Research Now Share Discussion Threads

[darcon] 19/11/2007 22:46

In spite of the market's weakness has been some buying activity in this share today.

[dosullivan] 17/11/2007 18:03

Lets hope so.

[darcon] 17/11/2007 17:22

A further thought crossed my mind regarding the FD joining early. The announcement says:

"As part of Nathan's remuneration package, the Company issued to him 38,300 share
options on 29 October 2007 at an exercise price of #2.61 exercisable between 1
February 2009 and 28 October 2017."

If the FD wasn't confident about there being further surprises in the accounts he would have joined as planned after the year end (and after any warning announcements) in which case his options would be pegged to an even lower price. By joining early and having his options pegged to the current price of 2.61 he is indicating a degree of confidence in the company's financials.

Granted, unlike last year we haven't had an earnings upgrade RNS, but neither have we received further bad news, which if it was there should have come out by now.

Looking at the broker forecast for 2008 I think there is considerable scope for a rerating of this company and a return to 400p plus next year. And the fact that we have not heard anything more from the company makes me think that there is no further bad news to knock back that optimistic forecast.

DYOR/IMO etc

[darcon] 31/10/2007 13:37

As a practical matter it helps to have the FD on board for doing the year-end accounts.

[opportunity] 31/10/2007 12:55

Should be good news. Many of RNOW's clients are WPP subsidiaries.

So for both companies to come to an amicable agreement to release the FD early could be indicative of both companies wishing to pursue a good working relationship.

You never know, RNOW could join the WPP fold along with Lightspeed.

[nessie] 31/10/2007 12:28

This is good news, right? Things are getting slightly dull on here...!

[darcon] 27/10/2007 17:42

Research Now Launches Major New US Panel
Fresh, Dual Language, High Quality Online Panel of 400,000 and Growing
San Francisco, 15th October 2007: Research Now, the international online data collection and panel specialists, today announced details of their new online panel in the United States.

See link on company's website below:



In the July interims the company said:

"In addition, previously unrecorded panel costs reduced profits
before tax by a further £0.6m.
These panel costs arose principally from purchasing access to online panels in countries in
which the Company had yet to build or complete building its own panels, primarily the USA and
in Asia. This stems from the increasing trend for clients to commission multi-country projects,
which naturally have a higher financial value to Research Now. The Board expects the negative
impact on margins from buying in panels to diminish over time, as the Group replaces currently
outsourced panels in various countries, with its own panels."

This latest news from the company's website shows the company is making progress in that goal of reducing reliance and associated costs of using outsourced panels. We still await news on progress on the company building its own panels in Asia to limit outsourcing costs in that region. However, the size of the Panel still is 100,000 short of what the company has previously said it needed.

There was an article in Jan in Research which said that the set-up of the US panel would be following by set up of one in China. No news on that panel as yet. The January article also said that the US Panel would be up in spring. As events have transpired the Panel is up and running in Autumn.

[dosullivan] 05/10/2007 20:23

Any idea of the date of next company feedback?

[hew] 05/10/2007 20:11

The recent continuing decline does raise questions, notably as it is from the low base that reflects the trauma and disruption of the first half.

In that context I have refreshed my memory of the comments relating to the second half made in the July Interims. They are pretty positive - see below. It may be that the new Finance Chief (Runnicles), after starting mid-August and spending say a month getting to grips with all the numbers, has taken a less optimistic view than in the Interims - and indeed the second half has now closed. I have no knowledge of any such issues, but, on balance I'm inclined to stick with the shares unless the fall worsens.
______________________
Comments relating to Second Half (as extracted by myself):

Started very strongly; record sales May and June. Expect continued strong growth, also in 2008. (Markets growing in Europe, US and Asia.) Disruption cost to be £0.1m + extra Panel costs, diminishing over time. Consistently outstanding client feedback scores and repeat business (80% by revenue and 51% by number).

OpenVenue performing to expectations with first half results very encouraging, £1.8m rev.; integrating well.

Clients up to 340 + OpenVenue 134. Now European leader with 50% Revenue ex-UK. Operations in 25 countries; 11 offices.

[opportunity] 05/10/2007 12:26

If there are more cost surprises then there will be significant management changes; creating & buying research panels is not a difficult process, just getting the likes of you and I to respond to their survey requests is :)

Given that their advisors have implemented better financial procedures (I trust a purchase order system) given the past problem, then all financial liabilities will be tracked and attributed to the appropriate job to determine job profitability. So even if research panels are late in issuing invoices to Research Now, client account directors will be able to track job profitability and ensure jobs are delivered profitably and on time.

Let's hope that the current management team can grow up as quickly as the company needs them to.

[diesel72] 04/10/2007 12:01

Should be soon. Apparently they are very busy at the moment, though not taking as much staff on as they have been earlier in the year. No clue as to how the results will go though?

[dosullivan] 03/10/2007 16:50

Me to. When are the next figures due?

[diesel72] 03/10/2007 10:43

down again - seriously tempted to get out - anybody hear anything?

[dosullivan] 29/9/2007 01:05

Slipping slowly. Last time it slipped slowly it was followed by big drop and profits warning. Any chance again? when are next figures due?

[darcon] 10/9/2007 19:24

Schroders have today slightly reduced their stake to 2,750,119 common
shares representing approximately 19.22%.

However, this news should be read in light of Schroders having increased their stake on 12 July 2007 to 2,886,937 common shares representing approximately 20.2% after being at 17.7% as at 30 June 07 (according to RNOW's investor relations info on its website).

So Schroders stake is still up on what it was at end of June.

[opportunity] 10/8/2007 18:10

Regarding these recent small trades, perhaps we were witnessing "quant" or "stat-arb" funds - trades that are meant to be among the least risky of all the strategies used by hedge funds and other traders!

see if you are interested.

[opportunity] 10/8/2007 10:00

Even in a depressed market, although the bid offer spread remains the same, the purchase price over the past few days has crept up.

So we know that the supply side is quite tight :)

[opportunity] 03/8/2007 11:14

I think it is down to short term profit making with a few individuals closing their positions when trading on T+20 accounts

[nessie] 27/7/2007 12:00

I'm assuming the sell-offs are due to the plummeting market conditions? Any views on holding or getting out while the going's going?!

[dosullivan] 24/7/2007 11:40

slowing down further...

[nessie] 23/7/2007 09:52

Mmmm, been a bit slow recently...