mnamna
27 Jul 2016
Re: Worse than a Parson's egg ... not in a g... Hello Games,Yes, I agree that it is tempting to take a good profit - especially in view of the share price currently at a P/E of 26 !Can you expand on the way that underlying profit has been dressed up please? I ask because on a brief look at the results statement I can see references to underlying revenue growth (which actually looks rather low to me at 6% on a constant currency basis) but I didn't spot underlying profit? I am holding - even though I don't see a large short term upisde (positive news of more one off orders aside) partly because I tend towards a long term hold for companies whose longterm prospects I am positive about and particularly in the case of RSW as they just became more competitive at a time when they are launching new products. I will sit on my hands for a while to see how this plays out. But I certainly feel a P/E of 26 to be too high for a buy and would be looking for a P/E below 20 to add further (unless anything in the long term story changes)cheers
gamesinvestor
27 Jul 2016
Started selling Only accepting small lots, but sold some at 2507Games
gamesinvestor
27 Jul 2016
Re: Parson's egg ... not in a good way mnamna,Good point.However, it's very difficult to sell RSW right now -- just tried and the lot size was down at 62 shares and falling.Games
picstloup
27 Jul 2016
Re: Worse than a Parson's egg ... not in a g... Market reaction is a (pleasant) surprise. I believe the "exceptional" sales of the previous year were a genuine one-off to Apple for some thingy in one of their thingies.Still dithering about whether to top slice or hold for £30.
mnamna
27 Jul 2016
Re: Parson's egg ... not in a good way Hello LKH,I certainly respect your healthy scepticism when it comes to massaging of company results to suit boardroom egos (and their bonus packages). If you anticipate the eventual arrive of a 'but' then lets just cut to the chase.Always worth scrutinising the notes to the results I find. Best to look before you leap and assume the worst especially in the case of a firm like Renishaw which seems to play things quite straight?You will find in the note on segmental information:"For the current year, there was no revenue from transactions with a single external customer which amounted to more than 10% or more of the Group's total revenue. In the previous year, there was revenue from transactions with one external customer which amounted to more than 10% or more of the Group's total revenue. This was in the Metrology segment and amounted to £62,607,000."I'd certainly be happy to categorise that as a one-off sale? Which I think probably makes the calculation of underlying sales and profits a tad more acceptable? Maybe not quite the time to be calling for his knighthood to be rescinded? Not yet anyway?cheers
gamesinvestor
27 Jul 2016
Worse than a Parson's egg ... not in a good way Not sure I like this having read through all the bumf - looks worse than I thought and the cash has been all but drained here.At a loss why the stock is now up 3.43% -- eh, what?I also don't agree with the way the "underlying profit" has been dressed up.What to do -- oh what to do? -- Reluctant to sell a good company, but the fall out in revenue, profit and cash here is quite marked.Games -- decide by the end of he day no doubt. 20%+ gain here and slim divis for the rest of 2016.
gamesinvestor
27 Jul 2016
Re: Parson's egg ... not in a good way Stocks up 2.11% on my screen.Games
LK Hyman
27 Jul 2016
Re: Parson's egg ... not in a good way Massmid,Fair point, m8. It would be interesting to know whether Sir David said to his chief abacus rattler "Eliminate all sales to customers who had not previously bought one of our widgets and tell me what's happening to the remaining sales".I'm afraid I'm a natural cynic where "underlying" is concerned. The big oil companies are among the worst at pulling this sorta stunt, regularly claiming that "Ooooh! If our sales or production hadn't fallen off a cliff they would of been up"Yeah, right!LKH en route for the LK Wash & Valet Mr Market seems happy enough with RSW's results
massmid
27 Jul 2016
Re: Parson's egg ... not in a good way If the CEO doesn't know which customer sales are exceptional and which is " underlying" ( i.e. recurring) then the company is in trouble.
LK Hyman
27 Jul 2016
Parson's egg ... not in a good way The results are pretty poor, as anticipated by most observers.Healthcare still making losses, net cash on the balance sheet dramatically reduced, cash flow and earnings per share reduced sharply as a result of the non-recurrence of big Far East sales last year. Divi up 3%, still almost twice covered by earnings.Where my eyebrows raised was in Sir David's statement that, adjusting for the non-recurrence of Far East sales, underlying sales were quite well up. How does he know which sales can be viewed as exceptional and therefore excluded from "underlying sales". One has the nasty suspicion (possibly totally unjustified) that he has merely excluded whatever proportion of sales is necessary to enable hime to claim "yebbut, underneath it all, we're still growing quickly".The company remains a fine one in my view. The creation of lots of apprenticeships and recent graduate jobs is admirable, and it's good that they're expanding their developed footprint in Wales, but I'm not sorry to have sold, albeit I could wish that I'd waited until yesterday.It'll be interesting to see how Mr Market reacts at the off. I'd expect quite a sharp pullback but wtfdik?LKH at Rancho
picstloup
27 Jul 2016
Results look OK Revenue and profit both at the very top of the range given in the profit warning. But the headline will still be "profits slump 45%" even though that was flagged up 6 months ago. Probably going to be a bumpy day.
idontwanttolose
27 Jul 2016
LKH: LOOKS like you made a very wise move The Group's profit before tax for the year was £80.0m compared to £144.2m last year. This year's tax charge amounts to £11.5m (2015: £22.8m) representing a tax rate of 14.3% (2015: 15.8%). The tax rate has benefited from the continued phasing in of the patent box tax regime, the research and development tax credit and a further reduction in the UK corporation tax rate. Earnings per share were 94.9p compared to 167.5p last year.
picstloup
25 Jul 2016
Re: Robots in hospitals Roll on Wednesday indeed. I seem to remember there was extreme volatility this time last year. Not good for the nerves, especially as I've got nearly 4 times as many of these as I had then.
Hardboy
25 Jul 2016
Re: Robots in hospitals LK: "Why, oh why, did I sell my RSW shares?"It's one thing having brilliant technology - it's another being able to sell it profitably. Although a long term holder I've been overly surprised at the recent rally. At the 9 month stage they were only forecasting PTPs of around 75m - almost half last year's. Ok exchange rate movements will have helped, but it's still going to be sitting on a PE of well over 20. Unless there is some serious news about future orders, you may be proved a wise investor.Roll on Wednesday & we shall see.
LK Hyman
25 Jul 2016
Re: Robots in hospitals Hardboy,"The centre also plans to use the system for endoscopy procedures in the near future."Blimey, that is one versatile robot! One moment it's strapped on your napper burrowing into the old amygdala, the next it's whipped off and strapped onto the next punter's backside or mouth for a spot of endoscopy work. Truly Sir McMurtry is a genius.Why, oh why, did I sell my RSW shares?LKH in despair
