Rws Share Discussion Threads

[phillis] 13/10/2015 07:48

Outstanding cash generator
Significant dividend growth to come

[market sniper1] 13/10/2015 07:44

RWS........ Ahead Of Market Expectations .....Year End Trading Statement.....

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[jeffian] 11/8/2015 10:53

I was on the verge of buying some more at these levels but there is a nagging doubt about the currency conversion issues. Normally, I take this in my stride if it's just a case of converting 'foreign' profits into Sterling, but it becomes more of an issue if sales/revenues are in one currency and costs are in another, because then margins and profits really do get squeezed (or inflated) in cash terms.

The current position seems to be "Net estimated Euro trading exposure hedged at an average rate of 1 Euro = 81p until 31 December 2015". The Euro is currently trading around 12% below that! That would have quite an impact from 31/12/15 without any recovery in the Euro, wouldn't it? A significant proportion of our revenues are in Euros, but does anyone know whether our costs are incurred in Euros or Sterling?

[deadly] 27/7/2015 10:46

This has been surprisingly very lively of late, despite the market's malaise.
Don't know of any reason for it though?

[jeffian] 02/6/2015 19:45

Go on then.

[prita] 02/6/2015 08:23

Yet another unispiring set of results and outlook. The buisness looks like its become stagnant and the outlook doesn't suggest any major improvement. I think its time to get out...

[squintyflinty] 01/5/2015 12:54

Thenks Jeffian for putting me right.I didnt know about the share split.

[jeffian] 01/5/2015 11:02

Eh? Have you taken account of the 5:1 share split?

Div 4.58p / share price 132.25 = 3.46%

[squintyflinty] 01/5/2015 10:44

The dividend on this is 16%.......Wow

[deadly] 24/4/2015 08:56

New lows; the market doesn't like the update.
Where is the support level for this. About 125?

[phillis] 17/4/2015 08:25

still a bit oversold I think

[jeffian] 16/4/2015 19:23

Yes, I picked up on that but when I went back to remind myself of dividend cover, there's not that much room for manoeuvre. The current divi of 22.9p is only covered 1.5x by statutory eps, and 1.8x if you use their "adjusted" figure.

[phillis] 16/4/2015 19:12

Note the scope for further large increase in dividends

[buffetteer] 16/4/2015 12:29

I sold out late last year and am awaiting re-entry .I don't think 17x forward earnings is good enough value yet .Great company ,bad value

[phillis] 16/4/2015 12:15

if you want to focus on a negative, then focus on inovia

[jeffian] 16/4/2015 10:19

Agreed, grahamburn. If it wasn't for the currency translation issues, there's still plenty to like about this excellent company which has proved time and again that it can adapt (remember 'the London Agreement'?) and continue to generate cash. China looks promising. There's two sides to every deal; although I've already got plenty already, I might just buy aishahq's!

[grahamburn] 16/4/2015 09:48

I'm not sure you are reading the same statement as I am. True, growth momentum has slowed, but the general direction (ignoring currency headwinds) is in the right direction and the market update (ie growth in patents) would indicate further progress. Not startling, but steady, so think the price has overreacted today.

2nd June results with further details of the outlook might, however, indicate otherwise, so the investment case might change.

[aishahq] 16/4/2015 09:32

Very disappointing update. Looks like the momentum is slowing and hints possibly of a profit warning to come...? I'm out.

[deadly] 24/3/2015 09:57

Thanks,

".....Note, however, the use of the word "revenue" as opposed to "profit"."

Pity they did not emphasise the positive aspects rather than the negative.

[grahamburn] 20/3/2015 10:21

I think you've answered your own question with the caveat that the AGM Statement on 10 February did contain the following comment: "As the Euro remains the Group's principal exchange exposure, its current level of below 75p is unfavourable at the revenue line." Note, however, the use of the word "revenue" as opposed to "profit".

The share has often experienced significant price swings in a thin market with the bid price particularly vulnerable as and when the market makers widen the spread. Another interesting feature with this share.

I have failed to find any logic in it on many occasions and had hoped this feature might have been eliminated with 5 for 1 sub-division on 11 February. Obviously not.

PS As I posted the above, the market makers clearly heard me and have closed the spread - with the bid moving up!

[deadly] 20/3/2015 09:56

Sharp drop last 2 days, but no news?

Maybe it's the fall in the Euro.

But I don't understand this from the AGM statement:

"RWS has hedged its estimated net trading exposure to the Euro at an average rate of 1 Euro = 81.0p from January 1 to 31 December 2015. Similarly, the Group's estimated net exposure to the US$ has been hedged from January 1 to 30 September 2015 at an average rate of 1 GBP = US$1.60.

As the Euro remains the Group's principal exchange exposure, its current level of below 75p is unfavourable at the revenue line."

If the euro is hedged, why is the euro a problem???