Stanley Gibbons Share Discussion Threads

[bookworm1] 03/4/2010 10:20

Downloads available from company website

Annual Report


No explanation given for increase in debtors.

Investor Presentation


Slide 17 - Confirmation of the story behind the internet figures:

Launch of shop and auction modules in Sept 2009 was the culmination of long standing internal web development projects. Regrettably, they were not of the standard we required or expected

Decision quickly made to make entire department redundant (4 staff), which became effective on a phased basis during Dec 2009/Jan 2010. As part of this process, an experienced webmaster was appointed

[bookworm1] 30/3/2010 20:44

Or maybe they are collecting share certificates to go with their stamp collection...

[gengulphus] 30/3/2010 20:36

To give one possibility, someone wants to automatically receive shareholder communications from the company. Edit: Or they want to have the right to attend the company's AGM.

Gengulphus

[jeanesy] 30/3/2010 16:09

I see a trade went through for 1 share. Some people believe this is a sign that something is going to happen - why would someone buy 1 share?!

[chairman2] 30/3/2010 10:52

wmdave

better not say! Imagine you are the research oik who is covering small caps for the very few funds that specialise in that group. You may have 200 companies to pretend to cover with no 'sector' coverage to provide shortcuts.

and most small cap funds are bottom up stock pickers often
doing their own high quality research which makes the brokers
job even more difficult

and oh the 'consensus' is often no help with very few stocks being
lucky to have 2 brokers other than the house broker covering them.
Most of the numbers published are fictitious - there is no research
behind them so I have no idea how they get round FSA rules on
forecasts.


It is surprising more dont take short cuts...

the house broker does - they 'take dictation' from the FD - its
easier than doing the unrewarded work themselves..

[wilmdav] 30/3/2010 10:35

Chairman

I hope it was not Seymour Pierce. Otherwise we are going round in circles!

I have long suspected that newspaper tipsters scan the top bulletin boards for ideas. It never occcurred to me that brokers might do so.

It also seems probable that most companies monitor relevant boards. I wish they did not have to sift through so much unnecessarily offensive material.

[chairman2] 29/3/2010 15:39

Wilmdave

I worked a couple of years ago with an AIM broker and
I swear they based their SGI forecats on your analysis.

More people than you think raid the MF data!!

[ygor705] 29/3/2010 09:20

Mr Oz...........good news and a pointer to the way forward here. A Chinese acquisition backed up by decent internet services could do wonders for the SP!

[ygor705] 28/3/2010 18:30

I've bought back all the shares that I sold at close to £2. One can argue about prospective 2010 earnings until the proverbial cows come home but the fact is that this number can always be improved by an earnings enhancing acquisition.............. and SGI have a strong enough balance sheet to do that. Strong organic growth is possible here ............. and thats the safest kind of growth for any investor.

[bookworm1] 27/3/2010 19:56

wilmdav point taken about forecasts. I was just trying to show how achievable it all is and where they can make improvements. P.S. I didn't notice how late it was!

jeansy your are quite right they made a big fuss about BRIC sales and appointing overseas agents last year with more to follow but there has been no mention of them this year. I accept Chairmans point that things have probably been quite tough and they have done well to deliver the results they have. But the new board have to build some credability by actually delivering on what they promise.

Even talk about a possible acquisitions seems somewhat risky at this present time. Whilst their latest acquisition is giving a good return on capital it is only small and will divert management time attention away from controlling the rest of the business.

The festival in london should be a good opportunity to raise their profile and I hope they are planning to make the most of it. That should help to lift results.

[jeanesy] 27/3/2010 19:30

There appears to be very little coverage in todays press, unless I cant find it? There is a piece that says that our chairman will be looking at companies in Hong Kong next month so that we can tap into the Chinese market. Why has he not done so already! This company really needs to wake up imo, so much potential if only someone realised it!

[bookworm1] 26/3/2010 16:31

Chairman thanks for your comments. I agree with you.

Playing around with some figures I reckon a 15% sales growth could realistically generate a pre tax profits of £4.5m. That still gives them some leeway to improve results even if sales fall short by improving their cost control. But IMO that is their base line.

Wilmdav I notice that you have projected fcf next year of £2m. Is that your figue or have you got it from somewhere else because I get a similar figure due to increased stocks & debtors as a % of sales?

[chairman2] 26/3/2010 14:34

bookworm1 - you keep us all on our toes!

For me the margins and the balance sheet represent a more believable

and conservative accounting. BUt you're right its a tough market out there

and the internet is especially tough with competitors operating a

practically zero cost base. The biggest and slowest shark doesn't always

eat the most food but it gets really hungry the little sharks better

watch out!

The CEO went into the recession a little too gung-ho saying stamps

as investments were immune to the economic cycle. If the reality is

just a little different its been a pretty gentle lesson. The company

is still growing despite it all.

[bookworm1] 26/3/2010 13:19

The new board are good at talking up the potential but the results show that they are still treading water and have yet to deliver on some of their key objectives. Hopefully this year will be a bit better.

Gross Margins continues to fall about 4% per annum from 60% (2002-2004) to 42%
Debtors have increased significantly by £6m from £3.9 to £9.8 and have not been commented on or explained.
Internet sales of £1.2 are down against last year £1.5 and the long promised revamp has still not occurred.

The much talked about stamp investment fund is .. again still pending.

I accept that the market has probably been quite tough for them and they have done well to deliver the sales results they have but IMO the board have still to demonstrate that they have got to grips with this company and deliver on their promises.

[wilmdav] 26/3/2010 12:41

Chairman

Succintly put but worth 1,000 words.

I do believe the market is beginning to catch on.

[chairman2] 26/3/2010 12:17

Wilmdav - as always we are deeply indebted to you

and hooray the very worrying trend of cash retention
of the previous five years has been well and truly reversed.

I never uderstood how this business which is an intermediary
function in a cash-based retail space could every be allowed
to have decling cash generation.

Hooray for the new FD and Brailsford too.

The investment case for the underlying business has always
been strong - now the case for management is being made as well.

[its the oxman] 26/3/2010 11:59

yep - my hope as well Moneybags re weekend - just need management to deliver another few sets of decent results and we could even come close to doubling our money here! but can they do it?

[clocktower] 26/3/2010 11:32

A good time to buy back in for longer term growth imo.

[wilmdav] 26/3/2010 11:32

Take a look at the cash flow charts on here and that for capex investment. There are very positive things going on here.



I'm am pleased with these results and the more conservative and professional tone of the report bodes well for the future.

[moneybags] 26/3/2010 11:12

Oxman.............A good set of results on a friday usually means lots of press in the weekend papers too.

Regards ,Moneybags