Stanley Gibbons Share Discussion Threads

[giovannina] 05/3/2005 00:02

I hope watshot Bill J.( ..shuld not be chased at this level.) is totally wrong ...again...and SGI going 2 fly next week,good luck 2 all long term holders,I keep holding and maybe buy some more...!!!

[yf23_1] 04/3/2005 18:12

Don't forget - Warren Buffet's report to shareholders in Berkshire Hathaway will highlight that he is heavy on cash for the forseeable future, be it years ahead. i.e he don't like stocks or bonds. What is he saying....
...your money needs to find a home that will keep its value, i.e collectables.
More power to SGI.
BTW
Last trades are 3 million 'B' Broker to Broker
A transaction between two member firms where neither firm is registered as a market maker in The security in question and neither is a designated fund manager.

Somebody gettin ready to tip it then eh ?

[giovannina] 04/3/2005 15:38

Stanley Gibbons - Update
04 March 2005 (13:05:20)
Stanley Gibbons - Update
In a market as venerable as that of collecting stamps, it takes management of real quality to squeeze additional sales out, but Stanley Gibbons (SGI) reporting for the year to December 31st 2004 did just that; income of £6.7 million from this source against an equivalent £5.4 million - and at constant margins as well - giving a current-year contribution of £1.7 million against £1.35 million. Philatelic trading and retail operations were not the only locomotive for the group writ large however, as publishing and accessory sales weighed in with a gross profit up by £200,000 on sales scarcely changed, and whilst the £265,000 which emanated from autographs and memorabilia lags a long way behind in terms of relative importance to the group, the management there got a tick in the right box as well. The upshot was an operating profit of £1.7 million against last year's £1.2 million.

But since good things, like troubles, rarely come singly (just much less often) shareholders too can happily contemplate last year's near £2 million profit on the sale of the investment in Provide Commerce Inc, and wallow too, not only in the above-forecast 1.5p final dividend, having already enjoyed a special dividend cheque of 8p per share. That this still leaves cash balances of £2 million and as the healthy level of stocks are doubtless benefiting from a 31% increase in the Great Britain Rarities Stamp Price Index, about the only thing likely to disappoint is if the envelope containing the payout has an ordinary stamp instead of an 1886 Mauritanian Blue.

The normalised earnings per share for 2004 are 5.1p against the 3.6p recorded in 2003. The shares have moved up to 101p, which gives an historic price earnings ratio of 20, and a dividend yield of 2%. Whilst the general level of confidence undoubtedly plays a key part in the progress being achieved of late surging internet hits (doubled, to 20 million a month) and the creation and management of a stamp investment fund (with the support of an international bank) will ensure continued market interest, with the board both empowered and having the resources to buy in shares should there be any backsliding. The brokers are looking for earnings per share of 7p this year and 8.6p in 2006, meaning, if achieved, the prospect of forward multiples of 14 and 12 with matching yields of 2.6p and 3.2%. As the shares drifted downwards towards the 70p level I suggested that this was 'buy' territory ( from our previous 'hold'); this suggests to me that the shares now whilst a very strong hold, should not be chased at this level.

[elmfield] 04/3/2005 13:58

good enough, price has support,
press comments will be worth keeping a close eye on.

[elmfield] 04/3/2005 13:58

good enough, price has support,
press comments will be worth keeping a close eye on.

[kael] 04/3/2005 12:24

I actually had a quote on for 94.75 ready to buy and then got distracted by the other half, by the time I clicked, the quote had expired and the share price jumped to 96p :(

Im expecting we'll get some news in the trading update regarding the development of the fund - not far away now either. While not stellar results, they are solid and missing the eps by 0.2p is easily gleaned over with the actual content in these results.

Positive statements, increased divi and the prospect of a stamp fund with major international bank all points towards a good future.

[skyship] 04/3/2005 12:16

The price flickered through a 95p Offer @ c.9.00 this morning - at least it did on my screen. By the time I'd tried for a top-up deal on-line the cheapest offer was 97.5p!

