Restore Share Discussion Threads

[fo77y] 01/11/2010 08:50

Nice additions to the top of the thread HJFe, cheers.

You've pretty much covered most of my reasons why i'm in this stock. I agree that i feel a lot more comfortable about this share than i did a year ago. It has a much more solid foundation underneath it now.

Charles Skinner, also rescued Johnson Group, i like his style of mgt - just gets on with it and gets results.

Restore will continue to grow, as you state both organically and via acquisitions, and i feel come the next results update the current share price will seem like a distant memory.

[hjfe] 31/10/2010 09:33

I thought it might be useful to outline my reasons for buying into this stock:

1. Recent change of management - Charles Skinner (ex-3i turnaround specialist)has a strong track record of getting companies back on track. Board has been strengthened too.

2. Recent consolidation - share price is now much less volatile, and placement will significantly increase liquidity.

3. Currently undervalued - share price was kicked into the ground when Cazenove sold off its stake at the start of the year, and has yet to recover. Market cap. just £8m at present (less than current assets).

4. Return to profit - last interims indicated that the Board's strategy is already having an impact, with costs significantly reduced and a return to profitability.

5. Significantly de-risked - some months ago this was priced for bust, and many feared it would go to the wall. Since then however Geraldton (aka Lord Ashcroft) completed a debt-for-equity swap with the company worth £8m, reducing the debt significantly. Ashcroft paid 37.5p per share, so clearly has confidence in the company's future. Current placement is being taken up by institutional buyers, along with big buys by directors of the company.

6. Growth market - the data storage and handling market is set to explode in the next few years. The volume of data that companies have to managed doubled in just one year last year! Restore is positioning itself to become the market leader.

7. Growing company - Restore clearly has ambitious plans for growth (both organic and through acquisitions) and now has the capital to do it. I suspect the recent acquisition of Datacare is just the start.

8. Possible takeover target - there was an approach for the Peter Cox business last autumn - I think this is likely to come again as the company is trading more robustly now. This would provide valuable equity for growth and to pay down remaining debt.

9. Trading experience & instinct - I haven't felt so comfortable about a holding for a number of years. This story is only going to get better and better, with very little risk. I am therefore looking to increase my holding as and when funds allow. I think an share price of 75p is achievable in the next 6 - 8 months (as per Cenkos target).


Any other thoughts out there?

[hjfe] 29/10/2010 18:51

Nice tick up this week - I've added a couple of links to articles, etc. at the top of the thread. Hopefully a repeat performance next week.

Good luck all!

[riggerbeautz] 25/10/2010 17:10

LOL Fo77y already done that, but want to be greedy and get few more on the cheap, trouble for me is my trading money largely reserved for other exchanges, bar few i'm waiting out here. But probably be ok, after all it's not likely to race away when the placing shares are at 26p is it ;)

[fo77y] 25/10/2010 16:36

BUY !! BUY !! BUY !!

lol

[riggerbeautz] 25/10/2010 16:25

Ssssshhhh just for a couple more days please ;)

[fo77y] 25/10/2010 15:44

Doesn't take much to move this up, starting to get some nice buys through.

[hjfe] 25/10/2010 09:49

This looks all set for the next phase of the recovery - nice tick up today on just a couple of buys. This is only going in one direction now in my view. Perhaps 30p by the end of the week?

[hjfe] 22/10/2010 19:25

Media coverage (of sorts):



Volume seems to have picked up slightly - hopefully we should see a tick up or two next week.

[riggerbeautz] 21/10/2010 21:10

So get fund raising away, raise profile, trade profitably, sell Peter Cox, add more value and merge into IPEL. Business plan sorted! Simples ;)

[hjfe] 21/10/2010 19:34

Riggerz,

Yep - there are many similarities between RST and Impellam - he did reduce his holding to pretty much exactly the same level he will have here after the placing. I can't help but think Charles Skinner was at the GCI Conf. to butter up fund managers and institutions to take up the placing - reading the RNS it seems Cenkos is confident that it will get all the new shares away.

This feels even more solid now - hopefully we will see volume pick up and the share price respond accordingly. This is still so undervalued - market cap. of just £8 million at present.

[riggerbeautz] 21/10/2010 19:07

Only just noticed Ashcroft's other company IPEL has been on a breakout of late and advanced nearly 20% on their trading statement today. Didn't Ashcroft also sell down his stake there?

[fo77y] 21/10/2010 13:34

Yeah, i agree. I don't believe it's core to the business so i would expect at some point peter cox to be sold off, it would certainly add even further to the cash reserves. Glad it didn't happen last year now, as we would've got a lot less for it then than we will when/if the time comes.

[riggerbeautz] 21/10/2010 13:05

Ditto you guys, we might get a bit more company from November! Very happy no real discount, as definately underpins current price, even if the markets get a bit choppy. Expect we might see more positive P.R from Cenkos soon.

