Synectics Share Discussion Threads

[philo124] 02/8/2013 15:13

Thanks a lot.

[kombimatec] 02/8/2013 15:05

Recommended as a buy in IC today

[philo124] 29/7/2013 06:29

c.£30k Director buy.

[kombimatec] 24/7/2013 09:43

In my opinion this is a strong performing growing company operating in all the important markets with security moving to the top of all government and commercial agendas. The order book has thinned a little but by only a small margin. Happy to hold and enjoy the higher dividend.

[b1ggles] 24/7/2013 08:24

I see nothing wrong with the share price reaction, just a bit of profit-taking after a good run up to the results, it's still higher than it was 2-3 weeks ago.

[jamielein] 24/7/2013 08:03

I decided to sell my small holding just to be safe. Don't like the share price reaction and there are other, better things to be in right now.

Good Luck to all holders though. I may be back in on future statements.

Regards,
Jamie

[shanklin] 24/7/2013 07:51

Oh dear, what have I started?

All I can say is that there were no caveats in the AGM statement on 01-May-13. Now there are caveats.

[valhamos] 24/7/2013 07:40

Shanklin - I don't read it like that at all.

"Current indications are that Synectics will produce a further strong performance in the second half." If thay had meant to say the risk is more to the downside, then they would have written something completely different.

[shanklin] 24/7/2013 07:30

I'm not criticising SNX. They certainly seem to be doing far better than IND.

I just think the caveats in the outlook statement with respect to both project execution risk and conversion of their sales pipeline mean that in terms of achieving broker estimates the risk is more to the downside than the upside.

[dasv] 24/7/2013 06:48

Shanklin - if you are referring to execution risk on the complex project then I think it's right of them to highlight this to the market.

Overall seriously good profit growth on a lowly price to sales valuation.

[shanklin] 24/7/2013 06:34

Is that a warning of a warning in the "Outlook" section? Looks like a great deal of potential for them to say they missed and we told you that might happen.

[ryandj2222] 24/7/2013 06:20

Seem to be on track, interim div up by 20% (2.5 p to 3.0 p)

[ryandj2222] 23/7/2013 10:18

Some interim results out tomorrow.

[dasv] 23/7/2013 06:28

2.5m contract win Oil and Gas offshore surveillance.

[valhamos] 18/7/2013 12:09

Liked the story here and bought in a couple of weeks ago.

[philo124] 18/7/2013 08:03

Yes, should do well and revisit highs shortly.

[billy_liar] 18/7/2013 07:29

Results due in a week. Very quiet thread. Certainly looks like one being overlooked.

[davebowler] 24/6/2013 08:24

Westhouse;
SYNECTICS*
Buy













SNX.L / 400.0p / £70.35m / TP: 545p













Event: M & A













Likely % change in earnings forecasts: No Change














Bolt-on acquisition

Synectics has announced that it has acquired the balance of the share capital of Coex Services Asia (CSA) for a maximum consideration of £2.1m. CSA, in which Synectics has held a 20% interest since 2004, is a private Singaporean company supplying surveillance systems in the Far East, primarily to Oil & Gas clients. In audited annual results to 31 December 2012, CSA reported PBT of £0.2m on revenue of £2.4m, and net assets of £0.9m.

Synectics has acquired the remaining 80% of CSA for an initial consideration of £1.8m: comprising £1.3m in cash, 101,403 shares in Synectics (valued at £0.4m on 31 May 2013), and the transfer of Synectics’s 20% interest in a related company valued at £0.1m. CSA currently has net assets of approximately £1.1m and holds net cash of around £0.9m. In addition, further consideration of up to £0.3m will be payable in cash dependent on the profit performance of CSA in the two years following acquisition. Under the terms of acquisition the CSA directors, and previous principal shareholders, Kenny Tan (Managing Director) and Veronica Chua (Finance Director) will remain with CSA for a minimum period of three years.

In our opinion, today’s news is a sensible bit of housekeeping by Synectics as management has already identified Singapore as a key operational hub in the Far East. We view the significant contract that Synectics announced in March as a potential springboard for further business in the area in due course.

As a readacross in terms of valuation we note the acquisition of Exacq by Tyco last week for $150m in cash. Exacq generated revenue of US$54.6m in 2012 so Tyco is paying c2.7x sales, which would imply a valuation of over £200m for Synectics on the same basis. We reiterate our 545p target price and Buy recommendation ahead of interim results scheduled for 24 July.

[philo124] 24/6/2013 06:39

RNS. Singapore.

[philo124] 12/6/2013 07:39

The 407p trade was mine and it was a Buy.

[kombimatec] 13/5/2013 12:34

The mail talks of a potential bid. Who are the suitors?

Directors sale reported recently to satisfy institutional demand yet other big institutional holders have been selling. I have to admit I have sold some of my shares as well in the hope I can buy them back cheaper.