According to BB's, FTSE 100 - Compass Group, the group which took a tumbling in it's share price from 3.85p, may be the target of a takeover, though I read before sometime ago, this time, the time could be ripe.

Definately worth watching in the short and medium term.

Good Luck to all if it comes true.

Jules99

Compass rising today - closed up 2.17p from low of 2.11p

Keep watching if your a holder more so..

Jules99

Jules99 any idea from which quarter this bid might come?

This one looks like it has potential to walk upstairs abit.

d.d. as a holder could i ask why you think the potential is still there?

Haydn44,am i right in thinking that cpg is still the largest in its sector, with a very small % of the market share . There seems a long way to go with the cash machine deal,there must be a profit in there somewhere,,after all they have a captive audience on the motorway,and with more and more bank machines going the way of charging,that could become the norm.I belive there`s a glint of light over in the states as well,and not to forget the contracts over here .Its well off on the charts,and if a bid comes in,its at the right end price wise to interest people just my view as your a holder whats yours,,can you shed any light on the compass..

dave.

Is this the catering company trading @ 250p?

Yes opto.

Dave: Compass Group being the largest global food service company, operating in over 90 countries are well poised, after the profit warning of last September, to benifit from the changes made. The price can only go north the question is in what time?

They contiue to gain market share in the US where they are now leader with a 5% market share (plenty of room for growth there) they also have a clear strategy for long term growth achieved organically and through aquisitions. Compass had a strong growth record until it carried out a complicated merger and demerger with Granada which left it with some business to dispose of, it also spent a futher 1.3M on aquisitions particularly in the US. They will now cut back on these aquisitions and will only spend about 200M annually on in fill aquisitions.

Compass have also identified China as its principal driver of growth. They have made a start with currently 120 customers in China with good sales growth of about 20% a year, these include BMW, General Motors and Peugeot (turnover in China is 30M against 3.5 billion in the USA which illustrates the potential). As an old China hand i can only assume that they have learned to cook boiled rice in industrial quantities.

They also have deal with Marks & Spencer Simply Food outlets at its motorway service stations and intend to roll out Simply Food in more of its 47 motorway areas over the next few years.

Following last Septembers profit warning, due in part to supporting Peters Foods, one of the companies suppliers, and also educational contracts which were badly priced by Compass with a lower then expected throughput putting pressure on margins (UK margins are expected to fall to the 9.5% level). In store resturants have also been a problem as input costs are incurred at the begining of a contract, these costs will exist for the next three years. They are also a company hit by pension costs and will have to raise their input for pension costs next year by 15M. Cash outflow has also been a problem, 100M capital outflow was required to service a UN contract in the middle east as they had to raise inventories to avoid too frequent deliveries, another 100M outflow comes from the relaxed terms of payment to suppliers which came from
payment in 90 days down to sixty days to comply with European directives. These problems are one off, are unlikely to be repeated and are not rocket science to fix. I beleive they will come good even without a bid, strong management is required though to manage thier diverse reources. This has not been evident in the recent past as the foregoing illustrates.

Fundementals remain strong with analysts expectations of a pretax profit of around 701M in the current financial year and a 3.76% dividend yield.

Barclays Stockbrokers, as befits being part of a charging bank, recommend that Compass be treated as a source of funds. In other words cash in your chips and spend the money on something else. This opinion differs to other brokers on the same web site who give it as a strong buy, buy or are neutral. The overwhelming opinion is positive, which i think the preceeding also indicates if you have the time to wait.
Regards,
Haydn.

For a business which turned over 11Bn in its last year, operating profits of around 770M not that great - could pose an opportunity or a threat. Intangibles (where values debateable) are half of total assets and debt uncomfortable approaching 2.4BN.Competition increasing and businesses spread all over the place - needs first class management. IMO it would be a brave or foolish act to launch takeover and the shares are risky. Some parallels with RTL a few years ago and they are still trying to recover.DYOR

Haydn44,seems to me that there is room for improvement in a few areas,,not just the sp.

Would agree, UK margins fall to 9.5% is of particular concern and the dividend, though acceptable, is not covered. For holders like myself probably the best course is to continue holding for others it is best avoided.

Still looking at this one and its drawing me in i feel,share price wise i dont think it will get much lower than this.

The share price probably can't go any lower and with a like for like turnover growth of 7% last year (though only 5% in the UK)the potential is still there.
New bisiness secured last year totaled 1.2 billion, all that remains now is the ability to manage it to be demonstrated.

230,and i will be in .

