Tangent Communications Share Discussion Threads

[yump] 26/2/2014 08:35

Just to add. The operating costs went up in the second half last year, in a variety of areas, around 1.5mln more than in the first half by my reckoning, on a similar turnover.

So the management of those costs in the second half this year will be the key to jumping the overall eps.

From the recent statement and the previous ones, it seems like the costs have been reduced, or that they have resulted in increased revenue. Also Ravensworth print profit will be heavily geared towards increased revenues.

In the first half there was a big jump in operating profit for the whole group, which appears to have come from a combination of modestly increased revenue and reduced cost of sales.

If that continues, I reckon we could be in for a few sparks here. I get the feeling that 'the market' in general doesn't bother to understand companies as much as it used to and tends to buy headline figures. So possibly, the gearing that some companies like TNG appear to have, could well be invisible to many people until the profits jump.

That's the theory anyway.

[yump] 26/2/2014 08:28

Seems a long time since November ! Also looking forward to trading statement/results.

Last year full year eps was 0.56p
Half year this year was 0.4p
With a mild second half increase over first half of say 0.5p that gives 0.9p.

That's a growth rate of over 50%. There's a limit to how long something that grows at 50% can have a p/e of around 10. Its a huge disconnect. Even if its in recovery mode.

I like the old-fashioned valuations ;-)

[cheshire man] 24/2/2014 16:29

Pre close trading update may be next week,,,,,,,,,,4th of March last year,,,looking forward to it :-)


RNS Number : 6235S
Tangent Communications PLC
11 November 2013


Commenting on the year, Tangent's Chief Executive, Timothy Green, said:

"I am delighted to announce that Tangent's first half performance exceeded expectations with a 50% increase in underlying operating profit to £1.47m. We spent much of last year investing in our business; the benefits of this will be most noticeable in the second half. The second half of the year to February 2014 has begun well and like for like sales and profits are now ahead of the prior year."

[janeann] 13/2/2014 15:15

Looks like someone's buying - 2 trades of 100k gone through. and a small tick up.

[yump] 07/2/2014 12:28

Most recent turnover for notonthehighstreet looks like £45mln ish. Typical print costs as a % of revenue vary quite a bit. 3% would be 1.3mln to go for.

Presumably all the retailers on the site have their own print arrangements, so the TNG offers will be put to them by mail in some form or an introductory offer.

[yump] 05/2/2014 16:13

Yes, nice announcement.

I think there's a limit to how long the forecast can remain, when they've already done 0.4p and revenue is imo certain to increase over first half, with the economic recovery.

[mo123] 05/2/2014 13:12

Decent arrangement with notonthehighstreet.com. Plus broker forecast for year ahead at .82p (Feb 2015). Could well see an upgrade to that imo. Mo

[minuteman] 31/1/2014 16:24

They may be frustrated at the share price however we keep delivering improvement all the time.
Certainly not a stock for traders and nice to see the Directors diving in. £14grands worth, is decent for a first buy

[bollers] 28/1/2014 09:03

I guess the 'right' price for now is where the directors want it to be.

There seems to be plenty of people who want to sell out at(I agree with above) at these low prices so the directors can currently buy back the shares on the cheap.

Personally, soon I think the directors will want to see the price at least north of 10p which is the level at which they raised money not long ago - any less than that and those city investors that Tangent may well need again are not going to be too happy.

[yump] 28/1/2014 08:27

It is, isn't it. You can do the hokey-cokey with the figures and they still come out cheap. Won't require much growth to be on a p/e below 10 for this year, so goodness knows what the share price should be next year. There's always a 'should' with small stocks, but they don't stay down forever if they grow the business.

At least its easy to be patient here, as against more highly rated stocks that depend on exciting results to keep the share price up.

[adamb1978] 27/1/2014 17:50

Had another look at the figures for this last week and it really does look crazily cheap, particularly when you factor in the balance sheet and sentiment implied by the share buy back. Previously held this in my ISA but also added to my SIPP....just looks way way to cheap

[minuteman] 27/1/2014 16:58

hopefully the company will hoover up a few of these sales and restore what was looking like a good year share price wise

[yump] 10/12/2013 10:41

Bit more data this morning showing improvements in online businesses.

Its got to be worth at least 15x year end earnings, which has got to be at least 40% upside from here, assuming they do just a bit more than double the interims.

ie. 0.9p eps, having already done 0.4p.

Some would call it 'cheap as chips'.

There could be an argument for a higher p/e and higher eps next year as well, as the cycle picks up, which would be at least double from this level.

eg. 11p eps x p/e of 18, or some combination that ends up at around 20p share price. Its not difficult or unreasonable to imagine that imo.

[minuteman] 06/12/2013 17:38

Looks like they are managing this well to avoid big lurches in price.

25% up anyway since they announced it was 7.5p

[yump] 04/12/2013 15:48

Don't know really.

Possibly the apparent control being kept over share purchases might be to ensure an orderly movement of shares at a steady price if any new institutions want in, or existing ones want to sell large lumps that might be taken up by new investors.

Just guessing really.

Looks like you can buy at the moment.

[minuteman] 02/12/2013 17:38

What are we all thinking of the new classification? Do you think it will attract more institutional investors?

We could do with Mr Green parting with more stock and making this at little less illiquid

[yump] 28/11/2013 12:03

I can't get any through Selftrade - can sell though. Glad I picked up quite a few before. Perhaps helped to clean them out.

Hmm, can't even get a few hundred quids worth, let alone a decent amount.

Update:
Can use a broker, but would have to negotiate and pay well above 10p. I suppose its unlikely that the mm's will fly it if they haven't got any shares - would just cause more demand and a big problem for them.

[yump] 28/11/2013 11:59

I think fundamentals back it up as well. They did 0.4p eps half way with an optimistic statement, so I reckon they could get close to 1p eps full year.

That's a p/e of around 10 on this year, which is pretty low rating with obvious growth appearing. 15 would be fair, which gives plenty to go at with the share price.

[kermat] 28/11/2013 11:48

I agree, people are paying a significant premium for even modest quantities. Must indicate a stock shortage. Hold tight!

[yump] 28/11/2013 11:12

There's a fair chance that this might have a sudden takeoff imo.

[mo123] 27/11/2013 19:03

Someone willing to pay 10p for 100k shares.

[yump] 27/11/2013 11:39

Another couple of grand, another rise...

[yump] 26/11/2013 10:50

Looks like stock is getting squeezed...