Psg Solutions Share Discussion Threads

[truffle] 25/7/2007 16:40

I was about to make the same observation - nearly half of the company's shares traded and no sign of any comment/announcement from the company.

Any clues, Anyone?

[androyd] 25/7/2007 16:17

About 45% of the companies shares were sold today, what's going on?

[androyd] 25/7/2007 12:25

The 2.18m transaction is a market maker to market maker, i don't really understand what the implications of that are, what's your take on todays events fido?

[androyd] 25/7/2007 12:15

It looks like somethings afoot, a tick up!!

[androyd] 25/7/2007 12:01

It's about 8%, Wilbro hold 7.94% and Artemis hold 8.22% so it looks like it could be either of those that's sold although it hasn't affected the sp, perhaps there is a buyer.

[truffle] 25/7/2007 11:50

Can anyone explain the trade of over 2 million shares that has gone through?

What percentage of the issued equity is it?

[fido] 19/7/2007 18:42

In case you missed it:

The industry is ready to go live on 1st August and latest figures for accredited energy assessors make it clear that there will be enough energy assessors to go live with three bedroom properties as early as 1st September.

[fido] 19/7/2007 18:40

Network Data Holdings PLC
19 July 2007

19 JULY 2007





NETWORK DATA HOLDINGS PLC



('Network Data' or 'the Group')



Trading update



Network Data today releases a trading update ahead of its results announcement
for the six monthly period ending 30th June 2007, due to be released on Thursday
20th September 2007.



The principal businesses of the Group are three wholly owned subsidiaries,
Network Data Limited ('NDL'), Network Surveyors Limited ('NSL') and Hipstar
Limited ('HIPSTAR').



The Group is pleased to report that its results for the six month period will be
in line with its expectations.



Grenville Folwell, Chairman, commented:



'The core business, NDL, continues to perform well. Despite the expectation of
rates continuing to rise, the latest round of data still indicates a strong
housing market. We also believe that remortgaging is increasing in importance.
The Council of Mortgage Lenders estimates that over 2 million fixed rate deals
will mature over this year and the next.



NSL, which acts as a panel manager for property valuations on behalf of lenders,
is growing its business well year on year with volumes of valuation businesses
increasing strongly.



In the light of the deferral of the Home Information Pack program announced on
22nd May 2007, HIPSTAR quickly took action to reduce some of its direct costs.
However, the Group continues to remain committed to the business and the new
government under Gordon Brown has signified continuity for the HIP program. In
particular we are encouraged by the retention of Yvette Cooper as Housing
Minister who has remained a steadfast supporter of HIPs. The industry is ready
to go live on 1st August and latest figures for accredited energy assessors make
it clear that there will be enough energy assessors to go live with three
bedroom properties as early as 1st September.



We will update shareholders as to the progress of HIPSTAR at the time of the
announcement of the six monthly results in September.



We believe that the rest of the year presents exciting opportunities for the
Group and we look forward to the continued expansion of the Group as a whole.'



Enquiries:

Richard Griffiths
Chief Executive, Network Data Holdings
Tel: [phone]

John Riddell
Noble & Company
Tel: [phone]

[androyd] 19/7/2007 11:25

PSG has recently unloaded 8.15m shares in ETQ.

[androyd] 11/7/2007 22:30

The PM pulled the plug on casinos today, will it be HIPS next?

[fido] 09/7/2007 12:12

Truffle,
Near term could mean anything from now til six months hence.
PGS have up to this point not been on peoples radar. However we are now seeing the company being tipped and if HIP`s do start on August 1st, then PGS will get a lot more press-see below:



Because the shares are tighly held there is not much of a free float and any buying pressure is going to have a dramatic effect on the share price I still do not believe the market understands what a money maker this company is and that will only change when they have a clearer vision of its potential and that may mean waiting for the next set of results when the market can see the strengh of profit growth.

[truffle] 09/7/2007 12:01

Fido,

Then while you are about it, perhaps you could answer my post no. 475 as well.

[balloo] 09/7/2007 08:26

I don't see the price going anywhere unitl 1 August. If the government withdraw HIPs (and remember how close to pensions simplification day it was that Gordon withdrew private property), I can see this share drift at best and dip at worst until PGS put out some positive message to the effect that they are not dependent on HIPs. That's why I think they overdid the message in the results. Still, they're in it for the long run and can't realistically sell their shares for some time so what do they care about the price. It's almost in their interest to keep the price low so that they can accumulate.

Fido - you've been saying for some time now that it's only a question of time. It isn't just me that has queried before whether you're a ramper. Are you prepared to declare what your interest is in this share?

[androyd] 07/7/2007 19:07

The Audiotel website still hasn't been updated, i reckon there's a deal in the pipeline, probably DTE which could explain why there have been no share buy backs and why the directors haven't bought personally.

