In line with my thoughts of recent, stay well away from momentum stocks at the moment. Go into boring but stocks that can be seen to generate an increase in earnings. Ive been with this a few weeks and think a few may have picked up on that. Now breaking out and looking for further earnings enhancing Acquisitions.

Its a top notch architect company and not over exposed to the housing market. Has top management and is derd cheap on fundies, more to come on that . Any views appreciated, good or bad but I feel we could be onto a winner here.

Just look at this report from a tip sheet, all things checked out and OK........

Lifted this from another board..........

SMC stacks up - STRONG BUY
Companies: SMC
27/09/2005

Architecture and design group SMC, which works on major office, retail and residential projects in the UK, Eire and Europe, joined AIM via a 4.6 million placing in June with ambitions to consolidate this fragmented industry. Founder and chief executive Stewart McColl hopes that by creating a larger outfit, his company will be able to win bigger projects producing higher margins.

McColl founded SMC in 1996 and has delivered appetising organic growth in recent years by offering national coverage. This has allowed the group access to substantial and more profitable construction projects across a range of sectors and locations. Clients now include British Land, Canary Wharf Group, Morgan Stanley and Wm Morrison, amongst others.

We have already got the 100 million projects, explains McColl, but there is another step-change in scale to come that will allow us access to projects worth 200 million, 300 million, 400 million and even 500 million. Increased scale pays off because larger projects are higher margin, with higher fee levels and longer timescales, helping SMC plan staff requirements more accurately.

Last November, ahead of the AIM float, SMC appointed ex-Wembley stalwart Sir Rodney Walker, who has brought recent AIM success stories like Goals Soccer Centres and Spice Holdings to market, as non-executive chairman. His presence and contacts have boosted the groups cachet and, following the AIM listing, McColl is also keen to boost scale through acquisitions.

Shortly after the float, SMC completed the two acquisitions mooted in the prospectus Corstorphine & Wright Hills Erwin, a Manchester
and Lancaster-based commercial architecture specialist, and Philip Lees & Associates, an outfit based in Leeds city centre, with a bumper proportion of revenues wrought from repeat business.

We are one of the few consolidators that I know of in this market, adds McColl, and now that we are on AIM, we are after acquisitions that are far more significant in size.

SMC recently cheered followers with an update on new deals. Among a plethora of 100 million-plus projects was work on new headquarters for Deeley Properties in Coventry, Sports Centres for Warwick County Council as well as developments for Pillar Properties and Canary Wharf.

Overseas work included manufacturing and office units in Slovenia, as well as a 290-bed InterContinental Hotel in Pakistan. There was also news of planning consent for a 50 million British Land office campus at Coventry.

2004 was exceedingly strong for SMC, with turnover lifted by 43 per cent to 8.1 million and pre-tax profits sparking up from 100,000 to 1.1 million. Gross margins were a healthy 50 per cent.

More recently, SMC unveiled extremely strong maiden interims to June, sending the shares sharply higher to 70.5p. These revealed a 255 per cent profits jump to 1.1 million on a 47 per cent leap in sales to 5.4 million. McColl was particularly pleased with the 260 per cent vault in earnings per share and a 140 per cent surge at the EBITDA level to 1.45 million, especially since we only had 20 days worth of revenues from the two acquisitions completed at float in the numbers.

He says subsidiaries are already enjoying larger scale project wins as part of the larger AIM group. 'We are looking at a few businesses that we might acquire, and as the business grows bigger, we'll be more equipped to handle PPP and PFI projects'.

Analysts envisage further profits improvement this year to 2.9 million, with sales climbing to 12.8 million. On those numbers, earnings of 7.1p leave the stock trading on an undemanding multiple of 9.9. We believe SMC offers high earnings visibility as well as tasty levels of repeat business, and we are strong buyers.ENDS.

Worth doing your own research if you are interested.


DYOR

cheers GF.

Thanks for the chart, hlyeo98, but I don't think anyone still holds these any more, do they?
Funny how it goes - almost daily updates of the wonderful, not-so-boring SMC when the sp's taking off but, when it crashes back down to earth (three profit warnings in six months and continuing carnage on the boardroom carpet), nary a peep.
A lesson for all BB investors - don't believe the posters' hype and definitely DYOR.

Hmm. Tumbleweeds.

Come out, come out, wherever you are !!?!

Hang on, I thought I saw some movement under those rocks... C'mon, who is it??

C'mon out, guys!!
PP? Schiff?? Shameless??? Augustman????


Where are ya?!?!?

C'mon fellas, let's see ya!!!!!!
Come in Capa, Max Damage, Goldfinger...

Did I hear a rustling in the bushes? Who is it?!?!?
Micky468??? Paperbag???
Or is it.... Squidd????
Where are you all? Don't tell me you all sold up without saying anything! Hmm, and you were all so keen to tell us when you were topping up etc etc etc.

32p!! No wonder everyone's become so bashful and embarrassed.
WHERE ARE U ALL???
Where's OhBugger??? Where's Affc21???
Don't tell me you guys have gone, too?!?
And without so much as a "see ya later", eh?

Not having much joy paulj, I've just had a little dabble at 32p, so should be 20p by the end of the week, lol.

If I had some free funds, I might well be tempted, too, Canada. SMC does have lots of work in the pipeline and now that the megalomaniacal McColl has moved on, the firm should become far more stable and its accounting procedures much more rigorous.
Sp-wise, it looks like the bottom may finally have been reached, with SMC representing good value (as long as there are no more shocks!).
But, as the absence of all the former SMC investors on here shows, the firm does have a long way to go to regain credibility (as indeed do some of the rampers I've mentioned in recent days).

wat is happening at SMC ? big seller and no comment for ages.

Looks like I still have the "kiss of death", 25p to sell, 20p soon ?

Yep, just as well I didn't have those funds available last month (another lucky SMC escape by the looks of it, though there MUST be a bottom to this fall, mustn't there?). Not sure why the sp has taken this latest tumble. Perhaps one of the investors/rampers who had such supposedly intimate knowledge of SMC's workings when the sp was buoyant will finally pop out of the woodwork to enlighten us... or perhaps not.

Are we waiting for the final "gurgle"?

A good growth company with loadsa contracts. Unfortunately the controls that should have been in place were found to be missing, and it crashed. So did the founder, even thouigh he holds a big stake.
Hopefully the new guy at the top, Rodney Walker will be focussed and have the drive to improve the controls and gain the financial performance improvement and drive the sp upwards.
i'm in today for the ride and don't expect a gurgle !

Well, it shud be money for old rope, you only need a pencil and a rubber, draw a square, stick some windows on it and charge a grand. I know, I've just had it done to me!

Agree 100 per cent, johnstonp. If SMC ever gets its act together - and if investors decide to trust the firm again - the sp will shoot skywards, on the basis of the lucrative pipeline and tighter management systems. Like most things, it's all a matter of timing. I've been sorely tempted to back the SMC recovery story but just when I manage to free up some funds, there always seems to be another nasty sp slump. They say fortune favours the brave but, in this case, I ain't so sure...

Still in for the ride. Spent ages looking at the annual report. Luvly pictures of all their work worldwide.
Interims due end August and hopefully more news of contract wins before then. Lets wait and see how the pencil and rubbers work.

23p!, did you all manage to short this after my buy at 32p?, lol.

Your buy at 32p is beginning to look a wise investment.

Andy