Shearwater Share Discussion Threads

[igoe104] 25/8/2020 11:12

Overhang cleared hopefully.... onwards and upwards.

[northwards] 25/8/2020 10:35

The 10.34 am trade was a buy.

[earwacks] 24/8/2020 18:24

I still feel swg has great potential. Another 2x 25,000 sells so clearly the seller is still busy and I feel it is this that is keeping the share price falling. Why not agree a good price to buy him out to get it done and dusted?

[computercoders] 24/8/2020 14:15

I think lowest it could go to is 120p. I'm long term holder here of 5 years. Been in and out a bit. This is such a good entry point imho GLA

[bennya] 24/8/2020 12:22

Fundamentals look solid and massively under the placing price of 240p, I think the risk is limited here with decent upside potential, I'm in. GLA

[northwards] 24/8/2020 11:26

Didn't management confirm that a cash payment for a previous acquisition will be made in august, instead of April just gone, from memory. I wonder if 4m cash just announced was post payment?

[watcher13] 24/8/2020 11:17

Confidence in SWG is pretty low and although volumes are fairly small I suspect that there are both private investors and third parties who received shares from prior acquisitions now exiting. This could go lower but with a market cap now less than £40m it’s getting into attractive territory subject to 2 caveats - 1) management being straight with the market on the updates and I think the chairman would make sure of that and 2) at these prices no imminent large issue of discounted shares to fund a deal

[northwards] 24/8/2020 11:05

So we spiked to £2.90 four months ago, and despite reassuring updates, we're now £1.65. Disappointing to say the least.

[husbod] 23/8/2020 11:27

Unless we manage a particularly good acquisition I can't see much upward momentum in the share price in the short term so I'm parking some funds elsewhere for the moment.I'm saying this in the hope I'll be proved wrong as I still have a substantial holding.Found it very difficult to sell in any size last week which suggests the mms don't want stock. Someone else still selling?

[igoe104] 20/8/2020 20:08

I think if this RNS was put out last Nov - Jan the S/p would have gone up at least 15% today. But because it's not a great time of year for shares, the market hasn't reacted as you would think it would. but it's a great time to buy these off the radar shares. I hold shares for years and keep adding. Hold 26 companies now.

[jh59] 20/8/2020 18:13

I see your 10,490 buy has gone through as a sell Igoe! If you’re in it for the long term, as many of us are, I think you will ultimately be rewarded. Whilst today’s RNS was a bit short on detail,and considering the Present financial climate, I believe there is room for some measured optimism for the medium to long term.
There are several members of this bod who were involved in turning Breedon around a few years ago, they are not fly by nights.

[igoe104] 20/8/2020 16:37

Been looking at these over the last couple of months and after seeing todays trading update I've purchased just over 20k worth for a long term hold.

[watcher13] 20/8/2020 13:39

Unfortunately I think today’s RNS and the subsequent share price reaction demonstrate the problem - minimal news on sales growth, no quantum’s and only a couple of possible new customers. What we are all looking (hoping) for are quarterly updates that move the dial on sales - something like £2-3 million new business every quarter and in this sector at this time that should be possible. RNS like today’s won’t bring out new buyers.

[jh59] 20/8/2020 07:30

Good to see that the bod recognise the importance of good communications with their shareholders, and have a dedicated PR operation. This RNS should style a few nerves, and hopefully increase interest from new investors.

[northwards] 20/8/2020 07:04

Let's see if today's positive update has any impact on the share price encouraging news on cash.

[earwacks] 19/8/2020 17:02

I wouldn't be here if I thought that was the case watcher13. EPS 8p per share from a loss of 10p per share recorded for 2019. Revenue up a further 41% in the last results to March. Seems to me everyone knocking this shares because of the share price rather than looking at the business. I'm not trying to ramp it. If I thought the way some people seem to feel about it I would have sold up. They have a diverse collection of companies that are providing cross selling opportunities and cost savings which to me justifies the acquisition approach to accelerated growth. The big question hanging in the air is the next acquisition. Have they really got themselves in a position to get a bargain or take advantage of a stressed company because of COVID an opportunity they suggest as the main reason for the placing, otherwise they shouldn't now need that money. I agree £3.80 is a typically meaningless house broker target. Is that what they think the company is worth now or what it could be worth if they takeover another company yet unknown. I would think it would be prudent to hold their fire till at least we have track and trace and a vaccine known to work. Even companies that have outstanding results acknowledge that as a proviso for forecasting a continuation of growth next year.

