Pennant Share Discussion Threads

[paleje] 12/8/2019 15:56

Simon Thompson gave us a boost today in the IC, saying it's a recovery buy. His concluding paragraph:-

True, investors have marked down the shares heavily following Friday’s news and the share price has fallen by 40 per cent since I last suggested buying at 105p (‘Pennant repeat buying opportunity’, 9 May 2019). However, I can still see the company landing the three major contracts I have outlined above to double its three-year contract order book to £72m and underpin a step change in profitability in the years ahead. That possibility is simply not being priced into Pennant's market capitalisation of £23m. Recovery buy.

[owenski] 12/8/2019 07:08

Oh dear, big time £5k purchases, no conviction there then.

[dompalmer] 12/8/2019 07:06

Looks like the Directors agree as they've taken advantage of the drop and bought more shares

[big7ime] 11/8/2019 23:35

Except revenue is lumpy and a major contract landing (prospect pipeline is good) changes everything. Management have always been cautious
I think it’s overdone so added to my watchlist

[cockerhoop] 09/8/2019 09:41

Thanks for the acknowledgement, doesn't give me any great pleasure though as I said in Post 904, I've met Phil Walker and was impressed with his enthusiasm for revitalising a previously run for management business.

Cash outflow in H1 was significant at approx £3.4m (excluding the acq cost) so any further delays to H2 project timing could be worrying imo. They have overdraft facilities up to £3m so still some headroom.

Delays and re-scoping of projects are normal in Training/Simulation so not a reflection on Pennant.

I do worry though they may have taken on more than they can handle with ASP. I imagine a big drain on management time.

[hiraniha] 09/8/2019 08:10

Funny how the Company attempt to put a positive spin on this trading update.This is not good news at all.

[2breakout] 09/8/2019 07:17

Simon Thompson does know how to pick them. People rave about him, I just see how he walks into many profit warnings.

[cockerhoop] 12/6/2019 15:19

No problems, perhaps some of the holders will chip in with a more positive outlook. I'm certainly still monitoring the company.

[cockerhoop] 12/6/2019 14:04

Dom,

I outlined my concerns in post 904, which have been heightened by the delay to the £25m/£30m contract. There's is certainly a risk of a revenue dip in 2020 with £22m of the £37m orderbook being 2019 turnover.

I'd like to hear how ASP expansion is coming on as training aids for that business should keep the engineering bays busy (though not necessarily provide group revenue).

[dompalmer] 12/6/2019 13:55

Anyone have any thoughts on the share price drop here? Looks oversold to me but wondering if I've missed something?

[cockerhoop] 03/5/2019 09:32

No it doesn't

[varies] 03/5/2019 09:14

Accounts for 2018 showed a 3 year order book of £37 million.
Did this include the £25/30 million now postponed ?
I like to think not but would be very interested to learn what others think

[cockerhoop] 02/5/2019 10:57

Yes, with £22m of the £37m order book being depleted in 2019, there looks a potential hole in orders for H1 2020. Hints though of additional orders from the same customer.

[leading] 02/5/2019 10:12

Ouch. Better get on and make some sales of all those new products that Pennant has been busy developing and capitalising whilst they wait for the delayed/contingent project to reappear.

If 2019 profit outlook is not materially affected, as they state, there is still time to fill the gaps for 2020.

[mfhmfh] 19/3/2019 19:46

high volume with continued rise

[royaloak] 13/3/2019 14:47

Thanks wynmck, I had not seen that, I have the IC online version also....it should be my first port of call!

[wynmck] 13/3/2019 14:36

royal-Simon reiterated Buy yesterday with 180p tgt

[royaloak] 13/3/2019 14:16

Looked excellent value after results, surprised there was no movement yesterday. Perhaps Simon Thompson has mentioned them again online?

[grosvenor] 12/3/2019 07:14

Results look good "EPS more than double "DYOR

[mfhmfh] 08/2/2019 14:24

good volume today. waiting for that big deal to conclude. should be in H1 this year.