Well, 19 April seems to have kicked the SAG sp into life.
There will be some rise due to buyback although we don't yet know how many they bought (but we know the max budget/volume). I'm thinking there is also a positive impact from increased liquidity (city types playing with other people's money and all that). Time will tell.
Current market cap is approx. £90m and is now more than double turnover. For a consultancy, that's quite a steep valuation. Yes, I know it's difficult to value companies like this and it's all a bit hit and miss, but the P/E is now a wide-eyed high 30s.
My worry about these was that the boost they received in $ earnings after the £ fell from mid-2014 to start 2017 was that it would all turn nasty once the £ stabilised. In fact, the £/$ has risen over the last year or so which makes the trading statement all the more impressive.
Bought these circa 2000. Will hold them for a lot longer, but as a growth share not for the divvy.
"Trading in the first quarter of 2018 has been positive with revenue and profitability ahead of the Board's expectations for this period. While it is still early in the year and the Board remains cautious, particularly with the strengthening of Sterling, this positive start provides a good platform for the remainder of the year. "
PER = 13.7
PEG = 0.26
Yield = c2.2%
No debt, £22m in freehold property, including a chunk in the Silicon Fen.
A major problem here has been lack of liquidity leading to volatility in price. the company is now taking steps to deal with this by appointing a new broker and authorising share buy backs.
Previously bought by the Naked Trader and selected by Richard Beddard's 'Decision engine'.
A nice business with very impressive, shareholder-centred management.
"Now the reporting season is in full-swing, I'm busy updating my Decision Engine with new insights. The numbers go into a spreadsheet that spits out a valuation, and the valuation is married to an assessment of the business to produce a ..."
"The number of companies recommended by the Decision Engine has shrunk to seven. The share prices of many of the 60 or so companies I follow have shot up, and in some cases my conviction has deteriorated.To start on a brighter note, though. ..."
Solid results as usual, and expressed in a way that investors can understand. I also like the balance sheet. Not sure if Unilever is a client of Leatherhead, but if so, that is another reason I am glad the acquisition by Kraft did not go ahead. It looks as though Science is setting itself up for another acquisition.
I've had another look at these today and decided to sell my small holding for a decent profit. Personally I think the price has got a bit ahead of performance although this remains a very good little company IMO.
I'll look to buy back in if the price falls to nearer £1 again.
Very pleased to hear the following comment in the trading update:
"Leatherhead (food & beverage) outperforming the Board's expectations in terms of profit contribution"
Sorry to repeat this again, but I am ever more convinced that the purchase of Leatherhead is going to prove to be a real bargain and will have a material impact on the company's future, but is not yet reflected in the share price.
Agreed, but according to my chart price already at year low.
Quite relaxed as in for long term at 86p and will be tempted to top up if it drops further.
A few respected fund managers are holding and, for what it is worth, Westhouse and Numis both target 177p.
Actually div not due until 10th June. It goes ex div next Thursday so expect a further price drop then.
This company provides various scientific research services, in particular testing and product development including in the trendy food analysis area. It also owns the freehold of Harston Mill in Cambridge, and rents out business accomodation there. There is also property in Epsom.
PER = 13
PEG = 0.94
Yield = 3% (due later this month)
We are approaching the annual low.
There is no debt.
Annual results in March showed static cashflow, and a small fall in operating profit but revenue up 10%.
Recent increase in holding by Hargreave Hale and Ruffer (for clients).
There have been a series of small recent acquisitions, each profitable and quickly integrated.
The Chariman is Martyn Ratcliffe, formerly of MCGN. He seems to be establishing a common pattern of shrewd management and growth by very selective acquisition. His record there suggests he is against shareholder dilutiuion and in favour of a steady yield.
This could be a slow burner, with decent dividends along the way.
SAG has fixed its AGM for 9.0am on May 19th at the offices of Numis, its broker, in the City of London. This may be a great company, but judging by the unhelpful timing of the AGM, and my brief dealings with the company secretary, this does not appear to be a company that goes out of its way to encourage private shareholders to attend its AGM. A pity.
I would certainly agree with your analysis Richard. I already own most of these companies (though not Goodwin or Dewhurst). I think investors would do well to note today's (3rd March) press release from Science which says "the potential synergies of the Leatherhead operations with Oakland and Sagentia have become increasingly apparent and the Group's existing offerings to the food & beverage market have been significantly enhanced by this acquisition." This is a very good sign, particularly as the company is often quite conservative in its statements. I reckon the money paid to buy Leatherhead under pressure of adminstration will prove to be a real bargain.
