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  1. #1
    Share Collector
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    Default RXP - RXP Services Ltd

    Here's another relatively recent float that caught my eye in the quarterlies today. RXP is acquiring ICT consulting services and reporting growing cashflows.

    It's possibly a little early for RXP (currently trading at 50.5cps), as most roll-ups seem to have at least one speed bump and plenty seem to fail due to overpaying for acquisitions. However probably all be clearer in 7 months time when the HY13 comes out.

    Definitely seems like a space where consolidation might work. Have put it on the watchlist.

  2. #2
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    Bought a few today. RXP have bought Transpire today and chances are goodearnings will be reported to the upside.

  3. #3
    Reincarnated Panthera Snow Leopard's Avatar
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    Thumbs down A Gecko ate my Homework

    I ran my eyes over them about two months ago, but I can not find my notes for it.

    I was obviously not sold on the idea at the time and did not buy.

    Best Wishes
    Paper Tiger
    om mani peme hum

  4. #4
    ? steve fleming's Avatar
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    Quote Originally Posted by Joshuatree View Post
    Bought a few today. RXP have bought Transpire today and chances are goodearnings will be reported to the upside.

    I am in this now JT.

    Trading on a FY14 EV/EBITDA of 6 x

    CCZ Stanton have a target of 80c
    Ord Minnettt have a target of 95c

    Consensus FY13 EBITDA is $4.85m so under/outperformance of that is the key number to look for when they report.
    (RXP have previously provided EBITDA guidance of ~A$4.5 million to ~A$6.0 million)
    Share prices follow earnings....buy EPS growth!!



  5. #5
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    Cheers Steve.Looking forward to results. Completed my buying today.

  6. #6
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    A "I told you so" prequel huh Thanks anyways for your thoughts.
    Last edited by Joshuatree; 25-07-2013 at 10:35 PM.

  7. #7
    ? steve fleming's Avatar
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    Another very strong (record) quarter with CF from operations of $1.3m. "Reflecting the on-going strength of the business"

    Now, will the strong cash flows and balance sheet enable a maiden dividend to be declared?
    Share prices follow earnings....buy EPS growth!!



  8. #8
    ? steve fleming's Avatar
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    Quote Originally Posted by KW View Post
    Just be careful. The situation for ICT service companies is pretty dire at the moment. The big cut backs in IT spending in Govt is flowing through, and private business is not picking up the slack. Being very familiar with this industry, and still sometimes working within it, I can say that there is not a lot of new business out there, so as old contracts wind up, revenues will wind down.
    Yes that is a risk, but maybe not across the whole sector. My wife works for an ASX-listed ICT consulting company (not RXP!) and she has been asked to work additional hours given an increased number of projects on the go.
    Share prices follow earnings....buy EPS growth!!



  9. #9
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    Yeehaa, I like cheers JT

    Check out www.nps.gov/jotr/ After Green NZ its refreshing

  10. #10
    ? steve fleming's Avatar
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    Quote Originally Posted by steve fleming View Post
    Another very strong (record) quarter with CF from operations of $1.3m. "Reflecting the on-going strength of the business"

    Now, will the strong cash flows and balance sheet enable a maiden dividend to be declared?
    Hmmm, not very impressed with RXP's CFO's attention to detail. The 4C out today was dated 30 April 2013.

    Hopefully he pays more attention when he is preparing his accounts.
    Share prices follow earnings....buy EPS growth!!



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