Bought at 234 happy with that..

We have movement today & its upwards!!!!

dd nice turnaround bodes well for the rest of week

Early days woodie.

Fancy a ready made meal!

More bait being taken today!

Just checked on the site and it looks as if it wont go Ex-Div
for another fortnight - can anyone confirm the ex-div or record dates?

Bunny i think mid feb to be on ,mid march for the pay out.

16th Feb

6.2p

cheers

Nice one admirable.

Yeahhh!! Thank you guys, I've got on in time for the divi!!
:>)

can someone tell me the share price on the 14 dec high and low of day the reason is i took out spreadbet having a dispute about divi i say was not in price they say it is your help regard.thanks woodie

Almost through the 250 now,sorry woodie its before i jumped on the compass band wagon.

Same here..can you put up a historic quote? Just a thought...

250 - going well!!
:>)

Yep sure is, dive jumpers i think!

I MEAN DIVI.

LOL ;>)

Going well this morning folks,straight up the M1.

Potential here for sure,well happy.

News out today chaps - looks promising - up 1.5p today currently!


Compass expects like-for-like sales in FY to grow by 'atleast' 6 pct UPDATE
AFX


(Updates with details on contract wins, renewals)

LONDON (AFX) - Compass Group PLC said it expects like-for-like sales in the full year to deliver 'atleast' 6 pct growth as it announced strong sales to date in north America, in line sales in the UK and good performances in the Middle East, Australasia and Latin America.

These were, however, partially offset by results in the first 4 months to date in France, Germany and the Netherlands, which remain 'very challenging', chairman Sir Francis Mackay said ahead of the group's AGM.

Mackay also announced a number of significant contract wins, which he said have been driven by the continued outsourcing of foodservice in the Healthcare, Education and Defence, Offshore and Remote Site sectors.

In north America, Compass won a 10 year contract with annual turnover of 8.6 mln stg from Indiana University and clinched a 5 year order with 3 mln stg turnover a year from Norfolk State University.

In the UK, the group's 5-year contract with annual turnover of 8.6 mln stg was renewed by West Hertfordshire Hospitals as Homerton University Hospital awarded it a 5-year deal with 4 mln stg turnover annually.

Meanwhile Statoil renewed for 5 years its contract - worth 11.5 mln stg a year in turnover - with Compass while France's Bouygues Arc de Seine awarded the group a 3 year deal with annual turnover of 1.7 mln stg.

Lastly in Japan, Compass said it won a 3 year order with annual turnover of 18.3 mln stg from Japan Post.

newsdesk@afxnews.com

Going well bunny,almost up 30 pence in 3 weeks.

Good stuff huh :>)

Good stuff indeed bunny.

This news is well timed actually, it may help sustain the
price after it goes Ex-Div on Wednesday.

Stockbunny.

There are some carrots for you on the SEO thread.

There they go with there 6.5pence .

Now that is a big number late on.

Moving slowly forward today :>)

Someone with a 'thing' about the numbers 2,500 and 1,100 is
dealing a lot of shares this afternoon - look at the timings,
very close together.....

Its about the long ball game bunny.

As in footie - route one and all that?

Bunny you got it .

the daily telegraph =COMPASS GP up on hopes the government may boost spending on school meals from 37p to57p

Well it would help things!
Thanks for reporting insur
:>)

Still going strong this compass.

brokers recommendation = morgan stanley on valuation perspective the broker believes compass Gp looks particularly interesting.

Purely and only in my humble bunny opinion, but I feel the
whole concept that CPG is undervalued is glaringly obvious!

Agree.

Wake up people it's a good day!! :>)

deutsche has upgraded compass gp to buy from hold (285p price target)

Good huh!!
;>)

Great signal off the compass,,pointing north.

the express, (gossips say a major US buyout group might be interested)

When all around us they are stinking ,this smells great never in doubt.

That reminds me i must be due a welcome break now!

Looks like cash back,,,hope it does not devalue the sp to much or whats the point!!

What will tomorrow bring ?

Warning if you are of nervous disposition or in a stinky mood
this morning think twice before
checking the share prices for these this morning - it's not
looking good folks I'm sad to say.........
Oh well guess soon it will be a mega averaging down opportunity!

Seems they're going to consider upping the divi a tad anyway
:>)

I bought tons at 220 before they collapsed to 212! now i don't know whether to get out or not. HELP

All I can offer is tea or something strongly and sympathy
oh and if it makes you feel any better I bought in at 236p
care to join me for a drink?

