Promethean Share Discussion Threads

[titeuf_int] 28/10/2010 13:12

Something that does not lie is that Smart Technologies ( listed in the Nasdaq), which is the leader in this market has seen his share price quite steady.

The share is trading on 21x PE 2010, twice the multiple of Promethean and has much more debt than PRW.

So ask yourself this question Why is Smart technologies so steady as the companies are in the same market and I understand that most of the worries regarding PRW are industry based and not endogenous to the company.

Valuations are really low for PRW and at EV/EBITDA of 4x I do not see how far the shaare can fall as long as growth is there and we have no signs of the cuts impacting the activity.

Results were much better than what I expected as the gross margin ( my main source of worry) went back up and the turnover came at the higher end of analyst forecast.

Most of the potential impact of budget spending has been priced in the share.

[ukinvestor220] 28/10/2010 12:22

From Investec via Alphaville :

Q310 showed reasonable sales growth and solid profit delivery, but tightening educational budgets are now impacting the business. Crucially, in our view, the statement highlights costs are under tight control. Our inference is that management are adapting the cost base accordingly. We downgrade our low end sales growth forecasts to 22% (from 25%) and 9% (13%) in FY10E & FY11E. EPS falls modestly (3%) in FY10E, but a more material -12% in FY11E. Given proactive cost control, Buy maintained.

FY11E The Italian contract win (largest EU tender yet) is encouraging, indicating activity levels are still there. In FY11E, we assume IDS volumes are flat in the US, but grow (from a low base) in Europe and RoW. We assume LRS units decline modestly. Management seem to be proactively taking prudent action to control costs (especially S&M) which should help limit the EPS impact. We sense a further cost 'cushion' should sales soften further (within reason).
Investment view It is of some comfort the cost model is being adapted relatively quickly to the more difficult environment. We remain positive on the 'vision' and while we have re-based our forecasts, we still see reasonable sales and profit growth going forward. We cut our TP to 160p (222p) based on c13x FY11E EPS.

[fishbournetrader] 28/10/2010 11:56

I have just listened to the playback of this morning's conference call. Clearly there are some concerns about the US market which is the most important market to Promethean. Despite some budget cuts they are still hoping to maintain low double figure growth (more than 10%, I presume) and currently 40% of class rooms have interactive white boards so still plenty of opportunity.

You can listen to the conference call. A replay facility is available for seven days by dialling [phone], access code: 1942236#.

[aishah] 28/10/2010 09:29

Be greedy when the rest are fearful! dyor

[ukinvestor220] 28/10/2010 09:20

The fly in the ointment is that this is not signed up until the expiry of the standstill agreement.

[ukinvestor220] 28/10/2010 09:16

i think that is now. ther was a conference call to explain the IMS at 08.30. Buying started at around 08.45 and is continuing, some nice volume too.

[davidosh] 28/10/2010 09:14

Cash has actually fallen from the interim results announcement level then ? I guess the tone and outlook for public spending is causing the weakness and fears here. At some point the risk/reward must see a bottom to this fall though.

[ollyb10] 28/10/2010 09:12

Agree not all singing and dancing upbeat but over 10% drop is a bit overdone in view.

[rathkum] 28/10/2010 09:00

Not exactly upbeat is it. Cautious statement if you ask me

[fishbournetrader] 28/10/2010 08:58

Dividends are not often announced in IMS but the dividend is forecast to be 3.04p, revenue £257m and EPS 13.10p. Net cash from the IMS is £14.4m.

[offler] 28/10/2010 08:51

No dividend announced?

[ollyb10] 28/10/2010 08:42

Despite the cautionary US statement, the statement is still positive showing general upward trend, plus the announcement of the Italian Government contract surely should not have a -ve affect !!!

[slapdash] 28/10/2010 08:33

surely it is because of caution on US state spending??

[spkiller] 28/10/2010 08:20

Guys... after reading RNS... not only a strong interim statement but also announcing its biggest contract to Italian government...

I was expecting a 5% rise not a 9% loss... WTF?

[fishbournetrader] 28/10/2010 08:10

I can't see much wrong with the IMS and a big order from Italy announced and yet we have a 7% drop in the share price. I really do not understand this. What is it that we are not being told? Can anyone explain this?

[grahamburn] 21/10/2010 19:38

Clearer picture a week today after IMS - which OK looks backward, but should also give hints on the future.

[offler] 21/10/2010 18:31

Yes the implications are that the share price tanks a bit more.

Unless someone knows something this is madness.

[sunseeking] 20/10/2010 14:21

School spending to increase!!!
Must have implications for prw

ss

[rathkum] 19/10/2010 17:59

Plenty of petrol left in the tank

[philjeans] 19/10/2010 17:00

Another nice 50k BUY after the bell - someone keenly accumulating.

Miles to go here.

[aishah] 19/10/2010 15:36

Promethean Named Manufacturer of the Year

[nurdin] 19/10/2010 12:12

Yup..well overdue imo..;o)

[philjeans] 19/10/2010 12:10

as I was saying; up she goes!