Sivota Share Discussion Threads

[waveneygnome] 09/2/2017 15:44

So what should the turnaround strategy now be?

[she-ra] 09/2/2017 14:32

Mount Teide - They also bought Myspace and completely wrecked it.

[bookbroker] 09/2/2017 14:04

To be honest, it was Martell who bought many of the cos., but the transformation has done nothing for this co. except load it up with debt, they had to get away from printing inserts and CD covers, etc., but the acquisitions have not really created much value for shareholders, a shame but where you and what do you do these days when you are trying to re-invent a publisher of printed material!

[bookbroker] 09/2/2017 11:44

I bought these on the fall into the seventies, CJohn, based on a minor rebound and quick flip, however I bottled it and sold around 73p, for once it looks timely, I do not like investing in cos. with a poor debt to equity ratio, and large intangibles, and actual low NAV relative. I think Armitage has a heck of a lot to turn this around, I think it looks sort of ominous, the number of moving parts in the digital division is cause for concern, they should have amalgamated in to two or three businesses, but as they were all owner occupied there are a lot of personalities within those businesses with different agendas!

[cjohn] 09/2/2017 10:51

You must have a stronger stomach for debt than me, Bookbroker!

Negative tangible equity: nothing left to sell off to mitigate the debt.

And of course, it's the old analogue books divisions that are generating the cash flow, that is keeping them alive.

[diku] 09/2/2017 10:45

Broker forecasts are meaningless if company comes out with order cancellation every few week....

[bookbroker] 09/2/2017 10:38

It's fine if you can amortise those premiums paid, but that is done on the basis of the individual concern on an upward trajectory in terms of the valuation paid and profits achieved, some of these cos. are not achieving that status, so the premium paid will have to be written down as an intangible loss, but off course these have been acquired with debt and there lies the rub, the debt does not disappear, it lingers and the co. will likely have to cut the dividend, the debt is not exorbitant, but the pressure on margins is becoming tighter, therefore it's likely earnings will be further impacted on the basis they can not cut costs out of the business speedily enough!

[diku] 08/2/2017 18:17

Possible to write down insiders salary, bonus, share options etc etc...

[bookbroker] 08/2/2017 16:30

I think there will more writedowns unfortunately, it is looking like they have overpaid for many of those acquisitions in relation to their prospects down the line, it's looking a bit of a hornet's nest this one, and the retail division looking somewhat questionable!

[diku] 08/2/2017 15:38

Master RSI is not going to be very happy...

[diku] 08/2/2017 15:32

Wonder when was today's news known to the insiders?...was it deliberately delayed?...

[pugugly] 08/2/2017 15:20

Printing is dying - digital is growing - For books, advertising, posters etc.

In the same way letterpress was replaced by litho and litho by gravure ST Ives basic business is in decline so why invest in a buggy whip manufacturer in the days of automobiles.

[diku] 08/2/2017 14:10

And the CEO keeps on repeating the same story...confident in the long term growth..

As stated in the Group's pre-close trading update on 19 January, the Board remains confident in the long term growth strategy currently being pursued. The balance sheet remains sound and the Group has the necessary cash flow capabilities to support its investment priorities and to further reduce debt.

[prokartace] 08/2/2017 13:45

There is no stopping it once it starts there is no end to the bad news

[qs99] 08/2/2017 13:13

another body blow IMO....until management stabilise the business it is too much risk IMO to invest in...gla

[waveneygnome] 08/2/2017 13:08

Can't blame Brexit/Trump for this one.

Presumably the contract lost to CPI - the main opposition. This is a race to the bottom:

St Ives Clays won Penguin Random House work from CPI (at a lower price)
CPI wins Harper Collins work from Clays (at lower price)

The winners here are the publishers.

[irenekent] 08/2/2017 13:03

Just remember not to buy anything published by Harper Collins! Presumably they will be printing abroad. Maybe we need some of those Trump tariffs to make Britain great again.

[nick rubens] 08/2/2017 12:47

Looks like I added a few too early. Yes I agree it seems over done. Time will tell. Can wait in my SIPP as I can't think of re investing anywhere else much better at moment.

[haroldthegreat] 08/2/2017 12:46

No point in chasing Less profitable sales. Sales are vanity profits are sanity !

[declan2] 08/2/2017 12:39

Seems overdone, but not adding to a losing position

[diku] 01/2/2017 23:06

Buy other businesses on hope for jam tomorrow & to muddy the figures so insiders keep their lifestyles going...

[bookbroker] 31/1/2017 19:02

Off course he has been listening to their financial advisors, but who is responsible!

[bookbroker] 31/1/2017 17:09

'Who Knows What The Future Will Bring', this is SIV's analogy for the year ahead, well it is becoming apparent some serious rationalisation and heads need to roll, the first being the finance director, if you look at their website it is he who seems responsible for many of these acquisitions, Gray has been with SIV for donkey's years, and by the looks of it too long, how is this guy qualified to decide the value of the cos. acquired, he should go before he does any more damage!

[waveneygnome] 31/1/2017 10:53

Now that's one thing we can agree on Bookbroker.