Waterlogic Share Discussion Threads

[masurenguy] 09/7/2007 16:00

Still heading south - credibility is now a major issue.
Very glad that I sold out a couple of months ago !

[ptolemy] 06/7/2007 16:23

will be interesting to see if there are any director buys at this level. Last July several bought at higher prices.

[sleepy] 06/7/2007 16:21

Any suggestions for a new heading?

[strutt12] 06/7/2007 15:53

CR

Would you mind changing the heading write up as it is a little misleading now!!

Thanks

[colonel a] 06/7/2007 12:49

Thanks gents,
There it is in item 3 of the notes.
Effectively a form of leverage.
Acting in the wrong direction at the moment ...

[knowsleyman] 06/7/2007 11:54

The company spends a fair amount on corprate entertaining. This is not an allowable xpense for taxation purposes, hence on a lower profit the non-allowable xpenses become much more significant and the result is higher taxation as a proportion of profit.

Borrowing large amounts of money,as the AA have, even with an allowable interest, would wipe out the net profit, but still leave a big tax bill.

[cockneyrebel] 06/7/2007 11:51

they pay a lot of tax because of the way they do business. They sell via promo's I believe, like buy so much from us and you'll get a free holiday in America or whatever. These promo's are taxed differently apparently - not sure if it's a higher rate or how it's calculated but I guess it's done by the inland revenue to prevent scams in some way.

I'd guess that these promos are not tax deductable in the way they are accounted perhap raising the overall rate?

CR

[colonel a] 06/7/2007 11:25

I think the fall is overdone {I'm left holding}

But their failure to disclose just how costly the coolectric takover was is a real stinker.
They must have known the divi was in danger at the last TS and not to have mentioned it was wrong {a lot wrong}.

I'm also astounded that a company which has made so little profit paid so much tax.
Did their accountants not go to the same schools as the ones who manage to get the AA and the like to pay interest pre-tax ???

[tsmith2] 06/7/2007 11:13

Fall may have been overdone - contemplating buying a small amount...research time

[oiliphant] 06/7/2007 09:04

CR
have you sold out yet?

[guru11] 06/7/2007 08:45

Just checking over the accounts - I see that distribution costs are up 38%, as well as a good percentage for admin costs, no wonder why profits are surpressed this year. Do they need a management accountant to control / monitor costs, I could be their man.

[labatie] 06/7/2007 07:41

Ineresting that the compensation paid to directors was 16% more than the cost of the interim dividend, and is almost 6% of the mkt cap. The loss of shareholder goodwill and trust as expressed in share price fall is about £1.5m. How can people handle things so badly?

[corrientes] 05/7/2007 16:59

Price at net book value and what an extremely low cap. Seems like all the hard work's been done, so wouldn't be surprised if some foreign outfit took this lot over.

[quotes_4_u] 05/7/2007 13:37

I got slated by cr because i mentioned there was no director buying
this year in this stock !

[knowsleyman] 05/7/2007 11:45

Interesting to note, that with a single exception, all the sellers are for tiny amounts of stock. Oh and there has been a buyer.

[colonel a] 05/7/2007 11:36

CR.

I share your disapointment and agree that they are a bit challenged in the accuracy department.

But the original owner is still pretty much the original owner and so has everything to gain from a decent divi.

In anything but the short term this should be an undervalued business.
And as somebody commented earlier.
Property prices may well stop rising but the building has to continue.

Ho hum.

[cambium] 05/7/2007 11:08

another Dan Stewart flop!

[cockneyrebel] 05/7/2007 10:53

perhaps Ptolemy but I've yet to find a stock that was a good hold when they do away with the divi. They can't be that confident about the cashflow imo.

Looks like the original owners floated this and got a lot of cash out and now a sceptic would say they seem to be depleting it by letting performance drift, paying themselves a lot, doing away with the divi.

I bet these are in for an MBO at some point which would be hard to fight with Lawrence holding nearly 60%.

A big shame because this is a company with a long track record of growth and looked to be a good investment on the sum of everything but if the directors have a different agenda then it's hard to fight it in a small cap like this imo.

CR

[ptolemy] 05/7/2007 10:26

At 57.5p the reaction seems overdone. When the trades show at the end of the day I guess we'll only see a few dozen PIs selling.

The turnover was well ahead and the margin was higher. The surprise is the exceptional item for the Directors' severence package. Without that the results would have been good. Odd really that they saw the need to issue a statement about the logisitics overruns when, in fact, the directors' remuneration was a far more significant item!

Concern going ahead is the outlook for mid-price kitchens. Cash flow is very good and so interest payments are covered. Now at net asset value.

[its the oxman] 05/7/2007 10:10

also out today for the price i paid so considering myself fortunate - should of followed my instincts and not the big div yield - never was totally convinced about this in a time of rising interest rates. clearly their trading environment is probably worsening by the day so dead money for now at best but with scope to fall much further as well.

[cwa1] 05/7/2007 10:00

All gone now. Had to take a hit on that last few but given the outlook thought it was best to just take the bath. Good luck to those that remain, hope things improve.

[cwa1] 05/7/2007 09:55

Been busy trying to shift my holding. Slightly surprised to get rid of as many as I have but the market makers seem to have had enough and have pulled the quote :-( Still left with a handful. Ho hum. Can't win 'em all I suppose.

[nickcduk] 05/7/2007 09:34

Pull that comment about many exiting sharply at the same time. I don't think you will even get a chance to do that. Online limits to sell have gone. Outlook was a bit depressing as well. Glad I got out a couple of weeks ago.