Spaceandpeople Share Discussion Threads

[paulypilot] 17/6/2014 13:08

Indeed, I jinxed it!

I think we'll just have to accept that the price is likely to remain soft until HH stop selling. However, it also depends on what the next trading update is like. If it's more bad news, then there could be another leg down. If it's stable, or better than stable, then the market should begin pricing in recovery.

You either trust mgt to get on with the job, or you don't.

My view is that the company has an excellent track record over five years, which was blighted by the recent profit warning, but this happens sometimes with smaller companies - which are more vulnerable to being knocked off course by the loss of individual customers, or contracts.

Mgt here have a great track record for building this company from scratch, in a niche of their own making, growing profits & paying excellent dividends. I don't think their previous success should be ignored because of one profit warning.

DYOR as usual. I hold.

Regards, Paul.

[envirovision] 17/6/2014 09:11

bull trap ?

[compound_dave] 17/6/2014 09:00

It was doing very nicely PP - pretty much until you wrote the above!

Not that I am for a minute blaming you.

Quite a retreat though.

[paulypilot] 11/6/2014 08:16

No probs 1fox1!

Unusual to see a flurry of buying first thing today, and up 5p already. Anyone know why? That usually happens when something has been tipped somewhere in a paper or magazine.

Regards, Paul.

[1fox1] 10/6/2014 15:33

Looks like I must double apologise to Paul. I should have been buying instead of whinging!!

[compound_dave] 05/6/2014 20:23

I like how quiet this message board is, a good sign for an AIM investment.

Proving a nice buy at 60p, and I believe a dividend paid if they can keep things on track.

[molatovkid] 05/6/2014 09:27

Nice 100k mid-price trade ticked through....confidence buy hopefully

[topvest] 04/6/2014 21:07

Excellent - they haven't lost their sales technique then!

[molatovkid] 04/6/2014 11:11

Aye aye.....contract win RNS's (plural) would be nice ! These are announced on their website to be fair....

hxxp://www.eventmagazine.co.uk/news/1296808/space-people-wins-brindleyplace-contract/

hxxp://www.eventmagazine.co.uk/Destinations/article/1295263/Space-People-wins-brand-activation-contract-Fusion-Festival/

[compound_dave] 03/6/2014 12:45

Nice movement today. Notice it popped up as a buy in the John Lee screen in the - article.

[compound_dave] 28/5/2014 13:06

P/E of 7 here. Would be surprised if we can't re-test £1 in the next 12 months.

[she-ra] 27/5/2014 11:03

SAL seems to be jumping around a bit this morning.

Does anyone know who their main competitors are and also what companies are in the same business in the USA?

Thanks in advance.

[topvest] 26/5/2014 20:00

Agreed, Printing.com, whilst an innovative company, was in a market that was in decline. The printing industry is heading one way only. I never invest in companies that operate in markets that are in technological decline. SAL are in a more robust niche market with growth potential. Very different. For SAL it's all about operational performance at the moment. They have proved that they are good salesmen. They just need to convert their contract wins into better profitability.

[paulypilot] 26/5/2014 19:17

Hi Seernb,

I think your comparison of SAL and Grafenia is completely wrong.
SAL is not capital intensive at all, quite the opposite!
Also it has very successfully expanded overseas, especially in Germany.

Grafenia has failed to grow turnover & profit, whereas SAL has a very good track record, until 6 weeks ago anyway.

So not an accurate comparison at all in my view, in fact it's way off the mark.

Regards, Paul.

[seernb] 26/5/2014 13:52

SAL today reminds me of Grafenia back in 2007, when it too was priced at around 12 P/E and people were remarking at how cheap the stock was "for a growth stock". The stock peaked at 75p and then kept falling, even as the management were confident that growth would resume - they even bought back the company's stock on several occasions.

Obviously, there are differences between the two companies. Grafenia struggled to expand beyond the U.K because its website printing.com and printing facilities tied it to the U.K, while SAL can in theory replicate its business model anywhere. On the other hand both businesses are quite capital intensive and have low barriers to entry.

For me to buy into SAL, I'd either want a much lower price or be confident that the growth story is intact and that means traction in expanding the business overseas. And India and Russia don't reassure on that score. Does anyone know why they decided to operate in those markets instead of expanding in the U.S? That would seem to be the logical next step.

[compound_dave] 24/5/2014 00:14

I'm in for the titride here. Love trying to pick a bottom. Think I picked it at 61p but you never know.

[cycle2] 23/5/2014 21:54

Paul,
Thanks for that insight - just what I was looking for and your past experience with watching HH's moves is very valuable. Really appreciate you having taken the time to set that out.

[paulypilot] 23/5/2014 18:49

Hi cycle2,

There has been a 170,000 Offer at 72p for quite a while now, on the Level 2 order book. That's probably Hargreave Hale, in my opinion.

So they're not slamming the price down at all, they're too smart for that. They're just waiting for the price to get back to 72p, and at that level their stock will gradually be bought, and one imagines they will then reload with more stock to sell, probably at a slightly higher price.

I've seen them "walk the price up" when they are selling lines of stock, they're very smart people, I used them as my main broker for about 6 years.

I suspect HH probably want to exit in full, as they cleared an overhang, and then got whacked by a profit warning, so in their shoes I'd be feeling pretty bruised too.

In the long run none of this will matter. Overhangs sometimes take a few weeks or months to clear, who cares? It's the newsflow & the figures that will determine the long term share price.

If there's no more bad news, and the next results/trading statement are more encouraging, then I would imagine we'll be gradually working our way back up to about 100p per share.

If there's more bad news, then we might well lurch down to 50p. We'll just have to wait and see.

As management have big personal shareholdings, I'm sure they are working their socks off to get things back on track. Also bear in mind that the profit warning was that profits were halving roughly. So it's still decently profitable, in a niche pretty much to itself, and has a very good long term track record.

so I think there's still everything to play for here, but have no idea how things will pan out. You just do your research thoroughly, take your stake & then hope for the best really, same with all small caps!

Have a good long weekend all.

Regards, Paul.

[cycle2] 22/5/2014 18:26

As expected, nothing back from HH apart from keeping things close to their chest. However, looks likely to me that they're still looking to sell some of their stake in SAL... so current rise may be short lived, perhaps?

[mortimer7] 22/5/2014 16:23

A few buys today & Sp has ticked up a couple of pence. Bit of a deterent though with the spread of 61/66p for an online quote.

[cycle2] 21/5/2014 16:53

Have emailed HH to ask about their plans for selling their holding. Not confident of a reply but thought it was worth asking! I'll post anything I hear back here...

[mg1982] 21/5/2014 10:11

cycle - give HH a call.

I doubt if they will sell out completely.

[cycle2] 21/5/2014 08:52

Does anyone know whether Hargreave Hale are dumping all their stock (in which case there's a long way to go yet...) or are just reducing their stake. I'm looking to get in here but if HH are still planning on selling 12% of the company I wonder if the share price might continue to fall?

[she-ra] 19/5/2014 13:37

Hi, I looked at these about 6 months ago and read something about regulation. I cant remember what it was about. Could someone tell me about regulation and could it be a problem for Space and People.

This looks like a pretty solid company. Is there any reason why regulation now or in the future could negatively impact this company? And which country is this regulation in?

Thanks in advance.