Xchanging Share Discussion Threads

[bookbroker] 22/11/2010 17:15

Problem is there is very little transparency here, until results and likely re-valuation of Indian acquisition best to stay clear, especially with new FD.

[haroldthegreat] 22/11/2010 16:59

why would a director lend money to a family member to buy 2m£ worth of shares if there were problems in the company. shorters are causing the problem and when good news appears the value will show. either that or im an idiot and someone put 2m£ in as a gamble that would hold up the share price.that they could have done that with 100k not 2m

[hvs] 22/11/2010 13:40

Stay well clear

There isno business model here. Just DEBT DEBT DEBT

[simon gordon] 12/11/2010 06:45

Daily Mail - 12/11/10:

Shares of outsourcing provider Xchanging, sponsors of the Oxford and Cambridge Boat Race, were in danger of sinking without trace as persistent nervous selling left the close a further 13.1p lower at 113.1p.

It takes the fall since Tuesday's Investor Day to 16 per cent, which has sparked fears that another profits warning could be on the horizon.

In early August the company warned that revenues would be 'slightly lower' this year as clients postponed big contracts amid uncertainty about the general economic outlook.

As the share price drifted, chief executive David Andrew attempted to stop the rot by forking out a hefty £926,785 for 735,000 shares at an average price of 128p.

The board also took the unusual step of summoning investors and analysts to a conference to reassure them that everything in the corporate garden was rosy, and that its accounts were ship-shape and Bristol fashion.

Judging by the share price performance since, the message fell on deaf ears.
Analysts still believe management paid far too much (£83m and 27 times earnings) for Cambridge Solutions, a business that made a statutory loss in 2009.

Super bear Matthew Earl at broker Matrix remains a seller and has a target price of 79p.

He aired numerous concerns about the group, including its weak cashflow, imprudent accounting, banking covenant risk and customer risk. Xchanging's weak performance is drawing nervous glances from investors.

[randolph and mortimer] 11/11/2010 20:18

Going to be kicked out of the FTSE 250 index at this rate and so the trackers will force a run ahead of the confirmation around December 9.

[simon gordon] 11/11/2010 12:18

Alphaville - 11/11/10

NH - and there are some more dark rumours around in

Xchanging plc (XCH:LSE): Last: 119.10, down 7.1 (-5.63%), High: 129.90, Low: 117.40, Volume: 378.61k

NH - again these are accountancy related

NH - apparently another bearish note out there

NH - but I checked with the mega bear at matrix and he said no

BE - Mind what you say here. Xchanging's are rather sensitive types.

NH - yes

BE - Even more so than us.

NH - he's another

NH - in league with the shorters guy

NH - they are weak though

NH - and the guy at Matrix reckons they are only worth 70p

BE - Tricky sector to build trust and credibility, even if you're doing nothing whatsoever amiss.

NH - yep

NH - will take at least 18-months

NH - to prove that they do generate cash etc

BE - Xchanging's recent investor days don't seem to be doing the trick.

[bookbroker] 11/11/2010 10:36

Once a holder here, lost a lot of money in the belief that this co. was different in the way it conducts itself, looking at it now there appears to be very little transparency and almost looks like the business of outsourcing is altering too fast for small cos. like XCH to manage its cost base.

[simon gordon] 11/11/2010 10:10

Down 10p since the Investor Day.

[hvs] 11/11/2010 09:52

STAY very well CLEAR.

[hvs] 10/11/2010 12:00

Stay well CLEAR.

Looks like second downward spiral developing.

[dnfa1975] 09/11/2010 14:31

cooking on gas

[dnfa1975] 04/11/2010 10:29

roll up roll up hot cakes

Xchanging shares valuation of just 7.3 times 2010 earnings. Peers such as Capita trade on 16 times.

[eburne1960] 02/11/2010 13:21

From today's Independent:

Xchanging

Our view: Buy

Share price: 132.2p (+2.3p)

Xchanging has been under a cloud since a worrying debate about its accounting policies earlier this year. Boss David Andrews responded assertively, calling in accountants for a "re-audit". Trouble is, any company involved in outsourcing (Xchanging handles business processes such as invoices and payroll) starts to scare investors when accounting issues are raised. Just look at what happened with Connaught.

And so, since the rumours started, Xchanging shares have fallen 40 per cent, putting the company on a potentially compelling valuation of just 7.3 times 2010 earnings. Peers such as Capita trade on 16 times.

We're sceptical about outsourcing as a business – companies do it, so do government departments, claiming it will save costs. But what all too often happens is that badly written contracts end up with one side or another in court, while the service deteriorates. However, while Xchanging's statement was cautious on the outlook, it rang no alarm bells. The group continues to win contracts and is too cheap at the current price. So buy.

[dnfa1975] 02/11/2010 11:15

looking red hoot

[dnfa1975] 02/11/2010 10:47

nice one

whooooosh

[dnfa1975] 02/11/2010 10:28

fly my prettys fly

[dnfa1975] 02/11/2010 10:05

cooking on uranium now, 165p on the way babas

[dnfa1975] 02/11/2010 08:07

up she goes