[watcher13] 19/8/2020 15:37

The reality is that despite the ‘positivesR17; of right sector, quality board and management etc, SWG has been stuck at a market cap between £40 - 60 million for nearly 2 years. There has never been enough good news on sales growth to encourage interest from outside investors and to get a re-rating as a high quality growth company. No momentum at all at the moment and I suspect the Berenberg target of £3.80 is a long way into the future, if it’s there at all.

[washbear] 19/8/2020 12:06

Well The odd thing is that the Price is basically at a three year low. But the 52 week shows a low price of 1.55 p . Upto now this put me of buying . I mean who wants to overpay ! 1.55 p probably lasted 2 micro secs...A market maker probably spilt his coffee...

[thewheeliedealer] 17/8/2020 21:08

Hi all,

My mate Peter @Conkers3 and myself did a ‘Twin Petes Investing’ Podcast a few days ago and part of our discussion covers SWG. We also chatted about loads of other Stocks and we managed to include a lot of educational stuff in this one – things like how much Research you need to do and what to consider regarding Retirement. Anyway, if you use Apple, Audioboom, Overcast or Spotify you can find it under the 'Conkers Corner' Channel (you want TPI Podcast 29) and you can find it on Soundcloud at the link below.

I hope you enjoy it and find it useful,

Cheers, WD
@wheeliedealer

[rockstar10] 17/8/2020 16:32

I think the 5 months of Brookcourt numbers was in ye 31.3.19 as they were acquired in 2018. So ye 31.3.20 has a full year of Brookcourt numbers which is why the final numbers look I exciting. The fact that current market value sits around 20% below costs of acquisitions suggests the market thinks the acquisitions were overpaid for or some value has been destroyed. Given current market conditions I think a flat year is the best that can be expected. It’s tough out there whatever sector you are in and if people aren’t back at work business is not being done and contracts not being signed. On acquisitions which will have to be mainly share based to be of size I think it will be a struggle at this level. Company broker is talking a share price of 380p double what it is now roughly. Optimistic or they know something is afoot.

[northwards] 17/8/2020 08:47

Feels like the seller has stopped, MMS have stopped walking this down and there's a reasonable chance we will start nudging back up.

[earwacks] 14/8/2020 15:56

Thats what we would all like to know North. I thought the results were ok. In fact just what they said back in the beginning of April and now audited. Not a lot in the update except trading as expected after a transformational year. The other rather overlooked point is that Brookcourt, the largest add on, or reversed takeover contributed less than 5 and a half months of its revenue to the results for the finals this year. The fear of another large takeover is part of the issue I think, was it to strengthen the balance sheet or have they really something specific in their sights. Current market cap 40 million, cost of acquisitions: 30 million for Brookcourt (10 million in shares), 20 million for SecurEnvoy (Partly in shares), 7.4 million for Pentest, 1.4 million for Geolang and .6 million for Xcina all allegedly doing well and most with costs that are one offs and won't have any charges for the current year. So enhanced savings, increasing revenues and underlying profits. All heading in the right direction.

[earwacks] 14/8/2020 15:56

Thats what we would all like to know North. I thought the results were ok. In fact just what they said back in the beginning of April and now audited. Not a lot in the update except trading as expected after a transformational year. The other rather overlooked point is that Brookcourt, the largest add on, or reversed takeover contributed less than 5 and a half months of its revenue to the results for the finals this year. The fear of another large takeover is part of the issue I think, was it to strengthen the balance sheet or have they really something specific in their sights. Current market cap 40 million, cost of acquisitions: 30 million for Brookcourt (10 million in shares), 20 million for SecurEnvoy (Partly in shares), 7.4 million for Pentest, 1.4 million for Geolang and .6 million for Xcina all allegedly doing well and most with costs that are one offs and won't have any charges for the current year. So enhanced savings, increasing revenues and underlying profits. All heading in the right direction.