[fido] 07/7/2007 11:15

androyd,
Sometimes the market takes time to value a company correctly.
You mention L&B, well at that point the market thought that the company was in trouble. Now we know that the reverse is true and the turnaround of profits is proof of that. However, we are now seeing PGS recommended as a buy in a number of places and the continued build up of PGS profits will attract more attention.
Nothing draws investors to a share more than a rising SP, and with increasing profits and further buy recommendations it is only a question of time.

[androyd] 07/7/2007 11:12

I'm seriously thinking of fast tracking the sale of my house and putting all the proceeds into this company, they can't remain depressed for much longer. I wonder if PSG will offer me a discount on my HIP!!

[androyd] 07/7/2007 11:07

What i don't understand is why the shares are laguishing at these pathetic levels, i'm suggesting it's because of the uncertainty surrounding the introduction of HIPS. It was about 2 years ago when, as L&B, it was announced plans to float PSG, the shares surged from about 5.5p to 7.5p which is where we're at now (post consolidation) 2 years later and the share price hasn't moved forward. Maybe they should have floated PSG, as a pure company it probably would have a value in the region of 50-60m by now. Does anyone else have a theory as to why the market is not putting a fair value on PSG?

[fido] 07/7/2007 10:16

Put simply PSG are due to power ahead for two basic reasons.

1. In a highly fragmented market they are quickly building up market share, but even as the market leader they still have only 25% of the market. That still leaves them a huge amount of growth to go for.

2.There are 83 franchises that each pay 10% of their earnings to PSG. PSG are using strong cashflow to cherry pick the best of these and each aquisition then adds 90% extra to PSG`s profits.

PGS is undervalued on historic earnings but note the turnaround from last years results to this. The turnaround has been very strong and very marked.
On top of that there has been a series of one offs that will not be repeated like the cost of larger premises, the cost of the new IT system, the cost of litigation to force councils to open their books and a host of others. All these will have been money well spent going forward.
The statement about an aquisition clearly shows that PSG intend to become market leader and as Masurenguy rightly says PSG is governed more by housing volumes, which becuase of the reasons I have stated above are only going to increase for PSG.

[masurenguy] 07/7/2007 08:34

"androyd - 7 Jul'07 - 01:15 - 474 of 476: What i'm saying fido is that homeowners are already struggling to cope with interest rate rises, if the government were to introduce HIPS now, it would be a double whammy"

Don't see the connection. The cost of HIPS will only come into play when a property is put up for sale. The increase in the mortgage rate only affects people who want to retain ownership of their home or investment property.

It might be argued that higher interest rates could result in more repossessions and/or higher sales at the lower end of the market as newer home owners, with less equity, sell out and revert to rental. If so, this could increase the volume of property transactions which would benefit PSG since their core business relates to the number of property sales that are made in any given year. The PSG business model is not really impacted by whether property prices or interest rates rise or fall but only by the overall volume of property transactions.

[masurenguy] 07/7/2007 08:23

I think that the following points are worth bearing in mind.

1. PSG, as a group of companies, is currently vaued at an historic PE of circa 7.5 based upon last years results. Haven't seen any broker forecasts for next year but unless sales and profits decline the forward PE will be even lower. This represents a very low valuation.

2. Current market cap is only circa 1.33 x NAV !

3. Audiotel and Moore and Buckle are probably worth circa £4.5 - £5m and once deducted that values the core property services business at just around £15m at the current share price. This just represents a sales to valuation ratio of about 1:1. In due course these two non core subsidiaries will be sold but since they are currently making good profit contributions there is no urgency to dispose of either of them.

4. The company has no net debt.

Sector comparisons are difficult to make because of the varying risk profiles and product mixes of property service companies. However if one just assumed a modest 7.5% increase in PAT in FY 2007 and an undemanding PER of say just 12, then you could be looking at a share price target of circa 130p. At 10 this falls to about 100p and at 15 it would be around 150p.

However share prices are also affected by sentiment and the current HIPS debacle could restrain the growth in the share price over the next 12 months since, like it or not, the company is still largely associated with this concept. Fido mentioned in an earlier post that the IC didn't understand the PSG business model and therefore if they don't how many PIs won't either !

Plenty of potential here and any acquisition that they might make in the future could enhance their public profile. In the meantime it may be necessary to exercise some patience before seeing a more realistic valuation achieved.

[truffle] 07/7/2007 05:44

Fido,

When you say in the near term going much higher in terms of the SP, what do you have in mind for timing on 'near term' and what price for 'going much higher'?

[fido] 06/7/2007 20:50

androyd,
I think the government still intend to impliment HIP`s but realised that there would not be enough inspectors fully trained by the previous June 1st. The August 1st start date for 4 bedroom upwards means that it will probably get off the ground this time. HIPS`s will be included into PSG`s one stop shop delivery and will provide very powerful profit growth for them.

[androyd] 06/7/2007 20:13

I believe these shares will only be significantly higher in the short term if the government come down on the side of HIPS. We should know within 3 weeks what their intentions are.