Stm Share Discussion Threads

[smithie6] 20/6/2019 15:49

ADVFN says retained profit (or cash generation) was 2.5M for last fin. numbers

so if you knock 1.6M off that...its is quite a hit in 1 year...

(the exact details I will leave to someone else to report/discuss in more detail)
-----

I was a big fan over the recent months
..... I guess the mkt knew most of the news (included in the details of past news but largely ignored by the mkt imo) and that is why the shares previously refused to rise...
:-((

[kingbarolo] 20/6/2019 13:37

No issues for the long term holder here. Prospects remain solid, share price very cheap, plenty of cash and whilst we're waiting for share price to take off, a very nice 4% dividend to keep us happy! Better than 4% at todays prices!!!

[fillipe] 20/6/2019 13:00

New guidance note from Edison, today.

Apols - wrong company for the guidance note mentioned above....

....eye test next week!

f

[fillipe] 20/6/2019 11:13

Incidentally, I see finnCap in a CORP today, reiterate their 100p tp of since Autumn 2018.

f

[fillipe] 20/6/2019 11:07

Hi everyone.
I've been out of STM for a while now, but back in again today at the current very reasonable cost.

Good wishes to all.

f

[smithie6] 20/6/2019 08:32

sadly -£1.6M hit to generation of cash

is bad news

(the fact that the co. has some cash is largely irrelevant imo)

the co. will produce noticeably less cash this year & imo that is not good

for the next financial year the cash generation should increase by 1.1M..but that looks a fair time away 😕

((improved governance is an on-going cost, of course))

[cwa1] 20/6/2019 08:04

Reasonable-but I would hope that the improved governance costs would not be ongoing! I also thought one of the more important takeaways from the announcement was: All of the above makes for an exciting 12 to 18 months ahead where we expect to see solid revenue and profit growth

[sailing john] 20/6/2019 07:38

Bargain Purchase Gain and Other items in today's RNS

Effect on P&L 2019
Bargain purchase gain +£2.7m
Carey 2019 loss £-0.6m
Integration cost -£0.5m
Improved Governance -£0.5m
Insurance management write down -£0.7m
Total P&L gain 2019 +£0.4m
Cash effect 2019 -£1.6m

Ongoing 2020
Carey breakeven
Integration benefits +£0.7m (Likely double counted with Carey breakeven to some degree?)
Improved Governance -£0.5m ongoing?.
New Business +£????

So in summary positive on P&L and negative on cash for current year (not an issue with £17m cash on balance sheet currently and ongoing cash gen from ops of £3m+?)
Neutral for 2020 - Integration benefits - Governance costs
Outlook positive and ambitious - very strong balance sheet to fund growth
All imo dyor
I remain a long term holder
GL - SJ

[smithie6] 20/6/2019 07:06

ouch !
😕

[welsheagle] 30/5/2019 15:29

Topped up today - very cheap on fundamentals

[gary1966] 26/5/2019 18:27

Yes really don't get this one. Mkt cap £28.8m which includes over £15m of cash. For the remaining £13.5m you get high recurring revenues in a growing business that had pre tax profits of £4m and pays a growing 4% dividend yield. One day I guess the market will wake up to this company.

[smithie6] 26/4/2019 14:30

well, the price to sell yr shares has now moved up to a min. of 51p from 50p

while the price if u want to buy is still at 52p....hopefully that will soon rise to 53p

its not exciting...but it has been grinding upwards in recent wks....& imo it will continue..since it is way too cheap

[smithie6] 24/4/2019 07:56

6p EPS

52p/share

a return of 11.5% !

while banks pay you an interest of only peanuts

!!

[smithie6] 23/4/2019 16:46

looking strong still
..buys going thru at 52p
..hopefully this wk it'll rise to 52.5 or 53p
..bit by bit

[smithie6] 17/4/2019 12:45

underpriced for 6p of EPS

& the very high % recurring revenues

[montyville2] 17/4/2019 12:35

Agreed Smithie, would like to see the share price consolidate above previous support around 50p, and then test previous highs of 57/8p.... It looks poised to move up as far as I can see

[smithie6] 17/4/2019 12:26

hopefully the share price is now starting its next leg up

with the previous zone at ~45p being pegged in as support & a change of direction of the trend

[arthur_lame_stocks] 11/4/2019 13:27

It might be worth holding off an investment in these until the outcome of the Berkeley Burke case is known finally.

[smithie6] 04/4/2019 18:54

btw..the co. mentions it is looking to exit insurance management...
..if that brought in say 1mn...that wld help in providing cash for any new acqn.

---

EPS for fin. yr 2016 4p
EPS for fin. yr 2017 & 2018 6p
..mostly due to acquisitions..& synergies (resulting cost reductions)

---

for the acqtn of London & Colonial in 2016 a loan of 3.3 mn was taken out...so the co. is willing to borrow if needed...while of course it must also comply with the regs. for regulatory cash

[smithie6] 04/4/2019 18:47

anyone read the accounts ??

"...that will allow for further improvements in our operating margins"

(up in 2018 from 16% to 18% )

----

"The above three areas ....underpin an ambitious three year growth strategy of growth both in terms of revenue as well as profitability"

[smithie6] 04/4/2019 08:07

"after 5 more years of EPS of >= 6p (& track record says that it will increase)
shareholders will have 5× 6p =30p more of nett assets per share (some paid as divi, some retained by the co.)

which at the current share price of 52p leaves 22p of nett share cost (52p-30p= 22p)

22p to get >=6p/share eps
27% !

just too cheap


while admittedly its NOT a loss making jam tomorrow stock producing lots of rubbery RNSs promising that things are about to get much better...paying no divi..which many punters seem to prefer !!...like 7DIG, AO. & many more

STM is a jam today stock !!
6p EPS, now !
& 4-4.5% divi !

[smithie6] 02/4/2019 13:11

not sure what you mean

phps you are thinking of problems last year with regulators/inspection....but that is the past and the co. has adjusted its processes and taken on more staff to keep the inspector happy...& I think the MD will not be in a rush to ever go thru that experience ever again !

& he's got 3-3.5mn invested in STM

so Im very relaxed that he'll not take on excessive risk or debt

& if I recall correctly the acquisitions in last 5 years have all been funded without taking out any bank loan (but I havent checked) & in the last few years the co. has held on lots of nett cash
---

the bod are almost all finance guys...
bean counters
with a co. safeguarding the assets of other people of >1bn pounds

...not suddenly going to all have brain transfusions & suddenly become wild risk takers !!

although, yes, I did write that perhaps the co. might take on some debt to fund an acquisition, supported by the history of high cash generation....so you are probably responding to what I wrote...Im probably more in favour of gearing than the bod, since Im more inclined to taking risks than they are