Safestyle UK Live Discussion

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zulu principle2 19 Dec 2014

Sold Today Sold yesterday only having bought a few days ago.I will not hold a share where a director sell a large amount of shares.I made the mistake with OPAY earlier this year and ignored my rule held after a large director sale and that ended being a very bad and costly decision.Gook luck all as apart from that sale the company looks good

claude reins 19 Dec 2014

Re: Share sale When you have that much money, maybe the timing matters less than to us mere PIs.

valuemanbuyer 18 Dec 2014

Re: Share sale Good point. Claude. I do worry that with most of his capital out he will be on his way. Because Misra and the CEO share the same shareholding one might assume their roles are splitting responsibilities too . After all the CEO worked for the Misra family - now he's the sons boss . Not sure how well that works.The other issue Is timing -selling such a high value of shares at a seemingly v low price . Why? That bothers me also since we know the shares should be trading well over £2.

claude reins 18 Dec 2014

Re: Share sale This always a difficult one because management motivation and especially backed with their own money is a strong plus for any company in my view. Whether the same applies in reverse is not nearly so clear. What is important is that the sales team - which presumably includes the Sales Director! - is doing a good job and delivering the goods. If the company continues to deliver, then so long as there is continuity in a good quality management team and the product offering is good, then the company will prosper - and so will we. The market is particularly twitchy at the moment and is looking for 'odd' board room in particular. This ranges from the clear skullduggery of the dealings with Quindell et al through to lack of transparency in director dealings. Let us hope that we can draw a line under that sort of behaviour in 2015 and restore this particular element of stability to tSo for me, a strong hold if not a Buy and I am reviewing my current strong holding in that light.he market. I am sure there will be others coming form other directins, especially in election year.

valuemanbuyer 17 Dec 2014

Share sale This is an issue. As shareholders we want management to be fully committed to the business alongside us. Here we have the v important sales director selling 1/3 of his stake and promising not to sell more for 12 months. What sort of poor commitment is that ? He already has multi millions outside the company from the flotation. It's poor frankly . If he feels his capital is better invested elsewhere then maybe we should too. The fact that the CEO has not sold shares is keeping me onside because it is a v good quality company that is growing nicely and is well undervalued. If you compare to Howdens it is upto 40-% cheaper . I'm hoping they continue to deliver the growth that they believe is there and antedating should happen eventually . I reckon it's worth 265p ( 15x forward earnings of 17.5p)

pmrleahy 17 Dec 2014

Sell-off overdone The sell-off following the Sales Director's sale of his shares is a bit overdone. The interims showed that SFE is slightly ahead of market expectations at the moment and even if it reaches a share price of 224p it would only be trading on a P/E ratio of 12 (for expected 2015 figures or P/E of 14 based on current figures) which is hardly demanding. At 160p this is trading on a current P/E of around 10 if not slightly lower given good interims. Plus there's the good dividend which is covered twice by profits.Here's a post from the LSE board which also provides some context:Today’s news confirms that Kiran Misra has sold circa 1.9% of the company’s stock, reducing his stake from 5% to 3.1%. Kiran Misra is presumably the son of Mitu Mirsa, one of the co-founders of SFE, who gifted Kiran Misra (Sales Director) and Steve Birmingham (CEO) the shares that were left by the other co-founder when that chap retired in 2010. The good news is as follows: - Kiran Misra was always keen to sell. In the admission document it plainly identifies him as a “selling shareholder” who had 12.5% of the total number of shares prior to admission and 5% after admission. - He sold 7.5% of the company previously and it wasn’t as though that was a warning signal because SFE posted decent 2013 results and the 2014 results should look much better. - It seems to me as though Kiran was just very keen to sell and, to be fair to him, he’s been working at SFE for 21 years straight now. The not-so-good news is: - He didn’t wait long after the one year lock-in period to sell another chunk of shares - Kiran still has 3.1% of the company which he’ll presumably want to sell in a year’s time (considering he’s sold 9.4% of the company already / 75% of all the shares he ever owned. In conclusion: I don’t think this is news should be taken negatively because 1) It’s natural for people to want to cash in their chips sooner or later, and he’s been there for 21 years. 2) His previous sell-off (at Admission) was not a warning sign, so there’s no reason this comparatively small sell-off should be seen in a bad light.

zulu principle2 04 Dec 2014

Bought today 4 years of continual growth which can be a combination of historic and forecast growth – YesLow Forecast PER (<16) & PEG (<0.7) and good EPS Growth (>15%) – No 2015 PEG HighBased on a price of £1.75 on 4th Dec-142014 EPS Forecast 15.90 EPS Growth 52.9% PER 11.0 PEG 0.21 2015 EPS Forecast 17.50 EPS Growth 10.1% PER 10.0 PEG 0.99Below are based on 2013 figuresPositive 1 Year Relative Strength - YesPositive 1 Month Relative Strength – N/AROCE of 20% - Yes 687%Profit Margin of over 7.5% - Yes 9.2%Cashflow Per Share greater than EPS – Yes 1.62Low Gearing – Yes -22%Director Share holding >10% - No 5%03/12/2014 Christopher Davies bought 20,000 shares at £1.78 totalling £35,600Quick ratio of > 1.0 but preferably >1.5 – No 0.53Dividend Yield (a nice to have) forecast – Yes