Sthree Share Discussion Threads

[paleje] 04/4/2011 16:17

Two other recruiters reported strong growth - EMR (admittedly with a glitch to deal with) and ITQ, the latter reporting very strong increased demand from financial markets and saying the future is looking much clearer and that makes a change from the usual guff about low visibility and still uncertain markets. HVN will produce figures end of this month and it would be nice to hear an upbeat outlook statement from them.

These smaller players are held back on very low PE's in spite of excellent performances. As soon as more CEO's take the plunge and get a bit more bullish about future prospects some re-ratings surely have to happen.

STHR are in the middle of the sector size-wise, their current year PE looks high enough against consensus forecasts but if their future performance matches the bullishness currently coming from operational management, forecasts may turn out to be on the conservative side imo. They've got an AGM coming up 21st Apr, it would be nice to hear something a bit more upbeat from the CEO, who admittedly gave great figures for last year but has been cagey about the outlook and didn't increase the divi despite sitting on a cash pile. Come on Russell, you're geeing management and staff up, don't forget the shareholders.

[bonzo] 04/3/2011 07:27

Fabulous results...

[paleje] 04/3/2011 07:26

Strong RNS trading update this morning, continuing actual growth and forward deals sharply up, ratio of non UK business increasing, margins strong, 50m cash in the bank.

''..... We also take confidence from our deal pipeline, with deals agreed but yet to start up by more than 30% year on year. In addition, the performance of our contract business during the quarter has been the strongest in recent years. We have started 2011 in good shape to take full advantage of an improving market opportunity and as a more international and diversified business than at any time in our history."

[paleje] 28/2/2011 09:48

Hays released good figures today, very strong Asia Pacific and Germany performances, UK private sector up but public sector down. Their headcount has increased 13% in the half year and they expect progress to continue.

STHR won't be affected by UK private sector to the same extent because their rates are higher than Hays which restricts their presence there. Good. And if STHR's plans for headcount increase are as I understand them to be, they are way ahead of Hays and growth should be likewise. The 'if' factor again.

[bonzo] 07/2/2011 12:42

An impressive recovery from an excessive response!

[paleje] 31/1/2011 08:57

The results are good but the share price has dipped a bit. These are a buy imo and their next IMS on 4th Feb should be more focused on the current year and beyond which is set for very strong growth.

*6 new offices opened last year - hardly contributing to 2010 figures.
*4 new offices opening Q1 with more to come.
*17% headcount increase last year with 'substantial increase' for 2011.
*Non-UK to UK revenue ratio increasing.
*Reorganisation strategy to improve UK performance (not stated but we should hear more as the year progresses)

I don't know about RBS's 700 target, I hope they're right, but I definitely think the selling is overdone.

EDIT - correction next IMS is 4th Mar, not Feb:)

[paleje] 28/1/2011 15:09

Thanks nellie, are you sure about the size of the RBS buy upgrade to 700?
I'm an STHR fan but that's one big jump.

EDIT - forget that nellie, I've found it, you're right 300 to 700. Phew!

[nellie1973] 28/1/2011 14:40

broker upgrade again.

[paleje] 27/1/2011 15:51

Not surprised, thanks for spotting, I've been keen on them for a while, they release prelims on Monday and I expect the outlook to be upbeat.

[nellie1973] 27/1/2011 14:46

Broker upgrade today

[paleje] 06/12/2010 17:02

UBS issued a BUY note today with 415p target. Even that's conservative but it's getting more realistic, I wish they hadn't done it because I want the share price to ease a bit.

[paleje] 03/12/2010 11:30

The TU was good, they'll beat market expectations by a small amount. No mention of their home market plans, excellent, it means they'll start showing through over the next 12-18 months and the market will not be expecting. The share price is very close now @322 to the consensus 330. When it eases a bit I'll add more, they go xd in Feb so that's a bit of income to count on, then during the course of 2011 I'll be expecting the share price to rise above the current consensus. Been buying since 230.

[paleje] 30/11/2010 15:32

Nellie, I think they'll do much better than the PMG target 330, which seems to be a consensus figure, even Goldmans stated it last week while at same time downgrading them from Buy to Hold.

STHR have some ambitions for the UK and Ireland aside from their growing global spread. They see strong opportunities and plan on more than doubling headcount in next 4 years. Trading Update on Friday.

[nellie1973] 30/11/2010 14:33

Broker upgrade today

[gswredland] 29/8/2010 07:06

this is beginning to look like a no brainer...don't hold as yet but has a low pe compared to MPI and the likes.

[contrarian2investor] 25/5/2010 21:16

Hi all,

80% of spreadbet short closed today @ £2.90p

c2i

[royfox] 22/5/2010 07:56

sold the lot and back in - tight stop loss, I think the pullback is now complete

[contrarian2investor] 11/5/2010 12:08

royfox,

Below are my previous replies and my stance remains unchanged. There is a lot more to HVN & STHR's performance than purely what is within their own control. Markets and sentiment are what move sp, as you've have seen over the last 3 weeks of trading.


-----------------------------------------------------

contrarian2investor - 14 Apr'10 - 12:41 - 97 of 104 edit



Differing views are what make markets. The best of fortune to you.

Will STHR be nearer to £4 or £3 by June? We won't have long to wait.

--------------------------------------------------------------------


contrarian2investor - 30 Apr'10 - 20:54 - 365 of 377 edit


SAS,

Yes long HVN (holding medium size tranche) and short STHR via a JUNE spreadbet now @ £3.4925 after doubling my stake. Admittedly it is going to be a close call. I am not saying it is a poor company just richly valued compared to its peers. If I had been fortunate enough to have bought STHR last July @ sub £1.80p I would have sold out once it went above £3.60p due to its lofty valuation.

I would also add that stocks which are richly valued will be hurt IF this is the beginning of THE correction. Thankfully DOM whilst richly valued is a stock that funds tend to seek out when looking for safety/resilience in the melee.

c2i

[royfox] 10/5/2010 19:46

C2I

I worked in S3 for 7 years to management level. Be wary, I employ a guy from HVN, they aren't in the same league - S3 average fee is around 24%, HVN more like 15% - it makes a big diff. in profit. Also S3 T/O is over 50% from international business vs HVN

[contrarian2investor] 10/5/2010 18:12

SAS,

You are welcome.

c2i

[slowandsteady] 10/5/2010 13:31

Thanks c2i,

I appreciate the imformation.
I never got around to investing in STHR in the end and will now sit tight until things settle down a bit.

See you over on DOM.

S

[slowandsteady] 10/5/2010 12:47

Hello contrarian2investor.

I'm very imterested in your analysis of the p/e against the sector.

Looking at ADVFN data STHR have a p/e of 11.85 which seems to be close to the middle of the sector.

What do you look for when comparing a stocks p/e against it's sector?

I'm just looking to improve my analysis and not trying to say you have it wrong.

Cheers,
S