Stanley Gibbons Share Discussion Threads

[apcx] 23/4/2004 13:39

Why are these so cheap ?

[rivaldo] 23/4/2004 13:38

First buyback? 100,000 shares traded at 75p, the starting mid-price.

[cambium] 23/4/2004 13:11

Don't forget the pRVD cash too

[smow1] 23/4/2004 13:07

And if they beat those estimates, which they may well do, then we could go to a P/E that is sub 10 despite massive growth. What a bargain.

[popgun] 23/4/2004 12:53

Can I check I've got this right -- current P/E at 75p/share is 21.5, forecast P/E based on EPS of 6.9 is 10.9?

Maybe some non-holders going through their screeners are just seeing the current 21.5 and assuming that SGI has therefore had its growth, not going further to see that expected growth really is as strong as it's forecast to be. Just a thought.

[smow1] 23/4/2004 10:32

dbcnotts - thanks. Excellent write-up, can't be long before these start to motor-up again. Amazed how oversold these became - as usual people throw the baby out with the bath water and over react to the downside. Once buyers return we should see a rapid price reversal and head back to the 120p+ target this share deserves with its low P/E and high growth rate.

[cambium] 23/4/2004 10:15

cheers db nutts

[dbcnotts] 23/4/2004 09:48

Morning all - here is the IC piece.

23 April 2004

STANLEY GIBBONS (SGI)

Stanley Gibbons held its AGM on 15 April, announcing simultaneously that sales for the first quarter of 2004 are 20 per cent ahead of where they were last year. Retail and general stamp trading activities are both performing well, while strong advertising revenues, combined with an improved return from direct marketing activities, are helping counteract the negative effects of late catalogue deliveries in the publishing and accessories division.

That all bodes well for the interim results, due out on 30 July, and the shares rose 5p to 74p on the news. We last recommended buying Stanley Gibbons shares at 79p (5 March 2004) after another strong set of results. Since then, the company has been buying back shares for cancellation, and a vote at the AGM allows for another 15 per cent to be bought in.

On broker Seymour Pierce's estimate of 6.9p earnings for 2005, Stanley Gibbons trades on a PE ratio of just under 11, at which level, and given the company's strong track record, the shares remain a buy.

[cambium] 23/4/2004 09:26

It is very quiet here today - esp after the tip. My postie doesn't come until lunchtime and IC will not accept my password on line - sorry can't help.

[rivaldo] 23/4/2004 09:24

This must be the only share to go DOWN after being tipped!

I'll pop out later to scan the IC (unless someone can post the gist of the tip?).

[rivaldo] 23/4/2004 07:37

For £40k a week - not 'arf! The clincher is the free ciggys and VIP treatment down the local Tiffany's - those Bolton lasses are legendary down the Copacabana.....

And SGI have been tipped as a Buy in the Investors Chronicle's update today - what a day!

[shanklin] 23/4/2004 06:44

So rivaldo, are you joining Bolton Wanderers?

[kael] 23/4/2004 00:14

methinks they will be good. but then again methinks a lot of things :)

[rivaldo] 22/4/2004 21:53

FYI PRVD back up to $23 in the USA - they're on a forward P/E of around 40, so the results had better be good so that SGI can get rid at a decent price!

[clocktower] 21/4/2004 13:01

I am not clear how they work it ukh but I would think they have to pay that on UK earnings but they may pay the .8% on offshore earnings as busineeses are able to negotiate the % of tax they pay in The Channel Islands with the local Tax Offices.

I understand that the very rich pay a very small % of income in taxes through these arrangements in Jersey.

As always the rich pay a lot lot less than Mr.Anybody. That is one reason why so many Tax Exiles go to the Islands.

[ukhawk] 21/4/2004 09:46

Stanley Gibbons Group Ltd pay UK corporation tax at 30%, same last year (2002). There is a figure of 0.8% stated as Jersey tax though.

[clocktower] 21/4/2004 09:01

Channel Island companies pay 20% Tax and may pay zero company tax in a couple of years time with changes that are expected in the next couple of years.

[rivaldo] 20/4/2004 22:29

Thx for picking me up on the above. Shows just how good SGI's cash flow is, and the solidity of the NAV especially with the unrealised portfolio surplus, even after tax.

FYI PRVD's third quarter results will be out May 4th:

[kael] 20/4/2004 17:44

They are subject to 30% tax now, but expect it to be brought down by few percent from relief here and there.

[shanklin] 20/4/2004 17:38

Rivaldo

FYI, I suspect that the £11m+ portfolio surplus, if realised, would be subject to taxation, so although its very helpful, it does not increase the TBV/share by as much as 45p. I don't know the tax rate that applies to SGI currently, but at 30%, we're still talking about 32p a share... ...as you say, "Nice"

Cheers, Martin

Long SGI and hoping for a bit more upward movement in the share price than we have seen recently.

[xdavid] 20/4/2004 17:33

Sorry to correct you Rivaldo, but that "£1.9m of cash" was brought down to about 0.8M after the buybacks.

However, SGI did increase that cash balance by 840K in the last 6 months of 2003 which, hopefully continuing, puts them back up to over £1.2M net cash already...

[kael] 20/4/2004 15:09

Yep that was one of the many things I was happy about - having a shrewd scot on the team - always a bonus :)

He did say to put a warning on that 10p - thats what he was aiming for - but it is dependent on,i think, the PRVD stake remaining above about $22

[rivaldo] 20/4/2004 15:05

Thx kael - I missed that the first time round.

Nice to see that SGI is in the hands of a dour, risk-averse Scot - has to be a major plus!

So even the CEO is happy to infer that the share price is not ahead of itself - pretty rare. SGI is now on a forward P/E of less than 11 based on 7p EPS for 2005, and that's without taking into account the potential 10p per share dividend (as quoted by the CEO), the £1.9m of cash and the NAV which apparently includes around £11m of unrealised surplus via the portfolio, or another 45p per share.

Nice.

[kael] 20/4/2004 13:37

you can listen to it here: