Tp Share Discussion Threads

[timojelly] 22/2/2018 08:55

Re my link above, he definitely looks like the right guy to implement change and drive the engineering business forward into the nuclear industry... Etc.. Etc..

[catch007] 18/2/2018 20:19

PA I wasn't suggesting there was ever an announcement on a transformational deal for clarity I just stated my personal preference that it would better to go for one. It would gain market interest and the integration time could be quicker to add value. We may politely disagree on acquisition strategy however we share a similar viewpoint on the compelling value play.

[pavey ark] 18/2/2018 20:05

Catch007,
I don't think that the company has ever suggested that there will be a "transformational"acquisition.
The reason given at the time of the fund raising was that the tier 3 defence contractors were very small and the sector rather fragmented.
With the encouragement of the tier 1 contractors AND the MoD TPG is intending to buy up companies like Polaris, cut the overheads and improve the group's ability to provide a wide range of services.
They may spend £6m,£7m or even £8m on a single company but I think the real benefit is to be found in the smaller purchases.

I certainly agree with your assessment of the current situation though.

[catch007] 18/2/2018 18:55

I share much of PA's view. The news flow has been very positive albeit some concern when a high prolife exec has left. I don't really understand the negativity, the share price fell back with the general market corrective movement and whilst it has yet to come back I have bought two further tranches. As I have repeatedly said the sum of the parts valuation and cash pile make this such an undervalued company. Eventually I feel we will see a rerating and hope that there may be two triggers, an acquisition (I personally would rather see a transformational buy rather than several smaller bolt on's) and then the results confirmation. Until I note a significant deterioration on the longer term trading outlook I remain a holder and see no reason to stop accruing when my I see such strong fundamentals and yet an share price that does not reflect this position....at some point we will see alignment and our patience rewarded.

[thompsonminor] 18/2/2018 18:15

As always PA a very reasoned response. However, if the share price was to simply reflect the fundamental financials (as you rightly repeat and based on reasoned analysis) then I wouldn't be so concerned. Fact is investment decisions are often based on sentiment (However misguided and baseless) when bad news mixes with impatience, especially in small cap businesses.

[thompsonminor] 18/2/2018 18:15

As always PA a very reasoned response. However, if the share price was to simply reflect the fundamental financials (as you rightly repeat and based on reasoned analysis) then I wouldn't be so concerned. Fact is investment decisions are often based on sentiment (However misguided and baseless) when bad news mixes with impatience, especially in small cap businesses.

[pavey ark] 18/2/2018 17:54

Here are few questions for all:

1 Have you read (and re-read) the recent news announcement on the TPG site?

2 Have you considered the implications of this announcement on the nature and timescale of acquisitions ? ( think about it )

3 Have you viewed this and other announcements against the repeated claims by one poster of mass resignations, partial sale, closure etc concerning the Manchester facility ?

4 Have you considered this new appointment in relation to the only negative piece of news to come out of TPG in a very long time ie. the Simon Kings departure ?

Before people go on about the share price let me remind them that two years ago the share price was less than half the value it is today and one third of its recent high.
At this time I was buying and pointing out in what I considered to be a logical, reasonable manner that the price was unreasonably low.
We had a rampant troll on this board and at least one of the recent posters sided with him.
The troll has gone, not just from here but from ADVFN but a number of silly,gullible people were sufficiently influenced to hold back.

I gave figures recently about how undervalued this company is but anyone who can stay awake for ten minutes and operate a calculator must come to the same conclusion.

This company is now more undervalued at 6p than it was two years ago at under 3p.

As far as the acquisition timetable is concerned the company clearly stated that ONE acquisition would be completed before the end of 2017 and it has.
As far as other acquisitions are concerned I would think that these will be relatively small bolt on additions to the MS unit as it would seem that the engineering unit is being fairly radically reformed and I would imagine that it would be difficult to bed in a major acquisition at this stage.
I don't suppose the people demanding immediate and substantial acquisitions will give any thought to the points I've tried to make here but I think reasoned and reasonable investors will be very relaxed about the time taken and very relaxed and confident about the future progress of the company.

[pavey ark] 17/2/2018 07:55

Oh dear !!
I will now try to inject some logical thought into this and see if we can decide where we actually are.

