Rws Share Discussion Threads

[phillis] 14/11/2024 12:20

Surely $ strength should be helping RWS

[con90210] 31/10/2024 09:21

Recovery time now imo. 200p by end of Q1

[value viper] 30/10/2024 06:42

The German bank, which reiterated its 'buy' rating on the stock, sees this as proof that recent pressures on trading have been either cyclical or market-related and were now easing, with management expecting FY25 to be a further year of organic constant currency growth.However, unfavourable FX movements were expected to have a significant impact on profits in FY25, leading to a roughly 23% downgrades to Berenberg's earnings forecasts for RWS."Despite this, we note that on our new forecasts RWS trades on just 8.2x FY25 P/E and 4.2x EV/EBITDA, which we think is attractive for a business that now appears to have seen a reversal of fortunes notwithstanding FX, and where today's performance should help assuage investor concerns about AI's impact on the industry," said Berenberg.

[alotto] 30/10/2024 00:07

Analysing the TU i can rationalize the massive fall today by the following:
- what are the adjusting items in the calculation of the adjusted figures?
- net debt reduction does exclude lease liabilities: why and what's the size of these lease liabilities?
- ongoing price pressure: the business may be moving in a territory where it has lost its competitive advantage and it's services become commoditised
- what is the statutory pbt? That will be needed to calculate dividend cover.

[alotto] 29/10/2024 15:23

I read the expected pbt is £110m.
With a market cap of now less than £500m. The valuation is beyond laughable.

[brucie5] 29/10/2024 14:03

Hi Indiestu, I have noticed over my many years of chart watching that there is an irrational tendency for share prices in a state of uncertainty to make and test for support around pound numbers, with £1 being the strongest example. Fingers used to use this also, I believe, as a rule thumb. So I see it as having significant gravitational pull, which isn't necessarily to suggest it will get there, if it can find a parachute. But what is the parachute?
There is no shortage of value around atm, but nevertheless, having been involved before, it's on my watch list.

[ygor705] 29/10/2024 13:50

At this level there is a very real chance of a predator emerging. We've fallen a very long way on what is hardly a disastrous news background. The buzzards will be watching.

[value viper] 29/10/2024 11:56

And decent dividend cover from what I can see alsoMarket is pricing it for a dividend cut though which is interesting

[lawson27] 29/10/2024 10:37

Aye, divi 9.28% at this level, not to be sniffed at

[phillis] 29/10/2024 10:16

Check the analyst’s forecasts
Rather pedestrian going forward

Sad fall from grace but good divi prospects for new buyers

[indiestu] 29/10/2024 10:08

Seems like a concerted shorting attack at open taking advantage of a lack of buyers in a generally weak UK market. Some big buys arrested the price decline around 132p. Short covering possibly? There is no room for any disappointment in this current market, its brutal. I guess it could turn just as quickly on hint of good news but I've been waiting for that for weeks and its not happening. There was some good news in the trading statement, a big lump of debt paid down, debt should be cleared by half year meaning the dividend looks safe and will likely be increased when the FY results are released - maybe that will be a turning point. YOU has rallied this morning on an in line trading statement. Maybe there is some hope if final results are revised up and there is a slightly more positive outlook. I'm not holding my breath any more.

[indiestu] 29/10/2024 08:33

Morning Brucie, can you explain your comment for the uninitiated please.

[eezymunny] 29/10/2024 08:30

I guess the problem is "For FY25 we expect to deliver modest organic revenue growth at constant currency, with growth in volumes offsetting ongoing price pressure. We expect foreign exchange to continue to be a headwind to reported revenue and adjusted PBT".

RWS make very fat margins. Sounds like that might be hard to maintain with AI solutions improving etc?

[lawson27] 29/10/2024 08:29

added @131, oversold imo

[brucie5] 29/10/2024 08:20

This is the £ corridor - moves slowly, then all at once. I'm watching for a point of entry.

[alotto] 29/10/2024 08:10

My guess was routed .. 10% drop at the opening. Reduced debt, well covered dividend of 8% and green shots showing the investment in AI is bearing fruit.
The stock market sometimes is a mystery

[alotto] 29/10/2024 07:45

There isn't much to do with currency exchange movement. You can edge currencies but is it or any worth for rws?
The stock is massively undervalued and the TU clears lots of fog in my opinion

[bulltradept] 29/10/2024 07:44

That's what I was thinking!

[trombone_89] 29/10/2024 07:32

"Reflecting adverse currency movements, FY24 reported revenues are expected to be £718m, a decline of 2% compared with the prior year. The Group expects to deliver adjusted PBT within the range of market expectations² before adjusting for these currency movements.³"

so not in line if you include the 3m gbp headwind from currency??

[indiestu] 28/10/2024 12:26

I'm not buying it, it's purely scaremongering. Most UK small caps and growth stocks are depressed right now and that's due to the underlying fact that interest rates are high so cash is tight or parked earning decent returns in safe money market accounts. That is basic economics.

[c3479z] 28/10/2024 12:12

absolute agony on AIM, numerous investments being hammered, could there be a small rally even if the BR is withdrawn in the Budget?

[value viper] 28/10/2024 11:58

Cause if she removes the BR from AIM shares, more folks will then sell and the price goes lower (in theory) from today's price ......So there's a reason why many qualifying aim shares have been / remain under pressure up until this point ......Sorry but this really is elementary stuff

[indiestu] 22/10/2024 13:39

My bad, so if AIM shares are deemed as quoted in the budget the same rules would apply as the main market. 50% BR if you control and leave inheritance of 50% or more of the company. Is the reasoning here that AIM shares are depressed as people are selling them to avoid a possible change in the IHT rules? That being the case why would they keep any shares until death? If you turned it into cash that would also be liable for IHT. Where is the win in selling your AIM shares before the budget?

[wad collector] 21/10/2024 21:26

Very few AIM shares don't qualify for IHT exemption , mainly property holding companies.
This is now a 9 year low ; ouch!