I believe everybody has summarised well the various thoughts on the results. My view is that the continued growth in a UNIQUE business makes SGI a strong BUY to c.125p - the top of my drawn trendline. Whilst the upward tend is intact, SGI have to be held at the very least. Accordingly I am pleased to see 2-way volume today as it flushes out a few weak sellers - those with perfectly legitimate views that a Profit is a Profit.

The Stamp Fund is most certainly an intriguing prospect - remember there are now reckoned to be 200,000 SIPPs. Just a 5% SIPP market penetration with an average investment of, say, £3000 would equal a fund of £30m - YES - £30m; and that is from the SIPP market alone. This thing could be huge if they can agree the liquidity format - ie, what happens if many large redemptions hit at the same time.

If they have a serious bank name supporting, then the PR alone will add 25% to the share price

Perhaps I should pay up for my top-up after all!!!!

[jwe] 04/3/2005 11:43

Personally i have to admit to selling first thing this am at 101p,at these levels i feel this is fully valued(although not overvalued)and further increases may be hard to acheive(a 30% rise in eps this year is quite a big ask).Had the price reacted as i thought i.e. level to slightly lower i would have held,but from here further increases may be more difficult to come by.Good luck if you still hold.

[yf23_1] 04/3/2005 11:36

Excellent results. A P/E of 20, growth of 40% with more to come. That would give a low PEG rating and a good value hit on a lot of filter engines.
My target from chart is 124p .

[moneybags] 04/3/2005 10:04

The shares did this last time the results came out.Lots of sellers on the results morning,then after that it turned to buying for a few days if I remember right.

No need to sell with that set of results but the usual profit takers are selling.That's normal.

Regards , Moneybags

[gregory0106] 04/3/2005 09:43

Buyers returning & new interest from investors how hear about SGI strength for first time.

[addas99] 04/3/2005 09:36

Astute buyers return!

[gregory0106] 04/3/2005 09:13

Perhaps there will be re-newed interest once results pick up weekend press coverage.

[addas99] 04/3/2005 08:25

Yes, EPS growth slightly lower than expected (lower margin despite share buy back) but still an excellent third year's results on the trot. O3 saw share price from 16 - 40, 04 saw 40 - 83, 05 I expect around 140 maybe more as awareness increases as to future ISA inclusion.
Steady reliable growth on this scale will soon bring a status change in the multiple and with it a realistic share price Meantime sells outnumber buys 7:1..unbelievable.

[kael] 04/3/2005 08:07

The results are actually quite good, its just the forecast EPS was missed. But in honesty the results actually contain a lot of good points, mainly the idea of a stamp investment and the increased divi. looks like they are keeping the instutional base sweet, so I wouldnt expect too much volatility to the downside anyway.

[hectorp] 04/3/2005 08:03

I see some holders are a little disappointed.
I bought at 82p and I think I'll hang onto them for the uplift a Stamp Fund shall surely bring as well as continuing growth in stamp interest and stamp prices.
H.

[don carter] 04/3/2005 07:59

41% eps growth may not be stratospheric but it is still very good, so hopefully some new buyers will be interested.

[kael] 04/3/2005 07:57

Just realised, not long till the AGM and we get a trading update with that!

[jwe] 04/3/2005 07:54

Yes looking good perhaps there is some demand in the background.

[kael] 04/3/2005 07:51

well, well, marked up.

[don carter] 04/3/2005 07:51

jwe
Sharescope has 6.8. So with a rolling pe of 17 your point about neutral effect on price sounds right. Still, there was no big build-up to results either, so I don't expect a tidal wave of selling. This is still a steady eddy, and 05-06 could be a special year for growth for SGI given the impending pension changes and their impact on how people feel they should invest their pensions.

[jwe] 04/3/2005 07:50

Thanks.So putting it on a forward PE of 14,probably too cheap even in the short term.

[jwe] 04/3/2005 07:46

What is forcast eps for 2005?Memory tales me it is around 6.4 is this correct?