Rps Share Discussion Threads

[az4hr] 10/12/2020 14:04

How can it drop so much on no news

[az4hr] 10/12/2020 14:04

How can it drop so much on no news

[az4hr] 10/12/2020 14:03

What the f is going on absolute carnage. So strong then suddenly capitulating

[qs99] 10/12/2020 14:01

Big old drop, wonder why?

[scars] 07/12/2020 12:27

IMO will head for the previous lower trend line which has a base of about 105, going anything up to about 130. Should hit that over the next 2-3 months, where from there could be interesting and will be highly dependent on news.

[sphere25] 04/12/2020 11:12

Large prints hitting the book at 81p just now 300k and 302k

Moving really well this with the bulk of the market. It's alot of up abit and then clear out sellers, then the next leg up.

Raising stops across the board for the eventual wider market pull back. No idea where the short term top is though

[norbert colon] 03/12/2020 13:29

WSP have just acquired Canadian listed consultant Golder for US$1.14b

Applying the same multiples of circa 1 x sales and 10x EBITDA from this deal (ok Golder is a much larger business) to RPS and you get:

1 x (normalised) sales = GBP 500m valuation compared to the current mcap of GBP 220m - implies 180p

10 x EBITDA = GBP 417m valuation or 152p share

Whichever way you look at it and despite the recent start of a re-rating, RPS is still hugely undervalued to its peer group.

[scars] 03/12/2020 13:06

Looking very strong, what happened to all the naysayers at 45p. Quite happy with tucking these away for a rainy day.

[norbert colon] 02/12/2020 16:50

Like the fact they mention $TTEK as I did in my recent article.

[simon gordon] 02/12/2020 16:06

RPS mentioned in this interview, target price 140p:

Vox Markets - 1/12/20

Gresham House update Vox Markets on their portfolio and the stocks they are watching.

[cassini] 27/11/2020 15:29

What happened there? Coincides with the opening of the US stock market but that is up slightly...

[dr biotech] 27/11/2020 11:09

Caught up with my friend who works for this outfit last night. I said it may be time to topslice my holding - he reckoned I should hold as they are very busy at the moment. Whilst he is quite senior he only sees the regional picture and doesn't have any particular inside information on the rest of the business. So on that basis I'll continue to hold.

He did suggest the shares will recover to 120p+, but I think I follow the shares more than he does...

[norbert colon] 19/11/2020 08:26

Nice tail wind:https://news.sky.com/story/pm-to-announce-extra-16-5bn-in-defence-spending-biggest-investment-since-cold-war-12135956https://www.rpsgroup.com/sectors/defence-and-government-services/defence/

[norbert colon] 18/11/2020 22:47

Nice project win in the water sector:https://countydonegalfrs.ie/glentiesfrs/

[dr biotech] 18/11/2020 13:01

Think Boris’s green revolution may also be handy here.

Another 5p or so and I’ll be in the 100% club in this one. Needless to say my best buy this year, but unfortunately not a major holding.

[norbert colon] 18/11/2020 12:29

https://environment-analyst.com/global/106232/tetra-tech-boss-glad-to-finish-fiscal-year-strongly-and-welcomes-bidens-impact

[norbert colon] 18/11/2020 12:02

I'm only an ad-hoc contributor. The site is owned and run by Graham Neary. Graham is a thoughtful investor and ex Fund Manager.

[dr biotech] 18/11/2020 11:52

How many people read your cube site? I've never heard of it before - seems more informative than TMF which has countless anodyne articles.

[sphere25] 18/11/2020 11:07

Broken out beautifully. Well done if you caught that move.

[masurenguy] 17/11/2020 10:49

Took an initial position here @59.7p yesterday afternoon. Good to see it break through 60p this morning and if it can close above this today the technicals could also add momentum going forward.

[sphere25] 17/11/2020 10:41

Watching in here.

Another that is testing a very significant chart breakout level.

[norbert colon] 16/11/2020 20:31

Yes WSP have a very ambitious 2021 plan (slightly derailed by CV19) of adding 15,000 staff to their headcount from 2019-21.

This isn't going to happen by buying a fee hundred strong consultant's here and there, it needs a needle moving acquisition such as RPS where, like TetraTech, there are lots of service offering overlaps.

WSP have of course been allegedly courting AECOM (or vice versa) which would make a 100,000+ strong business although whether that's the best for their respective client's and staff i'm not so sure.

[simon gordon] 16/11/2020 20:19

WSP raised $572m in June, 2020.

"WSP intends to use the net proceeds of the Offering and the Concurrent Private Placement for general corporate purposes as well as to fund future acquisition opportunities. Pending such use, WSP intends to repay indebtedness outstanding under its credit facilities, which may be withdrawn again as opportunities arise."



Share price currently $91 just $7 off 52 week high of $98.

[norbert colon] 16/11/2020 19:51

Yes Fredders you have totally nailed it there.

If you look at the valuation of TetraTech (despite the much larger mcap) you can see the potential for RPS who’s services are very similar to TetraTech's and hence higher margin than a lot of Consultant's.


TetraTech valued at P/S of 2.65x, P/B of 6.4x and a PE of 35.

[fredders7] 16/11/2020 19:15

Great article. Having been a reader on here and a follower/investor of RPS for last 3 years its hard to summarise the entirety of my thoughts. In big agreement with the board investment, they own a significant amount of shares including at prices well above 100p and so are heavily incentivised to bring the share price back to these heights. Essentially what RPS has done since the last CEO is via a massive revamp, turn a bit part dinosaur company into a modern machine fit to compete with the likes of ARUP and Mott Macdonald etc. Ie Create staff performance reviews & rewards, efficient IT systems, emphasis sharing synergies between different business sectors within the company. The transformation of the branding and website etc is a prime example of this.
Throughout this time period the share price has been decreasing because to deliver this strategy has reduced reported profit, which has presented opportunity to buy cheaper and reap the benefits a few years down the line on the basis this strategy will come to fruition. If not for covid then the returns from this strategy were expected to start coming through this year. I expect in time (1-2years maybe) the added profitability and the beginning of increased organic growth coming from these measures the board expect, to also combine with Covid disappearing and the return of dividends to create the perfect storm to increase prices. Added to this is the high probability of big frameworks wins for the new AMP cycle (water side of the business which forms a good portion of profits) which has been in a transitional phase the last two years and has meant lower profits from this sector. The possibility of these outcomes are then backed by Norberts excellent tetra tech M&A prediction creating a double stringed strong likelihood of what I see as the potential to make enormous gains within the next 1-3 years, which would be upwards of 400% on the 30p I paid for a decent holding.
The reason why the share price recently is so low is of course because there has been no reason to invest other than expected recovery in value across this investment horizon -there has been no dividends, no increasing profitability, and opportunity cost has led to others ignoring this stock.