Looking at Peter Cox longer term, it seems they are now making a reasonable fist of a dominant position. So would be tempted to also raise money disposing this once they can flag up further evidence of the turnaround. Leaving the new RST to concentrate on the document business. Thoughts?

[fo77y] 21/10/2010 09:31

A positive update, bodes well for next results:

' Trading remains robust in the core document storage business. The integration of Datacare, which was acquired in September, is progressing well and can be expected to make a significant contribution to 2011 document storage earnings. The scanning business, DCS, continues to operate in a difficult market and focus remains on minimising costs. Peter Cox, our building preservation specialist, continues to show significant year-on-year improvement in profitability. '

Placing has been at a minimal discount to today's price which is encouraging, I would expect to see a gradual improvement in the share price after the placing, liquidity will be improved.

Quite happy with the RNS.

[hjfe] 21/10/2010 08:06

News of placing out this morning - with significant purchases by diretors at 26p. This would explain why the share price has been held at this level for some time now. Liquidity of the stock will increase, which is good news. Onwards and upwards from here!

[hjfe] 17/10/2010 19:06

Piece in GCI from 28th September:

[hjfe] 10/10/2010 18:43

Underperformer - welcome! Like Riggerz, I'd be interested to hear how Charles Skinner came across, and how the presentation was received. Cheers!

I got in on the lows, and am just about in profit at the current share price I am looking to hold mid-to-long-term, and am not too concerned with weekly fluctuations. My personal view is that this has still to recover from being massively oversold when Cazenove dumped their stock, and will start to move when the recovery story becomes talked about more widely. I believe the Cenkos target price of 75p to be realistic when this happens.

This is a market that is set to expand massively over the next few years, and Restore seems well placed to be a key player. I have a lot of confidence in the new Board, and am not too concerned about the debt with Geraldton (aka Lord Ashcroft) as the majority holder. Incidently, Geraldton paid the equivalent of 38p (0.75p prior to consolidation) per share in the recent debt-for-equity swap, which I took as a vote of confidence in the future of the company by Ashcroft. I would also not be surprised if there was talk of a takeover before long by Impellam, Ashcroft's business services vehicle.

This is however not a share for those that like daily thrills and spills - it is one for the patient!

[riggerbeautz] 10/10/2010 10:25

Guess it depends whether you think management are capable of delivering the sort of assumed profitablity forecasted in the broker note. Given they are now trading profitable and looking at consolidating in a heavily diluted market - no reason why they shouldn't going forward.

With no serious fianancial worries due to the links with Lord Ashcroft, why shouldn't debt keep coming down? Remember these were heavily sold down by a large seller wanting out. Then there was a scare story these would delist, which plunged the old MVW even further to the bottom of the charts and no doubt there is a few sore holders of old. Since then however, Directors have shown faith with purchases not that long ago and evidence of the turnaround was confirmed in the interims.

Besides the debt, it's fairly illiquid in all honesty, though Ashcroft has indicated a willingness to cut his (87%) holding to assist in the future. This is a quiet board of late so don't expect much debate, as people here (about 3 or 4 of us LOL) bought at the depths. So you will not be bowled over in the rush! However, by the time the next results come out the picture should be well and truly confirmed. Bit of publicity and the odd aquisition, who knows we may see that change. If not it's one for the patient. One thing is certain you will not be able to buy in any sort of size without going through a broker if there is a positive change in sentiment.

Charles Skinner seems approachable and does reply fairly quickly, be interesting on your thoughts as to how he came across?

[underperformer] 09/10/2010 14:46

I saw him at the growth investor conference a fortnight or so ago, its on my radar, earnings turnaround story but debt seems a little high for my taste. But open to any thoughts from holders, thx.

[riggerbeautz] 07/10/2010 21:10

Nice hadn't noticed that pop up, very trendy lol

[hjfe] 07/10/2010 18:07

Riggerz,

I know Charles Skinner was speaking first in the morning, but haven't heard how it went or what the turnout was like. It does all seem rather quiet at the moment, but who knows what could be coming.

New website launched:



Looks much slicker than the old one!

[riggerbeautz] 07/10/2010 12:22

HJFe didn't happen to see any press from the GCI presentation? Had a quick look this morning and couldn't find anything. Think we are back in snooze mode, but can sell a few at this level, which I suppose is not too bad a sign.

[hjfe] 21/9/2010 12:47

Hey presto! Charts now correct.

[riggerbeautz] 21/9/2010 09:02

Fozzy now we have a turnaround story and a profitable one, so it ought to be easier to sell the story; hence I suspect the GCI presentation. Charles Skinner seems the right guy at the helm and he responds to shareholders, which doesn't guarantee anything, but has to be a good sign. Add a positive broker providing reasonable client encouragement and we ought to start attracting fresh investors.

:)