Stadium Group Share Discussion Threads

[owenski] 17/2/2011 14:42

Touchpaper been lit on these, about time. :-)

[stocktrawler] 17/2/2011 14:21

Starting to look more like a break-out now... ST

[cockneyrebel] 17/2/2011 14:08

hmm, pretty good move today - keeps rattling back and fro in this trading range doesn't it.

CR

[interceptor2] 15/2/2011 11:06

Price starting now to anticipate results early March, only small volume but all transactions each day have been buys. Chart has a solid look to it over the last year, bouncing off the 50ma on every occasion.

Regards ic2.......

[labatie] 01/2/2011 16:07

I'm sure they will

[owenski] 01/2/2011 14:33

"Disappointing that these have drifted down"

Agreed, but they have done that before. Read through the most recent results and TU,s again, and my opinion is the same, these are very good value and with the latest TU putting revenues ahead, these will be single digit PE at results in Feb.

[labatie] 01/2/2011 14:19

Disappointing that these have drifted down when they appeared to have some momentum

[interceptor2] 27/1/2011 10:45

Thanks alter ego for the explanation.

I find that most company's normally refer to market expectations in trading updates.

Regards.......

[alter ego] 27/1/2011 10:34

I spoke to the FD of another company not so long ago and asked why they didn't refer to "market expectations" He said they preferred to avoid reference to what the market expected because "market expectations" were capable of being interpreted differently according to which set of views you looked at.

It boils down to the avoidance of misleading the market since no-one knows exactly what internal expectations are.

[interceptor2] 27/1/2011 09:25

I have recently started running a portfolio for my nephew, having just recieved the cash from FSG being takeover. I have placed the money in SDM, hopefully his good start will continue here.

It's interesting to note the wording in SDMs recent statement,( The strong trading performance reported in the interim financial statements has continued through the second half of the year, consistent with the directors' expectations ) They didn't mention market expectation, which would imply to me that directors don't agree with current market forecasts.

Either they believe results will not meet forecats or they will exceed forecasts. Given the sector SDM operate in, I suspect the directors believe results will exceed.

I don't know why they didn't refer to market expectations. Maybe it wouldn't suit them to see the price race away just yet.

Who knows, maybe I'm just reading too much into this and talking nonsense -:)

Regards ic2........

[interceptor2] 23/1/2011 16:12

Agreed that Asia is the key here, at the last Interims Stadium Electronics increased sales by 43% to Asia and Stadium Power by 100%. Against 29 and 19% respectively for the UK.

The breakdown of performance should make interesting reading.

ic2..........

[cfro] 23/1/2011 13:55

Nice post interceptor2.

I would add my thought to that. RE margins. 7.5% is quite reasonable to my way of thinking for an electronice co like SDM, so its going to be hard to increase that rate futher. However, i think the key (as it usually is) lies in Asia. If we hear the words that "...Sales have increased in Asia.." in the next set of results then one can safely assume that improving margins are not far behind.

[cockneyrebel] 23/1/2011 11:22

Interesting interceptor2, cheers.

CR

[interceptor2] 23/1/2011 11:02

7,24p is a very conservative forecast, I can't see how brokers have arrived at these figures..

I have made some crude calculations this weekend now that we have the trading statement. We know SDM are 25% ahead on continuing revenue which would give a figure of 44.125m, then using the interims margins of 7.5% would give an operating profit of 3.310m.

To arrive at the PBIT I have doubled the finance cost from Interims to 0.573m (Expect this figure wiil be much lower) but I have added back 0.200m in rent for the freehold property. So PBIT = 2.938m.

PBIT = 2.928m - Tax 0.618m 21% ? (Same as last two reported results)= Net profit of 2.32m divided by shares in issue 29,030.953 = EPS 8.0p.

Revenue = 44.125m
Op Margin = 3.310m
Finance = (0.57m)
Rent = 0.200m

PBIT = 2.928m
Tax = (0.618m)

Net Profit = 2.320m
EPS = 8.0p

I think I have been very conservative with these calculations, and believe the results will much better then expected. With Finance cost likely to be lower than my forecasts, and more significantly could be Operational margins which may very well come in better than 7.5%.

