Security Res. Share Discussion Threads

[clocktower] 07/8/2006 13:19

Couple of BIG trades!!!

[farsight] 04/8/2006 16:02

Thanks for that pbracken. I'll post the content:

Spring Group
Our view: Buy
Share price: 48.75p (+3p)

After a difficult couple of years, Spring Group finally seems to have turned the corner. Interim results from the recruitment group yesterday saw it return to the black to the tune of £2m - a figure which easily beat City expectations. This compares with a loss of £5m during the same period last year.

Spring also announced that it is to part company with its chief executive, Richard Barfield, who is to leave the company next month for family reasons after a six-year spell as an executive director at the recruitment group.

Mr Barfield certainly leaves Spring in better shape than it has been for a good while. The restructuring and reorganisation he pushed through at the end of last year included the closure of loss-making operations and an exit from surplus offices. He has focused the company on higher-margin business while abandoning or renegotiating a number of low-margin contracts.

Four-fifths of Spring's sales come from providing staffing services to the IT sector in the UK. But, despite the tough trading conditions which continue to dog the industry, the group is expected to have notched up a pre-tax profit of £5m by the end of 2006. This leaves Spring trading at around 16 times earnings - pretty much inline with the rest of the sector.

What makes its shares particularly appealing at current levels is the group's cash pile. Around half of Spring's £77m market capitalisation is accounted for by the cash in its balance sheet, limiting the potential downside in the stock.

[clocktower] 04/8/2006 12:45

1 share traded at 48.75p

she-ra..go short then if you think you are correct. No good just de-ramping because you were wrong AGAIN.

[pbracken] 04/8/2006 10:44

Where's she ra gone? Independent says BUY today.

[farsight] 03/8/2006 19:58

cornelious: fairly, I'd say. I think it'll be something like HVN was when it rose from 39p to 70p. Maybe a 40% to 50% gradual gain. But since I've only got 16000 shares I guess I'm not utterly bullish, though I might buy some more.

[she-ra] 03/8/2006 16:15

Clocktower - This makes it two pre-tax profits (one an interim) in eight years.Not one however to easily grasp what will happen at the next results as Spring dont exactly have a habit of being consistent.Interest rates are going up,oil is going up,inflation is going up,the problems in the major oil areas are a political tinder box and therefore I see only the world economy especially the economies of the UK and the U.S (trade deficit is frightening) coming tumbling down. There is average £8k debt per household and that is excluding mortgages which have in many cases been remortgaged. This debt ticking timebomb is about explode and usually the first to be hit are advertising and recruitment companies.

Clocktower you have a habit of counting your chickens before they have hatched. Worryingly revenues are down and Spring has only made a pre-tax full year profit once in at least the last seven years.

[clocktower] 03/8/2006 13:22

The Bank rate hike will improve the profits as well as SRG is sitting on so much cash.

[cornelious billy bee] 03/8/2006 12:42

fs how bullish are you on srg?

[farsight] 03/8/2006 10:21

Thanks clocktower. Yep, no problem, I did something similar with HVN and MSB about nine months back.

[clocktower] 03/8/2006 10:18

If your happy to sit on them for 6 months and not worry about the traders or de-rampers Farsight, then this ranks amongst one of the best now, as will WTV before long.

[farsight] 03/8/2006 10:12

Sounds good to me. I bought 12000. It was a struggle to buy online mind. I tried 10000 then 5000 then 2000, which I got at 46.7p, then I put in an order for 10000 and got them at 47p. Now, shall I buy some more?

[clocktower] 03/8/2006 10:10

Next figures, this will be near £1

[machoolahan] 03/8/2006 10:04

luvvly jubbly :D

[clocktower] 03/8/2006 09:57

all that cash in the Bank and growing by the day..plenty of milage in this for the next year... sit and wait and watch the share price grow

[machoolahan] 03/8/2006 09:39

Good stuff! Bye bye RichardB

[clocktower] 03/8/2006 07:39

What were you saying she-ra..great news and more to come for the rest of the year,

[clocktower] 01/8/2006 13:14

So are we to assume you are just hanging around to post negative comments or will you be shorting this?

[she-ra] 01/8/2006 13:08

Errr faltering economy,Spring couldnt even make a profit in the good times (for the economy and recruitment),business model that clearly doesnt work,pressure on margins from increased competitiveness in the recruitment market,etc.etc...

[clocktower] 01/8/2006 13:05

Delighted you noticed she-ra but how much profit do you think they will show in six months time?

Is there not a lot more good news to come?

I hope you have topped up she-ra

[she-ra] 01/8/2006 12:59

clocktower - Alot of value you say?Spring has only managed to make a profit at the pre-tax and operating level once in the last seven years and that pre-tax profit was £0.96m.

Its only rising because it has just had a broker upgrade.

Funny that there were a few large buys a few weeks back.

[clocktower] 01/8/2006 12:40

Yes..nows the time to mac as there is still a lot of value in this.

[machoolahan] 01/8/2006 09:49

morning all - is it worth attempting to resurrect this thread?

[clocktower] 07/7/2006 15:01

I see that larger trade is back... nice one.

[clocktower] 03/7/2006 11:47

What was there to say she-ra before.. there was no news but I said I was long..Time once again will tell but why are you hanging around then? Just in the false hope of getting it right once in a while?

[she-ra] 03/7/2006 11:29

clocktower - Always going on about your credentials arent you.Funny you stay quiet when it goes down.Dont hear a peep out of you.
Fact is Spring do this every so often.Upbeat one minute then one almighty profits warning is released.