Venture Life Share Discussion Threads

[hydrus] 29/11/2016 14:02

I am feeling quite bullish for the medium term prospects of PVG, despite current low revenue. The high margins, recurring revenue model and high growth rate make it an attractive prospect. Broker note out today as posted by Petlover on the PVG forum. Whilst I always taken broker notes with a pinch of salt, the forecasts of a £150m company in the next 3-5 years don't seem that far fetched too me. I have a significant holding.

[lauders] 29/11/2016 13:38

Epwin looks possibly better to me so I would go for the other Haywards26! Another possibility if you want some dividends + special dividends and can leave alone is ITV. Ever considered them at these lows?

APAD - Any thoughts on SOU? Seems an active BB at the moment!

[haywards26] 28/11/2016 20:55

I am struggling to decide where to re-invest my LVD proceeds after the recent takeover offers...

BMS - which is currently yielding over 8% and a share price that has been reducing despite a nice rise in the baltic dry index

or

Epwin - which is currently yielding around 7% and a P/E of under 7.

Decisions, decisions

[apad] 27/11/2016 13:12

Believing in one's own mythology, perhaps, red. Tesla another good example. Messiahs, and their Tintin acolytes!
Plumbing today, very satisfying.
apad

[redartbmud] 25/11/2016 22:27

An airplane was about to crash. There were 4 passengers on board, but only 3 parachutes. The 1st passenger said, "I am Steph Curry, the best NBA basketball player. The Warriors and my millions of fans need me, and I can't afford to die." So he took the 1st pack and left the plane.
The 2nd passenger, Donald Trump, said, "I am the newly-elected U.S. President, and I am the smartest President in American history, so my people don't want me to die." He took the 2nd pack and jumped out of the plane.
The 3rd passenger, the Pope, said to the 4th passenger, a 10 year old schoolboy, "My son, I am old and don't have many years left, you have more years ahead so I will sacrifice my life and let you have the last parachute."
The little boy said, "That's okay, Your Holiness, there's a parachute left for you. America 's smartest President took my schoolbag." 😂😂

red

[redartbmud] 25/11/2016 19:49

It happens. Perhaps it was an epiphany. I thought that he has been going a bit off piste for some time now.

red

[apad] 25/11/2016 18:03

From the FT:
"Here’s a weird thing: in May 2015, Neil Woodford invested £32m of his clients’ money in a company working on cold fusion. Here’s a similarly weird thing: no-one seems to have noticed or talked about it. There isn’t a single story in the UK press, or any other press, about the City’s most high-profile fund manager investing in a widely-ridiculed bit of fringe physics."

JESU!

apad

[redartbmud] 25/11/2016 16:02

APAD

Will do. Away from the net and live prices I will get back my equilibrium. Coffee laced with a tot of rum, sat watching an angry sea, is good therapy.

Ditched Ng. but kept the difference, in shares, to add to my existing holding. The sale proceeds matched my purchase cost to the penny - quite remarkable.
I am sure that I would have done better next week, but wanted the cash back in my Isa for other opportunities that may present themselves.

red

[apad] 25/11/2016 14:39

Sorry, red. Enjoy the Torquay Torrents :-)

I believe so, s. Memory from one of his presentations. Idle speculation really.

There is a decent range of other antibody R&D, dacian. However, it is driven by customer requirements, except for the extreme R.
AGM 7 Dec.

apad

[sherylchan] 25/11/2016 13:04

Apad - u mean Harrison is diabetic? Type 1?

Interesting to note that Theresa May is Type 1 diabetic - can't be good with all the stress of being PM in these tumultuous times - won't be surprised if she is a one term PM

Bought a slug of BVXP - surprised no RNS from fund who took the 100k shares from PH

[redartbmud] 25/11/2016 11:35

APAD

Thanks, I could not have timed my top slicing, at ROR, any better had I tried.

Ah well, off to Fawlty Towers for therapy tomorrow. I just hope it is still standing intact, after the storms, and the new roof has proved to be watertight.

At least Ng is going the right way, for now.

red

[apad] 25/11/2016 09:45

ps
I've been wondering if Harrison is looking for a good home for BVXP and a comfortable back seat. ABC is the obvious cultural and technical fit and they can afford it.
I think it would be a lifestyle choice (diabetic?) - the company is going wherever he wants to take it, for sure.
Still on my increase list - ABC income soon :-)

pps
ROR strength consolidated is a vivid message.

[apad] 25/11/2016 09:32

As well as financials, the big news to trumpet about in the US is the Russell (AIM equivalent), so I think that is already in the system.
Strong dollar will lift the boats and US big caps will switch from share buybacks to take-overs.
ETF charges are opaque.
FWIW
apad

[modform] 24/11/2016 14:22

Or you could use an ETF for russell2000. Another ETF that may benefit is KRE which is ETF of regional banks based on the promise that trump will be removing a lot of regulations on banks.Not a recommendation, and not a holder

[modform] 24/11/2016 13:53

Sorry dacian, don't do IT, but imo JUSC is the best of the bunch because of its exposure to USA small caps

[apad] 24/11/2016 12:25

"PTSG
Initiating Coverage
Strong growth, high returns

Premier Technical Services Group (PTSG) offers an attractive combination of rapid
revenue growth, high margins and ROCE. It is the market leader in the provision
of specialist services in Access and Safety, Electrical Services and High Level
Cleaning, yet has less than 10% share. We forecast an EPS CAGR of 19% (2015-18),
but expect PTSG to continue its track-record of EPS upgrades. Trading on a 2016
PE of 11.5x and EV/EBIT of 9.9x, we think the shares are significantly undervalued.
We initiate with a BUY recommendation and 125p price target (60% upside).