It doesn't make me feel better, but if it goes up to 236 today, I'll entertain you with more than a drink, I'll get in a catering company, now what's the name of a large reputable firm?

LOL oh very droll :>)
It did seem to be recovering later on..haven't looked post
auction I'm expecting to be holding these in 2008!

Let's hope the papers are nice, by the way it turned they probably will be, I'm going to get out tomorrow if they fall or friday if they go up,please go up!!!!

Dont know about a compass,i should of sold out at 2.60 and bought a gps.

Looks like it the bottom draw for this one bunny..

sold 225 (chicken)

Well you dont want a turkey this time of year,,bush.

Well Done Dave (or medium rare)

Very tempted to buy some more ready made meals in at this level..

Agreed....but a sale elsewhere has to come first!
:>)

Thats the way bunny,i will be selling my set top box {pic}.

A little bit of gold goes a long way Dave - in other words
just had a good spell on RRS!
In for a few more CPG, good for the divi if nothing else for
a while!
:>)

I see the bulls are seeing the bears off today just,volume wise,steady at 220.

And the old nestle story is about again..

Hmmm a wake up and smell the coffee situation I think....
like it ain't gonna happen..

Well it looks like the lift has reached the basement....hopefully....
now all it needs is someone to push the 'call' button on another floor!

Fantastic chart that bunny ,all we need now is a big turn around, and then we have a upside down head & shoulders for sure,,ha,,ha.

Keep the faith and let the force be with you Skywalker,
there be profit in them there airline meals!
;>)
Sorry, it's the humidity...affects my brain
LOL

Who needs this new found GPS system,,when a compass will do just fine..

:>)

Solid support late on and big money buys,welcome to the 2.20 club.

Moving up today! :>)

First touch of profit today.

Big volume numbers after close.

I see the weekly shares mag rates compass group expensive at current levels ,,well its not the wallstreet journal is it,
as one fat yank says to another,you hungry .

lol :>)

Nice to see blue on a friday.

Quite,,its creeping up.

I'm following you Dave! LOL
Good to see positive movement.
Now cross everything people - we want this to continue!

I dont want to drop any of these dinners now,so quite please.

;>)

Considering volumes all round are low, I can't help wondering
why 16M CPG shares have changed hands today, higher then many others.......

Grubs up all,come and get it.

LOL
By the way...(whisper..) we're moving up....

Another good day today long may it continue.

There seems to be only negative press about cpg at the moment,but the sp is still forward thinking,if the unthinkable happens and they find something positive to reveal 2.70 looks a nice number !

Someone`s hungry!

dave, smith barney upgrades compass group to buy from hold ,raises target to 300p from 240p,also upgraded to buy from hold at citigroup

Insur thats why i filled my bag with a long at 220,,,,,,,,,get in there,,wish they were all this easy.

nice one dave,,,,,in at 240p the time could be ripe.

I`am going to see how this compass pans out 3.00 looks on the cards without doubt,,i see the mtn bid talk is around again,to rich a price for me at the moment 1.50/1.60 i could be tempted.

Come on gerry you know it makes sence 3.00 a share just may take it.

First wave of alerts was good,but the second should be even better,time to get the surfboard out i think.

Good luck to anyone who's still in, I jumped ship this morning but
only to free up cash on a small gain. No news it seems as to why....

Interim divi ex-div date 13-07
can anyone confirm if that's right and when we are due to
actually receive the divi payment?
cheers bun

bun, div payment 15august 3.3p

Thanks insur and Be Lucky!
:>)

Thought it would of been a touch more by close,not to worry,its good for a few more yet.

Big day tomorrow,going well early doors today.

Think Compass has now got rid of all it's negative news.
There has been a steady and progressive move in it's share price, which has been sustained from when the share dropped to around 220p a share.
Does anyone agree we may see a rise to around 320p to 350p a share in the next 3 months.

From the Blue Index Blog

Rip Roaring Compass
May 13th, 2009

Hats off to British catering group Compass (CPG); this morning the group announced their best-ever set of interim figures

Interim profits to March 31st, soared 40% to GBP405m from GBP289m last time, while EBIT, EBIT margins and free cashflow shot up 33% to GBP240m, on sales up 24% to GBP6.93bn. Although group operating profits received a GBP78m boost from the weak pound and acquisitions, CEO Richard Cousins said the first half was nonetheless a positive performance against the backdrop of deteriorating economic conditions. He added the trends in revenue seen in the first half of the year are expected to continue into the second half, and looking forward the acceleration in the rate of cost efficiencies should enable us to deliver further progress in the second half of the year

Full transcript here
http://blog.blueindex.co.uk/2009/05/rip-roaring-compass/

who thinks that the analysts who change the goal posts when they make recommendations on stocks are doing it for their gain ie shorting or longing the stocks?
few weeks ago you had two strong buys on this stock (CPG) now it's sell to neutral?
what has changed in few weeks?
i thinks it's boll@cks!!