"This year, picking three long-term value growth prospects and three long-term value income prospects has been easier than in previous years. I've developed a "decision engine" to rank all the shares I track. The highest-ranking are those ..."
Hargreave Hale, the AIM specialist, owns about 10% of Science and I notice they bought another 8,000 shares just after the deal with Leatherhead was announced. 8,000 shares is certainly not a material number, particularly as they already own about 4 million shares, but it is quite difficult to buy a significant amount without moving the price too much and I would regard their latest purchase as reflecting their approval of the Leatherhead deal.
Excited about the purchase of Leatherhead Food International as the Leatherhead name genuinely has a global reputation built up over almost 100 years and is, effectively, a brand leader in food science with an unmatched list of blue chip clients in this field. I shall be very interested to see what happens when Science's entrepreneurial skills are applied to this company now that it is free from the "not-for-profit" shackles of Leatherhead Food Research. Watch this space.
"Like many professional and private investors I keep tabs on a large number of shares, shares that have particular qualities that should make them good investments. Our success as investors depends on the criteria we use to select the shares, and ..."
"After a cautious third-quarter update split opinion back in July, LSE:SAG:Sage Group has won the City over again with full-year profit that just beat forecasts. The blue chip accountancy software company also looks well set for 2015, according to ..."
"On Tuesday, Share Sleuth doubled up on its holding of Sagentia. It was a mistake. But it should end well.Yesterday, I misread this announcement. It says that following Sagentiaâs purchase of 1.25m shares, a buyback announced on Friday, the ..."
"Although the immediate outlook for profit is cloudy, shares in research and development consultancy Sagentia are probably cheap.Share Sleuth portfolio member Sagentia conducts research and development for a wide range of companies, and related ..."
* Bookmark the links if you wish to 'pass the LINK/s on'.... or read later?
Deramping SHORTERS !
Shorting a rising stock....is much worse when it is done by your resident posters that seemingly are your buddies and convince 'long' holders to give up!
What many pi's fail to grasp is the extent that shorting is taking place. Often we tend to think that the 'shorter' is gone, 'he' is out of the way? You'd be wrong in most cases, for ( he ), the shorter, is often joined by others that keep the stock down !
Some stocks fall after GOOD NEWS!
Shorting or normal profit taking?
The main reason for many pi's selling, is they are afraid they'll be left in losses AND because of the fear of shorters !
Consolidating shares often sees the sp fall as the multi-bagger potential is greatly reduced. Shorters know this and 'get their digs in' with a distinct advantage
Quindell has consolidated 15 for 1 and guess what? The shares are tanking! Probably being shorted again and not just by the professionals. Ordinary investors are having a go as well (if you can't beat 'em....?).
BUT, where does that leave the genuine investor that has put stocks like QPP into their pension funds?...holding losses again!
* Once pi's know the stock is being shorted...they'll SELL UP IN THEIR DROVES !
We can't both WIN !
The 'shorts' therefore 'win' their bets, whereas the 'longs' lose the best part of their investment, possibly for some time to come......and just when you thought this couldn't go any lower, THEY'LL SHORT THE STOCK AGAIN !
* Thanks for all your support. We are now heading towards 5,000 votes!
* Investors are saying something? They are voting in their hundreds !
# The big problem with shorting is that THEY (the shorters) WOULD most likely lose most of their money IF they just 'bet' on the price going down without trying to 'help' it down?
'Catch 22' .... No one would know of an RNS to be released that will contain BAD NEWS, if they did and then 'shorted' the stock, then they are guilty of 'insider trading'.
The only sure way to short a stock and WIN is to spread dis-information to defame the company with help from other posters that are in concert with them. To ENSURE that they don't lose the biggest part of their 'short', ironically, then, they must deramp with (seemingly) believable posts.
* When the pro's do it, they simply get the media or well known 'crooked' tipsters, analysts or brokers to do it for them. (say no more).
# The campaign against shorting is for the benefit of the 'cheated' investors that cannot control their investments due to the dirty tricks played out by co-ordinated shorting !
The results will be reviewed by Govt legislators for further action! The FCA will be asked by Davide Serra to conduct an investigation into short selling practices, with the view to either ban short selling, or to be better regulated !
i worked for them before they floated. remember the staff meeting where the chairman recommended employee shareholders sell. Those who ignored the advice made money.
Prof Gordon Edge passed away 26 Sept 2013, and was the founder of Sagentia. Condolences to the family.
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