RWS Rws Holdings...tipped by questor in the telegpaph.
<b>Questor: buy IHT-free RWS as it tightens its hold on patent services for blue-chips</b>
8 DECEMBER 2017 8:01AM
Patents may not sound the sexiest of investments but these crucial legal documents hold the key to billions of pounds of corporate earnings.
Just ask Catherine Hettinger, the American creator of the fidget spinners now selling from a corner shop near you to legions of British schoolchildren.
Ms Hettinger has not earned a penny from the millions of sales after she surrendered the patent for her design in 2005 because she could not afford the £300 renewal fee.
On a rather grander scale, it is this kind of intellectual property that the worlds largest companies, in particular those that operate in pharmaceuticals and technology, rely on.
Multinational firms need watertight patents filed in the many markets they operate in and that is where todays addition to Questors new Inheritance Tax Portfolio can help.
Listed on the junior Aim market, RWS Holdings is the market leader in translating intellectual property rights. It has a particular focus on companies in the life sciences sector, such as biotechnology, cosmetics and food processing firms.
Patent filing is becoming more international, according to RWS, with three-quarters of the firms clients now filing in four or more countries.
An excellent example of a business with Warren Buffetts favoured economic moats, the company is used by all of the most frequent patent filers, which like the expertise offered by its staff of multilingual science graduates.
Likewise, RWS is found in many of the IHT portfolios now offered by investment firms to clients who want to minimise death duties.
Like Questors IHT portfolio, these include companies likely to qualify for business property relief and therefore able to be passed on tax free on death if held for at least two years.
HM Revenue & Customs does not keep a list of firms that qualify for this relief, and the stock must have tax-exempt status in the same tax year as the death.
For that reason it is impossible to say for certain that an investment will be entirely tax free but RWSs inclusion in the portfolios of wealth managers such as Investec and Octopus Investments is comforting. Octopus, for instance, employs auditor PwC to monitor the IHT status of its investments.
Octopus fund manager Richard Power has held RWS since his firm launched its IHT service in 2005. Power told Questor he was still buying the shares despite the 24pc rise in the price since January.
RWS has raised its profits and dividends ever since it listed in 2003, even through the financial crisis, he said. Its a very reliable underlying business, not very exposed to economic cycles.
Its customers really require its services. Translation services represent a tiny spend to these companies, but one that is essential.
Turnover and profits have both surged over the past year. Annual results, published this week, show sales grew by 34pc to £164m in 2017.
Pre-tax profits increased by the same degree to £34m, from £25m in 2016. Several bolt-on acquisitions have been made over the year, expanding RWSs reach into the US, Asia and Europe. Full-year dividends rose by 16pc to 6.5p.
Questors Follow The Money column, published here on Wednesdays, has long been a supporter of RWS, following the recommendation of Keith Ashworth-Lord, manager of the popular Sanford DeLand UK Buffettology fund.
A year ago, Questor tipped RWS as one to buy on weakness. Now at a price to earnings ratio of a shade under 40, it is pricey even by the standards of todays bubbly stock markets.
However, the share price is significantly lower than its all-time high, recorded in October following the announcement of its intention to acquire Czech rival Moravia for £240m. That deal pushed the stock to 530p. Today, at 422p, it becomes the secon
well I did nothing about it other than buy back the shares (or at least some of the previous holdings, about a third) when I noticed. Price was by then (couple of hours later) over 20p higher and back in trading range. It's happened with another share or two - guess moral is don't set stop losses too tightly. However when there is no apparent reason for an intra day fall well outside of normal trading range it's frustrating to say the least... Anyway I sold out at over £5 and made a profit but nowhere near what it would have been had my stop losses not been triggered...bought back in today, bit of gamble timing wise but like this co.
" Traders with good access to the order book and plenty of other people's money at their disposal can manipulate liquidity and thus the price, there's no doubt about that and some cases have been prosecuted but less than the tip of the tip of the iceberg imho. High speed automated trading makes it even easier. They don't even have to trade, the placement of orders and their deletion before they trigger is enough. Many investors will set a stop loss at up to around 10% below their buying price. That is a tempting target for the traders keen to close a short or increase a long position at the best price they can.
sage, stop losses are usually automatic. When the price drops the stops trigger and that helps to push the price down further triggering more stops etc. etc. "They" don't have to search for the stop losses, just "encourage" the price down until they start triggering and then take advantage of the consequences in the market. You also have to remember that the share price isn't decided just by supply and demand, it is also set by liquidity in the order book.
As to how "they" do it, it's becoming a cottage industry. For example:
Check the practices of layering, spoofing and front running. Some traders place their offices as close to the market as possible in order to reduce the cable length and give themselves millisecond advantages.
An interesting topic and one the PI needs to know about if he is to recognise the pitfalls. "The Russian" Igor Oystacher used it in the commodity markets, including crude. I wonder who might be using it as a weapon now?
Sorry SiH just saw your reply. Who did you complain to? The Co? Or MMs? I got stop lossed out at 360p - think the share closed that day at 385p on I think 12th Sept. Bloody annoying - bought a chunk back but the stop loss being triggered by the aberrant trade(s) at 360p cost me circa £750.
I lost some too.....i have phoned and pointed it out, they are checking, investigating through to compliance etc and reporting back.
I would suggest that maybe you should do the same, as more comment needs to be made about these things......it amounts to market abuse, and we may then be compensated....ie farly and properly.
"It may have been by fractions of a penny, but shares in patent translation services provider LSE:RWS:RWS made a new record high Tuesday. We heard in April it had probably made more money than ever before, but even these numbers took some in the ..."
"It's not surprising that many investors have a love-hate relationship with technology stocks. During the dotcom boom in the late 90s/early noughties it seemed so easy - dump your cash in tech stocks and watch them fly! Not anymore, although the ..."
"Judging by the numbers in patent translator RWSâs annual report, the firm is the perfect business. Developments, though, are slightly worrying. Although patent filings reached record levels in Europe, China and the USA, the financial year to ..."
Important message from the Financial Conduct Authority:
Posting inside information that is not public knowledge, or information that is false or misleading, may constitute market abuse.
This could lead to an unlimited fine and up to seven years in prison.
If you have any information, concerns or queries about market abuse, click here.
The content of the messages posted represents the opinions of the author, and does not represent the opinions of Interactive Investor Trading Limited or its affiliates and has not been approved or issued by Interactive Investor Trading Limited.
You should be aware that the other participants of the above discussion group are strangers to you and may make statements which may be misleading, deceptive or wrong.
Please remember that the value of investments or income from them may go down as well as up and that the past performance of an investment is not a guide to its performance in the future.
The discussion boards on this site are intended to be an information sharing forum and is not intended to address your particular requirements.
Whilst information provided on them can help with your investment research you need to consider carefully whether you should make (or refraining from making) investment or other decisions based on what you see without doing further research on investments you are interested in.
Participating in this forum cannot be a substitute for obtaining advice from an appropriate expert independent adviser who takes into account your circumstances and specific investment needs in selected investments that are appropriate for you.