React Share Discussion Threads

[rivaldo] 13/12/2023 10:56

Good point :o))

Still looks cheap on the above fundamentals and given the recent trading update outlook:

"Shaun Doak, Chief Executive, commented: "We are delighted with the trading performance of the Group, achieving record revenue and profit growth in the year. The pipeline for the new year is healthy and we are seeing strong demand for all of our divisions. Our cross-selling ability throughout the business not only enhances our offering but also improves and increases our sales pipeline."

[gbenson1] 13/12/2023 10:28

A £350k payment was due to the Korinek brothers (1Dec) and a final £350k payment in June 2024 plus a possible increase in profits payment to them as well, so I think any possible further acquisitions should wait till at least June!

[rivaldo] 13/12/2023 10:15

Good to see the finance department being strengthened, with the current CFO being moved up to FD and a new CFO appointed who has lots of experience.

The share price is still in a long-term uptrend from the Oct'22 lows but has slipped along with the recent poor markets.

The current year forecast from Singer appears to be for 0.168p EPS, which at the current 1.45p is a P/E of only 8.6.

And REAT should now have approaching £1m net cash to support growth and and perhaps make a further acquisition.

[davidosh] 27/11/2023 19:01

Dowgate have quite a few of their team at Mello London on Wednesday and Thursday




Half price tickets available with the code ML2350

[gbenson1] 27/11/2023 16:36

It would appear that Dowgate took up the slack after Miton reduced their stake last week?

[jeanesy] 23/11/2023 10:28

still hasn't arrested the slide in shareprice though.

[strollingmolby] 22/11/2023 10:05

Dowgate Wealth taking advantage of the recent pullback to increase their holding from 9.4% to 11.2%.

[jeanesy] 19/11/2023 17:07

looks like some are taking profits. It has had a good run this year tbf.

[gbenson1] 17/11/2023 09:23

Although the increase in profits in yesterdays trading update had no impact on the sp, the 2 trades so far today are buys not sells, it's because a computer is programmed to believe that anything bought under the median price is a sell!!

[yump] 16/11/2023 20:41

I’ve got his book somewhere but seem to remember that I hardly ever found stocks that met all the criteria.

Actually on the UK market there seem to be very few stocks with increasing profits for more than a couple of years, (actual or forecast). Reat has that.

[superhoop2] 16/11/2023 17:06

Blimey, Jim Slater ... that's a blast from the past!

[yump] 16/11/2023 15:44

A Slater stock if ever I saw one, not that many folk in the market know what that is, or the combination of factors that make one.

[rivaldo] 16/11/2023 12:38

Singer's update note today retains their Buy and 2p target price based on a forward P/E of 8.1 at the current price.

I only have access to the front page of the research, which unfortunately shows only rounded figures for EPS, and it's impossible to see the progression.

So EBITDA and PBT is the way to go, which are:

Y/E 30/9/22 : £1.0m EBITDA, £0.7m PBT (actual)
Y/E 30/9/23 : £2.2m EBITDA, £1.9m PBT (minimum as "in excess of" £2.2m)
Y/E 30/9/24 : £2.8m EBITDA, £2.4m PBT
Y/E 30/9/25 : £3.2m EBITDA, £2.9m PBT

[gbenson1] 16/11/2023 11:03

Excellent trading update, but usual selling on the news, just wish investor could hold their nerve/ hold longer term.

[microscope] 16/11/2023 10:24

I'm certainly not expecting stellar gains yump, but steady increase over months in the shareprice will do me just fine.The market will always reward outperforming businesses even during general market weakness, and this appeals to me as one such.It's currently a growth company, and I intend to accumulate steadily as and when finances permit.

[yump] 16/11/2023 09:53

Lets face it, in the current market for small caps there’s not going to be a rush of pi’s piling in on the day of an update. Many will be heavily under water on existing stocks and wary of small stocks, unless they’ve got fresh capital to invest.

Best result is a stable share price and just have to wait. The pi’s who have significant amounts to invest have time to run through the figures in a bad market.

[microscope] 16/11/2023 09:32

I think the trading update this morning was nothing short of excellent. EBITDA of 2.2 million means a current pe in single figures for what is clearly a growth company.While it may already be factored in to some extent, the pe takes no account of further acceleration in the company. Also it's what I would call 'good debt' in that the Laddersfree acquisition is already paying its way.The market doesn't seem to agree with me judging by the early trades, but will hopefully React to broker and other comments in coming days.I made an initial minor small investment this morning, showing as a sell, and feel very comfortable at this level.

[rivaldo] 16/11/2023 08:16

The year end update makes pretty good reading in the current climate.

£19.6m revenues and "in excess of" £2.2m EBITDA (up from £0.95m last year) is just a touch behind Singer's forecasts, but most importantly the outlook is very positive with a "healthy" pipeline and "strong demand for all of our divisions".

This equates imo to likely around 0.13p-0.14p EPS, which at 1.575p is a historic P/E of around 11 or 12 and which should fall again in the current year to only around 9.5 based on Singer's forecasts.

I note that REAT now have £0.7m net cash, which is well ahead of Singer's £0.1m forecast. This is almost 5% of the m/cap in itself and represents an even lower ex-cash P/E.

[jeanesy] 16/11/2023 07:41

Nothing wrong with that trading update. Nice :)

[effortless cool] 15/11/2023 21:07

Every sale has a counterparty. It may be the broker in this case and, if the broker is ready to take on 5m shares just ahead of a trading update, that may not be a bad thing.

[jeanesy] 15/11/2023 19:59

Yes another 5 million sale it seems. Not normally a good sign . Fingers crossed they don't know something we don't as trading seemed to be going well. Yes time for the trading update . Its a week since i got the heads up it would be soon . !

[gbenson1] 15/11/2023 18:25

It looks as though the exodus continues possibly another 5m shares sold, its difficult to tell but probably is a sell, hope we're going to get that TU soon..

[yump] 15/11/2023 10:44

3 other funds have increased this year.

Perhaps if 2 directors had sold half their holdings on a share price spike …

[gbenson1] 15/11/2023 10:20

Hi yump totally understand, however the 2 funds trimming seems in some way to contradict the bullish stance of the company. Hoping for a good TU soon and a RNS saying someone has increased their stake. I personally wouldn't be selling if I thought a good TU was imminent.

[yump] 15/11/2023 09:08

Well in June they said momentum was continuing into the second half, plus there have been 3 significant contracts since then.

In that context, fund adjustments seem minor.