Photo-me Share Discussion Threads

[ramridge] 21/6/2016 11:35

The fall is clearly overdone.
On 8/1/16 the co. issued a trading update giving very bullish news about the Japanese new ID card and sales prospects. The share price jumped 9%.
Today, the news is that there are delays caused by the Japanese government. The prospects for sales are the same, except that it would happen over a longer period.
The share price tanks as we speak over 17%.
To me that smells like a buying opportunity.

[davidosh] 21/6/2016 11:35

Dividend......this is what the house broker has to say...

Dividend. The ordinary dividend was increased by 20% compared with the
previously stated policy of +10%. This reflects investor feedback for a
preference for ordinary (rather than special) dividends. The 20% pa growth
profile has also been confirmed for the next two years.
The net cash position at the year-end was lower than anticipated due to higher
working capital and capital expenditure commitments as the group continued to
invest in its estate. This, combined with the higher-than-expected ordinary
dividend payment, meant that under the group's special dividend policy, which
pays out surplus net cash above £50m, there was less cash available for a
special dividend. The total DPS was therefore 8.68p vs 11.36p forecast.

[hpcg] 21/6/2016 11:17

From a neutral standpoint I think the dividend is too high. They could maybe get higher growth with more money fed back into the business?

[breaktwister] 21/6/2016 11:14

Brutal hammering today. Unlucky for the traders and short term investors, a great opportunity for long term investors.

[shanklin] 21/6/2016 10:35

The one criticism I would have of PHTM is that IMHO they should have updated the market at year end to advise that the Japan photo business had not been as busy as they had hoped due to roll-out issues with the new identity number/card scheme.

[buffythebuffoon] 21/6/2016 10:29

Didn't say I wasn't dyslexic though.

Buffyperhapsyou'rerightandIamabuffoon

[buffythebuffoon] 21/6/2016 10:24

FX movements are unknowable until they've happened. At constant currency the accounts confirm the profit would have been higher. Any favourable movements since the year end will show in H1 for 2016-17. It all comes out in the wash.

I like to look at the bigger picture rather than the minutiae (such as, for example, the year before we sold a property for £4.2m which appeared in the 2015 accounts). This is a quality company with some compelling business propositions. They offer a win-win for their target customers, as all good sustainable business propositions must. The share price may have further to fall, but it's only traders or leveraged traders/investors who will worry today. Others will just shrug their shoulders. I fully accept a PE of 18 plus leaves little room for disappointment, but I have to say...I'm not disappointed. What's not booked today will get booked another day.

Buffy

[gleach23] 21/6/2016 10:24

Yes Shanklin - buffy is still using 2.185 as the special divi

[smokybenchod] 21/6/2016 10:22

The biggest question to which no one knows the answer is whether they can keep to the 8.6 eps forecast for this year now that Japan has slowed down. If so the current share price puts them on a 15.6 PE ratio for this FY which appears good value. GLA DYOR

[shanklin] 21/6/2016 10:16

Total dividend for 2015/16 is 8.675p.

[celeritas] 21/6/2016 10:08

Divi plus special is over 8p so on target.
Divi is up 20% rather than 10% so above target.

Japan have some admin issues but that the only negative I can find but thats not really an issue as we all know a new system will have some problmes that need ironing out.

The largest territory by size of the machine estate and revenue by far is Japan where performance was outstanding. Revenues were up by 16% with profits 69% higher.

[miti 1000] 21/6/2016 10:05

The lack of growth in Japan for the next year has tempered the size of the special dividend and will constrain broker forecasts going forward.

As I said , hopefully the share price will bottom out here .

[toyin] 21/6/2016 09:58

Miti100

I think "shocker" is a bit strong, inconvenient, yes.

M/cap £600m
PBT £40m
Cash £60m
Div + special div.

You are always buying a story and the story hasn't changed just moved down the road a little (through no fault of their own). Great time to add in my opinion.

All the best

[pshevlin] 21/6/2016 09:56

"shocker" explain.
At the most it was a hiccup and since future profits have not been included in the forecast due to lack of certainty I don't see how this will effect the results for the next year or two except on the upside. Whatever it is it isn't worth a 17% drop in the share price Definately a time to top up.

[miti 1000] 21/6/2016 09:48

The Japan news was a shocker ..period .

Hopefully it will bottom out soon and market can focus on the the growth going ahead exc. anything from Japan( till next year).

[ali47fish] 21/6/2016 09:43

please somebody comment on my post above as i would be very keen on your opinions- many thnaks

[gleach23] 21/6/2016 09:38

Shanklin - rather than the Japan effect, surely the 2.5p "miss" on the special divi was due to the £10m external debt raised in the year? The cash and cash equivalents came in at £70m as expected but the special divi is based on the net cash which has the £10m deducted.

Obviously numbers man buffy (for whom the word buffoon doesn't begin to do justice) will correct me if that's wrong.

[celeritas] 21/6/2016 09:36

The divi is increasing 20% rather than 10%. I expect this is down to income funds as specials can't be distributed the same.
They can do away with the specials for me and just keep steady away with the divi.

I expect Serge is furious with today's action, I wonder if he digs deep.

[ali47fish] 21/6/2016 09:30

i was getting ready to add to my hoding at the bell having read the rns and some of the comments here-it goes to show that you have to be good at reading beween the lines and it is as if the market picks the negatives which are fewer in this case especially as this share is now in the 250 footsie- i have read this morning that aim is an immature market and the mid cap index has done far better than aim. i am extremely disappointed with my experience on aim even though i am subscribed to Sharewatch which has picked this one as one of its GP3 investments? what do you make of all this then?

[jch18] 21/6/2016 09:29

The mm dropped the price by 10% at the opening. So trying to take out stops?

[pratt2] 21/6/2016 09:27

Tempted to top Up but not too sure now. Why is there such a strong reaction? The update also highlights Japan being a very uncertain element.. At least for the near term future .. Probably the market thinks there s no immediate catalyst for phtm so investors dumping stock now ..

[johnv] 21/6/2016 09:25

Monitor is top left side tab called monitor where you can set up a list of shares to watch.