Sthree Share Discussion Threads

[chrisb1103] 07/9/2011 08:09

Good around support here, hopefully a double bottom in? indicators are turning positive, be good to see this rally from here ahead of Fridays IMS:

[gswredland] 05/9/2011 21:29

Thanks Paleje

[paleje] 05/9/2011 16:15

UBS issued a Buy note today for STHR target 480 and similar for HAS target 105.
Both hammered today in terrible market again.

[paleje] 02/9/2011 11:44

Certainly looks that way, seems like they bottomed out a week or two back, fingers crossed for an ok update next Friday incl UK outlook.

[southfly] 02/9/2011 09:54

Upgraded from Hold to Buy. Breaking out on the upside on a weak day. There seems to be large upside potential here.

[paleje] 24/8/2011 11:53

HAS, MPI, RWA all moving ahead today.

STHR sliding further down in spite of (advfn screen) 400k buys v 15k sells. Madness. There's more than normal stock on loan I'd say there's some shorting.

EDIT - GRAPH REMOVED, wrong data, operator error, sorry.

The correct graph below does not suggest abnormally high stock on loan.

[paleje] 24/8/2011 07:33

Me too, PW, I see market behaving against what, to me, seems reasonable evidence that the company is doing ok and reorganising itself in sensible way.

Yesterday they bought another 210k of their own shares. Some people don't like share buybacks saying its a lazy use of cash, but STHR have loads of cash and they don't need it for expansion because their new offices get payback within 18 months average, they can do it out of petty cash.

And they are still increasing headcount in the UK, in spite of it being a weak spot identified by several recruiters recently.

Analysts targets vary from 225 (above) - 700 (RBS). Well if 225 is the worst (and rated a Hold not a Sell), it should be near its lowest point right now.

Either their directors have got it wrong or the market has. I expect the update will enlighten us.

[pwhite73] 23/8/2011 19:47

It does make you wonder if things are going so well why is the shareprice dropping. Ten days on the trot now.

[paleje] 23/8/2011 15:47

Merchant Securities went bearish on recruitment today, don't like it but these are very volatile markets with so much uncertainty about global economy. Not saying they're right though:-

HAS - Buy - 72/100
STHR - Hold - 237/225 (from 500)
RWA - Sell - 225/300 (from 400)
MPI - Sell - 352/300 (from 625)

[paleje] 23/8/2011 07:24

Agreed, in fact I added a bit soon at 270+ but not too worried, I'm below director purchase price and I'll try to add again if I can manage to when it really turns.

[gswredland] 22/8/2011 16:29

Thanks paleje...looking to enter. Have HVN,RWA and MPI from a while back. This pull back looks a buying opportunity.

[paleje] 22/8/2011 16:07

Should be 9th Sept, GSW, and I'm hoping it will go some way to reverse the share price erosion, I detect a change in management emphasis, it would be nice if the market backdrop improved a bit. Good luck if you're in too.

Or otherwise of course.

[gswredland] 22/8/2011 12:46

Sorry to trouble you paleje but do you know when an update is due please?

[paleje] 12/8/2011 10:18

Director Purchase RNS this morning £100k worth (bought by Gary Eden 05/08), plus company buying for treasury 70k Weds and another 200k Thurs.

I've added too, was going to wait for update but the directors clearly have confidence and their data is better than mine. They are concentrating more on global hot spots and even if the UK stays flat for years they can grow group profits. Eurozone still a concern but..

5% yield, PE 15 falling to 10, PEG 0.2, no debt, cash pile 37m, 2/3rds revenue non UK.

[paleje] 09/8/2011 07:35

And again yesterday 50k @ 2.90, obviously think the cash is being well spent at these prices. TU in a few weeks, would be nice to see directors personally buying not just using the company cheque book.

[paleje] 05/8/2011 08:30

Buying back their own shares yesterday @309p on a very nasty day.

[paleje] 03/8/2011 10:33

Some serious changes are taking place within STHR, reorganising to reflect changes in importance attributed to different geographies. I've copied an internal email below, it isn't confidential so I'm not doing anything wrong.

What it suggests to me (I don't work for them btw) is that UK and Ireland are not as buoyant as they would like, Germany and France are highly regarded and forecast to 4x over the next few years (Germany already accounts for 21% of group revenue) and Asia Pacific is going to strengthen as are the emerging economies. All sensible sounding although if the Eurozone cracks Germany-France might not look as attractive especially if the Euro weakens and depresses earnings. Lots of uncertainties.

Nevertheless, overall they are taking action to strengthen their position globally, to withstand local downturns and grow faster where markets are strongest, not sitting on their laurels which is a good thing. They still have plenty of cash too, even after the special dividend payment later this year.

SP has been battered, yield now 4% plus the special divi to come and they have committed to progressive future divis. Trading update in a few weeks.


