Softcat Share Discussion Threads

[smokybenchod] 21/3/2016 20:07

No probs, looks like my post earlier last week indicating the upside on these based on their HY results is in line with IC's view. DYOR.

[dlku] 21/3/2016 15:54

thanks chod

[smokybenchod] 21/3/2016 15:49

Investors Chronicle have tipped this share over the weekend, article below:

"IT services provider Softcat pounces on software demand.

The innocuously named Softcat (SCT) showed a hard nose for business in the six months to 31 January. The managed IT services provider - which listed in November and will soon join the FTSE 250 index - coughed up a 13 per cent rise in adjusted operating profits to £19.5m.

Softcat partners with over 200 vendors, including Cisco and Microsoft, to provide hardware, software and services to small businesses, large enterprises and public sector organisations. Strong demand for cyber security and data analytics drove sales up 12 per cent to £139m in the software segment. Moreover, brisk trading in data storage and networking solutions underpinned revenue growth of more than a quarter in the budding services business. But flagging interest in desktop computers and laptops constrained hardware sales growth to just 4 per cent.

The group's gains stemmed from a recruitment drive: the number of account managers rose by more than a quarter to nearly 400. Their success in winning new clients meant Softcat's customer base grew by 7 per cent to over 9,000. Management also focused on more lucrative solutions and offering excellent customer service. The upshot was a 3 per cent rise in average revenue per customer to about £31,800.

Analysts at Credit Suisse expect pre-tax profits of £44.1m in the year to July 2016, giving EPS of 17.4p (from £40.8m and 16.4p in FY2015).

IC VIEW:
Softcat's shares have sprung upwards in recent months. Strip out the cash and they trade at 16 times forecast earnings for this financial year. Given the group's broad-based growth, widening margins and prominence in a buoyant market, that doesn't look too pricey. Buy."

[smokybenchod] 18/3/2016 16:40

An £11.4 mill buy to end the day - can't be a bad thing for next week!
16:35 - 18/03 Buy 3794163 301.50p £11,439,401.45

[smokybenchod] 18/3/2016 15:12

Could finish higher today now - as long as the seller pipes down a bit as there is some buying momentum now. Hopefully this continues into next week when some fundies can take a look as it enters the FTSE 250 on Monday. GLA DYOR

[smokybenchod] 18/3/2016 14:43

It is up 25%, but 9% up on unconditional trading which the majority of PI's would use.

I'm not sure CCC's UK outlook statement (it's specific to do with CCC's contract expiry, timings and takeons) has anything to do with Softcat.

"The UK will have a more challenging year, particularly in the first half. Services revenue will decline in 2016 due to the expiry of a large contract at the end of the first quarter of 2015 and the large volume of business take-on last year creating a challenging comparison, coupled with the one-off £3 million gain highlighted in our Interim Statement in 2015."

[oregano] 18/3/2016 14:16

it is still up 25% on the IPO price. Computercentre's outlook statement has taken the heat out of it and might be leading some profit taking.

[smokybenchod] 18/3/2016 13:40

Just to add to the fact I don't think it's PI's...

Three sell trades just now:

13:31 - 18/03 Sell 17500 300.00p £52,500.00
13:31 - 18/03 Sell 1000 301.00p £3,010.00
13:31 - 18/03 Sell 17500 300.00p £52,500.00

That would be a lot of cash for a PI to have and the low sale price wouldn't make sense.

[cestnous] 18/3/2016 13:09

PAYS went into the 250 at the same time and did nothing until yesterday. Broken out now. I suspect that the share price in SCT has been manipulated down in the same way so funds can buy at a good price. Seen this performance several times in the past in both the 250 and to a lesser extent in the 350. Hanging on in for now.

[gucci] 18/3/2016 12:37

intraday reversal here

[gswredland] 18/3/2016 12:16

Interesting smokey

[1861andy] 18/3/2016 10:35

It is disappointing as y/d the share price rise hit over 7% but been downhill ever since. The markets are still very volatile and cant see that changing any time soon.

[d4v1db] 18/3/2016 10:06

Everything is volatile at the moment. Just look at the ftse 100. Some of the stock there are up and down 10-20% on a daily basis

[smokybenchod] 18/3/2016 10:05

I'm not so sure it's PI's - looking at the trades for some of the sells and the prices the shares are being sold at (i.e. near all time lows) this wouldn't make sense - unless they are selling at a loss which I doubt as we've just had some good news. I don't know the answer as to where the sells are coming from, but I personally think once these sells start getting cleared out the share price will rise again. DYOR.

[gswredland] 18/3/2016 09:57

Personally feel it is the markets. Any little bit of profit and PI'S take it.

[iamkhan] 18/3/2016 09:17

Chaps. I'm looking to invest in this but I am scared off by the volatility.

Any reason why the share price is so volatile?

[gswredland] 18/3/2016 08:39

Agree Igoe. This could even head lower!

[igoe104] 18/3/2016 08:32

What more can softcat really do too impress the market ?

[ali47fish] 18/3/2016 08:24

it s up again after update- monday official member of 250 footsie- last chance to add? any thoughts?

[smokybenchod] 17/3/2016 14:26

Judging by the recent trades, there's a seller / group of sellers holding this price back... I'm not convinced these will be PI's. Thoughts?

[theapplefreak] 17/3/2016 08:09

It seems the results hit the right spot, guess I'll top up before it goes too crazy. DYOR

[smokybenchod] 17/3/2016 07:50

My take on the results: Allowing for their cash: Forecast EY 16 profit of 39 mill (19.5 H1 x 2). Approx value on PE 20 ((38*20 + 54.9) = market cap of 814mill. Current valuation = 592mill. That indicates 27% upside on their current share price for this year. Happy to be corrected.

[igoe104] 17/3/2016 07:26

15% growth for a company with a cap of 590 million, is outstanding.

It beggers belief, why these have been sold down over the last couple of weeks.

[igoe104] 17/3/2016 07:23

Yes they look very good to me.

divi payment , 54 million cash in the bank, debt free.

Surely this should move above £4 in the coming months.