Telecity Share Discussion Threads

[spacecake] 26/11/2012 09:44

Wonder if the IT sector has got a bit of cloud over it with the HP / AU. media coverage... SDL profit warning today.

[uhound] 22/11/2012 10:03

Looks like it's starting to resume the uptrend.

Meeting today in Amsterdam for investors and analysts - could help things along too!

[silverfern] 19/11/2012 19:43

it did, or it has!

[freddie ferret] 07/11/2012 17:18

Fairly deep now will probably bounce tomorrow.

[bluebelle] 07/11/2012 12:44

The Times - Tempus column 06Nov

Helsinki is emerging as an unlikely beneficiary of the internet. The Finnish capital is the main hub through which traffic from the huge Russian market reaches the West. This explains the decision by Telecity Group to spend €33 million on acquiring a market-leading position in Helsinki, with the purchase this summer of two operators of data centres there.
The company had already decided to build an operation locally, if necessary, but the purchase of Academica, at a price of €28 million, added to an earlier deal, gets it to where it wants to be. The two operate about 2.5 megawatts of capacity but have enough in the pipeline to get to ten megawatts. The deal costs and the further investment needed will reach about €60 million eventually, but new-build would have cost €100 million and taken three to four years to start contributing to earnings. By contrast, the acquisitions will enhance earnings from the off.
Unfortunately, the market took against the deal, fearing that Telecity, which needs a steady rate of growth in capacity, was getting to the point where it was having to pay too much for this expansion, which would dilute earnings.
This viewpoint is questionable, but, with the shares on about 25 times' next year's earnings, any suggestion of a slowdown was bound to prompt some profit-taking.
The shares fell 8.5 per cent to 835p yesterday. This looks overdone and it brings down next year's earnings multiple to about 23. The rest of the third-quarter trading statement suggests the company is still trading robustly, while the 15MW capacity added so far this year, to 83MW, is a record in its history. Telecity says it has sites with sufficient planning permission to get it to 135MW across Europe in three to five years. If this rate of growth can be achieved, the shares continue to look like a good long-term bet.

[smith99] 07/11/2012 10:04

I couldnt help it, we're sitting on top of a solid technical support line, I had to grab a few more.

[spacecake] 06/11/2012 16:25

Adriaan Oosthoek, a PDMR:
a. Exercised 79,237 Share Awards over ordinary shares of GBP0.002 each ("Shares") in the Company;
b. Sold the resulting 79,237 Shares at a price of 819.85 pence per share.

---------------------------------------------------------------------------------

maybe he takes a different view to Mr Tobin I wonder ???

[spacecake] 06/11/2012 13:20

New numis hold reiteration with price target of 870p

[bluebelle] 05/11/2012 21:34

Yes, I agree. I can't see anyone buying to day regretting it in the medium to long term.

[smith99] 05/11/2012 19:05

i love to see directors taking advantage of drops like this, afterall they are in a very priveledged position and wouldnt rush to throw good money away.

All good for the long term, well done to any lucky bargain shoppers today

[global mega boom] 05/11/2012 17:56

was it the acquisition?

[bob monkhouse] 05/11/2012 17:39

Ouch - massive drop - is this just down to broker downgrade? Have had my eye on TCY for a while, looks tempting.

[spacecake] 05/11/2012 16:50

Telecity, the European data centre operator, has dropped more than 7% despite an in-line update, as the company unveiled what analysts said was an expensive - albeit small - acquisition.

The company said trading remained strong across Europe, and its full year earnings were expected to be in line with City forecasts. But it also announced the €28m cash purchase of Academica in Finland. Analyst James Goodman at Investec said:

At €28m for 1MW of operational capacity, today's (admittedly small) deal seems very expensive. However, the business has an expansion plan to quadruple the capacity to 4MW which would clearly lessen the price, but would depend on the incremental capital expenditure required. We note that own-build (where possible) is considerably cheaper; the Powergate expansion works out to only £6m or so per MW on our estimates.

We understand the acquisition's current revenue and EBITDA are approximately £15m and £2.5m respectively.



He said that with the deal and increased expenditure, the company's full year net debt could climb to £248m. Liberum Capital issued a sell note, saying:

Trading [was] in-line with expectations for 2012 but we cut our 2013 estimated earnings per share by 6% principally to reflect higher depreciation (and in spite of the acquisition of Academica for €28m). With no earnings momentum we believe the valuation looks full on an absolute basis (25 PE for 2013), relative to peers and relative to history.


The company's shares have fallen 66.5p to 846.5p, although chief executive Michael Tobin has today bought 2000 shares at 843.6p each.

[silverfern] 05/11/2012 16:20

I bought at 815 and 822p - fingers crossed. I expect a recovery between now and Xmas

[greedyslapheadtrader] 05/11/2012 16:13

melody - even the chart above shows how volatile TCY can be.
to see the real picture though look at a candle chart over the last 2 years.
brokers enjoying this one cos its so easy to push all over the place.

[silverfern] 05/11/2012 15:29

THis could bounce, but only after it has finished falling. AS US market likely to be down this week, I suspect sentimnet could be against TCY for the time being

Telecity Group Plc (TCY) tumbled 7.5 percent to 844.5 pence. Liberum Capital Ltd. said in a note that the company will miss the average analyst projection for earnings per share in 2013. The brokerage reiterated its sell rating on the shares

[melody9999] 05/11/2012 14:03

greedy -This stock has these shake-outs 3-4 times a year.

the chart does not suggest that ??

[itchycrack] 05/11/2012 11:19

LOL! You could almost imagine this being a management ploy to enable them to get more cheap stock! Onwards and upwards.....in the current economic climate this is really an excellent defensive play which will run for years and years.

[greedyslapheadtrader] 05/11/2012 10:44

lol - as if by magic:

TIDMTCY
RNS Number : 3201Q
Telecity Group plc
05 November 2012
5 November 2012
TELECITY GROUP PLC
Share Purchase by a Director
Telecity Group PLC ("TelecityGroup" or the "Company") announces that it has today been notified that Michael Tobin, its Chief Executive Officer, purchased 2,000 ordinary shares of GBP0.002 each in the Company ("Shares") at an average price of 843.6 pence per Share.
Following this purchase, Michael Tobin has an interest in a total of 616,000 Shares, representing approximately 0.31% of the issued share capital of the Company.
For further information please contact:
Tony Hunter
Company Secretary
Telecity Group PLC + 44 (0) 207 603 1515
This information is provided by RNS
The company news service from the London Stock Exchange
END
RDSLLFVILDLEIIF
(END) Dow Jones Newswires
05-11-12 1042GMT

[greedyslapheadtrader] 05/11/2012 10:43

This stock has these shake-outs 3-4 times a year.
Just bought a few.
I wouldnt be surprised to see an rns with Tobin buying a few more on this dip in next day or so too

[doctorc] 05/11/2012 10:07

I got stopped out at 8.91 but was able to buy straight back in at 8.31... just lucky I was at my desk when the shake happened. No reason to be out of TCY, especially on this mornings reports, just an opportunity to buy in again.

[smith99] 05/11/2012 09:33

have to agree, cant help think that we'll be looking at a kanagaroo's tail on the chart for today

[itchycrack] 05/11/2012 09:29

I've been buying heavily again this morning on this stupid drop! Just a massive treeshake to take out stops.

[smith99] 05/11/2012 09:23

Well I must admit, I cant balance the RNS with the drop ?

I wonder how many people have been stopped out, only to see it start to rise again.