Robert Walters Share Discussion Threads

[zimzoot] 13/6/2008 08:58

Robert Walters lost 5¼p to 136½p after Panmure Gordon cut to "sell" with a 114p target, saying that the recruiters' second half could be grim as housebuilding, retail and motor dealer job demand was set to crumble.

[zimzoot] 13/6/2008 08:55

Panmure Gordon - downgraded Robert Walters Plc. to 'sell' from 'hold'
price target to 114 pence from 153 pence

"Panmure Gordon said that Robert Walters stands out as the most overvalued stock compared to its peers"

[zimzoot] 13/6/2008 08:53

city recruitment is dead...






Recruitment firm Hydrogen Group has suffered collateral damage from the crisis in the investment banking sector, with levels of recruitment activity flat in a traditionally busy time for the sector.

[tole] 13/6/2008 08:47

Ref HYDG -The note I read comments on their problems with the investment banking business. Which will have knock on effects imv.
Altium made comments that they think this is the beginning of the downgrade cycle. Comments that RWA's Investment banking exposure is 50% higher than HYDG's. No holding here myself for what its worth.

Also noticed Panmures downgrade yesterday.
12-Jun-08 Robert Walters RWA Panmure Gordon Sell 134.25p 153.00p 114.00p DownGrade

[edmundshaw] 13/6/2008 08:46

Or maybe we are all over sold... :)

[edmundshaw] 13/6/2008 08:41

FWIW HYDG has held up well till today. The markdown just brings it into line with RWA and HVN too. (Try a 2 year comparative chart: they are now almost sychronised to 45% down on 2 years ago).

MPI has held up a little better (30% down on 2 years). Perhaps they are due another fall too??

[edmundshaw] 13/6/2008 08:38

Hydrogen down 26% which is a big markdown; but I don't know their business well, so no comment...

Here's the full trading statement. You can take some positives from it too:

++++++++++++++++++++++++++++++++++

Hydrogen Group plc
('the Group')
Trading Update

Hydrogen Group plc, ('the Group'), the specialist professional recruitment business, is today issuing an update on trading for the year to date.

Whilst the year started well with the Group experiencing good trading in most divisions, as has been widely reported, trading conditions in the investment banking market, which accounts for approximately 20% of Group Net Fee Income (NFI), have become increasingly challenging. This market is traditionally strong from Easter to late autumn, but the Group has not seen the seasonal pick up in 2008. Despite diverting resources from this market to international recruitment, the shortfall against budget has not been fully mitigated.

As a result of this, the Board expects that NFI for the first half of 2008 will show a small decline from the record levels of the corresponding period of 2007.

Further, if current trading conditions persist, the Board anticipates that first half and full year profit before tax (and before exceptional items relating to the proposed acquisition of Imprint plc) will be lower than the comparable periods in 2007.

Mindful of the on-going economic uncertainty, the Board has maintained a strong control of costs, whilst still investing selectively in the business, for example in international operations and new disciplines, to ensure that the Group is well placed to take advantage when the market improves. The Board is encouraged by the strong performance from the Sydney office, which opened last year, and from the growth in European revenues. International NFI has grown from 5% of Group NFI in 2007 to approximately 12% in the year to date. The UK contract recruitment business continues to perform well, with growth in contractor numbers and average cash margins. As a result the Group's business is now more balanced between contract and permanent recruitment, with contract recruitment now representing approximately 40% of NFI (2007: 31%). Working capital has remained under tight control with a continued reduction in debtor days.

Ian Temple, Executive Chairman, commented:

'The business has performed well in most areas, but the slow down in the investment banking market has frustrated our ability to achieve our expectations this year. Overall the business remains in very good health, with a strong balance sheet and is now better positioned than ever before to take advantage of the opportunities to develop over the medium term.'

[zimzoot] 13/6/2008 08:24

Both RWA & MPI strong sell
recruitment market has started to tank :)

[tole] 13/6/2008 08:11

HYDG warned today - noticed a note which pointed out thoughts that the Staffing ratings are still too high. Notice Altium are reiterating a sell on MPI and Hold on RWA warning risks are set to the downside.

