Smiths News Share Discussion Threads

[this_is_me] 19/10/2022 08:33

Long term contract renewals, P/E less than 4 and big dividend.

[santangello] 19/10/2022 08:11

.....and the good news just keeps coming.Masked today by the inflation handgranade, which should really be factored into the wider markets, but this little honey is looking (and sounding) primed for share price take off i.m.h.o

[baracuda2] 18/10/2022 17:30

Interesting stuff, thanks for sharing

[norbert colon] 18/10/2022 15:04

https://youtu.be/0Lb_EfUcSRwSNWS covered by Graham Neary

[martin44] 17/10/2022 19:29

Feel this again is yet another positive piece for Smiths News and as long as management keep doing the right thing the only way this is going is up but equally happy with a significant divi too!

[norbert colon] 17/10/2022 15:07

I've just noticed a few snippets from #RCH trading update last week which read across to SNWS incl: "circulation revenue to be supported by increased cover prices", print revenue in July and Aug down 2.9% with volumes up (some one-off due to the Queen's death) which iirc is better than SNWS have forecast and football World Cup likely to be +ve for the group over short term.

[hotdawg] 17/10/2022 13:54

For those who remember when Dawson news held the contracts ? Once one publisher jumped ship the rest followed , so surely this news has to set the foothold for a positive future

[hillock1] 17/10/2022 13:30

Mark, I think at least it is clear one of the uncertainities..I know the chance of not renewing is slim, but a confirmation in advance at least not a bad thing....

[marktime1231] 17/10/2022 13:12

Not sure how we know whether this is "fantastic" news. The dominant supplier of magazine delivery services agreeing a new long-term contract with the dominant supplier of magazines, some way ahead of schedule. Imagine it to be in line with the long term steady decline in revenues from hard-print distribution which is SNWS base planning scenario.

[norbert colon] 17/10/2022 10:50

I wonder given the firm evidence now that this business remains cash generative and is stable with a hefty yield that investors looking for a safe haven in these troubled times will find the valuation/proposition here very attractive.

[edmundshaw] 17/10/2022 10:20

Hope the analysts can push this in the right direction. Should be an easy enough sell, surely?

[hotdawg] 17/10/2022 08:30

I agree, this news and hopefully a good trading update due the start of next month could indeed kickstart the share price to where it should be

[privileged] 17/10/2022 08:20

This is fantastic RNS. The share is only valued on about 3 years multiple to take it to 2025 so the fact we now have more clarity into 2030 should really be a massive boost to the share price, this could easily be 50p and still be very cheap, i'm targeting 60s.

There is a recent broker target of c92p on this I recall

[norbert colon] 08/10/2022 21:46

Yes the trading statement has cleared the air (not sure it's cleared the seller however!) and it put any doubters firmly in their place re: the viability of this business. In the current climate I'm salivating over the huge divi and look forward to hearing more about progress with their non-core profit streams next month when we see the results.

[martin44] 08/10/2022 21:21

Now the foundations are firmly down the price should now move up! I am looking forward to the divis…..

[edmundshaw] 05/10/2022 14:23

Finally starting to move... :))

[baracuda2] 30/9/2022 18:29

I'll be buying more Monday, it's great to see some movement here

[baracuda2] 30/9/2022 10:18

It's about time

[this_is_me] 30/9/2022 10:03

Yes, I bought a few more this morning.

[lord gnome] 30/9/2022 10:00

Moving up again. This is starting to get interesting.

[value hound] 28/9/2022 17:38

Bit of a write up on Master Investor fwiw...

Smiths News (LON:SNWS) – on 2.7x pe and 14.0% yield

"Following last Thursday’s announcement of its post-close Trading Update, the UK’s largest newspaper and magazine distributor’s valuation has been upgraded by analyst Andy Murphy at Edison Investment Research.

In November he is looking for the £72m group to report revenues down slightly at £1.08bn (£1.11bn), with pre-tax profits of £31.3m (£31.9m), earnings of 11.1p (11.3p but an almost trebled dividend payment of 4.2p (1.5p) per share.

The group took a big hit when McColl’s went into administration, despite that Murphy has increased his valuation on the shares from 92p to 94p per share – not too much of an increase you might say, but they are a mere 29p in the market!

We will obviously get more detail in November, when the company reports its full figures.

In the meantime, its shares at 30.25p are trading on 2.7 times price-to-earnings and yielding a potential 14.0% for the year.

Now that is cheap."

[blackbear] 27/9/2022 12:22

Could do 50p in about a year

[lord gnome] 27/9/2022 12:12

50p would be nice, right now :-))

[edmundshaw] 27/9/2022 11:39

15k iceberg is nothing. There was a 170k trade at 29.1912.

A 14% dividend yield is not going to last very long. Either you think it is not sustainable at or around that level or this is horrifically undervalued. Looking for 10% here is a bit like buying ASOS at 26p and selling out at under a quid (and missing the rise to £50). Yes, that was my chance for multimillion gains and I blew that one!

Edit: not that I am expecting this to rise to £50, I hasten to add...

[blackbear] 27/9/2022 11:22

quick trade lol this moves like a snail