The brokers are being candid with their forecasts imo, having marked them down on 3rd September from EPS 8.0P TO 7.2P the day after the Interims when the company stated again that (even without plastics division, we are confident of achieving market expectations to finals)

Regards ic2...........

[cfro] 19/1/2011 18:18

IMO we could not expect any more from management regarding todays TS. I read it as very good, particularly the mention of Asia. Brokers are forecasting EPS of 7.24p for this year and 8.12 for YE 2011, so a PE of 10.5 and 9.4 respectively. And i reckon these forecast will be smashed.

[labatie] 19/1/2011 13:44

Would people agree that the 25% growth in t/o refers to continuing businesses, as the plastics - which I think was c£11m for the previous yr - was discontinued in June.

[simon gordon] 19/1/2011 13:12

GCI - 19/1/11:

Stadium to hit goals

Electronic manufacturing services provider Stadium Group (SDM) has unveiled a trading update in which it declares sales for the year to 31 December will be on target.

The Hartlepool-headquartered concern reported that there was 'strong trading' in the second half of the year, something described as being 'consistent with Director's expectations' adding that sales were up 25 per cent on the previous year (2009: £46.6 million).

In addition the AIM-quoted company observed that net cash at the year-end was £1.5 million while the sales of its plastic business 'Branded Plastics' in June netted £2.5 million.

Looking forward, it said it was focused on activities in the electronics sector, and hinted that it will seek to make further acquisitions if 'suitable opportunities present themselves'.

Following the update analysts at house broker Brewin Dolphin have held their forecasts. The broker is forecasting pre-tax profits of £2.7 million on turnover of £44.7 million for the full-year, with pre tax profits forecast to grow £300,000 to £3 million on top line growth up 8.5 per cent in 2011.

With a forecast EPS of 7.2p and 8p, the shares are trading at 10.4 and 9.4 times respectively for 2010 and 2011 earnings. Offering a dividend per share of 2.8p in 2011, a yield of 3.7 per cent on the current price is also forecast.

Last recommended by Growth Company Investor in March of last year at 53p, the shares have gained 41.5 per cent since, up 0.5p this morning to 75p following the update.

Continuing to offer a generous yield and trading on a PE ratio of around ten, we think the shares are worth holding on to for the time being and continue to offer good value for money. Buy/hold.

[dasv] 19/1/2011 12:40

Statement is fine. The idea of acquisitions is potentially dilutive but more likely earnings enhancing. The geographical and sector focus on where the growth is happening is very encouraging PEG wise.

[stegrego] 19/1/2011 12:40

HB

Stadium Group (SDM, 74.5p, £21.75m) Year to December update has confirmed the continued strong trading of H1 and aided by both underlying cash generation and the focussing of the group with the disposal of its plastics business, resulting in net cash balances of £1.5m. Outlook is for continued growth with the strong balance sheet giving the potential to add acquisitions to the mix. The group has risen to our price target (74p target price in our September 2009 at 61.5p) but we believe investors will now focus on 2011 and forecasts EPS of around 8.1p on 11 times leads us to increase our year price target to 89p – so we maintain the BUY. (Julian Tolley)

[azalea] 19/1/2011 12:32

With just 29.2m shares in issue and combined major/directors holdings @ 60%,even modest buying volume should move the share price up.

[cockneyrebel] 19/1/2011 12:13

A pretty decent statement today I shought - not market busting but they don't seem to do market busting in statements, think we need to see the results but they will meet at the very least and there might be property sale news by then too perhaps/

CR

[azalea] 19/1/2011 09:23

The update is very promising with the BoD stating it expects to meet market expectations. "strong trading performance reported in H1, has continued through H2.Remains confident of the prospects for organic growth".

Interims Ptx £1.45m(£0.45m)EPS 3.9p(1.96p), div 1.45p(1.3p)

Brokers FY consensus Ptx £2.72m(£2.3m) Eps7.24p, div 2.5p.

FY results 9/3.

[interceptor2] 19/1/2011 09:04

I'm happy with the statement, it seems more inline than exceeding but I think the management are conservative in their statements.

Happy to hold at this valuation.

Sorry I cant post much at this time, I'm in Spain for a month with limited internet connections. Just keeping an eye on my holdings at this time.

Regards ic2...........

[labatie] 19/1/2011 08:58

Interceptor

Does this statement chime in with your own view?