Rws Share Discussion Threads

[alotto] 12/6/2024 06:32

The announcement is promising however I personally don't like we went from net cash to debt to implement a buyback program. The decline in revenue is not worrisome, the PBT declined sharply but I imagine the company has a higher operating gearing. Which is promising in a way, if sales pick up as expected in q2 it will add straight to the bottom line.
Not to be overlooked the management met the guidance provided back in April.

[jeffian] 10/6/2024 16:31

I'm not sure it's right to say they've been trying "to hype the market", alotto, I rather think they've been trying to reassure the market that AI is not the threat to their business model that some think it might be. Whether that's true or not, we'll have to see!

[alotto] 10/6/2024 14:43

I dont expect much either. Rws has tried to hype the market with a lot of AI nonsense.
We need to see what AI adds to top and bottom line and if we are in for a general sector recovery. We will find out on Wednesday.

[phillis] 10/6/2024 13:41

Sp not signifying great expectations for Wednesdays results and update

[jeffian] 31/5/2024 09:25

Aye, ygor, but whose decision was it to make those acquisitions? The 'Management'. GEC was perfectly well-run under Weinstock, building up one of the greatest cash piles ever, until Simpson came along and spent the lot on two top-of-the-market acquisitions that promptly turned sour. 'Running' a company isn't just about administration (which is what I suspect Buffet was referring to, as you said).

[ygor705] 30/5/2024 21:37

An interesting point Jeffian but as I recall it was two very large dud US acquisitions that sank GEC. I think that WB was probably talking about the day-to-day running of a company: nevertheless your point is well made. GEC's demise was the commercial equivalent of the Titanic going down at the other end of the 20th century.

[jeffian] 28/5/2024 15:44

I'm not a follower of WB so don't know the context of that remark but it seems an extremely odd thing to say and patently untrue (viz Simpson wrecking Weinstock's GEC etc).

[alotto] 28/5/2024 14:31

A good business will do well even if it is run poorly - Warren Buffet

[ygor705] 28/5/2024 14:03

Well, his communication skills have hardly been sparkling of late. His farewell statement to shareholders also makes him sound as if he's more interested in his career progression than getting stuck into the job. As things have turned out, not sure he was the right man for the job.

[phillis] 23/5/2024 12:01

So the CEO has in fact given notice

[ygor705] 02/5/2024 12:37

I'm still a bit confused about what is really going on here and so continue to be in watch and wait mode. The key thing for me now is whether cash flow is holding up and whether there is going to be enough money in the kitty to maintain the dividend and perhaps do another buyback. If AI is going to make a big difference to RWS operational performance I really do think that we need to see hard evidence of this happening in this year's financial performance.

[phillis] 26/4/2024 12:18

The original business was manual translation of patents
Patbase was a data base of registered patents which was only part owned

Very small part of todays business

[alotto] 25/4/2024 19:32

Mat do you think the customer base is shrinking?

[matczuk] 25/4/2024 17:45

I used Patbase in a previous life; it was pretty good. Its sale doesn't seem to square at all with the statement "The division had several wins in research and renewal work, demonstrating our ability to serve clients across the IP lifecycle." Surely some of the lifecycle just dropped off? Curious how they put the name in inverted commas too when the likes of Evolve, Propylon and Tridion don't merit them. A way to distance themselves I suppose, though I thought it used to be a jewel in the profitability crown. They certainly used to bang on about it.

[alotto] 24/4/2024 08:41

Wad it will take time and good news to go back to £6

[phillis] 24/4/2024 07:58

Andrew B
Do you still read this bb?

[wad collector] 23/4/2024 21:38

Ouch , that really has stunned the share price Can't believe I paid 6 and a half quid for these!

[indiestu] 23/4/2024 07:58

They are a bit behind the curve. The AI bubble burst last week when Nvidia sold off.

[bulltradept] 23/4/2024 06:59

Exactly! lol, please please don't tank AI AI AI AI AI !!!

[orange1] 23/4/2024 06:42

Does the company get a prize for the number of times it mentions AI in its statement?

[alotto] 23/4/2024 06:15

Not the update that we would have liked to read but not as bad as it could have been.
I'm surprised some regulated industries, like financial services, would cut on translations. It should be paramount to have verbatim translations in regulated industries, therefore not subject to cost cutting. The shares will drop at the opening.

[ygor705] 13/4/2024 07:45

I've been hearing from somebody who works in the industry that RWS has introduced a new AI product that he described as being "a potential game changer". Nevertheless, the AIM market in general seems to be getting a real kicking for structural reasons. Interesting times. Let's hope that RWS can buck the trend!

[alotto] 12/4/2024 12:09

Thanks Jeff, I appreciate your time to answer my question. With that view I would say the stock is at least 30% undervalued, solely based on current earnings.

[jeffian] 12/4/2024 09:54

I imagine because it has gone (temporarily one hopes!) ex-growth. For years it showed exceptional growth via a combination of underlying growth in existing businesses enhanced by a string of earnings-accretive acquisitions. Covid, of course, knocked it back but the 2023 results were depressed too, showing a loss as a result of impairment charges. However, as you say, the company has always been and remains highly cash-generative which enables it to continue its progressive dividend policy and I am hopeful that this will prove a temporary hiatus and we will return to the growth path soon.

At the macro level, there have been concerns about the business model being undermined by AI but RWS have always embraced new technology and the importance of the translation of specialist patent and technical papers suggest to me that few would be brave enough to rely solely on the bots without human intervention!