17/10/2005 11:41

Firstly HVN's net assets are £34M not £50M.

Secondly HVN's balance sheet contains £31M of intangibles.

So that's market cap of £35M compared to net tangible assets of £3M or net current assets of £780,000, including £8.2M of bank debt.

Mmmm. I don't think so

[cornelious billy bee] 17/10/2005 11:24

HVN NAV 50 Million, Mar Cap 35 Million pretty common in this sector

[snappy] 17/10/2005 11:22

At first glance the results don't look very good but a shift seems to have taken place from the management in the way they want to scale the business for this half of the year.

It would appear that management expect this to bear fruit in the short term, which is a change of tone from what we have been used to for the last few years.

What a difference 6 momths can make though.

[stemis] 17/10/2005 11:00

Unaudited Unaudited Unaudited
Six months to Six months to Year to 31
31 July 2005 31 July 2004 January 2005
£000 £000 £000

Trade and other receivables 19,940 18,633 16,659
Current tax receivable 150 161 169
Cash and cash equivalents 121 892 1,162

20,211 19,686 17,990

Net current liabilities 8,711 6,885 6,277

Net current assets 11,500 12,801 11,713

[cornelious billy bee] 17/10/2005 10:42

what exactly are MSB's assets steMIS?

[stemis] 17/10/2005 10:11

No doubt we will see, but your premise was that MSB was going bust!

MSB is now valued at less than its net current assets. You don't think they could pick up the phone and immediately sell the business for net current asset value of 56p?

[cornelious billy bee] 17/10/2005 09:25

stemis two very different sets of results from the same sector, HVN up 6%, MSB down 6%.

This is now certain to drift for the next 6 months awaiting improved results, I will consider getting back in at 30p

[stemis] 17/10/2005 08:11

Doesn't look like they are going bust after all!

We are pleased to report growth in revenue, gross profit and margin for the half year to 31 July 2005.

The reason these don't appear to have made their way down to the bottom line seems to down to:-

The first six months of the year saw a significant investment in the sales workforce. The average number of sales consultants grew by 29% over the same period last year. This has increased year on year sales staff costs by 20%. The benefits of this investment should be evident in the second half and more importantly create scale for the future.

[cornelious billy bee] 14/10/2005 14:55

no I reckon HVN will survuve beacaus they have diversified globally

UK focus is not the best palkce to be at the moment

[stemis] 13/10/2005 16:47

HVN?

Bust by Christmas!

[cornelious billy bee] 13/10/2005 16:05

ouch 17k at .43 someone is desperate to get out.

I'm long on HVN so the demise of any other rec con is only good news for me

[cornelious billy bee] 13/10/2005 16:04

well theres 50k at .46, the bid will be under pressure again tomorrow with investors nervous about

1) Bad Results
2) Newspper reports about bad results
3) Static market

There are plently of rec con hard luck stories out there to believe why go with MSB?

[1bensons] 13/10/2005 11:54

How do you work that one out Billy Bee ???

[cornelious billy bee] 12/10/2005 15:33

I think there will be a big selloff on Monday when the results come out, entry point 30p

[snappy] 12/10/2005 12:55

I'm expecting inline results because there has been no warning and I would have expected one if trading had slowed considerably.

Looks like yesterdays trade was just a very badly timed one.

[sharw] 12/10/2005 12:44

snappy - looks as if the trade induced the fall - it is marked 1522 and it was just after that when the price collapsed.

billy bee - the market is not uniform - Spring (SRG) has done badly and Quantica (QTA) has done well. As for MSB we just have to wait until Monday to find out.