On second thoughts my head is full of snot and I'm heading off to the land of the becks and fells for a few days.

I really can't be bothered.

Edit: as a serious and involved investor here I am absolutely delighted with the obvious progress being made.

[thompsonminor] 16/2/2018 22:50

Timojelly Totally agree. I'm sitting on a £17k loss holding over £100k and my patience is very quickly running out. There's been too much bad news in recent days and this stock is not strong enough to stand out on its own in an otherwise lacklustre sector.

[pavey ark] 16/2/2018 22:16

RR, thanks for that , I'm just in and would probably not have spotted it for a day or two.
I'm surprised that there's been no further comment here as it is packed with information about where the company is going and what it is doing with the engineering business.

I consider this to be very useful information and I view it as very positive for the company and it's future prospects.

[rolling ronnie] 16/2/2018 12:43

hxxp://www.tpgroup.uk.com/about-us/news/2018/02/jon-constable-appointed-tpgs-director-engineering-technology/

[pavey ark] 14/2/2018 12:57

I've just had another look at the house broker's report/estimates from September.
As the company gave an "in line" update in January we must assume that the broker's predictions for the full year are close to correct.

Using the actual half year results and the broker's forecast I think I can see where Eastbutwest80's disgruntled phone call person is coming from.
Using the figures I have it looks like the traditional engineering unit lost close to £1m ,for the second year running.

My figures are based on Maritime making close to £5m and MS breaking even (small profit) in H2.

I think the loss in the traditional engineering unit in 2016 prompted the shift to the AMC high value/specialist work so with staff being recruited for the new work this may have left the old workforce rather at a loss as to where they stood.

With the recent acquisitions I expect the MS unit to turn a reasonable profit this year c £0.75m and remember that this unit includes the historic money pit of the old compressor business.

If Management can now turn the old engineering unit round the organic improvement in EBITDA would be considerable.

[septblues] 14/2/2018 09:13

Cerrito
one should also remember that the defence budgeted spend has been "reduced" by the value of the pound.

[pavey ark] 14/2/2018 08:36

This share is certainly undervalued when looking at the fundamentals but I decided to look at the RSI(14) figure and it shows an amazingly low figure of 5.
Not a big fan of the RSI figure as it is backward looking but it does give some indication as to whither a company is oversold or not.
This figure of 5 is about the lowest I've ever seen !!
On a fundamental level the submarine unit alone is worth the entire current market cap without the rest of the company AND the cash !!

[septblues] 14/2/2018 07:57

Cerrito
yes submarine sector is buoyant but fund managers asset allocation often doesnt recognise sub sectors. stock pickers may know differently.

[catch007] 13/2/2018 19:37

Some natural concerns being voiced however the share price is undervalued IMHO. I just wonder if they have been in negotiations with their primary acquisition target under heads of agreement.....such deals take time to come to fruition especially when the target knows the value of cash they have and can hold out for better deal?

[trentendboy] 13/2/2018 18:49

Submarine sector buoyantAlmost amusing

[cerrito] 13/2/2018 18:13

Ref defence sector in the doldrums, I am not sure if that applies to submarines.
I was at today's AGM of PRES who are suppliers to UK/European/Far East submarine manufacturers and they thought this sector buoyant

[septblues] 13/2/2018 15:17

mine too - he was the rainmaker

but maybe with defence markets in the doldrums an valuations low, new tech markets growing and valuations high, and a new board director with experience of growing small caps in other tech sectors, perhaps the board pivoted away to a new strategy

[cerrito] 13/2/2018 15:03

That is/was my understanding kilgallp

[kilgallp] 13/2/2018 14:03

I may have got this totally wrong, but I thought Kings was very much the linchpin in negotiations on defence contracts, as he was ex-military.

Any thoughts?

[timojelly] 13/2/2018 12:01

They are far from 'splurging'... Were in active discussions with 10+ companies a long time ago. See initial rns LAST SUMMER!

[rolling ronnie] 13/2/2018 11:43

Far more embarrassing to splurge it on the first opportunities that come along rather than making sure that any acquisitions are a great fit, add value to the group and are at the right price, I would have thought!!