Watermark Share Discussion Threads

[rivaldo] 16/11/2005 12:29

Another uptick in a rubbish market - something up?

[rivaldo] 15/11/2005 18:46

Ta NJP. Well, WMK got tipped today by Zak Mir in the daily UK-Analyst e-mail - and it stayed above his 126p target, so hopefully any followers will be plunging in soon:

"Watermark (WMK)

To complete the set of three stocks that have bid speculation associated with them we have Watermark. What is appealing here even though there has been no uptrend to buy into on the daily chart is the way that since June there have been three tests of the 110p support area. The implication after the latest November rebound is that we could see a significant rebound to the top of the June ascending price channel as high as 150p. Cautious traders may wish to wait for an end of day close above the 50 day moving average at 126p before taking the plunge. The green 10 day moving average at 122p is the suggested end of day close stop loss for those going long or already in position."

[stemis] 15/11/2005 18:32

Seems to be recovering strongly, although it will be interesting to see what happens when it gets to the low 130's!

[das boyz] 15/11/2005 12:32

ARX also moving up.

any link I wonder.....

[njp] 15/11/2005 12:30

Bid 125(1) 124(3) 123(1)
Offer 128(2) 129(3) 130(1)

4 turned blue between 9.32 and 9.48

[rivaldo] 15/11/2005 12:25

Nice 15k buy from yesterday reported today, and up 1p today on small buying. Anyone with L2? Looks like the market's been cleared out of stock now. Let's hope for that contract news to capitalise...

[scaleyman] 15/11/2005 08:56

...and it miraculously improved your English made!! LOL

[made1686] 15/11/2005 02:35

yes i bought today as well

[rivaldo] 14/11/2005 18:51

Yep, a good day. Looks like strong buying interest. Nice to see such strength on a Monday - could be a very good week ahead.

[gotterdammerung] 14/11/2005 17:37

A wise move.

2 x 1m Buy trade were obviosuly institutional buying. Who can blame them at this very undervalued price.

As I mentioned before WMK will go from strength to strengh, any additioanl contract news will just accelerate this process.

Watching with great interest


g

[tday] 14/11/2005 15:53

Just purchased 15,000 Watermark CFD's. Let's see how they do.

[tole] 14/11/2005 15:15

A few large trades today at 125...

[njp] 11/11/2005 12:20

rivaldo

We meet again! I like the company and its management and can't resist at these prices so took nibbles for both my SIPP and free portfolios. The company has good earnings visibility and said they were comfortable about meeting brokers' forecast full year earnings at the half year stage. That confidence speaks volumes to me.

[rivaldo] 11/11/2005 12:07

Hmmm...seems like some sneaky buying interest over the last few days, pushing up the price from a sort of triple bottom.

Only just over £1 to go to Numis' 224p price target :o))

[gotterdammerung] 06/11/2005 16:59

Yes the new agreement is the key one. Not sure of the commisions due on these types of orders. But one thing for sure it will be earnings enhancing for WMK which as stated above is very good news indeed.

[bluelynx] 06/11/2005 16:14

scburbs

I believe what you posted is old news, the new agreement between Watermark and Aerobox is what matters now, and very good news it is too.

[scburbs] 06/11/2005 15:16

A bit strange given the below.

WATERMARK PLC AND AEROBOX PLC

Further re JV Agreement

Watermark Group PLC ('Watermark') and AeroBox PLC ('AeroBox') jointly announce
an amicable commercial settlement to the dispute between them over the joint
venture agreement. It avoids the distraction of litigation for both parties, as
well as recognising the important role that Watermark played in placing the
AeroBox air container into airline trials.

Watermark will be issued new ordinary shares in AeroBox equal to 7.5% of the
current issued share capital of AeroBox, and be paid an agreed marketing charge
by Aerobox, whilst receiving a commission on sales to four airlines for six
months.

Watermark's shareholding of 6,992,344 ordinary shares in AeroBox will represent
approximately 7.0% of the enlarged issued share capital, and is subject to
orderly market arrangements. AeroBox will make application for the 6,992,344 new ordinary shares in AeroBox to be admitted to trading on AIM, and admission is expected to occur on 2 August 2004. This share issue is based upon 10% of the shares in issue at the time of the original joint venture agreement. The exact details of the terms of settlement are confidential.

With the termination of the joint venture arrangements now mutually agreed, both sides are satisfied that they can now move forward separately with their
businesses and put any differences behind them.

[rivaldo] 06/11/2005 14:26

G, I assume you mean this (culled from an ARX board). As a relative newbie I'm not totally au fait with the Aerobox history - this sounds like it could be the start of something pretty valuable though. Do you have any idea at all of the value to WMK?


