Robert Walters Share Discussion Threads

[cockneyrebel] 15/8/2008 12:48

Found this on Dow Jones:

0803 GMT [Dow Jones] Michael Page (MPI.LN) will struggle to receive an improved offer from Adecco (ADEN.VX), says Panmure Gordon. Believes Adecco will have difficulties justifying an improved bid to its shareholders. Says there will likely be speculation Adecco is set to turn its attention to Hays (HAS.LN) or Robert Walters (RWA.LN), but believes ultimately Adecco is interested in Michael Page's brand, exposure to permanent recruitment and specialist model. Expects Michael Page's interim results Aug. 18 to be solid, but remains concerned about the fundamentals deteriorating further in the sub-sector. Keeps sell rating, and 203p price target. Shares -1.9% to 329p. (ANT)

[imastu pidgitaswell] 15/8/2008 08:44

Very interesting, especially the revised offer of 50% cash, the rest in Addeco shares. Can't see how that's a better offer than 100% cash at 400p (also rejected) as if anyone wanted to retain ownership of Michael Page they could just buy Addeco shares in the market.

Still, the main point is 400p is too cheap.

It's not beyond the bounds of possibility (is it?) that MPI might take steps to do something different themselves - such as take over RWA? Just a thought.

Whatever, it highlights the silly valuation.

[cockneyrebel] 15/8/2008 07:43

MPI turn down 400p - how undervalued is the sector then? RWA must be worth double the current price to a bidder to get hold of it on that basis.

CR

[imastu pidgitaswell] 13/8/2008 14:34

Looks like a bit of tree-shaking and weak-holder squeezing on MPI ahead of those results - 40p off from its 370p peak a few days ago is nasty if you're on a short term timescale.

Should be interesting - MPI on around 11 times last year's earnings (31.1p) with revenue for the half year well up on last year. Net cash at year-end of £10m, effectively neutral on debt. Not wildly cheap (cf RWA on 4.2 times last year's earnings excluding net cash) but not hugely expensive.

Should there really be such a large valuation difference of similar businesses? Will anyone notice?

[cockneyrebel] 13/8/2008 12:12

MPI - results Mon. Should be better than expected based on recent recruitment co results and there will ne more on the bid approach - should be positive for RWA over the next week.

CR

[cockneyrebel] 11/8/2008 12:49

firm again today - all recruiters reporting far strong business than the share price credits them for - NFC with a strong statement today.

CR

[imastu pidgitaswell] 11/8/2008 11:02

Maybe the mid 120's IS the new support,having been a resistance previously.

Too difficult to play the game of timing, especially as they'll never give you any volumes once the price movement is clear. Just some games to minimise the t-trader profits - and that's easy on a small cap. While it was going to pull back after the initial rise, who knew where it would be and who knew that it wouldn't go higher had you sold? Not worth the risk of missing out.

Results at the end of the month - see header for four months' worth of revenue. And remember the UK banking net fee income that any headlines will focus on are a very small part of RWA income.

[like2share] 11/8/2008 10:15

looking stronger this morning, in the top 30 on % gainers list

[like2share] 10/8/2008 05:43

Well done to all those that made a quick profit, can't knock that.

Results out 29 August - 3 weeks time.

Ruane & Co. have a large stake as does Harris. Directors also buying. Last statement about recent 4 months of trading very positive. Looks to have bottomed out, but what do I know! Think the risk has been minimised what with the sector already been hammered.

All the best.

[gswredland] 08/8/2008 17:17

In this market a quick 20% profit in a few days and investors are out. It was inevitable.

[like2share] 08/8/2008 15:00

Personally used this dip as a buying opportunity, the sector is in the limelight what with the MPI attention from Adecco. HAS, RGU, STHR all doing well. No reason why RWA should not follow being a quality stock IMHO.

Alot of people shaken out after the steep rise recently.

Did you know about this...their wholly owned subsidiary...

'Resource Solutions Wins Onsite Deal at Aegon
Jun 20, 2008
UK


17 June 2008 Resource Solutions, a market leader in the provision of recruitment process outsourcing services, is delighted to have been appointed the outsource provider for Telescreening Services to AEGON UK. Resource Solutions will provide a total outsource solution for the screening and selection of external candidates to Aegon across the UK.