Do you really think they are there for OUR benefit?
2517

4 new Broker BUY recos yesterday......

Compass Group PLC

FORECASTS
2010 2011

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

SG Securities
15-12-09 BUY 32.67 15.00 37.55 17.00

Investec Securities
15-12-09 BUY 775.00 29.28 14.00 830.00 31.26 15.10

Exane BNP Paribas
15-12-09 BUY 821.00 31.88 13.99 913.00 35.50 15.39

Oriel Securities
15-12-09 BUY 810.00 31.70 14.00

and trading on a forward P/E of just 12 to 2011........very cheap I reckon.

one yesterday aswell

15-Dec-09 Compass Group CPG Deutsche Buy 467.20p 320.00p 565.00p Upgrade

565p target.

From yesterdays Express......Compass Group headed north 5 1/2p as Deutsche bank turned buyer from its previous hold stance with a 565p target.

Yet more broker backing for compass...

Broker recommendation full details

Date: 15 December, 2009
Broker: Deutsche Bank
Company: Compass Group


Recommendation:
upgrade to Buy from hold - price target 565p from 320

InterMarket Stock's recommendation rating:
Buy

Over all Intermarket Stock rating for
Compass Group
Buy


Historical recommendations for Compass Group


15 December, 2009 upgrade to Buy from hold - target 565p from 320 Buy

15 December, 2009 upgrade to Buy from hold - price target 565p from 320 Buy

2 December, 2009 Raises price target to 585p from 495 Buy

30 November, 2009 Raises price target to 500p from 430 Overweight

26 November, 2009 Raises price target to 475p from 450 Buy

gf
just curious with this question. what do you think comes first? a broker recco or a price fibbo?
regards
jkd

naughty naughty jkd, dont forget these brokers have customers to attract and retain and a reputation to preserve along with there jobs.

Actually worked at one time for local broker Rensburg not on the trading side but accountancy but can say they were highly commited pros who were frightened of hurting the companys good name.

I suppose theres good and bad just like in real life.

gf
im sure you know but for those who may not let me interpret.
recco is short for recommendation and fibbo is short for fibonacci.
some nice posts recently. ta. (thats thanks) ;-) keep em coming.
regards
jkd

Hi JKD, did wonder re- Gann at the time.

Sorry mistake on my behalf.

Not a competant fibbo chartist at the moment...... working on it.

Used to use it may years ago.

Interesting set up for a trader with the SP on the floor of the trend channel and the price positive this morning.

to back up the positive TA the brokers certainly are stacking up behind this stock cant remember seiing so manny brokers all so positive, not for a long time.

On a forward P/E of just over 12 to 2011 which looks far too cheap.

Compass Group PLC

FORECASTS
2010 2011

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Exane BNP Paribas
31-12-09 BUY 821.00 31.88 13.99 913.00 35.50 15.39

SG Securities
30-12-09 BUY 32.67 15.00 37.55 17.00

Shore Capital
25-12-09 BUY 821.00 32.00 15.00 895.00 35.00 16.50

Oriel Securities
22-12-09 BUY 810.00 31.70 14.00

Investec Securities
17-12-09 BUY 775.00 29.28 14.00 830.00 31.26 15.10

Charles Stanley
17-12-09 BUY 832.00 32.50 14.50 894.00 34.50 16.00

Collins Stewart
14-12-09 HOLD

Evolution Securities Ltd
01-12-09 BUY 832.00 32.30 14.50 921.00 35.80 16.00

Numis Securities Ltd
26-11-09 BUY 866.90 33.80 13.86 962.90 37.50 14.55

Seymour Pierce
25-11-09 BUY 846.10 33.00 13.90 955.40 37.30 14.60

Eden Group
03-11-09 BUY

Nomura Research Institute
25-09-09 BUY

Fyshe Horton Finney Ltd [R]
04-02-09 BUY 704.00 27.40 14.00

2010 2011
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 826.66 32.29 14.32 905.48 36.15 15.97
1 Month Change -0.67 0.49 0.40 -15.25 1.15 0.97
3 Month Change 37.49 1.80 0.10 51.36 3.29 0.66


