Touchstar Share Discussion Threads

[rivaldo] 04/7/2023 14:01

Nice 17,857 buy at 112p just reported - looks like someone's filled their ISA for this year with £20k of TST shares.

[cocker] 04/7/2023 10:47

With a positive TU likely to drop this month I see no reason why they ain't buying up some stock.

[cocker] 28/6/2023 11:12

Buy backs going well then!. Surely now is the time to place an order to give those who want to sell a bit og a premium

[smithie6] 26/6/2023 16:54

..normally the broker is given a free rein, within the rules announced by a company, to buy as they see fit

usually they try to buy cheapily...and trying to avoid pushing the price up, such as by buying shares on days when the mkt is having a bad day.

[cocker] 23/6/2023 10:42

Has anyone any idea how they think the shares are or will be purchased. Surely not by say CFO of the company on line whenever he sees fit. FWiW, now is the time the company should be buying up stock!

[smithie6] 22/6/2023 20:44

daviddosh wrote

"
I am afraid dividends below 3% are no good with inflation at 8.7% and will not attract investors looking for income. "

..a good/valid comment imo

although, a tech. co. paying a divi is a good sign & shows it is doing ok/well, since many tech cos don't pay a divi, 'cause they can't !

[varies] 22/6/2023 10:39

hastings
I agree with you that a sale by Chelverton of its shares to a third party would look better than a sale back to TST as other shareholders might feel that the same price was not available to them

[hastings] 22/6/2023 08:51

My only concern is the buybacks being used to allow Chelverton an exit, (if that is what the fund is actually embarking on).Surely another institution/s would be interested in coming on board and appears a more preferable outcome to me.

[cocker] 22/6/2023 08:20

Looks to me as if they have plans for cash on possible european expansion. Having said that a dividend is nice but shareholders want returns, not breadcrumbs. I have no idea on how share buybacks will be instigated, ie via broker which is normal or via themselves all in all makes the stock less attractive to anyine with serious dollars.

[davidosh] 21/6/2023 22:23

How can £1.20 be fair value on a cash adjusted p/e of about 9 for a company growing eps at nearly 30% in 2024 ?? Makes no sense to me. I prefer a good dividend so that we can re-invest in more shares and the yield can look attractive to others.

I am afraid dividends below 3% are no good with inflation at 8.7% and will not attract investors looking for income. I want income and growth and that is clearly possible here.

[rivaldo] 21/6/2023 21:53

FYI here's WH Ireland's conclusion today - imo their 120p valuation is extremely undercooked, especially given the 41p per share of cash:

"Today’s announcement follows the successful completion of Touchstar’s capital reduction (announced on 26 April 2023), which enabled the company to increase its distributable reserves and capacity to carry out share buybacks and pay dividends.

For FY2022, Touchstar reported a year-end net cash balance of £3.5m (41p per share), with strong free cash generation of £1.1m (FY21: £0.6m) and EPS of 6.6p for the year.

We update our forecasts this morning to account for the commencement of a dividend payment and buyback of 0.279m shares in FY23 (a budget of £300,000 at the current share price). For FY2023, we look for DPS of 1p (was 0p), EPS of 6.7p (was 6.7p), and net cash £3.3m (was £3.6m), for FY2024, DPS of 2.0p (was 0p), EPS of 8.7p (was 8.4p) and net cash of £3.4m (was £3.8m), and for FY2025, DPS of 2.5p (was 0p), EPS of 10.0p (was 9.7p), and net cash of £3.8m (was £4.3m).

WHI view: While the company’s intention to return value to shareholders has been well flagged for some time, today’s announcement is a positive development, firming up the company’s plans for an attractive programme of distributions. With £3.5m of net cash on the balance sheet at the year end (making up 38% of the group’s market cap), putting the company on an FY24E EV/EBITDA of just 3.1x, we view the strategy announced today as a sensible approach to realise value in Touchstar’s underlying business – which has, in our view, been undervalued up to this point.

As demonstrated in the most recent full year results, Touchstar has continued to make good progress as it executes its strategic objectives, with an increase in the share of recurring and software revenues and the effects of the previous restructuring driving increasing margins and strong cash generation. Our estimate of fair value for the shares stands at 120p."

[smithie6] 21/6/2023 21:30

I guess that a buy back has an advantage for directors....their options increase in value (because fewer shares increases the eps & performance, if everything else stays the same)
& hence a higher chance of meeting the perf. reqts to receive options),

whereas I assume that any divi pays zero to option holders.

[smithie6] 21/6/2023 21:27

What would you suggest instead ?

A special divi, of a bigger amount ?
5p, 10p ?
Be ok with me. :-)

[cocker] 21/6/2023 13:22

I think smithie the argument for those of us who have a decent holding and have held for a while, is we want a bigger share of the cash, not a 1p interim with a possible 2p final. Coupled with that, yes of course it might be easier to exit today, but come the end of the buyback it will be horrendous, dont understand their philosophy at all.

[smithie6] 21/6/2023 13:10

some poster text says

1)'this news makes it harder to sell any shares'

imho that is a really stupid opinion.

(the co. has said it can buy up to £300k worth
....so, any PI wanting to sell £5, £10k, £15k could sell at any time in the rest of this week, whereas before the RNS it would have been harder imo to sell say £15k in 1 go)

----

2) 'that the co. could buy from one insti holder (say Chelverton) & then sell those shares to another insti'

personally I think that is a stupid opinion

To buy a chunk of shares from A & then sell them to B is the normal job or a MM (& phps also possible directly). It is not the job/role of the company.

(Any big holders will already wanting to buy more shares will already have talked to Chelverton. Whether Chelv. want to sell or not, I don't know)

-------

shares that are bt in the mkt are normally (but not always) cancelled or used to give to anyone with share options if there are not already enough shares in treasury

[rivaldo] 21/6/2023 08:59

WH Ireland have this morning raised their forecasts for the next couple of years.

They note that have TST have 41p per share in net cash (£3.5m) against the £9.1m m/cap.

Given the 1p interim dividend now announced, I'm not sure why but they go for a 1p divi in total this year rising to 2p next year and 2.5p after that - surely the clue is in the word "interim"!

Their new forecasts are:

this year - 6.7p EPS
2024 - 8.7p EPS (up from 8.4p EPS)
2025 - 10p EPS (up from 9.7p EPS)

[varies] 21/6/2023 07:53

Delighted to see the re-instatement of dividends after a gap of about 7 years. This provides us shareholders with a direct benefit and reminds us that pro rata we own the company.

[dolittle1] 21/6/2023 07:04

Alnost as if the buyback has been put in place to allow Chelverton exit without significant donwnward pressure on the share price.

[rivaldo] 21/6/2023 06:15

Today's RNS confirms both dividends and buybacks.....

Three pieces of good news:

- confirmation that "Trading conditions and trends remain positive and are consistent with market expectations"

- the commencement of dividends. The 1p interim suggests an overall 3p dividend for the year at the usual interim/finals proportions

- £300,000 of share buybacks, which will help to take out any sellers out there (Chelverton?). Of course it's possible that TST could then re-sell the shares in blocks to other institutional buyers, thus improving liquidity and perhaps netting a nice little profit in the meantime.

[cocker] 16/6/2023 16:32

Well from what I gather and what has come from within, expansion into some European countries with fuelserve is highly on the agenda. Hopefully Monday or early next week we shall have an rns with regards to cash distribution and possible buy backs, not that they often create shareholder value and certainly would make buying and selling in small amounts hard, let alone what i have accumulated.

[smithie6] 16/6/2023 13:09

..is there any mention or hint of Tucan rolling out anything of TST to other countries where they operate ??