[edmundshaw] 05/6/2008 14:45

Sold most of mine at 169p for other stuff, this didn't seem to be going anywhere. A bit of luck, I guess, but I deserve some... :(

Will look to buy back in under 150p if/when I have cash available. I'd be keener if the divi were higher though.

Actually bought some AXN today, looks good value to me.

[liarspoker] 05/6/2008 07:44

Picked up 2K at 150p support but still hoping for 140p support to be reached. Will add a good lot there.

[liarspoker] 30/5/2008 15:30

A fall down to 140p support would be nice. ;o)

[patersdw] 29/5/2008 15:30

Any thoughts, good people, on today's movement? Is it just boredom setting in and lots of small punters walking?

I can't see anything of relevance to RWA or any of the other body shops that may account.

Thoughts?

[gsands] 16/5/2008 11:33

Liar,

I can't argue with your assessment and you are probably right that in the fullness of time RWA is a good holding.

Another thing which concerns me a bit is the chart. I'm not particularly convinced by the 'V' bottom. I would prefer to see that low tested a second time, at which point it might be a better time to buy.

I will certainly continue to stalk this stock for all the reasons you have given.

Good luck.

[liarspoker] 15/5/2008 19:40

No problems. I understnad perfectly why you sold out. It's because you didn't feel comfortable holding it. Simple as that. :O)

I reckon a lot of negativity has been priced into the stock already hence the low multiple the share trades on. Recruiters and advertising co's are the best co's to buy in a recession imo. Beaten down into the dust until forgotten.....then buy. ;o) Look what Buffett picked up during the 1972 recession....man, those were crazy prices. He held on though and sold most of those shares in the mid 80's. Thats a holding period of around 12 years.

Therefore it could be a good move to add to RWA if it falls instead of selling out completely. Keep also in mind that Ruane & Co have looked at this stock ( they hold 11% ). When Buffett folded his partnership he only recommended one person to his partners to transfer their cash too....yep, Ruane. I think those guys have done their homework a lot better than we can do.

Anyhow RWA won't be trading on any astronomical ratings for a while probably but currently its still priced cheap enough to hold onto imo. Just my 2c.

[gsands] 15/5/2008 16:23

Liarspoker,

For me this stock does not fit the old Buffet adage:

'If the stock market closed tomorrow for five years, would I be happy to hold'

My feeling is that we could be heading for some kind of global recession, headed by the US, with Europe close behind and then finally the emerging economies as the lack of Western consumption leaves them high and dry.

This could take 2-4 years to fully play out.

Admittedly, this is a 'worse case scenario' type of outlook.

[liarspoker] 14/5/2008 15:13

Nice day here - I se Harris is still adding.

Reckon those 25K's going through either belong to Harris or RWA themselves.

[liarspoker] 14/5/2008 07:53

I'd say it's factored into the price Demandred.

Trading on a multiple of about 7 on around 12% growth gives a PEG of just under .6

I'm happy to keep holding. Plus I'd say Ruane & Harris have sussed out the company better than we could ever hope too and we know that they are longer term holders who rarely get it wrong.

[demandred] 14/5/2008 07:49

the temp recruitment market has taken a dive in the past few months (as a temp i know 1st hand!!) So i'm surpised these and MPI have not acted accordingly. Have been into these from time to time but am staying out until the temp market on the ground picks up or .... if i can get in at a bargain price.

[liarspoker] 12/5/2008 21:11

Ex-divi Wednesday GSands. ;o)

[gsands] 12/5/2008 18:42

I've sold here too - to lock in some profit. Becoming uneasy again about this sector. I'm probably wrong - but I prefer to only be in stocks which I can hold with conviction.

[liarspoker] 09/5/2008 15:52

Aegon have been selling hence the recent weakness.

[liarspoker] 08/5/2008 21:12

Director bought in too:

[edmundshaw] 08/5/2008 09:49

Hi LS. Agree, nice statement. Currency benefits look nice too.

I have added a few.

[liarspoker] 08/5/2008 08:32

Reads OK to me.

Happy to keep holding. :O)