Shearwater Share Discussion Threads

[zico01] 12/8/2021 12:12

The company is trading on a prospective PE of 10 ... very undervalued.

This will change during the current year.The company is growing it's revenue on better margins and will be increasing it's profits year on year ... cash balance was £6 million at 31/03/2021 will also increase strongly.

At some point the share price will start to rerate to reflect this growth.

[zico01] 12/8/2021 09:42

MM's collecting cheap stock .. the share price will reverse it's decline at some point .. the company is trading very strongly.

Way over sold .. i'm still adding to my large holding.

[earwacks] 12/8/2021 09:07

Ach Higgins did the same in December. Wish they would hurry up with this much trumpeted ruddy acquisition has been a drag on the share price since the placing.

[achenaton] 11/8/2021 19:31

A couple of days ago CEO transferred 65,000 shares to family ISAs using up max c20k sub each for tax year. Only a small part of his overall holding though.

[lammylover] 11/8/2021 16:40

Market makers trying to generate some volume here - moving the price up / down slightly on virtually no volume. Actual spread is 0.5p rather than 2.0p quoted on level 2.

Just need some more news (contract win preferably!) or a tip / broker upgrade to move this up, significantly.

Patience required and keep buying more at crazy / daft price..

Rich

[earwacks] 11/8/2021 15:56

This share price is crazy ridiculous. Can only assume they are closing in on acquisition. Very little volume. Could just be lack of market interest summer holidays.

[chrisdgb] 09/8/2021 14:29

Interesting stuff, so we should start with at least a 3......

[boadicea] 09/8/2021 13:35

The rating of this company is way out of line with others in its sector when meaasured on a price to sales ratio. This implies that the market has no expectation of making a reasonable net profit margin (earnings) on its turnover. For broadly similar companies, the ratio generally lies in mid single figures, 3 to 7 range, with high fliers (e.g. CER) running up to ~12. The modestly performing ECK lies at around 4.8. (Figures from advfn, so double check them!)

Unduly high figures make me wary of what might happen to the share price on a hiccup in the growth rate. At the lower end I tend to think a company is open to a significant uprating on any improvement in margins or alternatively a bid from a competitor who could squeeze a better return from the revenue stream.

On a price/sales ratio only a fraction above 1.5, SWG is very firmly in the latter category.

[zico01] 08/8/2021 17:21

buttcoin ; Your first and only post on SWG .. you obiously have no idea about the company.
They have paid off all the outstanding debt and shares regarding previous acquisitions.

The company had cash balance of £6 million on 31/03/2021.The cash balance will increase further this year.

Please do some research before you post !!!

[buttcoin] 08/8/2021 14:35

Rights issue soon


Needs to pay millions of deferred in next 6 months

Beware!!

[zico01] 05/8/2021 16:24

northwards ;

If the share price remains this low it will be tipped at some point .. late buying in the afternoon usually indicates something is brewing !!!

[northwards] 05/8/2021 15:59

I fancy we've just been tipped somewhere ...

[sev22] 05/8/2021 08:03

SHEARWATER GROUP PLC - Final results presentation for the year ended 31 March 2021 - on YouTube from yesterday.

[lammylover] 04/8/2021 17:53

What we really need is some more decent sized contract wins... to shift share price up.

I'm holding a good slug of shares here and am confident about the future, may just take a bit of time for the share price to take off - either through new contract wins or a media "buy" tip.

I'm always amused by how shares are "out of fashion" at low prices / decent price earning ratios; BUT it just takes a tip before everyone wants to buy at a higher price! The madness of markets...

[zico01] 04/8/2021 17:42

You cannot expect a 30 to 40% revenue growth every year.If a company can grow by 20% a year it will add shareholder value over the long term.

[northwards] 04/8/2021 17:38

Fair point. Where's explosive growth going to come from. The FD did talk about double digit revenue growth from organic being achievable. But there's a big difference between 10 and 30 percent growth! This time next year we could well have c 10 million in cash if no acquisition.

[watcher13] 04/8/2021 17:31

I also listened in and there is no doubt that they are in fairly good shape, but what’s missing is the sort of 30-40% revenue growth that you really need as a small company in a sector like this. The acquisition angle worries me a bit - most acquisitions are earnings enhancing on the day, but it’s what happens next and whether the value of the acquired business is enhanced or destroyed.

[northwards] 04/8/2021 17:26

The company feels in pretty good shape. Only a small amount of cash to pay for historic acquisitions in April next year - probably about 500k.

[zico01] 04/8/2021 16:52

Furgus Ferret ;

Past is past .. i listened to the investor presentation - the management are very confident on the outlook and they will do an acquisition this year having paid off all the outstanding debts/shares regarding previous acquisitions.

They only had 700k left at 31/03/2021 .. some of this has already been paid this year.

I'm sure they will make a earnings enhancing acquisition ... which will add value.

The company is poised to grow it's revenue and profits for the foreseeable future and also increase the cash balance significantly.

It is this bullish guidance and outlook that will drive the share price higher.

Having read your previous post regarding this company you have always been bearish .. you don't like the management .. you think the the company will not grow .. you have no confidence at all in the company and it's businesses .. you should sell your shares and move on.

[furgus ferret] 04/8/2021 15:25

Well, if they do make an acquisition on those criteria it will be a miracle and a transformation from the past.

Their previous acquisitions, Brookcourt excepted possibly though that too was expensive , have been a disaster, overpriced and the cause of the current problems. As for the Penntest situation - how did they allow senior management to create such a fiasco that this acquisition had to occur to avoid expensive litigation ?

And it ain't over yet. One of our biggest shareholders is due in the Crown Court soon !! Brilliant !

[zico01] 04/8/2021 13:55

Focused acquisition ... targets to be :

- cash generative & profitable (or close to)
- clear fit within our software or services divisions
- feature rich,facilitating product expansion
- access to complementary client base
- availability of revenue & cost synergies

[northwards] 04/8/2021 13:50

Feels like we're a pretty solid company now. Net cash of over 6m. Less than 700k to pay for historic acquisitions. Small organic growth now feeding through. New software products should help grow revs and improve margins. Advisory side should benefit from economic rebound. Double digit revenue growth very achievable. The real kicker will be M&A.

[earwacks] 04/8/2021 13:45

Pretty encouraging all round. Genuine flabbergasted reaction to SP, on which he is not allowed to comment! Really you can work that out for yourself. Its absurd, as is the way it may continue to be absurd, but I bought a few more as I got straight honest answers to questions. Also he himself and for his family sold some shares last year to buy back into family ISA accounts. Cant really do much more but keep up decent figures and grow the business. Interesting and honest appraisal of the competition too. Some big investors back in this year. If retail investors just want to take quick profits every time it moves up slightly obviously that has an instant effect with so few share issued and increasing institutional holding long term.
Stockopedia now have pe of 10.4 for SWG and 174% eps growth with revenue over 30 million and counting. How many companies have a market cap the same size as their revenue? IGP have pe of 36 and 7.8% eps growth with revenue under 11 million

[igoe104] 04/8/2021 13:36

Hints of future double digit growth over the coming years..