Science Share Discussion Threads

[calahan] 08/6/2012 12:24

Sold out today for a loss after holding for 18-24 months. Chart looks awful and there has been a fair amount of selling recently. Which on top of the recent negative vibes from the FResults and TU, and on top of the fragile markets, is enough for me to cash up and preserve the capital. Never feel good about selling at a low, and likely regret it if this proves to be the bottom and bounces. But instincts tell me better to be safe than sorry with this one right now.

Best of luck to those sticking it out. Might be back in if it falls from here and the price finds a stable support lower down.

[neg] 16/4/2012 09:04

Disappointing news, but it comes down to valuation. How much is the company worth with net cash per share of some 34p and eps forecast for this year of 7.4p. I would have thought is was worth a pe ratio of somewhere between 6-8. Applying the former still gives a valuation of 78 (including cash), so I am certainly not selling at this level.

[oregano] 16/4/2012 08:42

presumably share BB kicks in at the 80p level where the tender was proposed.

[tech] 16/4/2012 08:16

sold out, very dissapointing news loss of major US contract

[cupra kid] 16/4/2012 07:40

I see a negative day ahead

[theophilus] 16/4/2012 07:07

Update At AQGM. Somewhat mixed.

AGM Trading Update

Sagentia Group plc (AIM:SAG), the international technology company which provides outsourced R&D consultancy services, provides the following trading update ahead of the Company's Annual General Meeting this morning.

The Group's preliminary results for 2011 were released on 5 March 2012 in which the Group reported that satisfactory progress had been made in consolidating the turnaround achieved in 2010, but that the Group had experienced some effects from the deterioration in the macro-economic environment in the second half of the year.

Since the start of the current year the Group has seen some early signs of an improvement in the general economic situation and renewed interest from the Industrial sector in particular. Unfortunately, a large project with a North American start-up in the Medical sector has been suspended which will result in Group revenue in the first half of 2012 being lower than the revenue reported in the second half of 2011, despite the underlying business continuing to grow. Actions have been taken to mitigate this event and these have been effective in enhancing operating margins. As a result for the full year, while revenue will be lower than last year, profit is anticipated to be in line with the Board's expectations.

With a strong balance sheet the Board continues to evaluate potential merger and acquisition opportunities, although remains prudent in this process.

- Ends -


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Th

[oregano] 13/3/2012 10:02

ratcliffe doesn't care about the share price on a day to day basis. if he had bought a load of stock at 80p, it would have been great for all remaining shareholders. As it is we are now back close to the highs, and a few loose holders have been flushed out at lower levels, so still good for remaining shareholders. Unless they are going to agressively buy shares in up here, which I doubt, I think they may tread water. I doubt they would have instigated the tender offer without the odd shareholder suggesting they wanted to sell. So potentially an overhang unless SAG use the BB to clear it.

[atholl91] 12/3/2012 13:13

If ratcliffe wanted the tender to work he should have pitched the offer at a premium - say 100p then he would have got his 10m shares & we would have seen the price go above that.

[abadan2] 12/3/2012 12:51

Cestnous, I think you have missed the point. The company was offering to buy shares from any of the existing holders (institutions or PIs), by definition on terms that were beneficial to the company and continuing shareholders. This would have given any big shareholders who wanted to sell the chance to get out, and would have removed any overhang of shares. It is clear that harly anyone wants to sell at 80p beliving that the shares should be a lot higher, hence the jump in the share price on the annoucement.

[stegrego] 12/3/2012 12:41

Its odd that they even considered the tender offer if they didnt have an idea that the demand was there. It appears they didnt have.

Cestnous - your comment is completely wrong. They offered Insti's a chance to SELL at 80p and they refused.

[cestnous] 12/3/2012 12:34

I don't understand the maneuverings here and so will not reinvest. They offered the insti's shares at a discount and they said 'No thanks.' So why should a PI buy back in? Not impressive management at all.

[abadan2] 12/3/2012 12:06

So the company has decided to abandon the tender on the basis that key shareholders have indicated they have no interest in tendering any shares. That's a vote of confidence!

[abadan2] 06/3/2012 13:55

Not sure if anyone has pointed this out but, if you sell shares in the tender, this is taxed as a capital gain (and some investors will have losses to offset against the profits) while a dividend is taxed as income, so certianly better for higher rate tax payers. Clearly, the 80p price is designed to ensure that eps improve as a consequence.

[atholl91] 06/3/2012 12:48

Think a few large holders wanted to cash out all or part and brokers would have struggled to place in the market - we must be careful that Ratcliffe doesnt end up with creeping control and nicking the whole Co in an MBO.

[stegrego] 05/3/2012 20:47

IC2,

As they have about 20 million tax losses, tax won't be an issue for at least 6 or 7 years.

[stegrego] 05/3/2012 20:45

I actually bought some back at 83 in a different account. I think that the tender offer will get taken up fully and therefore improve EPS by a third. Add in a drop of 10 percent today and I think it's potentially undervalued by about 40 to 50 percent.

[cfro] 05/3/2012 13:01

I also sold all my shares early this morning. Very disappointing imo and yet another co were management are fully in control and shareholders play second fiddle. Its funny really as my instincts were telling me something wasnt quite right here and i very nearly sold a couple of weeks ago. Ironically tho, i actually achieved a better price today than i would have if i had sold back then.

[mickharkins1] 05/3/2012 12:27

thepope,

Not sure why you believe they should we well over £1. Look at the below table - 2nd half results were poor, with profit below 2010.


H1 2010 H2 2010 H1 2011 H2 2011

Revenue 9,845 10,976 12,564 11,004

Profit from continuing operations 963 1,354 2,036 1,232


IMO, they are fairly to over priced at current levels.

[oregano] 05/3/2012 12:08

this is a more tax efficient way to get rid of cash, for most holders.

[thepopeofchillitown] 05/3/2012 11:38

Yep. £35m. Dodgy ADVFN data there. Principle still the same. Should be well over £1 imo.

[mickharkins1] 05/3/2012 11:30

thepope,

The market cap is closer to GBP 40 mio. There are over 41 mio shares in issue.

[cockneyrebel] 05/3/2012 11:18

For the whole tender to be taken up it would requitre one third of the co shares to be sold that don't belong to Martyn Ratcliffe, the Chairman. I struggle to see the whole lot being taken up unless they know there's a couple of funds that want out - you'd need nearly all the major holders to sell.

If the whole lot does get sold it then takes Ratcliffe over 30% by some way - often not a healthy situation for a board director to have that many imo.

SAG has had a good run and if they do buy those shares back the PE rduces even more - but then the cash has gone too.

Agree a special divi would have been better - screw the major holders that want to sell, they knew what they were buying and that it was illiquid.

Holding a smaller amount but there's plenty of other stuff to chase in this mkt.

CR

[thepopeofchillitown] 05/3/2012 11:07

Some very shortsighted investors here. Fundementals still strong. £2.5m profit versus £20m Mark Cap. Undervalued. Longer term this will be above £1.

[greenroom78] 05/3/2012 10:31

bb - I agree, a dividend (20p per share) would have been a better option and been better received (IMO) and I do agree with you that buybacks destroy value rather than create it. This is why I wonder if a major holder has leant on management to push on with this. Worth noting that it needs shareholder approval to go ahead but with management holding the amount they do I assume it is already a foregone conclusion.

What after the tender offer? I guess we will have a reduced number of shares in issue and improved EPS figures giving a lower P/E. Cash reserves will reduce to around £18m (assuming a full take up - which is unlikely IMO).