Proactis Share Discussion Threads

[pj0077] 12/11/2016 17:24

No accusations of any wrongdoing here.FinnCap have held up their hands and admitted that, when it comes to Proactis, they are cheerleaders rather than analysts.We should treat their conclusions accordingly.

[p1nkfish] 12/11/2016 15:31

PJ, finncap have done exactly what is expected of them and the disclaimer is as expected under the circumstances that the company researched is a client or has a relationship to the researcher. Nothing strange there.

That is why the research is free. In depth independent is normally on a fee basis. You get what you pay for.

[pj0077] 12/11/2016 08:09

Incorrect jambo... plenty of independent research out there.. think you need to revise this point before sitting your CFA exams!

[oregano] 11/11/2016 13:53

no volume today, i wonder if Henderson have changed their behaviour based on this deal.

it is they who have been keeping a lid on this. really looking very cheap on next years numbers, 12x earnings.

[pj0077] 11/11/2016 11:27

The finnCap 'research' on PHD comes with a visible warning on the front page:

"Denotes corporate client of finnCap. This research cannot be classified as objective"

You seriously couldn't make it up.

[lewis winthorpe] 11/11/2016 08:11

Rating Change: PROACTIS Holdings PLC (LON:PHD) Stock “CorporateR21; Rating Reiterated at finnCap; The Target Price Given is GBX 235.00

[ramridge] 10/11/2016 11:40

peace. There are enough nasty people in the world.

[lewis winthorpe] 10/11/2016 11:34

ramridge,

Calm down was a simple question, not accusing you of derampin :-)
toungue in cheek and all that

:-)

[guy martin] 10/11/2016 11:32

Thanks ramridge, LW and corcosa. Despite my earlier doubts the market seems to like it.

[ramridge] 10/11/2016 11:06

Guys -
For a good explanation as to why the placing was at a premium, please see Paul Scott's note here:

hxxp://www.stockopedia.com/content/small-cap-value-report-10-nov-2016-dvo-phd-botb-157609/?comment=2#2

Lewis - I already said earlier in my note that I took a position today. Do I need your permission to buy these shares? :-)

[lewis winthorpe] 10/11/2016 10:58

ramridge,

How long do you think it takes to negotiate a deal like this. Between 1st November and now?

Think longer than that.

Not seen you on here before how long have you held?

Cooking upwards nicely. This was 1.50+ even before this deal, I expect it to go higher than that in the coming weeks.

L.

[carcosa] 10/11/2016 09:45

If the institutions wanted to buy £12.5m of existing shares then the shareprice would go up substantially higher than 135p; so this is a chance for them to gain a worthwhile holding at a small premium

The company requires fresh capital so if the institutions bought within the market as you suggest then that would already be existing equity and no new equity would be created for the company.

result for retail shareholders is a dilution of the % of the company held but compensated for by an increase in the share price and a nice warm fuzzy feeling

[ramridge] 10/11/2016 09:45

Lewis -
Unless I am mistaken the historical buy price has been below 135p since 1/11/16.

[lewis winthorpe] 10/11/2016 09:38

The negotiation on the placing price with investors didn't happen yesterday, The share price was £1.40+ when this started so it was a discount. It says conditional placing but IMHO its done deal

You have seen how quickly PIs have swallowed these up this morning.

£25mill revenue and more or less doubled EBITDA, this was a good deal.

Easily on track for £50million revenue over next 3 years IMHO and most of that recurring.

This has a target of £2 but expect that to increas now.

L.

[ramridge] 10/11/2016 09:38

Guy -
PHD's current PE ratio = 135/6.78 = 20
Acquisition PE ratio is approx 15.5 / 1.1 = 14
So the acquisition is relatively good.

As to your other question, yes, that is also a mystery to me. But hey I paid 132p this morning so I don't want to look a gift horse in the mouth.

[guy martin] 10/11/2016 09:26

Am I missing something here? Why would institutions etc take up the placing at 135p when the market price of the shares was 123p the day before the announcement? Also Millstream's £1.1m contribution to extra profit seems expensive for an outlay of £16.5m? I am a holder. I'd like to be convinced that this is a good move for Proactis - can someone explain why it should be. Thanks

[ramridge] 10/11/2016 09:25

Two large sells this morning 222,000 shares is keeping the lid on the share price.
Interesting to see what happens by close of play.

[p1nkfish] 10/11/2016 09:15

2018, bar market meltdown, should be show time.

[p1nkfish] 10/11/2016 09:15

It's going to become harder to find any low hanging acquisition fruit but at least PHD will have reached towards a good critical mass. It will be interesting to see if opreational cost savings are possible with Proactis + Millstream but I suspect less so than with previous acquisitions.

[p1nkfish] 10/11/2016 09:12

Interesting bunch in Aberdeen of all places. This might just help Henderson decide to stay or clear out quicker.

[eagle eye] 10/11/2016 08:56

Information on Millstream Associates:

[ramridge] 10/11/2016 08:22

Acquisition looks really good. Multiple of EBITDA = 7.7.
Acquisition PBT = 1.4m which makes net profit from acquisition £1.1m approx
PHD's net profit £2.5m . Which means the new acquisition will boost net profit by 44%

Took a position this morning.

[toolsmoker] 10/11/2016 07:42

Great news today new aqusition and all funded at premium wonder where this will open anytging around 135 p is a steal lets hope nobody awake