Shearwater Share Discussion Threads

[hybrasil] 26/4/2022 08:38

Might be sooner than that

[chrisdgb] 26/4/2022 08:21

Indeed, positive story really building here......200p should be the target for end of year

[northwards] 23/4/2022 10:51

Fingers crossed for a positive update next week.

[northwards] 22/4/2022 10:04

Five Eyes warning of Russian cyber attacks including on U.K.

[tnt99] 13/4/2022 16:07

Yes but prospects of deal reaching 21 million in a few years doubling current profits at least

[northwards] 13/4/2022 13:49

And a growing cash pile ... I reckon c 5m as of now.

[weatherman] 13/4/2022 13:46

Speculation - on recent reports they state underlying EBITA margin of 12%, suggests EBITA of £0.5m per year on this deal (on £4m turnover per year).

Last full year prelim had EBITA of £3.7m, last interim EBITA £1.3m - 19% up on previous year. Hope for £4m plus EBITA to end of March 2022.

This coming year 22/23 I would be looking for EBITA of £4.5m to £5m. That could easily support mkt cap £50m+, or 200p - imo.

[rmillaree] 13/4/2022 13:26

Fair comments jbravo - you are certainly correct that 2 lots of 170k salary really isn't excessive - however if they are happy to have 170k per year and don't have the ability to generate 10% bottom line prfoit and someone else could do that they really are royally screwing over shareholders by letting the status quo continue.

To be fair todays contract is cHompingly good - lets just hope at some stage there is some decent operational gearing that can kick in - must admit i am never really optimistic about this company , but sometimes comapnies like this do come good eventually so who knows - i remember voilex being similar basket case for many years and they seem to have srted the (simple) job of ensuring your 10% bottom line profit is the first line in the plans rather than the last !

[boadicea] 13/4/2022 13:09

One acknowledges that this company has a number of problems which include a balance sheet dubiously bloated with intangibles which need to be written down and a poor net return on its turnover. As a result it is valued at less than its annual revenue. This compares with more typical multiples between two (e.g. NCC) and five. CER trades at around x7 and even ECK with a pedestrian growth profile trades at ~3.5.
The conclusion is that there is vast opportunity for improvement at SWG, in the absence of which a competitor will see the prospect of better margins from their business.

[jbravo2] 13/4/2022 11:54

The directors don't care as long as they're getting their wad?The CEO owns 2.25m shares. He earns under 200k for this role. I doubt he's so short sighted as to not give a toss about the share price.The chairman owns over 1.5m shares. He bought another chunk just under £1. I doubt he doesn't care about the share price.I think the only question can be about ability, not lack of motivation

[chrisdgb] 13/4/2022 11:17

Will be interesting to see the broker comments...

[rmillaree] 13/4/2022 10:50

Being honest contract winds mean didly squat if they are forecasting to make loss year just finished and les than £0.5 mill profit year just staring. Surely at the minimum 10% of revenue should be dropping through to proper post tax bottom line profits - anything less than that and directors simply aernt doing their job. What the point in getting £30 mill of sales if you end up making no bottom line profit. The obvious answer is (1) they cant do that at present in which case business will continue to be basket case (2) directors dont care as long as they are getting their wad at the end of the day. This company reminds me of Volex 4-5 years ago - if i had my choice i would replace current bods with someone who would saty they haev plan to deliver 10% to shareholders - can current mangement siort that - lets hope so but i a not going to presume so.

[earwacks] 13/4/2022 10:06

Great and welcome news today. This stock has been very volatile and illiquid. I tried to sell at £2.+ last year but it was pretty difficult and a huge spread. There are only 24 million shares. Having had a couple of chats with the company I decided it was best two look at the long term potential which I think this contract proves the company has, Although I would much rather have traded, rather than buying all the way down, my original intention of investing was that after two years this qualifies as IHT exempt. In five years time that should be quite a sizeable investment I hope. PS I'm not related to Rishi Sunak!

[husbod] 13/4/2022 09:23

That makes at least three of us. Bought a modest amount more a couple of months ago to average down so will be interested in and grateful for any new thoughts by pinemartin. Very tempted to buy some more but will wait for the inevitable retrace - which probably means it will continue to rise.

[janhar] 13/4/2022 09:03

I'm in a similar position and was thinking the same but have decided that getting one big contract usually leads to more. I'm going to hold on for a bit longer - hoping for M&A action.

[irish boy] 13/4/2022 08:52

Only £1 below the last placing price now (£2.40). I suppose that is something.

Sighhhhh.

[pinemartin9] 13/4/2022 08:41

Lovely win. I'm only 3% down now. Always difficult to know what to do when you've held a share and been significantly down on it and get ba k to near original buy in price. I will take another detailed look and see if my original investment case holds true. If it does I will continue to hold. My gut tells.me now that the business is better placed than when I bought in. Certainly the contract wins recently paint a positive picture. Good sector to be in.

[idriveajag] 13/4/2022 08:24

All coming together nicely.

[livewireplus] 13/4/2022 08:15

Never mind .... at least you were holding some before this mornings RNS :-) Let's see how many short termers sell in to todays rise ...

[hybrasil] 13/4/2022 08:09

You were right. Didn’t get any

[jbravo2] 13/4/2022 08:07

It's been a long wait and has needed some extensive averaging down but it's set fair for new highs nowMarket cap is tiny

[northwards] 13/4/2022 07:54

And let's not forget the various contract wins announced over the past few months. High levels of visibility now.

[rivaldo] 13/4/2022 07:53

First trade pre-open - the last of the big spenders just bought 2 shares at 124.25p :o))

[dunns_river_falls] 13/4/2022 07:53

Absolutely stunning. The company is in the right place. Hopefully a run to last year's highs now, considering the company is in better shape.