Waterlogic Share Discussion Threads

[ptolemy] 24/5/2007 16:25

Brief mention of WTL on TMF (IVS Note).

100,000 buy just gone thru'. About 2 days ago MMs lowered the bid and increased the offer. I think they hovered up a few but no where near 100k. In my experience they don't like to hold many do I'm guessing they're now short of stock and any buying should move the price. Even if my analysis is rubbish, its good to see a buy of such size.

[colonel a] 23/5/2007 11:07

CR.
Thanks for the hard work on the thread.
Have just taken some @62, can't but agree that the current state of play is an over-reaction to a fairly minor profit warning.
But I guess it will bump along at about this level until people see the results as being "soon".

[cockneyrebel] 18/5/2007 20:57

They are in the US tho, can't really read across imo

CR

[stegrego] 18/5/2007 20:35

A small piece on Bloomberg that talked about, amongst other things, Home Depots poor results said that the results 'were due to weakness in kitchen unit sales'

[mongrels1] 18/5/2007 15:56

Patience... all will come good.

Just needs a sentiment change and I agree that the results may just trigger that change.

[cockneyrebel] 18/5/2007 15:52

At the point where it's driving me bonkers now.
Can only wait for the results to clear the air and get the thing stabiliesed then back up imo.

Results in 6 weeks, was hoping for a bit of director buying ahead of the closed period.

CR

[sheik yerbouti] 16/5/2007 14:56

Maybe worth posting this again from Daniel Stewart a few weeks ago:

Following a deep and unwarranted depreciation in its stock value over the past few weeks, Waterline issued a reassuring statement yesterday, highlighting that FY07 results (March year-end) would be in line with revised expectations, showing PBT of £1.8m. The PBT figure implies EPS (45% tax rate) of 7.3p, placing the shares on a multiple of just 9.0x for the year just-ended. We are leaving our FY08 forecast unchanged (10.3p EPS), driving a prospective earnings multiple of 6.4x.
* The management has confirmed with us that the historic cost overruns (relating to Coolectric) announced in March 2007 are now behind them following a partial reorganisation of the group's logistical operations.
* On a prospective multiple of 6.4x and offering a dividend yield of 5.0% (FY08E),we rate Waterline as a Buy and retain our 110p price target.

[papalpower] 16/5/2007 14:01

Ptolemy, not having a dig, its just seems strange to me, however, all will become clear at results. I am on the "fence" presently, and will wait for results before buying or not, so short term ups or downs prior to it all being in black and white will not make any difference.

[ptolemy] 16/5/2007 13:48

PP,

Your note implies that there might be some significant one-off costs to come off the 1.8m pre-tax, but my view is that if there are any they should be small. Remember the 1.8m is pre-tax after taking into account the 0.5m losses on logistic/IT contracts.

Firstly, the phrase they use (1.8m before one-off costs) is a phrase they consistently use in each trading update or reults announcement. I've also seen them use ' one-off and exceptional items'. I think they regard the 0.5m as an exceptional item and not a one-off cost.

Secondly, what might these costs be? Last year the main one-off costs were associated with the IPO and a director termination package. I've not seen anything announced which might have associated one-off costs for 2006-7.


EDIT - was typing this whilst you were busy posting your note immediately above. They have previosly stated and broker confirmed that they were on target to make 2.3m. so 2.3-0.5=1.8m. Hence the confirmation.

[papalpower] 16/5/2007 13:41

planetgoing, I am still confused, as the wording is explicit, and says its PBT before one off costs.

In these situations I err on the side of caution, and the RNS is correct. The RNS would be written by the company and checked by the Nomad before issuing to the markets. Did they all miss the explicit wording "before one off costs" ??

Given they have not retracted it, or clarified the AFX news release which also states PBT before one of costs, I have to go with the RNS and its implied meaning and not the say so of someone at the company by telephone.

Had they tried to correct the RNS or the AFX report, then fine, but they have not......so the implications are that it is as it says, "before one off costs".

Others may disagree, but I go with whats in writing, until they want to change it, in writing again.

[planetgong] 16/5/2007 13:13

Papalpower - Are there any one off costs not already seen?

I thought this issue only arose because of a badly worded RNS?

Masurenguy said this about it:

"Have spoken to the company. Todays update was meant to re-affirm a projected PBT after taking into account the one off write down of £500K as previously indicated in the 9/3 update.

Todays update is badly worded and could easily be interpreted as PBT of £1.8m before taking the one off write down. Reassuring to know but whoever wrote the copy for the trading update needs a lesson in Use of English !"

[sheik yerbouti] 16/5/2007 12:39

Up on a single buy again, sellers cleared it seems.

[plentymorefish] 16/5/2007 09:55

Nice to see it going up - bottom fishing or news?

[papalpower] 15/5/2007 15:08

It will be interesting to see the level of the one-off costs. Just how bad is it going to be, will they, as to speak "kitchen sink" the one off costs.


"LONDON (Thomson Financial) - Waterline Group PLC, a supplier to the fitted
kitchen industry, reiterated that it expects its full-year pretax profit before
one-off costs to be about 1.8 mln stg."

[sheik yerbouti] 15/5/2007 15:03

You can get 61p to sell though now, and you can't buy any online at the moment.

[knowsleyman] 15/5/2007 14:30

Yes, but it was only the offer price which moved. The bid remains unchanged and the spread is back to 5p.

[sheik yerbouti] 15/5/2007 14:17

Only took a 1500 buy to move it up this morning.

[ptolemy] 15/5/2007 10:57

Given the lack of interest here, I spent some time going over my own assessment of WTL. Still think the market has got this wrong.

Historic PE of 8 and I beleive they will hold the dividend to at least the 2006 figure which gives a yield of 4.3% for year just ended.

Higher tax rate and contract overrun are the negatives for the 2006-07 year just passed. But given the growth rate and strengthing of the logistics mgt announced by WTL management, these seem to be appropriately managed. Continued strength in refurbs and acquisitions point to continued good growth figures in 2007-08.

CR - are you still in these?

[ptolemy] 14/5/2007 14:45

These now look a screaming buy with results due soon. A few loose holders shaken out recently and the price fell on very low volume. I suspect it won't take too much to encourage WTL upwards.

[130407] 04/5/2007 10:22

Steve

We needs to keep things in perspective its a 10k sell equates to £6k sell - it is miniscule in the bigger picture.


I have added btw on a SB by 100pp, so i think ive covered the sale of 10k lol

[steve133] 04/5/2007 10:16

maybe so but this is the last thing the stock needs right now

[130407] 04/5/2007 10:15

mongrel

its just so funny for a PI to say "im not buying cos a director sold" but its the amount of money involved...which is basically a 2 months salary to most people. Nothing big in it and nothing to read into it.

The share is illiquid anyway so in some repects it frees up the foat a bit.

In fact i am tempted to double up on my SB now as i cant fault the co at the moment.

[mongrels1] 04/5/2007 10:12

I agree 130407. Remember this is a small firm. These are not "fat-cat" directors earning huge sums.

[130407] 04/5/2007 10:08

PP

10k share sale by director is neither here nor there to be honest. only realised him £6.3k

LOL you are not tempted to but because a director sells shares worth £6k...lmao

[papalpower] 04/5/2007 10:05

Been on my watchlist after the drop, and with a director sell, it will stay purely on the watch list for now. I was getting tempted to get some, not now.