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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Triad Group Plc | LSE:TRD | London | Ordinary Share | GB0009035741 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
2.00 | 0.85% | 238.00 | 236.00 | 240.00 | 240.00 | 238.00 | 238.00 | 10,821 | 16:24:09 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Computer Related Svcs, Nec | 14.86M | -44k | -0.0027 | -881.48 | 39.5M |
Date | Subject | Author | Discuss |
---|---|---|---|
24/4/2019 18:20 | I confess to reducing my holding a little today as I wanted to take advantage of another situation which I think will move sooner. Not all were my sales today however. I continue to hold a good slug of TRD but it’s taking longer than I had hoped to see a return. As I mentioned once before, if the year to March 2019 ended well, I reckon the company would have done a year end update. Lack of current information combined with the ongoing uncertainty about Mira Makar’s holding and how she will vote it in critical meetings is what is keeping this level “artificial TRD is one for the patient and that is not easy for active investors if there are other opportunities around. Like I say, I continue to hold for dividend and/or rerate but the larger holding I had was accruing an opportunity cost. | bones | |
24/4/2019 16:57 | I can’t understand why people would sell at this price when it is so artificially deflated. The potential overhang never materialised and the issue about the share register was proven a lie, seems odd. | brendainvesta | |
24/4/2019 16:43 | But of a down day on small trades !Sicknote | s34icknote | |
16/4/2019 12:58 | ....it will either be a slow climb up OR rapid (if announce new big contract win) OR 70+ chairman sells company to 3rd party as he retires for quite a lot more than its current value | netcurtains | |
16/4/2019 12:15 | Edpick, I would not say it is in decline in the structural sense peculiar to Triad but it is in an economic downswing in line with the macro picture. Recovery in share price will be affected by both company actions and the macro environment, I think. In addition, TRD is weighed down by the disruption of the 24% shareholder that the company successfully sued for harassment recently. See posts throughout 2019 here for that detail. I am not as down on this share’s future as perhaps you are but patience will be needed, I agree. | bones | |
16/4/2019 11:40 | Bones, definitely agree with you about the latent value but at the moment I can't see it being unlocked. All of the directors have been associated with the business 10+ years and I don't get a sense of any drive/desire from them to realise shareholder value here. Given the cash, I'd think there'd be a floor in the share price not too far from where we are now. However, as the business is, as I see it at the moment, in decline, I reckon shareholders could be frustratingly hovering around these levels for some time. Going to keep an eye out for the results and might change my mind. | edpick | |
16/4/2019 11:12 | Edpick, I believe many of us are waiting on the final results for this information; is trading holding up and will we see a more aggressive dividend policy? Historically, this company is not a risk taking acquirer of companies. It has always coasted along organically, riding the economic waves up and down, with more average years than good. I do not believe it is on the decline and - finally - the executive directors have an equity interest via options which I would hope would cause them to extract the proverbial digits. Fundamentally, I am here to exploit the latent value which emerged when the price fell in late 2018. I’m not expecting fireworks but I see scope for 100% gain from here. I think all small caps have suffered badly from the current economic jitters and the resulting lack of liquidity. These characteristics in the market will change as they always do in such cycles. That’s my outlook anyway. | bones | |
16/4/2019 10:30 | Thanks Bones. So no one really knows why they aren't buyers at these levels... With the cash balance and market cap where it is this, company seems tremendous value. However, I'm not really seeing any strategy or clear direction reading the annual report and interim - just caution over the competitive environment. The cash is pointless if it's just going to sit there. Why not indicate to the market their intentions with it? Extrapolating the interims forward to next year, another £2.5m drop off in H1 revenue but improvement in GM to 20%, with administration costs constant would give H1 profit of c.£200k. With a declining trend like that I think the share price would suffer further. Question is, is this a business on a serious decline? | edpick | |
16/4/2019 07:03 | Edpick, I refer you to my post no. 1246 for a précis of the current shareholding status of the two executive directors, Burrows and Leer. I agree that they could show more willing to buy (when not in a closed period) at these levels but I think they are comfortable with their modest options and modest salaries. It is hard to know how motivated they are to really take this company to “the next level”. This is a pretty small company really with an air of lifestyle and lack of risk taking about the executive. Maybe it is becoming an income share due to cash generation and lack of growth potential unless they decide to acquire other businesses in the sector. John Rigg, the long-standing executive chairman and now in his 70’s does own 29% already. It is basically his company historically. | bones | |
16/4/2019 04:34 | Surely this is in a closed period and the directors cannot buy between the year end and the final report? | rcturner2 | |
16/4/2019 00:04 | These shares look incredibly cheap. But why aren't the directors mopping them up at these seemingly low prices? There's probably many on here that have bigger holdings than some of the directors. | edpick | |
