Psg Solutions Share Discussion Threads

[fido] 13/12/2007 22:42

PSG Solutions PLC - PSG Solutions PLC - Purchase of Own Shares & TVR Update

PSG SOLUTIONS PLC ('PSG')

PURCHASE OF OWN SHARES AND TVR UPDATE

PSG announces that it has made the following purchase of its Ordinary Shares of 20p:


Date No of Shares Price

13th December 2007 50,000 0.665p

These shares will be held in treasury.

PSG has issued share capital comprising 27,183,240 Ordinary Shares of 20p and
following this purchase now has 319,583 shares in treasury.

PSG does not have any other class of shares which has voting rights and
therefore the total number of voting rights is 26,863,657 and this figure may
be used by shareholders as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or a change to
their interest in PSG, under the FSA's Disclosure and Transparency Rules.

[fido] 11/12/2007 17:44

The purchase of 267500 shares speaks volumes in my opinion.
Is it more buybacks or Mr Morton upping his stake again. Either way its very positive in a slow market and comes just before the full roll out of HIPS.

[fido] 08/12/2007 11:53

androyd,
PGS is a small company doing very well in a slow market.
Its shares are not often traded which means that most people do not know about them. The biggest buys lately have been company buybacks and the likes of Bob Morton increasing their stakes, both of which are highly positive.
As for PGS`s underating at the moment, I would imagine that most housing related stocks are not flavour of the month at the moment and I would suspect some reaction against HIP`s as well. On both counts this will be a tempory adjustment and with interest rates now on the way down it is only a question of confidence returning.

Thats all from me today on this subject.

[androyd] 08/12/2007 11:38

fido, what do you think is depressing the share price if not the HIP uncertainty, the company has already stated it has captured a significant stake in the HIP market, if we assume a significant share = 10% and a mature HIP market is forecast to be in the region of £500 - £600m, that would be £50 -£60m sales, assuming 20% margins would equate to £10 - £12m profits for year 2008/09, the company has a market cap in the region of £17m, under normal circumstances those potential sales would be factored in, for some reason they are not.

[androyd] 08/12/2007 11:26

If that were the case, that would only serve to prolong the uncertainty.

[gorse] 08/12/2007 11:20

I think an election in 2009 is unlikely and, furthermore, I have a bet on the election being delayed until 2010.

[fido] 08/12/2007 11:17

androyd,
You have your opinion and I have mine.
I am happy that PGS is going to prove one of us right.

Regards.

[androyd] 08/12/2007 11:13

Not, in my opinion, until the uncertainty is removed.

[fido] 08/12/2007 11:08

androyd,
It could also be that PGS have never been on anyones radar. However we have seen PGS tipped in three newspapers this last few weeks plus the IC mag two weeks running. If the housing market is set fair with interest rates on their way down then it will be companies like PGS that will benifit.

[androyd] 08/12/2007 10:50

I know that HIPS are to be rolled out fully on Dec. 14 but i'm afraid that does not remove the uncertainty, with an election likely in May 09 and the conservatives favourites to win. The uncertainty will remain until the tories come out in support of HIPS, i suspect it's the uncertainty which is holding the share price back (trading slightly above net asset value), why else would PGS be one of the lowest rated shares on the stock market, there must be a reason, i'm suggesting it's the uncertainty regarding HIPS.

[fido] 08/12/2007 10:23

androyd,
Below is where I got the PGS being tipped in the IC mag from-Dated Friday 7th Dec.(right at the bottom)
As for uncertainty, on Dec 14th HIP`s will be mandatory for ALL housing types. PGS have already stated that they have picked up a significant market share of that and we wait to see how that transforms into profits.

FRIDAY 7TH DECEMBER 2007


INVESTORS CHRONICLE
Shares with Perks (The best offers and how to get them): Pick of the Perks 2007:
*Housebuilders – Barratt (BDEV), Bellway (BWY), Redrow (RDW)... Retailers – N. Brown (BWNG), Dobbies Garden (DGC), Mulberry (MUL)... Hotels, Pubs, Restaurants – CHE Group, Restaurant Group (RTN), Shepherd Neame... Travel – Landround (LDR), Thomas Cook (TCG), Holidaybreak (HBR), Irish Continental (ICGC)... Miscellaneous – Inchcape (INCH), Legal & General (LGEN), Trafficmaster (TFC), Johnson Services (JSG)... Steam Railways – North Norfolk Railway, Romnet Hythe & Dymnchurch Railway, Severn Valley Railway.

Tips:
*Buy – Bodycote (BOY), Finsbury Food Group (FIF), Climate Exchange (CLE), Metals Exploration (MTL).
*Sell – Rightmove (RMV), Sandvine (SAND).

Tip Updates:
*Buy – Pipex (PXC), VT (VTG), RCG (RCG), Morgan Crucible (MGCR).

Company Results:
*Buy – Findel (FDL), Creston (CRE), Speedy Hire (SDY), Scapa (SCPA), Sage (SGE), OMG (OMG), Anglo Irish Bank (ANGL), Dawnay Day Sirius (DDS), Telecom Plus (TEP), AssetCo (ASTO), Accident Exchange (ACE), Carclo (CAR), May Gurney (MAYG), Ashley House (ASH), Coffeeheaven (COH), Aberdeen Asset Management (ADN), Avon Rubber (AVON), Prime People (PRP), Plant Impact (PIM), Opsec Security (OSG), PSG Solutions (PGS),

[androyd] 08/12/2007 10:12

Until the uncertainty regarding HIPS is removed, i feel PGS will only continue to tread water!

