Rps Share Discussion Threads

[melody9999] 13/3/2008 16:18

Acquisition
In the year ended 30 April 2007, RWG had revenues of £12.1 million and adjusted
profit before tax of £1.48 million (having normalised partner remuneration
costs). Net assets at 30 April 2007 were £2.75 million.

RPS is acquiring the goodwill, trading name and the key assets and liabilities
of RWG, for a maximum total consideration of £10.1 million, of which £8.4
million will be paid in cash and £1.7 million in new RPS shares. At
completion£5.2 million was paid in cash and 572,969 shares to the value of £1.7
million were issued to the vendors.
-------------------------------------------------------------------------------

So if the same annual earnings going forward, earnings increase by £1.48M at a cost of £10.1M or 33,666 shares at 300p each. EPS = 44p .......

RPS EPS last results was 11.94p
errr is that earnings enhancing, or is my maths wrong or am I being too simplistic?!

[bigwavedave] 13/3/2008 14:22

Er... no! LOL

[bigwavedave] 12/3/2008 09:52

Looking good now. Will it keep up the momentum?

[a3477681] 05/3/2008 12:13

Peaeff
Its called nerves! Fear of loosing in a bear market and fear of missing out in a bull market. I need to ask myself why I add in the dips. Why not sell the lot and then buy again rather than holding some that go down before buying again?

[peaeff] 05/3/2008 10:51

amazingly you may not have to wait too long. I sometimes despair at the logic of current markets.

[a3477681] 05/3/2008 10:43

DGull I suppose the P/E for this stock has been historicly on the high side. Everything depends on the forecast but I dont think it looks cheap. A fair price probably but not if the only yield were the 1.2% diviand chances of more market wobbles.

I think I will wait for my chance to add on a dip. Have been caught too often.

[dull gull] 05/3/2008 09:25

The consensus earnings forecast for 2008 is currently 17.36p (likely to get revised up), making a "current" (2008) PE of something nearer 17.3. Can't speak for the markets and sustainability but it looks cheap to me given that profits and earnings continue to rise strongly and across all of RPS' business sectors.

Another very good set of results :D

[a3477681] 05/3/2008 09:08

I am long in these but would like to hear comments on their current p/e of 20. Is this sustainable in present markets?

[peaeff] 05/3/2008 09:01

yes very good results and the news going forward is excellent. The analysts will no doubt be doing their sums which, hopefully, will result in upgrades.

Regards

[bigwavedave] 05/3/2008 08:32

Seems like it did, Peaeff. Looking good. Decent results.

[peaeff] 04/3/2008 16:54

good late surge, hopefully that augers well for tomorrow. If only the dow would behave.

Regards

[peaeff] 04/3/2008 11:59

It's doing it's best to recover but the markets aren't helping at present. I am confident tomorrow's news will be very good so good luck all.

Regards PF

[olivepeel] 27/2/2008 19:40

should return to 350 trend

[peaeff] 27/2/2008 16:56

yes excellent I just hope we can now sustain it up to results day on 5th. Then, IMO we could challenge 320+p. Have targeted 325p as a personal peak.

Regards PF

[bigwavedave] 27/2/2008 15:52

Certainly on the move now!

[peaeff] 22/2/2008 16:42

I cannot for the life of me understand why this share is still languishing, unless the mms are filling a large order, or, there is a stock overhang. I can see any move, before figures, being quite swift so I have increased my holding substantially. Good luck all.

Regards PF

[melody9999] 16/2/2008 21:10

paeff - yeah I, back in at 260p too. could not resist it - I see the downside limited by results etc whereas from the level upside is much higher.

[toriel] 07/2/2008 08:48

I've been following environment/health/safety stocks for some time and have long been in and out of Latchways (currently back in). I've just taken a first stake in RPS.

I know rather little of charts and am slightly suspicious of those who rely on them (though perhaps unfairly, since I've not looked closely enough at their use to convince myself of their value). Whatever, Bletherer's comment last month might be taken to indicate the way that chartists are reasoning at present, and if enough people think the way s/he does their predictions could be realised.