GROWTH
2009 (A) 2010 (E) 2011 (E)

Norm. EPS 43.44% 9.63% 11.95%
DPS 10.71% 15.48% 11.52%

INVESTMENT RATIOS
2009 (A) 2010 (E) 2011 (E)

EBITDA 1,104.00m 1,155.96m 1,247.69m

EBIT 872.00m 929.88m 1,006.40m

Dividend Yield 2.78% 3.22% 3.59%

Dividend Cover 2.38x 2.26x 2.26x

PER 15.12x 13.79x 12.32x

PEG 0.35f 1.43f 1.03f

Net Asset Value PS -82.91p 155.41p 177.05p

Blue Chip Bulletin: Compass acquires two US companies

http://www.whatinvestment.co.uk/trading/share-dealing/uk-companies/1608788/blue-chip-bulletin-compass-acquires-two-us-companies.thtml

Contract caterer Compass is also issuing a pre-close statement and Credit Suisse thinks it will reinforce its positive rating on the firm, "given low European exposure, the strength of its US market share gains which should offset any slower European employment trends and the scope for very material multi-year cash returns."

Ex-divi wed 22nd Jan 2014 (16p)

Panmure note summary:
"Compass holds significant upside from a global recovery due to rising employment, further margin improvement and higher cash returns to shareholders. With FX headwinds this year limiting profit growth, this could well turn into a tailwind in FY2015. Trading on a 2015E EV EBITDA ratio of 10.6x and an EV EBIT ratio of just 11.8x, in our view Compass offers good value for global structural growth, high return on capital, earnings upside risk (26% based upon our blue sky scenario) and accelerated shareholder returns (c22% of its market cap by FY2017E). We upgrade our recommendation to Buy from Hold and increase our target price to 1,100p per share (from 900p) reflecting an element of the upside potential in the valuation."

Half Yearly Report

Interim results announcement for the six months ended 31 March 2014

Ongoing operational delivery underpinning £1 billion return to shareholders

Positive first half year with good organic revenue growth
· Organic revenue growth of 4.2%, driven by strong new business growth
· Excellent performances in North America and Fast Growing & Emerging
· Economic conditions and new business growth in Europe & Japan starting to improve
· Healthy pipeline of new business across all regions

Further efficiencies enabling investment and delivering margin progression
· Operating profit margin increased by 10 basis points to 7.4%
· MAP programme continuing to drive operating efficiencies across all geographies
· Reinvesting for growth

Growth, performance & returns to shareholders: a proven & sustainable model
· £6 billion of announced returns to shareholders since 2006
· Proposed interim dividend of 8.8 pence, 10% ahead of last year
· Proposed capital return of £1 billion via a special dividend and ongoing £500 million share buyback
· Longer term, Compass remains well placed to capitalise on exciting structural growth opportunities in all its markets

Interim Management Statement

Final Results

StockMarketWire.com
Compass unveils strong first half results underlying operating profits up 6.5% at £688m.

Underlying revenues and pre-tax profits rose by 5.7% and 4.9% respectively to £9.1bn and £637m.

Underlying earnings per share rose by 12.3% to 28.4p and the interim dividend of 9.8p per share is up 11.4%.

Group chief executive Richard Cousins said: "Compass had a strong first half of the year. We have delivered excellent levels of organic growth in North America and emerging markets. Encouragingly, Europe & Japan has returned to growth despite a mixed economic backdrop in the region.

"We have also continued to deliver good levels of operating efficiencies, which have enabled us to invest in the many growth opportunities we see, as well as deliver an improvement in the operating margin of 10 basis points.

"Our expectations for the full year remain positive and unchanged. However, the economic environment in some of our emerging markets is uncertain, and lower commodity prices are impacting our Offshore & Remote business. Nevertheless, our pipeline of new contracts is encouraging, and our continued focus on organic growth and efficiencies gives us confidence in achieving another year of delivery.

"In the longer term, we remain excited about the significant structural growth opportunities globally and the potential for further revenue and margin growth, as well as continued returns to shareholders."

MELBOURNE (Reuters) - The CEO of Compass Group Plc (CPG.L), the world’s biggest catering firm, and four of his close family members were among the six people who died when the seaplane they were travelling in crashed into a Sydney river on New Year’s Eve.
Cousins had been due to retire on March 31. Compass said the new chief executive, Dominic Blakemore, would now start on Jan. 1 instead of on April 1 as originally planned, following the news.

Sad news indeed.