Strong revenue growth. PTSG has delivered a 24% revenue CAGR 2009-15 (14%
organic, 10% acquired, we estimate). Its addressable markets are worth around
£600m, implying a PTSG share of c.6%. Its activities are highly regulated, creating both barriers to entry, and high levels of repeat business. Renewal rates on maintenance contracts are high (88% in 2015). PTSG has undertaken 20 acquisitions since its formation in 2007. We expect PTSG to continue taking market share both organically and through further acquisitions.

Sector leading margins. PTSG has consistently delivered gross margins >50% and
adjusted EBITA margins >20%, 2012-15. The specialist services, and unit rate pricing (rather than cost plus) lend themselves to high gross margins in inspection, testing and maintenance services. The attractive EBITA margins are generated through a combination of scale, national coverage, and use of technology, that serve to maximise engineer utilisation and leverage costs.

Attractive returns. Between 2010-15, post-tax ROAIC has averaged c.42%. Post-tax
return on operating capital, which more closely approximates the return on organic
investment, has averaged c.74%. We think that management has established a strong
track record of significantly improving the profitability of the businesses that it acquires, driving attractive returns on that investment. We estimate that the company has c.£5m of headroom against current facilities to undertake further deals."

[apad] 24/11/2016 12:22

Some snippets from the TMI rec from last month:

Premier Technical Services - Provider of specialist safety services enjoys 50% eps upgrades

73p Epic code: PTSG

(Momentum Investor) The support services sector has been under the cosh due to problems particularly at Mitie, which is focused on low skilled services like mainstream cleaning and security where competition is fierce and operating margins are only c. 5%. MITIE has also taken a multi million pound hit from the national minimum wage and cited a slow-down in local Government business. In such an environment, however, even the good businesses get dragged down and shares in PTSG, which provides specialist services for commercial buildings such as fall-restraint systems for working at height, electrical testing, fire prevention and high level cleaning, have come sharply off a recent high of 97p.
One vexed question we asked CEO Paul Teasdale when we spoke to him over the month was whether PTSG has suffered from the same problems but he says categorically not. It’s quite different because it provides specialist niche services, which the big players like MITIE simply don’t want to do and last year it enjoyed operating margins of 20.5% while it has virtually no local council exposure. He also highlighted his firm’s break-neck growth with eps forecasts for the year ending 31 December 2016 upgraded from 4.6p at the time of the float in February ‘15 to 6.8p now, with 7.6p expected in FY ’17.

Access and Safety div op margins of 16.7% in FY-15. PTSG is the market leader and only national designer and installer of fall arrest or fall restraint systems for working at height.

Demand for services driven by legislation with high renewal rates at 88%

Electrical services - From a standing start in FY’10 profits have increased rapidly to £2.5m last year, with operating margins a fine 24% and Numis expects profits to double again to £5.2m by FY’17.

They finish off with:
The stage looks set for a banner couple of years for PTSG, which is now eyeing up significantly larger acquisitions in view of its greater size thanks to its strong balance sheet; it has £4.5m of un-used bank borrowings while there are c. £6m of expected earn-outs over the next three years, which will be financed by internal cash flows. Teasdale is also excited about the potential for cross-selling with less than 5% of clients taking more than one service.
The MITIE shock-wave has created a terrific buying opportunity and with the shares trading on a soon-to-be prospective PE of only 9.6, they should be standing significantly higher in a year’s time.
The low PE suggests investors don’t believe its outlook is robust but Teasdale rubbishes this by noting that at the start of every year over 50% of expected revenues is already booked thanks to its spine of repeat business from testing, inspection and maintenance.
Numis has just introduced a 125p price target suggesting upside of 71%. Buy.

[apad] 24/11/2016 12:21

Hi mod.
Couldn't agree more about US, unfortunately I am UK bound.
PTSG specialises in altitude maintenance and is a bet on experienced management - I have a small first holding. They have finance for acquisitions, which I believe they know how to do. Couldn't really fault it, bit of diversification.
apad

[modform] 24/11/2016 11:42

Apad, what is the attraction of PTSG, it does electrical testing amount other more boring jobs, it's just a PAT test I guess, ie, put a voltmeter across the power the cable and put a sticker on as TESTED, how unique is that.I am mostly invested in the USA from the day trump won, steel and copper miners, manufacturers and coal miners. Also some rails and shipping for moving commodities across the USA. Most of those stocks are up almost 40% since then.The other factor is that I think $ will strengthen, so should be good for UK investors who are in USA stocks.

[redartbmud] 24/11/2016 10:32

Trying to wash the dividend in Ng.
Not sure that it has come back too far, but it has US earnings that should help.
Share buy back programme seems to have upset the apple cart for now. Regulator giving indigestion to boot.

750 @ £9.0829. Meter running on Christmas Turkey. Will it be out of date mouldy cheese? Time will tell.

red

[redartbmud] 24/11/2016 10:28

Fat finger syndrome today.
Punted Merc. Bought 1,000, instead of 1,0000 so I added 9,000 to square the circle. Being half asleep cost me £8.95 in additional charges. Can't afford to eat tonight! Damn.

red

[apad] 24/11/2016 09:35

DOTD large director disposal taken up by Liontrust seems to have stimulated the share price.
apad