I see RPS as a sound company though, in a growing market, with a strong position and reputation. Bletherer may well be right to have a somewhat cautious stance about the company (and I'm certainly in agreement with the suggestion that the overall market may be pretty choppy this year), but in the medium term I see RPS being a good bet.

I'm much more comfortable holding shares in companies in this field than, say, in retail - in fact I have no retail stocks at all...

[peaeff] 30/1/2008 16:30

Hi all

Back in at 260p after not having held for some months.

Melody--- I must agree with you on the current update, it is mind boggling to think that it has had a detrimental effect on the share price. However I feel the time is now right for things to change and as we have been assured of a very good set of results I am confident that over the next 5 weeks these will begin to climb towards, initially, 300p and, dependent on the actual numbers, when announced, probably well beyond.

Good luck all.

Regards

[bigwavedave] 27/1/2008 21:14

Buy recommendation from S Telegraph:

[tole] 24/1/2008 13:16

Not quite the 5% mentioned earlier...

UK smallcap opening - RPS rises as Altium raises forecasts post-update

LONDON (Thomson Financial) - Shares in RPS, the natural resources and health
and safety consultant, made headway rising 6 pence to 270 as Altium reiterated
its 'buy' stance and 356 pence target price in the wake of yesterday's trading
update.

The broker has stepped up its EPS forecasts by 2 pct for 2007, 3 pct for
2008 and 1.6 pct for 2009.

Altium would not rule out further upgrades for 2008 and beyond as the
current year is starting strongly in most areas and further acquisitions are
being pursued.

[melody9999] 23/1/2008 22:36

hmmm - looks a good update to me Tole. I was out some time ago and have my cash tucked away but watch with interest

RPS Group PLC
23 January 2008


RPS GROUP PLC
('RPS' or 'the Group')


Trading Update and Notification of Preliminary Results Date


RPS intends to announce Preliminary Results for the year ended 31 December 2007
on 5 March 2008.

Consistent with the rest of 2007, RPS had a strong end to trading in the year.
All three segments of the Group performed very successfully. As a result, the
Board expects to announce full year profit (before tax and amortisation)
somewhat ahead of current consensus forecasts. Conversion of operating profit
into cash continued at a high level. The Group balance sheet at the year end
remained strong with borrowings at a comfortable level. Integration of the
acquisitions made during the year is proceeding successfully and they are
trading well. The acquisition pipeline remains healthy.

PS if the share price remains flat with this update, goodness knows what it would have done with less positive prospects

[tole] 23/1/2008 09:32

Altium updated today on the trading statement - hopeful of a 5% upgrade to 2007 estimates, good organic growth and possible upgrades with further aquisitions going forward. Good cash conversion. Not so good visibility and expectation of some slowing in their planning and development work in the UK/Ireland market. DCF valuation of 365p

[bigwavedave] 21/1/2008 16:56

bletherer - interesting post, good points made although I'm no expert on charts. I came in on Friday...seemed like a decent opportunity so clearly not an expert on timing either! Would like to think the drop and market turbulence has been overdone...

[bletherer] 10/1/2008 10:31

Clearly lost the uptrend now so the main question looks to be where it might find a base. With a more-or-less continuous upward move I'd be looking at Fibonacci retracement levels of the big move from spring of 04 to the peak at the end of October. That would give roughly 285, 250, and 220 as levels to watch out for (first of these is already being tested, in danger of being lost). The last of these matches pretty well with the breakout level. Since I see 2008 H1 as being a rough time for stock markets generally it wouldn't surprise me if it went back and retested the breakout at some point. If it doesn't hold there, there's one final important point of support at around 180. It would still be holding the long-term uptrend provided it does not break below that level. Since I think the sell-off is really more market-based rather than RPS-specific (it got a bit frothy along with the 250 index generally and is now suffering as the 250 loses momentum) I do expect it to hold either at 220 or 180 at worst, unless something disastrous happens to the company (not likely given its generally excellent track record over the years).