Rws Share Discussion Threads

[phillis] 11/4/2011 08:56

v bullish

more divis to come...

[alter ego] 11/4/2011 07:24

encouraging trading update this morning
www.investegate.co.uk/Article.aspx?id=201104110700126113E

[jeffian] 06/4/2011 18:33

Rather a dramatic e.o.d. adjustment! What was that all about?

[phillis] 25/3/2011 14:44

steady as she goes

[robinnicolson] 24/3/2011 16:40

Nice rise today.

[alter ego] 04/3/2011 16:49

yes, lack of drama suits me fine too.

[phillis] 04/3/2011 16:00

No need for much discourse
Everything progressing nicely

[nellie1973] 02/2/2011 13:37

Broker upgrade today

[phillis] 18/1/2011 11:43

xd tomorrow

[phillis] 17/1/2011 18:26

Re buybacks
I own VOD(who knows) GFM and IDOX (small quantities - too early to say) and EXPN
(very successful)
Quite useful in the context of future issues under share options

You pays yer money...

[jeffian] 17/1/2011 17:45

Yes, Brode does already control the business but what sort of signal does this send out? Small caps often have a dominant shareholder but one would hope that as they 'grow up' they would look to dilute this, broaden the shareholder base and enlarge the free float. A dominant shareholder scares off most insti's and makes for an illiquid market in the shares. It may only be an extra 5% (44-49), but it's a move in the wrong direction IMHO.

Some insti's in the past may well have supported share buybacks, but I wonder how many do now in the light in recent experience? Tax inefficient or not, over the long term dividends have provided the lion's share of funds' growth. Share buybacks may mathematically increase NAV and earnings per share but this rarely seems to translate into increased share prices. Indeed, in my personal experience two of the biggest buyback exponents - Enterprise Inns and Drax - have been among the biggest destroyers of shareholder value!

I was surprised this came out of the blue. There was certainly no reference to it in the Preliminary Results announcement of 14/12/10 and many shareholders with Nominee accounts will be unaware.

[phillis] 17/1/2011 17:26

jeff
Brode already controls the business
What difference does does the extra 3% make

Brode is nearly 70 and needs an exit shortly but is happy to take good dividends
Institutions generally don't like divis (other than income funds) because they are tax inefficient and thus they prefer buybacks

This looks like a bit of a compromise and suggests the acquisition horizon is limited.

Still you would think that this would be included in an RNS somewhere

[alter ego] 17/1/2011 12:41

jeffian, I too get nervous about controlling interests in few hands. Perhaps we might suggest Mr. Brode sells off some of his holding to maintain equilibrium in the event of a buy back. I'm sure a broker could arrange for any shares he sells to be bought back by the company at market price.

[jeffian] 17/1/2011 12:19

I don't know how many here get hard copy of the Report & Accounts and Notice of AGM (as opposed to holding in nominee accounts) but I do and I got a bit of a shock when they came this morning. Along with the notice of AGM is a letter from the Senior Non-Exec Director referring to the Resolution granting authority to buy back their own shares which, if effected, would take Executive Chairman Andrew Brode's interest up from 44% to 49% and also seeking a waiver that such an event should trigger a bid under the Takeover Code.

I know I'm getting old and forgetful, but I don't remember share buybacks being on the agenda. Where did that come from? I don't like 'em; I understand the theory that reducing the shares in issue pushes up NAV, earnings and dividends on the remainder, but it my experience it just doesn't work like that. The worst example was Enterprise Inns which spent nearly £1BN(!) buying in and cancelling its own shares at up to £7 each and when the crunch came they fell to 39p and cancelled the dividend! How is that a 'return of cash to shareholders'? If they want to return cash, why not pay out higher divs, Special divs or make a return of capital to ALL shareholders?

Besides my natural aversion to share buybacks, I'm also a bit uncomfortable with Executive Directors having controlling interests. I've had 2 bad experiences (Peter Simon at Monsoon and Derek Collin at Brulines) and I would rather see Andrew Brode spreading his shareholding among a wider group of investors than actually increasing his holding.

Am I being paranoid? What does anyone else out there think?

[jeffian] 05/1/2011 15:14

185/186 - Ooops! Sorry, wrong thread. I was thinking of RPC. (I hold both)

[nellie1973] 05/1/2011 12:35

Broker note out-buy rating

[grahamburn] 05/1/2011 12:05

What "Rights" are those, jeffian? Dividend maybe (ex div on 19th), but unaware of any rights issue.

[jeffian] 05/1/2011 10:26

Just in time to take up your Rights, then!

[chector177] 05/1/2011 08:58

Hi All, just bouight, good luck all.

[alter ego] 18/12/2010 14:01

I was a PIZ shareholder and very pizzed off with events to boot. I recall your alias from another discussion board and a certain magazine I subscribed to. I hope you are well and earning a crust. I look forward to your analysis on RWS kind regards, Bob :-)

[superstardj] 18/12/2010 13:19

Alter Ego - Yes it's me. How do we know one another?

[phillis] 16/12/2010 15:54

nice upward movement as the Chairman no doubt makes the rounds

[alter ego] 15/12/2010 07:40

SuperstarDJ - is that you Keith or is someone else using the same moniker?

[superstardj] 14/12/2010 17:18

Most of RWS's translations are from European languages into English and don't forget most of its clients are big multinationals. If you want to file a patent in the US or Japan, which any self-respecting multinational will, you have to have it in English - for the US this is obviously so but Japanese translations as well are nearly always made from a copy in English.

So I don't think the EU patent, which is aimed at reducing costs for SMEs, will have quite the impact on RWS's workload that might otherwise have been feared. I feel that it might be small beer compared to the impact that LA had on business.

Meanwhile, as someone rightly said, the dividend is producing an attractive yield at these levels. And the net cash is already racking up again despite buying the freehold of the new office. Lastly there must be medium term takeover potential. So I guess I'll hang around for the ride.

[robinnicolson] 14/12/2010 17:13

New version of PatBase launched this month: