Tclarke Share Discussion Threads

[dozey3] 01/11/2016 17:44

"...someone is soaking up all the stock presumably because full year guidance has been re-iterated."
More likely some insider knows that the cash leaked away before it could reach the bottom line, hitting margins as well as profits. The corollary being that in future this extra "cost" will not exist with benefits all round. This is especially the case if directors do the decent thing and take a substantial hit to their overgenerous remuneration. Some hopes. Of course any optimism is tempered by the thought that gross incompetence can easily be repeated, as I see with some other of my investments :-(

[cc2014] 01/11/2016 12:52

Price now recovered. I find it interesting that we have a long stream of reported sells yet the price continues to rise. It would seem that someone is soaking up all the stock presumably because full year guidance has been re-iterated

[fillipe] 01/11/2016 09:15

Ask is back up to 60p and CTO appears to be being well taken.

Totals for the L2 bid/ask are 69k v 41k, so looking good there.

[meijiman] 01/11/2016 08:34

There may be other cans of worms lurking here if financial controls are lacking.......

[fillipe] 01/11/2016 08:19

Level 2 bid/ask totals - strong at 67k v 41k.

Best bid/ask even stronger at 2:1

f

[fillipe] 01/11/2016 08:09

I'm now back in. A disproportionate mark down, relative to the statement yesterday.

f

[gargoyle2] 01/11/2016 06:01

I wonder if Danny Robson's sudden resignation in March has anything to do with this.

On track to meet market expectations -- those are for around 8p EPS, which arguably makes the shares good value imo.

[coolen] 31/10/2016 22:22

Why does this plc not have auditors ?

[cc2014] 31/10/2016 22:16

So, we have the quite unusual situation that discovery of a fraud will have no detriment on the bottom line or more likely improve it.

I checked on bond yields. They have moved dramatically in our favor with regard to the pension fund deficit in the last month. I do agree though that the pension fund deficit is holding the share price back and will continue to do so for a while.

[gdjs100] 31/10/2016 21:36

I had assumed the more general recent weakness post-Brexit was down to the pension deficit, given the reduction in bond yields since the last valuation. I'm mindful of what happened to Carclo recently where they were unable to pay their dividend, despite having the funds to do so, due to a ballooning deficit and insufficient distributable reserves.Granted another £250k-£500k pa would be very useful on the bottom line, even if they don't recover any of the stolen funds.Awaiting the next TS with interest.

[cc2014] 31/10/2016 21:24

The RNS is fairly clear on the point you make gdjs100. It seems although someone has nicked £2.8m, the company has treated this as an expense, so the fraud has probably been done through payment of fraudulent invoices.

£2.8m though - that's not a small crime and one wonders where the money is now and whether it has all been spent or if any of it is recoverable.

One also wonders if the fraud was running at say £250k-500k a year now it ceases, whether the underlying position now improves by this amount.

I'm not sure what will happen with the share price tomorrow. No material impact on the trading update and expectations re-affirmed but institutions don't like this sort of thing.

It does explain the selling Friday though !

[janeann] 31/10/2016 21:05

sounds good to me if you are right gdjs

[gdjs100] 31/10/2016 20:53

I understood it that the money stolen is included in the historic numbers, and so if they can recover any of it, that should give an exceptional gain. Good that they have figured this out, but clearly bad that it happened in the first place.

[fillipe] 31/10/2016 20:50

Whoever must have been good at it!

[janeann] 31/10/2016 20:48

........ funds in excess of GBP2.8 million have been misappropriated ......... but The Board believes that any necessary accounting adjustments in the current period are unlikely to have a material adverse effect on the Group's results taken as a whole unlikely to adversely effect results;

what planet are they on? Wish I could lose 2.8 million and carry on normally

[fillipe] 31/10/2016 20:32

After-hours fraud RNS - not good for tomorrow...., despite a brave face.

f

[cc2014] 29/10/2016 12:58

Well in a week when 22 Bishopgate gets the go-ahead from Axa and will become the tallest building in London, where CTO will be doing the electrics, someone decides that's not a large enough order to hold onto their shares.

CTO was down as much as 8.8% at one point on Friday against the flow of both builders and house-builders which were strongly up. I topped up yet again as the share price is becoming increasingly disconnected from reality.

I await CTO trading statement with interest in November.

[roubini paulio] 17/10/2016 23:29

Been adding myself.

[cc2014] 09/9/2016 17:39

Added today. Very grateful to whichever fund or institution is selling.

[cc2014] 31/8/2016 14:01

Almost eight in ten electrical and building services specialists saw turnover increase or stay steady in the second quarter of 2016.
New research from the Electrical Contractors’ Association covers the period leading up to the EU referendum and the week following the result.

Contractors were also confident about the post Brexit Q3 with 82% expecting turnover to increase or stay the same compared to Q2.

[effortless cool] 25/8/2016 21:11

I was disappointed by the recent interims. Revenue was lower than I forecast, as was gross margin. The latter was a particular disappointment. having made a lot of noise about improving margins, they were unchanged from the prior period and, after adjusting for discontinued businesses, were actually worse on an underlying basis. Further, the text of the interims dropped all mention of improving margins.

Using a target PE ratio of 10 and adjusting for tax, pension, borrowings and options, I get a target price of 76.4p, just 9% above the current level.

Given the uncertain outlook, I view this as a HOLD at present.

[cc2014] 11/8/2016 17:57

A few decent sized trades over the last couple of days. Hopefully whoever has been selling has finished although we won't know until we see a few more buys to test the upside.