The Mission Share Discussion Threads

[f15jcm] 22/1/2020 14:25

Yeah, exactly, this is one of the few stocks that didn't get re-rated after the election. Got some catching up to do.

[thorpematt] 22/1/2020 14:15

f15lcm,

Not kidding WPP has about £7bn in debt

forward Divi cover here is now over 4x and a fPER of just 8

I honestly think profit taking in Autumn 2019 has been the drag, but new investors are buyin in here at a disount to the wider index of almost 50% off (consider the all share is above 15x PER now).

[f15jcm] 22/1/2020 13:19

Certainly looks cheap against WPP which is on much greater leverage. Sector seems a bit out of vogue due to global growth concerns. Marketing being very much discretional spend.

[johndoe23] 22/1/2020 09:43

Solid if unspectacular suits me in these tough economic climbs! Quality run outfit, going for bid as end game here...

[mfhmfh] 22/1/2020 09:22

also 'we expect the Group to be debt free/cash positive at the end of 2020'.

[bbluesky] 22/1/2020 09:16

Yes, through the stormy seas, which is testimony to the quality of the company and underpins that it should have a higher rating:10 years of steady growth is an elite, that should command a premium. And by comparison just look at Saatchi smashing onto the rocks. Also, presumably tech subsiduary Pathfindr is sucking up investment,though at some point it should make serious returns. Still unloved and undervalued, but I don't think that will last forever.

[mfhmfh] 22/1/2020 09:16

Interim results on 25.09.19 stated this:

'A strong second-half bias again predicted'

Outlook:

'As in previous years, we expect the majority of our profit to be generated in the second half of the year. Despite the heightened level of Brexit uncertainty, we remain on track to deliver against expectations.'

The company accelerated in the 2nd half and met expectations.

Looking for share price to reach new highs/triple figures.

All IMHO.

[f15jcm] 22/1/2020 08:45

At the recent level of 70p the market was clearly expecting a warning so I'm happy and bought back at the open for ~84p, having sold out at 84.17p on 11th November.

I agree with 'solid if unspectacular' but valuations in the market as a whole are starting to look very stretched and this still offers great value, so in relative terms and with debt soon to be history, a strong buy IMO. I'm sure Simon Thompson will agree.

[johndoe23] 22/1/2020 08:14

Solid if unspectacular. Revenue and profit growth, on course to be debt free this year...

[dr biotech] 22/1/2020 07:12

That’s decent enough. No figures though, just inline with expectations - last few years they have given % figures.

[johndoe23] 10/1/2020 09:26

Expecting a positive update

[bbluesky] 10/1/2020 08:40

Still ludicrous value. Trading update last year was 22 Jan.

[cliffpeat] 09/1/2020 16:33

Thanks JeffH

From 2018 annual report:

"Focus on technology through our fuse initiative which is seeing our Pathfindr asset management system grow dramatically through global contracts with Rolls-
Royce, MTU Friedrichshafen GmbH and GKN Aerospace. Pathfindr generated sales of £0.5m in 2018 (2017: minimal) and we estimate sales of £2m in 2019,
underpinned by a strong order book."

And interim 30 June 2019:

"Our fuse technology division is seeing some exciting new initiatives develop, a couple of which should be ready for launch in 2020, whilst our Pathfindr Asset Management System continues to expand its Client base with some excellent new contracts. It is gratifying to note that wherever Pathfindr is trialed, it quite quickly becomes the system of choice; so much so that we will be
accelerating our investment and reaching out into new markets."

TMG - a creative company in more senses than just the industry "trope".

[jeff h] 07/1/2020 20:39

They own pathfindr ali!

[ali47fish] 07/1/2020 19:32

i know from memeory there is a relationshp between TMG and pathfinder but don't remember what it is - can you please clarify jeff!

[bbluesky] 07/1/2020 17:50

Excellent spot Jeff H. Informative article. Easy to see the upside for such a product and no surprise it is, reading between the lines, gathering serious momentum. Big savings and efficiencies to be had and the bigger the player, such as Rolls Royce, the more attractive it be.

[jeff h] 07/1/2020 12:59

Article on pathfindr:-

[dr biotech] 16/12/2019 15:34

Its thinly traded. Doubt there is any news today, just joining the general Boris party - nice to see. I made about 6 months take home in the last two days (not all here obviously).

[ali47fish] 16/12/2019 13:06

can't stand this company for its unpredictible movements and there are rarely news in advance to inform investing?

[dr biotech] 04/12/2019 08:47

Saatchi are down heavily this morning. Accounting issues and poor trading outlook - they are down about 80% over a year...just have to be happy we’re no them.

[wynmck] 03/12/2019 17:11

t/s was 22/jan this yr

[dmdmdmdm1] 03/12/2019 15:57

This has been a rather disappointing downward trend for a short while. Any positive updates likely in the near future?

[bbluesky] 29/11/2019 19:37

Pathfindr sry autocorrect has taken over.