15/4/2019 08:05 | A 2p final dividend would represent a 100% increase on 2018’s payout. A 2p final dividend would make 3p for the year = 7.5% yield. A 2p final dividend would cost less than 10% of current cash pile, maybe nearer 8% Question is how surplus is the cash pile? We need to know that 2019 business did not fall off badly in H2 following the H1 interim report which highlighted intense competition and a falling off of some government business. The upside was continuing improvement in gross margins. I did not read the interim report as all that bad but it was released in November 2018, at the height of a general market bear dump in all small stocks that spanned October to December inclusive. Add in the slightly mysterious (to the market at any rate) closing paragraphs in the last two results RNS’s about a rogue shareholder and legal threats associated with that and it is no wonder a jittery small cap market sold TRD off aggressively. Now we have a solidly trading company that (subject to confirmation of no major decline in H2) is valued on an ex-cash PE ratio basis of perhaps 3 times earnings and a dividend yield that could be 7% with headroom to increase that dividend. | bones | |
15/4/2019 07:44 | I would think a very high percentage of current investors in Triad would use the dividends to actually buy more Triad shares due to its artificially low share price at the moment. Potentially a good reason for the company to give a larger than usual dividend this time round. But I agree having a reasonable cash pile is a good place to be in this day and age. | brendainvesta | |
14/4/2019 16:56 | I understand why holders might desire a return of some of the cash but with all the uncertainty and economic movement that might come from brexit isn't the cash buffer part of the attraction here at this time? Just for now? G. | garth | |
13/4/2019 11:59 | They should certainly do something useful with that cash pile, either use it for a complementary acquisition or return some of it to shareholders imo. | arthur_lame_stocks | |
13/4/2019 10:57 | No one is, as far as I know, off charge. All guns are firing! | netcurtains | |
12/4/2019 18:26 | I agree with that sentiment. Have a good weekend! | bones | |
12/4/2019 18:02 | I hate it when you know you have read something, but can't reference it! Bane of my life. I think it definitely was a general issue with some public sector bodies in the past, e.g. Just don't think it is an ongoing concern with TRD today, since the WC days are fairly stable, and they are so well capitalised. They shouldn't be able to use it as a reason for holding onto the cash. | dangersimpson2 | |
12/4/2019 15:47 | Dangersimpson2, in my detailed researches when first investing here, I saw a reference from the company to the tendency for debtors in the government or public arena to take time to be paid (which did not surprise me). I have had a quick skim through the last two years’ results announcements and confess I cannot see that reference there, but I know I came across it somewhere. However, as I cannot now lay my hands on the source, please take it as not proven! They did have a couple of large delays in 2017 which were not regarded as potentially bad and they did get paid. Generally, bad debts seem to be relatively small (£45k in y/e Mar18; £33k Mar17), which only removed a thin slice of pre-tax profit. As you say, let’s see the money. | bones | |
12/4/2019 14:35 | bones, Do you have a source for this assertion: I think their one ongoing operating issue is the time it takes for government bodies to pay their bills to Triad. DSR has typically been around 50-60 days, and towards the bottom of that range in the last HY. I don't really see any evidence there that the government is particularly slow to pay, these would seem to be very normal figures and I doubt government departments would pay faster at Y/E to help them window dress the accounts. There is always a difference between DSR and DSP with this sort of business as they will pay permanent staff monthly, but be paid on longer terms. DSP has typically been in 35-45 days range. They have a little bit of scope to delay paying suppliers, but given that these are mainly their contract staff I doubt they would want to do so. Again I would expect minimal window dressing. If they are growing rapidly then this can suck in working capital due to the difference in DSR & DSP, but I doubt this will happen anytime soon in the current environment. Since the cash keeps piling up, and doesn't seem to be needed for WC any time soon, I really think they need to have a strategy to return it to shareholders - dividend, buyback, tender offer, I really don't care. But simply sitting on it has gone on too long. | dangersimpson2 | |
12/4/2019 14:13 | Garth Gross margin has been increasing: Moving to perms from contractors is the way it is going due to likely change to contractor tax laws from 2020. Employees are cheaper than contractors as a trade off for employment security and NIC costs for company come into play. Triad’s vacancy list is long and suggests they are likely busy and using their staff to the max (assumption on my part). We cannot know for sure if the strategy is paying off but the company is priced for mediocrity given its cash is more than half the M Cap. Those are my basic reasons for investing here at any rate. I have done tons more digging though so I am not advising anything here! | bones | |
12/4/2019 13:46 | Having a look at this for the first time. How concerned are we that the step of taking on more permanent consultants against declining revenue and a competitive market place might go wrong and hit margins? "Outlook The market remains intensely competitive and, against a backdrop of political and economic uncertainty, the Group remains focused on generating profit and cash. The transition from a business heavily dependent on contractors to one which is consultant-led continues. The plan is to recruit more permanent consultants and to maintain high levels of utilisation and to use our integrated resourcing capabilities to augment our teams with carefully selected associates and contractors." Its only OK if high utilisation is actually achieved... G. | garth | |
12/4/2019 12:55 | Given the maelstrom of Parliamentary activity in the areas of “whipping&rdqu I hope Triad are paid by the vote..... | bones | |
12/4/2019 12:11 | Agreed, that way you are not often disappointed. | brendainvesta | |
12/4/2019 12:06 | Indeed, although I was thinking about recent months where it seems the whole of government back offices have been consumed with Brexit related issues. Anyway, we will see what the results look like. If the business has ticked up a bit since the downbeat interims, I would expect a trading update soon but, if it has been a bit lacklustre, maybe we will hear nothing until the finals are released in June. In my investing world, I find it pays to adopt a cynical view of management’s intentions until proven otherwise. | bones |
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