The Sage Share Discussion Threads

[davethehorse] 02/12/2020 10:03

Just bought a few

[techno20] 29/11/2020 10:19

Positive Buy recommendation in this week’s IC.

[martindjzz] 29/11/2020 08:33

Hi Spacecake, I think they should sell off parts of the business that are sub optimal in favour of investing more in the strategic priorities. I agree we do not want share buy backs but have you read anything suggesting it is being considered? I only found the CFO saying that if there is surplus capital, we may consider making additional returns to shareholders.

[spacecake] 28/11/2020 23:44

If Sage continue to sell bits off, how is that helping reigniting growth ?
How are buy backs helping growing the business, growing eps buy cancelling shares is not growing the business, it's growing bonuses for the leadership.

[techno20] 24/11/2020 16:11

Joined the fray. Looks oversold. Added for the long term.

[essentialinvestor] 24/11/2020 15:46

Can't comment on technicals, on fundamentals a lot depens on
whether they can reignite growth in 2022. 2021 will be challenging as
the market is aware.

[gary1966] 24/11/2020 08:43

Dipped my toe in with 2k at £5.745. RSI very bombed out and so hopefully around the lows now. Obviously some nice gaps to fill above this level.

GLA

[essentialinvestor] 20/11/2020 23:01

The share price closed at a 6 month low. There are headwinds for 2021,
particularly on macro. Europe is a big market.
US peers are outperforming Sage, but at the same tume sell at much higher multiples

Further divestments to come should leave
Sage close to a net cash position (excluding lease liabilities).
This opens the door to a resumption of buy backs.

So on the SP, it depends whether you consider challenges are now
factored in near these levels, or not.

If returns outside of equities were not so low I would not pay
over 16/17x for Sage, but we are in a QE/ZIRP environment.

[contrarian joe] 20/11/2020 22:32

Agree EI,regarding big sell offs,have held a large stake in these a few years ago,have followed them for some time.A quick glance through results shows a 7% slippage in operating margins due to investments & covid 19 a further scroll down to the outlook statement expecting a 13% miss on margins for 2021,fits in with the big sell off today on big volume.

[essentialinvestor] 20/11/2020 14:54

Luck with that Gary.


Following the rapid re-rating of the last couple of weeks I'm running low on ideas.

[gary1966] 20/11/2020 14:51

EI,

I have only just placed the order in the last 15 minutes when around 591p.

[essentialinvestor] 20/11/2020 14:45

It did, just about, as I just missed 5.85 to add.

[gary1966] 20/11/2020 14:42

Put in an order for 5K at £5.84, good for today only. I don't expect it to get hit but if it does I will be happy.

GLA

[martindjzz] 20/11/2020 14:18

Margins, ROCE and Cash positions are all good and I have increased my position by 40%.

[essentialinvestor] 20/11/2020 13:46

I've followed Sage since 1992 and every large
% fall has turned out to be a buying opportunity.
Only slight caution I would add is the current multiple,
but that is a consequence of ZIRP and ultra low returns elsewhere.

Given the macro backdrop, these results look more than good.

[oakville] 20/11/2020 13:36

Bought 5k worth. Decent well run company.

[spacecake] 20/11/2020 12:29

Topped up early on, final results seem ok considering the state of the world.

[quattro44] 20/11/2020 11:59

Seems like a well run company with a solid plan that is working. Been waiting to top up and this is a great opportunity.

[sutherlh] 20/11/2020 11:56

Thanks Maddox, added another 25% to my Sipp holdings based on the evolution within, to what should be future areas of growth. H

[maddox] 20/11/2020 11:24

Hi sutherlh,

Yes resilient performance - SGE's transformation to Cloud and Saas is on track and the results are in-line with guidance. So, difficult to understand Mr Market's reaction. The Recurring Revenue Growth of 8.5% is good but masked by declines in the areas they are exiting. As these shrink away the growth areas will emerge and then dominate in the statutory figs.

They have decided to further increase investment in R&D, sacrificing the margin, but they state this is with the intention of achieving double digit revenue growth. So, nothing of concern, transition continues against a challenging Covid back-drop. Mr Market is notoriously short-term, but the reaction is harsh in the circumstances.

Regards Maddox

[cravencottage] 20/11/2020 11:24

I saw this the other day with Halfords.

[cravencottage] 20/11/2020 11:23

Looking overdone to me!

[essentialinvestor] 20/11/2020 11:18

Had a few more.

[deanmatlazin] 20/11/2020 11:05

Market over-react i think. bought some this morning. The result is not too bad either! They still give out dividend!!

[essentialinvestor] 20/11/2020 10:56

Had a small amount.