Sthree Share Discussion Threads

[cockneyrebel] 10/3/2013 20:59

These were down 12p on Friday afternnon, closed down 5p - buyers want the dips on recruiters imo.

And the share is breaking out:

[paleje] 08/3/2013 10:45

This was the article about poss takeovers:-

UK recruiters set to dominate global markets – City Comment
Thu, 7 Mar 2013 | Kevin Lapwood, head of support services equity research, Cantor Fitzgerald Europe

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9Recent results from the quoted companies under our coverage indicate that there could be some grounds for optimism.

So far this year we have seen the full year results for 2012 from SThree, Robert Waltersand Michael Page, and half-year results from Hays. There have also been trading updates from Hydrogen, Matchtech and Harvey Nash. The themes are quite clear. The second half of last year was truly dreadful for most global recruiters, particularly the third quarter. Most regions, including Asia Pacific, which had hitherto bucked the negative trend, came under pressure. Average net fee income (NFI) in 2012 was down by 0.3% and operating profits fell by 12.8%.

Temporary and contract NFI held up better than permanent and some specialist areas, like engineering and IT were stronger than average. Looking forward, the outlook is uncertain but it appears that some degree of normality is now returning to most markets. This is far from unbridled optimism and it by no means signals the end of the recession but it could, in Churchill's words, be the "beginning of the end".

However, this is not likely to be of much comfort to financial services recruiters, where the outlook looks unremittingly gloomy across the globe. In the past, this would have been the signal for a significant, but often short-term, reduction in recruiter headcount as companies cut costs while waiting for the good times to return. It is interesting that this appears not to have happened. Average headcount decreased by less than 2% in 2012, as companies sought to reallocate resources to new markets both geographically and operationally. Most quoted UK companies opened more international offices and many entered new markets both geographically and operationally.

This will significantly alter the shape of the industry for years to come. It will become less reliant on traditional markets, like the UK, and more diversified in its activities. This has got to be good news for UK recruitment companies, which look set to dominate global markets for many years to come. It will, we believe, only be a question of time before this attracts the attention of large US and European predators and we expect more M&A activity in the near future. So perhaps there is some good news for financial services after all.

[paleje] 08/3/2013 10:09

The update tone wasn't unexpected after the results statement and flat divi, the UK&I and parts of Europe are the culprits plus the tilt to contract from perm.

Perm to Contract was 50:50 at results, but now 46:54 and that affects profits.

But Non UK&I share of gross profits increased from 65% to 68% so rest of world is still doing well and the ratio growing, ie. increasinbly bigger footprint outside the UK. They have strong demand in parmaceuticals, biotech, energy, engineering and mining and their core IT business remains good.

There is insatiable demand for personnel in the US petroil, gas and shale industries which is also being seen in other countries, there was also some comment yesterday, which I can't find now, admittedly speculation, about US or European heavyweights eyeing up suitable UK recruiters. Personally I think STHR are in the right places at the right time and could be a candidate for such attention if and when (that's not a rumour spread btw and if I find the article link I'll post it).

[mechanical trader] 08/3/2013 09:53

hmmmm you could be right

Looks to be a data malfunction across road.

Apologies if this is correct.

[mechanical trader] 08/3/2013 09:22

Yes it is.

Dont know where you get your figures from?.

[v11slr] 08/3/2013 08:39

No it's not, it's down 2% on a massive 2418 shares traded.

[mechanical trader] 08/3/2013 08:37

Dropping like a lead weight.

[mechanical trader] 08/3/2013 08:05

Results arent that great!!

Terrible was hoping for a lot more.

[richard98765] 08/3/2013 07:59

This should dip today and possibly leading into next week so might see a buying opportunity by next Friday. Results aren't that great

[shanklin] 08/3/2013 07:29

The HVN share price would need to treble to be on a similar rating to STHR and HVN are still growing profits. Certainly looking forward to a jobs market recovery.

[cockneyrebel] 08/3/2013 07:27

Well that's as much as I expected, or better imo.

But things were never going to sound great - anyone could see that from MPI results this week - but the clue is MPI's chart - it shrugged the results off and rallied to mew recent highs.

No good buying recruiters when they start telling you there's a jobs recovery, the price will have doubled by then. If you believe like I do that there is a global recovery on then the jobs will follow just as night follows day imo.

All imo - I'll just keep buying the dips and wait for recruiters to take off - the chart here tells you more than any trading statement and it's breaking out and steepening upwards.


A near 4% yield to help you along too.

All imo, dyor etc

CR

[mechanical trader] 08/3/2013 07:15

Not very good results.......

[paleje] 07/3/2013 14:34

Todays IC positive on recruiters in general and STHR in particular:-

....SThree is currently rated on a forecast PE ratio of 14 times, a discount to its historical average and the wider sector.....

[bullinachinashop3] 28/2/2013 15:04

at long last

[cockneyrebel] 28/2/2013 08:06

Chart breaking out - HAS doing better than expected imo - mCEO upbeat on Bloomberg.

CR

[cockneyrebel] 11/2/2013 10:37

Recruitment seems to be picking up.

STR bouncing off the 50 day average again.

Recovery seems to be happening in Europe - should have positive effects for STHR imo.

MPI moving up recently - often a good indicator imo.

CR

[bonzo] 29/1/2013 09:02

Broadly encouraging under the circumstances I think. The geographical diversification should help in the long term.

[paleje] 28/1/2013 07:54

Pharma/biotech up, Energy/engineering up, everything else iffy, profits down, divi static, nothing in the statement I could see to give cheer, phrases like 'satisfactory under the circumstances' don't excite. However there's plenty of cash, fee levels have been maintained and they're working to manage contract more profitably, overall a bit disappointing but probably to be expected after the last trading update.

[paleje] 14/12/2012 10:39

That's an upgrade they were target 265p previously, nice change of view.

[v11slr] 14/12/2012 10:12

Peel Hunt have upgraded STHR to a buy with an increased price target of 390p.

[paleje] 03/12/2012 11:17

Is the global outlook going to improve? same question. Or rather when.

Dunno. Noticed a piece in todays Telegraph though arguing the commodities supercycle has only stalled and will lift again 2013 onwards, STHR have over last 2 years developed mining and related engineering expertise I was concerned it might have been a blip only, but if the sector starts heading north again they'll be well placed to build on that, pharma and IT are healthy too. Financials seem to have been worst affected. My own experience in hospitality & food ind has never dipped, restricted only by government restrictions on foreign skills.

[el chupacabra] 30/11/2012 21:16

low 290's is a good place to have a punt imo, might have missed the boat tho

is the job market is the next recovery story?