S & U Share Discussion Threads

[jeffian] 21/3/2002 22:53

JRB,
The important bit of DYOR is "own". Irritating as his style is, I have to admit that Freddy (and in other guises such as "Tony Breen" on ME) has actually pointed me at stocks which are worth researching. I ended up buying SUS and AVON following much wider research, but I thank F/TB for bringing them to my attention in the first place. Yes, he has mentioned other shares which have gone nowhere, but ultimately the choice is up to you. He certainly isn't the only bb poster to crow about the successes and forget the failures!

Any road up, back to the subject of the thread - SUS is doing very nicely thank you; results expected to be "ahead of expectations" and nice divi yield plus capital appreciation. What more could you want?

Regards, Ian

[jrb] 21/3/2002 22:27

And to name but one of the others (126p then, 54p within 10 days, now 56.5p):

"Giardino - rolling out the concept - the beautiful game (GDO)

ydderF - 30 Jan'02 - 21:23

they write off all expenditure as it is incurred, they financed half their new openings last year from cash-flow, they are on a single figure p/e , they are a growth business, you can watch their offer at any of the shopping centres where they are present - is there anything else for you sir?"

It's not just the semi-literate self-congratulation, it's the congenital inability to tell the truth that makes any board with a Freddy post on it seem tainted.

[kaffee] 21/3/2002 21:48

Back to the top.

Come on folks.. roll roll up.. sort the needy from the greedy, the good from the bad, those that luv ya from those that don't, coz if you can't see value here today you ain't up here shopping, you're up here shoplifting.

Even if you're not a long term investor.. there's money to be made here with that divi !!!

[kaffee] 20/3/2002 20:49

Joined at 4.75 today purely on the SCSW write up... and what a good move that turned out to be... covered the spread already !!

Love the fundamentals and 6 quid has got to be on the cards real soon... it moved 5% on 6K shares traded!!!! It'll fly come results... similar to Cassidy me thinks.

Be lucky

[andysand] 20/3/2002 18:41

Hmmmmm. I Do use TA in helping to buy shares but this share is fairly illiquid and makes the charts less valid. On the other hand, the fundamentals are SO compelling in the light of the recent trading statement, that this share must not be ignored. I have been buying since 410p and I definitely expect 700p in the not too distant future.

Andy

[adamh] 20/3/2002 17:03

Chart seems to back up your optomistic view of the fundamentals. Not currently a great entry point but the stochastics still indicating oversold in an uptrend makes a good case for entreing now and using a tight stop



good luck with'em

[andysand] 20/3/2002 16:17

We're off again. Can't believe there is not even more buying of this share. It's a bargain up to £7 in my veiw and fair value at 800p. That's a long way to go. Averaged up again today.

Andy

[gzr] 18/3/2002 08:23

andysand - these shares look very cheap, old forecasts were 49.5p and 57p for this year and these are too low. SCSW has recommended them as a buy this weekend.

[andysand] 03/3/2002 00:07

Bid speculation from the independent.

S&U also appears to be going great guns. The old-established door-to-door credit group, which has successfully developed a car hire-purchase operation in the past few years, caught the market on the hop with an unusual profits alert. Instead of the so familiar signal that shareholders should brace themselves for dismal tidings, S&U had the audacity to declare it was trading strongly and shareholders should anticipate profits above stock market forecasts. More such "warnings" would revitalise the investment community.

In the sober words of the finance group's announcement, profits should be "materially ahead" of expectations, at the last count hovering around £8.3m. S&U is controlled by the Coombs family with around half the capital. The publicity-shy, property-owning Berger family is thought to account for some 20 per cent. I reported in September that S&U was on the lookout for acquisitions and had no inhibitions about satisfying a deal by issuing shares. Its decision to alert the market about its buoyant trading could indicate a takeover is near.

Andy

[andysand] 01/3/2002 13:28

Actually, check the technicals while you are at it!

Most recent newsflow (about a week ago)

"LONDON (AFX) - S & U PLC said it expects its profits before tax for
the year ended Jan 31 2002 to be materially ahead of market expectations.
The consumer credit and motor finance group said in September that profits
for the first half of the year were up 30 pct at 4.2 mln stg.
In the year to end January 2001 pretax profits for the group were 7.6 mln
stg.
The results for the year are scheduled to be released in April."

On PRESENT forcasts (too low) it has a projected p/e of 8 yet it will grow earnings at more than 20% and is yielding nearly 6%!!!!! I'll leave you to look into it further but if these is not THE MOST STUNNING BUY then I'll eat my big toe.


Andy

[ydderf] 22/2/2002 04:58

Avon Rubber and Trio

[alfwilson] 21/2/2002 18:23

Freddy

SUS and Molins look like very different from an investment point of view?

Who and What are the other two freddy gems like?