----------------------------------------------
The email:-

25 July 2011
Dear SThree Colleague,

Part of the success of SThree is down to the fact that we are an organisation which sees change not as a threat, but as an opportunity. Change is a fact of life for the Group; sometimes it is a subtle, continual - improvement process operating in the background. At other times, it involves significant changes which are best undertaken simultaneously to position the Group for the next stage in its journey. We can also use the challenges of change to ensure that key individuals can develop new skills. We are now at one of those points in time, and as a result, I have a number of major developments to report in terms of changes affecting some of the Senior Management of SThree.

In line with the ever increasing global nature of our business, complimenting Gary's move to the Americas, Justin Hughes will be relocating to Hong Kong, in the heart of the strategically important Asia Pacific region. Alongside his continuing responsibility for Asia Pac, Justin will also have a parallel global remit to oversee the Group's Engineering, Energy and Natural Resources teams. This will require him to work very closely with Gary Elden the Group's Chief Development Officer (CDO).

As part of the proposed changes; Gary's job title will be changed to Chief Strategy Officer (CSO). Although this does not change Gary's remit, it more accurately reflects the nature of his responsibilities. In a similar vein, Natasha Clarke's job title will change from Director of Strategic Planning to Director of Strategic Capability. This change encapsulates the fact that Natasha's remit has broadened considerably over time.

Given Justin's relocation to the Far East, it will be necessary for him to give up his current responsibility for Germany. Henceforth Germany (or more precisely the DACH region to also include Switzerland) will come under Mark Lodge one of our four Group Managing Directors. Mark's current remit encompasses Benelux and France. However, given that Germany alone is currently 21% of the total Group and is expected to grow around fourfold over the next few years and France has similar plans, it makes sense to focus Mark on a more defined portfolio of countries and reflects the confidence we have in his ability. With this in mind, Mark will manage Germany and retain France, but will hand over his current responsibilities for Benelux.

Benelux (i.e., Holland, Belgium and Luxembourg) will from the end of July report to Steve Quinn. Steve will also retain responsibility for the Middle East and India. However, Steve's role will change significantly to encompass a range of other non-sales related areas. In particular, Steve will take on the challenge of running the Magellan Programme which as we know, is an ambitious, multi-disciplinary Group wide initiative aimed to give us the capability to scale and globalise the business's infrastructure.

In his new role Steve will require a number of senior individuals to work closely with him on this programme. These individuals will need to have the ability to understand the business from a sales and non sales perspective. In this respect I am very happy to announce the well deserved promotion of Andy Hallett to the new role of Commercial Process Director. Andy will draw on over a decade of experience with the company across a wide range of roles.

Our HR function clearly has a pivotal role to play in this programme. In the light of our current Group HR Director Paul Lomas leaving the Group (as of the end of July) we will take the opportunity to review the structure and strategy of this function thoroughly. In the meantime, HR will also report to Steve Quinn. Given Steve's additional responsibilities, he will be relinquishing his current UK & Ireland role which he currently runs with Mike Smith. This will see Mike take on the role of Group MD UK & Ireland.

I am sure that you will join me in wishing our colleagues every success in their new roles.
---------------------------------------

[paleje] 18/7/2011 15:46

Market doesn't seem convinced with UK and Eurozone uncertainty. Broker mixed views:-

RBS -buy -700
PeelHunt -hold -400
Investec -buy -470
Seymour -hold -400
MerchantSecs -buy -500
Altium - hold -400

[paleje] 18/7/2011 07:24

Now we know what they're going to do with at least some of that cash:) Good trading update this morning, overseas growth continuing UK still treading water BUT interim divi increased 17% plus a special divi of 11p per share. That at last, imo, is a signal of confidence from the board to the market which has been lacking in the last few statements.

[paleje] 24/6/2011 15:35

Edit - deleted duplicate

[paleje] 24/6/2011 15:35

Credit Suisse have taken a bullish stance on recruiters:-

STHR - Outperform - 372/510
Michael Page - Outperform - 519/650
R Walters - Outperform - 304/420
Hays - Outperform - 99/140

[paleje] 08/6/2011 09:10

Decent trading update, group GP up 23% year on year, higher proportion of overseas business, both perm contract rates improving, 3 new international offices opened + 3 more to open in H2, no debt, 47m cash in bank.

No limited visibility type comments, in fact 'improving market opportunity' clearly infers ongoing continuing growth.

What are they going to do with all that cash, raise the divi? That would be nice.

[paleje] 26/5/2011 10:17

I bemoaned CEOs (post 124) who talk prospects down, funnily enough Malcolm Stacy has noted same in his thought of the day:-



What's my point? I believe bosses guilty of talking down because it gives them an easy ride should get a punch on the nose. Metaphorically of course. I still believe STHR to be guilty of this, they're doing well, increasing headcount, more money in the bank than they need for expansion, not behaving like a company seeing tough times ahead. TU in a couple of weeks, come on guys let the market know you can see light. Your peers are.

[paleje] 05/5/2011 15:48

Xd coming up 14/05 and there's a trading update due early June. Noticed Blackrock upped their stake yesterday and have over 1m CFDs in addition to their standing holding.

Have to admit the share price has performed badly of late, tried to break upwards last week but couldn't crack 450.