Public Recruitment Share Discussion Threads

[pictureframe] 02/3/2006 10:49

now im sure its MMs messing with the prices to get stock, wont drop the bid will they

[david77] 02/3/2006 10:48

My 30,000 buy has now shown up, but my 3,600 buy is shown as a sell. I suspect that the two deals listed below my 3,600 deal as sells are, in fact, buys.

[pictureframe] 02/3/2006 10:20

cant see why there would be any difficulty in obtaining, when you look at some of the basket cases they are prepared to chuck money at. This is certainly not one of those !

[tiltonboy] 02/3/2006 10:17

I've just spoken to Nick Williams, the finace director. They have spoken to a number of finacial institutions concerning the refinancing, and are now in detailed negotiations with one. They are hopeful that the new facilities can be signed within the next 4/5 weeks.

tiltonboy

[empirestate] 02/3/2006 10:06

Wins certainly don't want any of these, i was checking with them and at 42 bid
they were only willing to pay 38

[tiltonboy] 02/3/2006 09:54

There has been a seller around for some time, and it wouldn't surprise me to see the shares drift back to where they started, even given the good figures.

I think the catalyst for any re-rating will be the signing of new banking facilities.

As has been pointed out in previous posts, interest cover is more than comfortable at 5X and is rising, cash flow is strong, suggesting that debt can be repaid relatively quickly.

Providing there is no deterioration in trading, and new banking facilities are in place, I can see the shares trading at double this price in the next 12/18 months.

I think we will just have to be patient in the short term.

tiltonboy

[its the oxman] 02/3/2006 09:51

just bought in with a small punt - looks interesting with good scope to start a recovery now - will be interesting to see where the share price is in 12 months time.

[njp] 02/3/2006 09:49

They've discouraged buying - for the moment - but don't appear to be finding many sellers. Most of the disillusioned holders have gone by now and more recent buyers' resolve must have been strengthened by these results. Only way to find more stock is to jack up the price IMO.

As you say PF, these ought to be a fair bit higher in a few weeks time.

[pictureframe] 02/3/2006 09:41

to be honest im not really interested in intrady movement, next few weeks should see this a lot higher imho.

[rivaldo] 02/3/2006 09:40

Always the same isn't it- an initial rise followed by a pullback and then further gains.

I suspect you're right pictureframe, as just before I could sell loads of stock online if I wanted to, which is most unusual for PUG. Hopefully there's now a shortage of stock.

[cloudfall] 02/3/2006 09:39

pictureframe - don't pop out again!! ;-) Yeah one of the MM was offering at 47p and they've just dropped it to 45p

[pictureframe] 02/3/2006 09:34

hi all I pop out for a short time and it falls back, that said could be mm games to get some more stock

[cloudfall] 02/3/2006 09:33

Run out of steam already - amazing!

[njp] 02/3/2006 09:03

Good points WJ. As to risk, they're established in their niches so that ought to derisk them somewhat.

[wjccghcc] 02/3/2006 08:59

Had a few as a punt. The capital structure is tight but there is free cashflow of 5.2mm which puts them on a cashflow/EV ratio of 5.9 rising to 6.7 after the earnouts which is pretty cheap. Also it's a low capex business so that cashflow can be used to pay down debt going forward. Certainly the social worker and education divisions should be stable/predictible going forward while the healthcare one seems to be settling down.

It's certainly at the higher end of the risk spectrum but the prospective returns are commensurate IMHO.

[pictureframe] 02/3/2006 08:41

will be interesting to see when

1) we get director buying &
2) Broker upgrades/reports

Of out for a bit...good luck all

[njp] 02/3/2006 08:36

david

Suggest you read the announcement. The eps calculation is fully explained.

[david77] 02/3/2006 08:35

I bt 30,000 at 8.03 and another 3,600 at 8.11. Neither of those are reported yet and when the are, they will show as sells.

[pictureframe] 02/3/2006 08:34

Any ideas why MMs have lowered NMS to just 1000 ? Are they short of stock? Can any long term holders confirm. Thanks

[david77] 02/3/2006 08:32

I don't think the EPS figure is much use there unless you know the number of shares - an earnings figure would be more useful surely.

In PUG's case, that looks like £5m so (debt + Mcap) = 6 which seems cheap.

[njp] 02/3/2006 08:25

Bought a few as well. I guess I'd better have a closer look at the accounts now. As far as I can see from the statement both earnings and cash generation look good so they shouldn't have a problem sorting out the debt. As I've said before, even adding the debt back in the EV/earnings multiple is very low. Per the announcement, interest cover is 5 times.

[pictureframe] 02/3/2006 08:25

yes negiotations with banks to avoid issue of share ;0)

Just a few to compare

PUG Mcap 10.7 million Turnover 80.0 million EPS 12.5p
PNA Mcap 25.1 million Turnover 41.8 million EPS 4.0p
WHT Mcap 27.3 million Turnover 51.0 million LPS 3.24p

So VERY BASIC terms share price should at least 2x for this to stay within norm.

[david77] 02/3/2006 08:19

I've bought a few - what do they propose to do about the £25.8m due for payment within a year? - refinance I presume.

[pictureframe] 02/3/2006 08:18

turnover 80 million, market cap of only 10.7 million. plenty of room for a correction. Anyone have any sector figures?

[cloudfall] 02/3/2006 08:15

I've always felt this was worth 80p+. Wonder whether others will think so too.