Shearwater Share Discussion Threads

[chrisdgb] 01/9/2022 07:35

Yep, always good to see....

[northwards] 01/9/2022 07:10

Nice contract renewal.

[husbod] 25/8/2022 15:39

Getting into bargain territory (again).

[pol123] 24/8/2022 21:22

Acquire or be acquired. SWG will be a target at this level

[chrisdgb] 24/8/2022 08:09

Would be nice to now see a material, strategic acquisition......

[rivaldo] 24/8/2022 07:37

Good to see the CFO almost quadrupling his holding! Not eactly a huge purchase, but I find any CFO share purchases encouraging, since they're generally by far the poorest paid exec directors and don't usually have independent wealth - and of course they're closest to the business (in theory anyway):

[2lb] 23/8/2022 20:43

Technically , yes.

[ianhamo] 23/8/2022 20:35

If the CFO has bought shares, does that mean the company can't be in M&A talks?

[boadicea] 23/8/2022 18:50

On the contrary it would appear they have a lot of liability (not credits) denominated in dollars.

[northwards] 23/8/2022 14:55

Presume they are billing a big customer / customers in $ ?

[boadicea] 23/8/2022 12:18

I noted the following in the recent results under Exchange rate risk -
"The effect of a 10% strengthening of the US dollar against sterling at the reporting date on the US dollar denominated trade receivables, payables and cash and cash equivalents carried at that date would, all other variables held constant, have resulted in a decrease of the pre-tax profit in the year and a decrease in net assets of GBP1.2 million. A 10% weakening in the exchange rate would, on the same basis, have increased the pre-tax profit in the year and increased net assets by GBP1.0 million."

I found this surprising and currently unwelcome. Is it due to a capital rather than ongoing income effect? Any explanation of the rationale would be helpful.

In contrast, the corresponding Euro effect is positive.

[northwards] 15/8/2022 14:12

Exactly that Riv ... nothing earth shattering in the coverage but it opens the door to further coverage in SCSW when events happen ... and perhaps moving to a buy.

[rivaldo] 15/8/2022 13:50

Yep, good to see in SCSW's "Updates and Ideas" section - your post 2776 was very timely :o))

Hopefully a few more investors will now be aware of SWG, and SCSW will now presumably continue to feature SWG after future contract wins, trading updates etc.

[northwards] 15/8/2022 09:17

Funnily enough, we got a small write up in tip sheet Small Company Sharewatch over the weekend ... concluding 'one to watch'.

[northwards] 11/8/2022 13:46

Agree. I think we need some exposure to get us on wider radars ...

[earwacks] 11/8/2022 13:23

Exactly right. The numbers need to do the talking. I think more and more companies are realising that cyber security will work out cheaper in the long run, never mind the hassle and fines that companies can face if they get hacked. The talk of acquisition goes tediously on and hopefully they will find something to accelerate earnings enhancement within budget. there should be no need for another raise. If all goes well and they get a decent half time score for a change that would give the market confidence. Three years running the 6 month update has looked horrible because their revenue always seems to come in towards the end of their year. To give them their due they always seem to match or beat expectations with revenues moving up in the 35 million mark from only 10 million after 6 months. With the increasing acceleration of cross selling and the larger contracts coming in revenue should be steady with new contracts a bonus. As pointed out the potential market is huge and they have a tiny fraction of it at the moment. The rating is absurd but thats true of many decent businesses at the moment. Quite interesting Phil's comments about layers of security on companies like Microsoft and others. I feel momentum is building gradually

[northwards] 11/8/2022 13:05

Fair summary ... prez didn't set me on fire, bug hopefully our progress will.

[rivaldo] 11/8/2022 12:02

I finally got round to watching the July 29th presentation. The main team are not hugely impressive presenters, but that's fine by me as this normally suggests that management are more concerned with getting on with the job than hyping the company.

SWG themselves seem to be in fine fettle and continuing to thrive, with lots of emphasis on a pipeline of potential acquisitions from the cash pile and a strong Q1 giving rise to confidence in the 12p EPS forecast.

The cyber security market presentation by the former GCHQ deputy head was excellent, and he really should be a terrific asset for SWG as Progressive state:

"Presentation by Marcus Willett CB OBE – very insightful and very useful

The presentation to analysts on 29 July included a section on the cyber security market by Marcus Willett CB OBE, a member of the group's Advisory Panel. Marcus was formerly the deputy head of GCHQ and its first Director Cyber. This presentation was useful not only as an insight into the nature, direction and the scale of cyber security issues globally, but also as a reminder of the underlying quality of Shearwater and the people it works with. The session is to be repeated within the presentation to current investors on 3 August at 12:30pm, at

[rivaldo] 03/8/2022 11:18

Here's a link to the new research note out today:



Progressive forecast 12p EPS for the current year. That's up a very respectable 17% from March'22's 10.3p EPS.

I note that SWG achieved 7.6p EPS to March'20, so 12p EPS would be almost 60% up in 3 years, despite the pandemic and software transition.

Plus the £5.6m cash pile at March'22 is forecast to increase to £7.9m at March'23 - 26% of the current m/cap.

If you strip this out, then SWG are on a current year ex-cash P/E of only 7.8....

[sidam] 03/8/2022 10:47

Progressive has published research today with estimates a little lower than Cenkos. Their conclusion is the shares are very cheap as a growth company. It is self evident that a PER of 10 is not expensive but neither Progessive nor Cenkos numbers demonstrate that the company is a growth company.given that we have 10% inflation and some of business is providing bodies, one would think that turnover would increase at a faster rate,

[northwards] 03/8/2022 09:36

Looks like some weak holders still need to exit.

[ianhamo] 02/8/2022 20:36

Intercede (IGP) seem to be in a similar position. Maybe they need to merge?

[lammylover] 02/8/2022 09:34

Just a weak market, Irish boy and lack of media coverage.
SWG will come good over time when other investors see the potential here.
Tomorrow sees the SWG investor presentation at 1230, which may bring in some fresh money.
Buying opportunity at 131p for the bold.