Commenting on the win, Darren Lancaster Commercial Director at Resource Solutions said: "I am delighted that Aegon has selected Resource Solutions to provide this critical service. It shows the flexibility of services Resource Solutions has within its portfolio. This win is further evidence of the success of our strategy to organically grow Resource Solutions with the EMEA region."

[imastu pidgitaswell] 08/8/2008 14:24

Maybe more that previous resistance of 125 or so might be new support, depending on close.

But still a very negative bias in the market these days - swift to fall back, rises are always grudging and difficult to maintain. Has sod-all to do with the valuation and fundamentals, but it's a long term game. Five quid within 5 years, unless they get taken out on the cheap.

[like2share] 08/8/2008 11:55

bargain with support at 120p IMHO

[cockneyrebel] 05/8/2008 13:35

Broker buy note out I suspect.

CR

[liarspoker] 05/8/2008 12:34

I think that these are worth a lot more than 160p CR.

Nice day though. :O)

[cockneyrebel] 05/8/2008 12:21

Order book drying up on the offer side - gonna get racey I think :-)

CR

[cockneyrebel] 05/8/2008 11:09

Breakout - and these are on a far lower valuation than MPI imo, andthe directors have been buying.

160p easily realistic after MPI today. Expect recruitment stocks all to get broker upgrades

CR

[imastu pidgitaswell] 05/8/2008 10:27

Bid for Michael Page, their nearest competitor:



Oh well, close but no cigar in terms of right sector, wrong company - demonstrates the astounding value at any rate, and any potential suitor for MPI would also consider RWA as well.

Also the recent fall suggests an attempt to clear out weak holders by those in the know. Transparency eh?

[liarspoker] 04/8/2008 12:32

Moving up nicely.

3 v 1 on level II but only with 35 shares on the offer. Next buyer will have to pay 109.25p imo.

[liarspoker] 04/8/2008 09:10

Looks like she's starting to bounce.

Interims at the end of this month with a 4.7% divi for the year.

Last trading statement was strong so looks like it's very cheap here.

All aboard. :O)

[imastu pidgitaswell] 28/7/2008 09:30

Bit extreme - distant stars and thousands of years ago - in RWA's case, NFI is 19% higher over the first 4 months than a year ago.

And it's a case of looking at company specifics. For whatever reason, this recruitment company is on under 4 times last year's earnings, the others are on typically 8-10, or 14 in the case of the never-heard-of it-before one in the above post.

Certainly in years gone by, the time to buy recruiters was in the middle of a downturn. Is it still? Have they learnt nothing in terms of diversification of income streams (temps, etc) and goegraphy, in terms of cost base management and structuring variable remuneration from what was only 5-6 years ago (unlike the last housing downturn that was 15 years ago)?

I don't know, and am sure that nobody else does yet. Best policy I think is to buy at what looks like the low but reserve funds to add lower if needs be. It may not go lower, and I've watched it go from 40p to over 400 once before and done nothing, I'm not going to do it again.

[doowle] 25/7/2008 23:02

Wages in general have been increasing in Asia hence NFI increasing.

Remember the effects of economic problems take a while to filter through the system. The results you are seeing reflect the situation a year ago like a distant star who's light shows what happened thousands of years ago.
Key is next years' results.

You are already seeing weakening in outsourcing revenues from the Indians and inventory stockpiles from the Chinese. These will feed through into hiring freezes soon.

The time to buy recruiters is in the middle of the recession not at the beginning. They haven't even shed much of their cost base yet!

[imastu pidgitaswell] 24/7/2008 08:56

More recruitment company reporting - 24% profit rise.



A 24% profit rise does question whether the analysis is quite as straightforward as the Torygraph suggests.

And it might be right to avoid a £215m company which makes £23.8m pre-tax - around 13-14 times post-tax earnings.

But not one on under 4 times earnings.

[liarspoker] 23/7/2008 10:56

RWA's strength lies in the fact that 40% of NFI comes from the Asia/Pacific region where NFI has been increasing by an average of around 30% ( compiled from data of various recruiters with a presence in the area ).

Exposure to the UK is 38% of NFI compared to say 32% of MPI & 59% of STHR. Europe accounts for 20% of group NFI so there should be a nice forex gain there in the short term. Europe NFI across the board has been increasing by about 40% on average.

The China entry should bode well for the future though as does Japan where RWA want to increase its staff by 70%.

[cockneyrebel] 23/7/2008 09:56

Chart looking good - miles cheap than MPI that's roaring away too.

CR