RSM Tenon Share Discussion Threads

[masurenguy] 24/2/2011 09:01

Problem is that TNO remains highly geared - a bit of a handicap to the share price with higher interest rates in the pipeline. Furthermore, even if eps of 8p is achieved, the current P/EV ratio is around 12.3 - not so expensive but still fairly rich in the current environment, especially with their degree of leverage !

[0rb1t] 24/2/2011 08:43

Here's the updated forecasts after yesterday's interims:

Detailed Broker Forecasts 2011 2012
Date Rec Pre-tax EPS DPS Pre-tax EPS DPS
FinnCap 23/02/2011 BUY 37.1 8.30 1.70 41.9 9.40 1.80
Numis Securities Ltd 23/02/2011 BUY 35.1 8.20 38.3 8.50
Altium Securities 23/02/2011 BUY 35.0 7.40 1.80 40.4 8.30 2.10
Keefe Bruyette & Woods Ltd 23/02/2011 MPER 36.9 8.00 1.80 40.5 8.70 2.00
Brewin Dolphin 21/02/2011 BUY 36.8 7.81 1.80 39.8 8.57 1.90
Shore Capital 18/02/2011 BUY 38.8 8.60 1.90 42.9 9.40 2.10
Consensus 36.4 8.00 1.80 40.4 8.73 1.99
1m Change -1.23 -0.21 +0.02 -1.58 -0.47
3m Change -1.37 -0.26 +0.03 -1.93 -0.59 +0.01

so 8.0eps this year and 8.73eps next year.

[envirovision] 24/2/2011 00:43

Altium

RSM Tenon Group Cuts target price to 80p from 91p Rating remains Buy

[masurenguy] 23/2/2011 23:30

I wonder whether Slater Investments have been a significant seller here. They reduced their shareholding by 100,000 on October 6th, which just took them under the 3% reporting threshold, leaving them with 9.6m shares at an average price of around 45p. Any further sales that they may have made will have been under the radar.

[bonio10000] 23/2/2011 23:07

At least the dividend yield is some comfort, even if low.

The problem with accountancy is that it is just not really a growth market at the top end.

Sure if you are a small player making a name but the larger companies? More like utilities and should be rated accordingly.

[gorvachof] 23/2/2011 20:00

Envirovision
Not sure there was a great mumber of bulls on this thread before results! Most on the fence I believe.

[simon gordon] 23/2/2011 19:40

Enviro,

Think I mentioned it on CR, I was in for a scalp, but GHF saw me flag it and highlighted the 2nd half indicator.

[envirovision] 23/2/2011 19:35

Well i must admit to being shafted here, lucky i only had 5 grand in it. I came across TNO via a scan on fundamentals with Sharescope. There was nothing to suggest the price could react as it has today so far as I could see. Even reading the press, most pundits seemed pretty keen on them.

Its a unfortunate that there were not more skeptics on the thread. I certainly never read anything from Glasshalfull nor yourself Simon,

That's a pity.

[simon gordon] 23/2/2011 18:29

My thanks to Glasshalfull who pointed out to me that TNO were giving an indication that they could warn:

10/11/10

"As anticipated, trading reflects a greater weighting of profits towards the
second half of the year than usual."

For eight years this share has been a value trap for shareholders and with today's data the suffering looks like it could continue for another eight years.

I suppose salvation could come if an Amercian outfit wanted a UK operation, looks a pretty remote option to me.

Good fortune.

[bench2] 23/2/2011 18:22

Mega volume sell off . Investors do not pay up for aquisition led growth so RSM will along with Begbies remain a low PE stock particularly with the new scary level of debt . Looks cheap but could stay cheap until management can demonstrate secular growth and lasting cost effective benefits from their acquisition spree. Jury still out despite chm buying stock today.

[albie two shoes] 23/2/2011 16:16

Hello NYB, looks like great minds think alike. I held TNO last year selling in the 60's. These are way oversold imo. I've bought this massive dip too. GLA.

[ny boy] 23/2/2011 16:01

Fairman> Share price goes up :-) Also down here they could be quickly eyed up by a predator, good one for my ISA anyway. share price reaction seems overdone to me, time will tell.

[fairman] 23/2/2011 15:49

What happens to a tax avoidance advisor's share price when the tax avoidance loophole is closed?

[ny boy] 23/2/2011 15:30

I followed the CEO in with 2750 @ 43.87p seems far to cheaply valued now? CEO has put his money where is mouth is, with two chunks of 100k, that's pretty damn good!

[0rb1t] 23/2/2011 14:47

23 February 2011

Director Shareholding

The Company was informed on 23 February 2011 that, on 23 February 2011, Bob Morton, Chairman of RSM Tenon, acquired the following interests in the ordinary shares of 10 pence each ("ordinary shares") in the share capital of the Company.
Number of ordinary shares
Purchase price

100,000
46p

100,000
44.84p

Following these acquisitions Mr Morton has a total interest of 1,055,555 ordinary shares, representing approximately 0.327% of the Company's issued share capital.
Bob Morton's adult children are interested in 22,175,000 ordinary shares which represent 6.877% of the Company's issued share capital and this remains unchanged.

[its the oxman] 23/2/2011 13:59

...and i guess the results presentation and q & a must have gone poorly this morning for the price to keep falling - now 44p to buy.

[bonio10000] 23/2/2011 13:47

This, along with BEG and VTS, show that buying firms is no substitute for actually knowing how to run a business.

[its the oxman] 23/2/2011 13:24

think the same but also difficult to see any imminent good news - sideways to down for a while is my bet - personally will reconsider at next results/trading update.

[bonio10000] 23/2/2011 13:03

Well - looks like I was right.

Actually tempted to buy in at these prices though.

[its the oxman] 23/2/2011 10:30

beat whose expectations/ eps was forecast at 8p for this year i thought. looks a big undershoot. 40p could even be tested if main market falters although long term the price may be cheap. will take some time to rebuild any confidence.

[mizan3] 23/2/2011 09:38

the results have beat expectations and have a p.e ratio at 6.5 the share is very undervalued a small amount of sales in the early morning have had a big impact on the share price and as a result a lot of peoples stop loss orders have taken action, very confident will go back up to 52 today!!!mark my words!!!!!!!

[0rb1t] 23/2/2011 08:19

envirovision - where do you get 6.5p from?

[envirovision] 23/2/2011 08:18

looks like will do eps 6.5p now

[ny boy] 23/2/2011 08:11

disappointing to say the least!