S & U Share Discussion Threads

[plasybryn] 18/1/2013 16:56

Lovely trend. Very impressive stock.

[gorse] 18/1/2013 16:31

Finished at all time high .... £10 not far off.

[cwa1] 28/12/2012 14:58

Apologies for disturbing the peace but.....



For the year just drawing to a close I expect S&U to report a pre-tax profit of £13.5 million, generating earnings per share of more than 86p (up from 76.11p last year). Next year £14.5 million and approaching 91.5p in earnings per share are anticipated. The dividend is expected to rise from 41p per share last year, to 44p this and 46p next year. For a company which should be resilient to the current environment ("in uncertain times, both our home credit and motor finance businesses give our customers the reliable, responsible, convenient and flexible finance they require") and has shown itself able to continue to grow despite a less than cheerful economic back drop, I would argue a yield of 4% more than sufficient – suggesting an initial target price of £11.50 per share. On an earnings basis, this equates to a price-earnings multiple of little more than 12.5 times – which is hardly demanding given the company's resilient, growth profile.

The spread on this stock is horrible. That always deters folk but you just have to buy and bite the bullet. At today's 940p offer price I would assume that during the next 12 months you will pick up dividends of 45p plus a capital gain of 210p making a total return of 255p or 27%. That is not a bad gain, this stock can go in an ISA now and on a 4.9% January 2014 yield (at 940p) the downside is very limited indeed

[jeffian] 06/12/2012 10:47

I know the feeling!

[gorse] 06/12/2012 10:43

Oh, yes, SGC. At one stage I held 40,000 shares, some purchased at 4p! Shame I lost so much of my gains from SGC in safe, larger companies, such as Royal Bank of Scotland, HBOS, and Lloyds Bank.

[jeffian] 06/12/2012 10:39

#783 + 784,

402p in 2001 in my case. But talking about taking more out in divis than cost of investment, my star is SGC (Stagecoach) which I bought when Brian Souter (Chairman) bought back in. I paid 37p; they've handed back 128p cash via 'return of capital', the divi yield on cost is 21% and the residual shares have gone up 700%. If only I'd had more of these 2 shares and less of the ones that went down 90%!

[chrismcglone] 06/12/2012 10:34

jeff, there's a huge incentive for the younger family members to keep this on track and managed sensibly. There's a lot of present and future family pensions/retirements relying on those dividends.

[chrismcglone] 06/12/2012 10:31

This is possibly the only stock I have ever held where I could genuinely say I had little interest in the share price Why would I ever want to sell - for any price - a company who pays me so generously for the privilege of being an owner.

Just wish I had 'risked' every penny I had when they were yielding 12%. And where have you ever known a company not to have slashed that divie in a similar situation.

[cwa1] 06/12/2012 10:28

Absolutely delighted with this lot :-) Must have taken more than my buy in price out in dividends over the many years I've held them. Can't say fairer than that!

[gorse] 06/12/2012 10:28

I've been in this since July 2005 - at 530p. It is now nearly 3 per cent of my portfolio.

[jeffian] 06/12/2012 10:22

Yes, I'm still here. It does seem to be in the 'sweet spot', doesn't it? I've held for many years for the divi yield and there was a time when growth flatlined for a while and I worried that their ability to go on paying out so well would falter. But the arrival of the next generation of Coombs managers seems to have reinvigorated the company, particularly via the growth of the Advantage motor finance business, and we appear to be in virtuous circle of increasing revenues and profits and declining gearing. Lovely jubbly.

[plasybryn] 06/12/2012 08:15

Well said Pugugly. Happy Christmas to you to.

[pugugly] 06/12/2012 07:54

Plasybryn:> I am with you and have been with SUS since 2008 - One of my better investments annd one where I sleep easy . To amend the words of the statement

:"Many thanks to all all at SUS for Christmas current trading give us investors confidence for the continued progress which the efforts of all at S&U properly deserve."

Best wishes to all at SUS for Christmas and the New Year from a pleased shareholder.

[plasybryn] 06/12/2012 07:44

Another strong performance shown by today's Interim Mgmt Statement.

Am I the only one here?

[plasybryn] 26/11/2012 15:34

I suppose in charting terms that looks like a "Head & Shoulders", but Interims due 6th December I believe.
Not sure if to buy more ahead of those?
Any views?

[plasybryn] 19/10/2012 12:52

jeffian: Agree; not cheap, but solid value at c. P/E of 9, given steady growth profile and yield. I believe the PEG is still under 1 as well. It does seem to have upped its game over the last couple of years and I can see the performance continuing to improve. Operating margin and ROCE also very good. Should be looking at an EPS of 90p+ next year IMO.

[jeffian] 19/10/2012 12:48

Plasbryn,

Don't get me wrong, I like this share. I just think it's funny that anyone is tipping it after a spectacular rise. Surely the point of tipping is to spot something when it's cheap?! I'm happy that it's a 'hold' at this PER/div yield, but it's certainly no longer 'cheap'.

[plasybryn] 19/10/2012 12:33

jeffian; The P/E still shows it is good solid value, especially given dividend income. Went Ex div. without an adjustment to the price, or not so you would notice.

[jeffian] 19/10/2012 12:31

Aye, years ago was the time to buy it (as many of us did). Tipping it now is like shutting the stable door after the horse has bolted!

[chrismcglone] 18/10/2012 22:34

I think I flagged this up to him years ago on t1ps.

[jeffian] 16/10/2012 19:52

Oh gawd! That's the kiss of death.

[gorse] 16/10/2012 19:30

Shares go ex-div before Wednesday's opening.

[plasybryn] 16/10/2012 17:48

Ex div. on friday may be attracting late buys.