[ydderf] 21/2/2002 14:18

as usual this gem is about to be forgotten about and drift back when it should be powering ahead to fair value (7 Quid imho) this is one of those shares that warren surely was thinking of when he said the investor shoudln't care if the stock market closed for a few years!!!!

when it is discovered you can be sure that the pundit/fundmanager who 'discovers' it will be full of itself - funny old world......luckily, i put about 80% of my funds into just three or four unarguably good value funds and wait for the profits to roll in e.g. molins, not many teenage scribbling fund managers can do that - not even the fabled hedge funds have the balls to emulate the master

[alfwilson] 20/2/2002 16:44

JRB

Recent experience with other stock suggests that we can expect some (nervous)people to 'bag' their profit ... so we may see a fall back in price. Those with with patience can expect solid growth and attractive dividends to continue for a long time yet. For me holding SUS, who continue to come out with pleasant surprises, is not a bad place to be in these otherwise uncertain times.

[jrb] 20/2/2002 10:21

Alf: I agree. We'll now just have to wait and see whether the actual results confirm my interpretation of the announcement.

[alfwilson] 20/2/2002 08:42

JRB

Thanks for your comments on earnings. IMHO these numbers would justify £5.50 now and nearer £7.50 this time next year ... taking into account family issues etc.

[peladon] 20/2/2002 00:50

They'll notice now.




S & U PLC
19 February 2002


RESULTS FOR YEAR TO BE 'MATERIALLY AHEAD'
OF EXPECTATIONS

BOARD CHANGES

Consumer credit and motor finance group S&U PLC announces
that, based on present indications, profits before tax for
the year ended 31st January 2002, due to be announced in
April, will be materially ahead of market expectations. In
September 2001 the company announced that profits for the
first half of the year were up 30% at £4.2 million with
chairman Derek Coombs commenting that 'continued progress'
was expected in the second half. In the year to end
January 2001 pre-tax profits for the group were £7.6
million.

S&U also announces that Bob Fisher, the company's Finance
Director, is stepping down from the Board for personal and
family reasons. Mr Fisher, 64, joined S&U in 1974.
Pending the appointment of a successor to Bob Fisher, David
Maiden, the Company Secretary, becomes the group's Chief
Financial Officer, in which capacity he will report to Mr
Anthony Coombs, Managing Director.

In addition, Fiann Coombs has been appointed a non-executive director of
the company. Mr Coombs, 32, is an economic analyst and has recently
conducted a six-months' review of the company's operations which provided
the background to his appointment.

[jrb] 19/2/2002 20:50

jeffian: quite right, you did make this point on 11 January. I thought the appointment of yet another Coomb to the board today was worth a mention and a little more detail.

The family influence introduces an element of risk, but like you I think the discount, the yield, and the prospect of capital and dividend growth make it a risk well worth taking, and I am happy to keep holding indefinitely. I have topped up at various times when the price dipped, and bought some more at 460p this afternoon as soon as I saw the announcement, so this is now one of my largest holdings.

[jrb] 19/2/2002 18:20

I always think 'materially ahead of market expectations' should mean 'ahead by 15% or more'. If so, we can expect earnings per share for the year just ended of about 56.93p for a current PE of 8.56, and about 65.21p (+14.55%) this year, if the winning streak continues, for a prospective PE of 7.48%. Still cheap, and the prospective yield is still over 6% at today's price of 487.5p (6.8% in an ISA).

Having held these for just over a year, I wish the odious Fred was right in his/her infantile belief that only a genius could have spotted them. Alas, that is not the case, or I'd be much richer than I am.

S&U are cheap, probably not just because they are small and illiquid, but also because they are closely controlled by one family. Notice the bad news sneaked out today under cover of the good: Mr Fiann Coombs, 32, an 'economic analyst', has been appointed a non-executive director, having 'recently conducted a six-month review of the company's operations'.

Young Mr Fiann will doubtless feel very much at home in the boardroom, where he joins Mr Derek Coombs (17.5%), chairman, Mr A.M.V. Coombs (4.58%), MD, and Mr G.D.C. Coombs (4.82%), executive director. At the AGM, he will be able to enjoy a chat with Mrs C.K. Coombs (possibly Freddy herself), 13.8% shareholder, and the representatives of Wiseheights Ltd, 20.6%, which I take to be the family charitable foundation.

There's no doubt that this is an excellent company and the family are doing a very good job. If things should ever go wrong, however, shareholders have to rely on independent non-executive directors to take a hand. I'm not at all sure that young Mr Fiann quite fits that bill.

[alfwilson] 19/2/2002 17:07

freddy

I have suggested to CR that he owes you an apology.
Have you any idea what this will mean interms of eps?

Would you like to share any more ... SUS style winners with us mere humans?

Alf

[peladon] 19/2/2002 16:31

Good idea about the share split, because I think it's going a fair bit higher.

Looked at on PE or PEG basis, and given the record of growth (and that forecast), £7 begins to look conservative.

[andysand] 19/2/2002 15:55

Wouldn't be suprised to see a share split either to help with liquidity a bit.

Andy

[andysand] 19/2/2002 15:53

Now, the qustion is what does 'materially ahead of market expectations' actually mean? Since it was already under-valued on previous forcasts and has only risen 20% or so since, then the share price still has a significant way to go in my opinion. Aside from the obvious increase in eps, a re-rating to a more sensible pe must happen soon. Price target therefore of around £7 looks about right to me.

Andy