[androyd] 08/12/2007 08:11

fido, PGS were tipped in last weeks issue, not yesterday's

[fido] 07/12/2007 23:22

After the BOE rate cut on Thursday to support the housing market, we have the IC mag recommending PGS as a buy today.
With more rate cuts expected, it could be as my post above suggests that PGS is being recognised as a good investment that will do well coming out of a housing slowdown.

[fido] 01/12/2007 10:51

androyd,
If you compare PGS with someone like Network Data who are in a similar business, then you can see just how well PGS are doing in a difficult market. While PGS talk of strong profits and aquisitions, Network Data have just issued a profit warning. What we are seeing is a softening housing market caused by high interest rates, the credit crunch and the HIP`s effect. Interest rates should now be on the way down, the credit crunch is more a question of confidence ans will ease as confidence returns, and with HIP`s it is all about the consumer getting used to them.
So, if we have reached the bottom and with interest rates on the decline we are looking to the upside, then it is very much a question of which companies are going to come out of this the fittest.
In my opinion one of those will be PGS. If you ignore the HIPS start up costs, then PSG would have shown a good rise in profits in a difficult market.
As you say, PGS are lowley rated which is undeserved with their robust figures and the recent press comments will have put them on peoples radars.

[androyd] 01/12/2007 10:05

If we see an interest rate cut this month or next, we may see a surge in January just like we did this year, now might be a good time to buy. On another note, the property sector has been hammered recently which means there are bargains to be had, if PGS are to make a significant property related acquisition, now would be a good time to act, they've talked about it long enough, i think it's time we saw some action.

[fido] 30/11/2007 22:28

In reverse order.
PGS`s packaging business put in a creditable performance and bettered last year. There is value in this business but I see it as non core and expect it to be sold for a good price in due course.

Audiotel, although it had a shortfall during the quieter first half, the second half will be very strong and that will more than make up for the first half. On top of strong security sales, I expect to see strong sales of its Casino guard section where sales are now being put out on a worldwide basis having seen strong sales in London.

The insurance side put in a good performance, but will come into its own as part of PSG`s complete online package due soon.

PSG itself saw some flattening of house search growth figures due to a slowing market. However the real story is HIPS. Even though the HIPS market will not be fully introduced untill Dec 14th PSG has taken a very significant share of the market. One off costs will comfortably be absorbed into full year profits.
There are two things that make PGS a good punt for the future.
Firstly interest rates should now be on the way down.
Secondly when HIPs go live for ALL properties on Dec 14th then this will provide very strong profits going forward, providing the cash for PGS to make an aquisition of up to £20 million that it says will significantly strenthen its position.
As far as the housing market is concerned we are seeing a slowdown which will be followed by further growth as interest rates come down and people have adjusted to HIPS. On top of this PGS still only has 25% of the market in searches so there is a lot to go for in an improving market. Its rapid build up of market share in the HIP`s market bodes well for strong profit growth in the near term.
Its robust performance in a difficult market will mean that there will be greater interest as interest rates come down and the housing market improves.

[androyd] 30/11/2007 21:02

There's an article in todays IC which states that PGS is the lowest rated UK share with a value between £10-£100m.

[fido] 29/11/2007 17:16

androyd,
The only reason the conservatives say that is to score points. With the bulk of estate agents and solicitors who will earn income from HIP1s also being Conservatives, lets see what the Conservatives have to say about HIP`s in a years time.

[androyd] 29/11/2007 16:43

It isn't the downturn in the housing market that concerns me with this company, that will pick up when interest rates start to come down, it's the uncertainty surrounding the HIP market, by the time PGS announce their full year figures for the year 2008/2009 (which would be the first full year to include HIP sales} it's extremely likely, in my opinion, that there will be a government in office who have pledged to abolish HIPS, so if PGS shares were to rise significantly over the next twelve months on the back of healthy HIP sales and improving house sales, they could also be exposed to a steep fall in the run up to the next general election. I hope the management have factored in the above scenario in their strategy going forward.

[androyd] 28/11/2007 12:47

Almost the same as the Times.

[truffle] 27/11/2007 20:28

What does the Guardian say, please?

[androyd] 27/11/2007 19:09

And the Guardian.

[truffle] 27/11/2007 17:01

To be precise, one in The Times, too.

Daily Mail.

AIM-listed PSG Solutions jumped 4.5 p to 66.5p following in-line interims and management expectations for a significantly stronger performance in the second-half. It has £3 million cash in the bank and is on the look out for complementary businesses, Shore Capital says it is a well managed company with significant long-term growth opportunities open to it in its core property services market.

and The Times,

PSG Solutions, the property search company, gained 4.5p to 66.5p yesterday afetr it said the growth in home information pack sales would make up for the downturn in the housing market. There is talk that the company is ready for an acquisition of up to £20 million, and bulk and online conveyancing firms are in the spotlight.

[truffle] 27/11/2007 14:33

Well to be fair there is a positive snippet in to-days Daily Mail so lets hope they are right.