For Immediate Release:

Contact:
Mr Russ Colbourne
Watermark Ltd
Office [phone]
E-Mail: [e-mail]

Watermark Appointed Exclusive Middle East Agents for the AeroBox evolutionary Unit Load Device (ULD) following significant US$6million Contract

London – November 3, 2005 – Watermark Limited (www.watermark.co.uk) is pleased to announce that AeroBox Composite Structures (ACS), the US subsidiary of Aerobox plc (www.aeroboxplc.com), has appointed Watermark Limited, a subsidiary of Watermark Group plc, as the exclusive sales agent for AeroBox products within the Middle East region and parts of Asia. Watermark's appointment comes after successfully negotiating a 5 year supply agreement for AeroBox composite containers with an order value in excess of US$6,000,000.

Over the past 2 years the AeroBox ULD has been utilised by over 25 airlines around the world and has flown over 80,000 sectors resulting in less than 100 incidents of damage. Since receiving certification from both the UK Civil Aviation Authority and the US Federal Aviation Authority the cost saving containers have been bought by forward thinking and innovative purchasers in North America, South America, Europe, and the Middle East.

Watermark CEO, John Caulcutt, commented that "I am delighted to re-establish the opportunity of marketing the cost saving AeroBox containers, following various product improvements initiated by the new management team at ACS and we are confident of selling further AeroBox containers within the Middle East and Asian region".

Ray Gibbs, Group Managing Director of AeroBox plc, added that, "We expect Watermark to quickly increase the AeroBox ULDs in operational use. The solid bi-fold door container is specially targeted at the Middle East and Asia when compared to other AKE products in the ACS portfolio. Watermark have strong, recognised relationships within the airline community, and we fully expect this initial contract to be the first in a number of long term supply agreements in this region."

Notes to Editors
The AeroBox evolutionary air cargo and baggage container is the result of 10 years research and development. The AeroBox dispenses with a metal frame. It is made from Aeroplaz™ panels which are simply bolted together. The lightweight thermoplastic composite provides great strength, toughness and durability reducing the need for repairs and greatly extending the life and serviceability of the ULDs. Image Library available at:

[gotterdammerung] 06/11/2005 11:23

Well a flicker of life at last but barely scratching the surface.

Anyway it would appear some very good news came to light late on Friday which could have been RNS `able.

Apparently Watermark have now been appointed the Middle East/Asia exclusive sales agent for the supply of Aerobox containers, this comes following Watermark negotiating a 5 year supply agreement for Aerobox with an order value in excess of $6 million. They are also confident of many other contracts

This is very good news. I`m not sure how much commision is due to Watermark on these types of deals and how it will effect their bottom line but combined with their existing fast growing business this news is very welcome.

Shame I was not aware of this on Friday.

Interesting to see how the market digests this news


g

[rivaldo] 04/11/2005 15:19

Didn't have to wait long G.... :o))

[gotterdammerung] 03/11/2005 08:10

This has now become very oversold and due a strong bounce. Even without new contract news the latest results SHOULD have prompted a significant re-rating for this fast growing company. Picked up more again yesterday.

Just a waiting game now.

[rivaldo] 02/11/2005 12:44

Shucks, I spoke too soon!

[rivaldo] 02/11/2005 12:21

Excellent Tole. Not much effect on the share price though (mind you, nothing seems to have an effect on this share).

Here's the article since it's free to view:

"Watermark flies in with profits leap

In a similar vein, shares in airline in-flight catering, products and cabin management services counter Watermark are being hindered by its association with the much-maligned aerospace sector, despite the group's tremendous track record of profitability.
Watermark recently landed record sales, margins and profits for an excellent half to June, with profits rising by 50 per cent to £2.35 million, on sales lifted 15 per cent to £35.2 million – investors were also treated to a maiden interim dividend.
Charismatic chief executive John Caulcutt explained that during the period the number of international passengers grew by eight per cent with average airline loads topping 70 per cent. Despite these trends, airlines are still struggling with the 'ballooning' cost of fuel and remain extremely keen on the low-cost model of Watermark's catering division, as well as its 'Encompass' outsourcing package.
The company continues to win new airline and travel clients globally, especially in India and the Far East, where 'there is a swathe of new carriers emerging' notes Caulcutt. Since June, the group has submitted two sizeable single source product tenders to major airlines, and the recent Gate Gourmet unrest at Heathrow is providing opportunities, with Watermark having already taken on a Heathrow catering contract with Sri Lankan Airlines from Gate Gourmet. Caulcutt says others are in the pipeline.
Originally recommended by GCI at 104p – and currently trading on a forward multiple of 10.7 – we feel Watermark's £48.5 million market price tag is decidedly measly. We remain fervent fans. Buy."

[tole] 01/11/2005 21:21

Riv - gets an updated Buy rec on GCI tonight.

[rivaldo] 01/11/2005 21:16

Thx for that VMJMurphy. Not too sure about that 224p target as that would imply a forward P/E of 17.9, but I am sure that WMK are undervalued at present on a P/E approaching 10.

Where's that promised contract news flow then....