$PIC.L – Pace – value and momentum

PIC (Pace) is in the telecommunications equipment sector – making STBs (set-top boxes), “gateways” (ADSL, fibre and other connecting devices) and “software” (user interface software for video content).

I have been a shareholder since 2009. Life as a PIC shareholder is never dull. But not always in the nice way necessarily.

PIC trades on a modest PE of 11.9 at 316p, has a market cap of £991m, and is in the FTSE250 index. Its 6-month relative strength is 32% – placing it well into the top quintile of momentum on a 6-month basis. Its price to 50dMA (50-day moving average) is 22% – which I would normally consider as a hold rather than a buy, and at a level where I might look be getting ready for an exit.

Having said that, on a PFCF (price to freeflow) of 8.2, that really does put it in bargain territory. PIC passes 7 Stockopedia
(http://www.stockopedia.co.uk/) screens in criteria for growth, value, momentum, quality and bargains. So there’s something for everyone to like.

Interims results were released on 30 July (http://is.gd/hyGv1T), with a strong H1 trading performance. Revenues were up 31%, adjusted EBITA was up 57%, adjusted EPS was up 73%, the interim dividend was increased by 27%, and net debt was slashed. “Trading in the first half
of the year has been strong and the outlook for the remainder of the year has improved. As a result we anticipate that full year profits for the Group will be higher than previous guidance”

It is interesting to note that AKO Capital has a short position of 4.48% (http://is.gd/IiGgq9) – a position that must, almost certainly, be showing them considerable loss.

I am a holder.



About mcturra2000

Computer programmer living in Scotland.
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2 Responses to $PIC.L – Pace – value and momentum

  1. bargainvalue says:

    If you are a shareholder since 2009, you need to hold very tight during the hard times in 2011. This stock has fallen around 77% in 8 months. However, the last period is very good and my system has pointed out this company, as a good investment. You can check my analysis after six years since this article was published: http://bargainvalue.co.uk/pace-stock-analysis/

    • mcturra2000 says:


      PIC was showing up on my screens, and I bought in at 404p on 1 Dec. The shares shot up to 440p on 3 Dec on the back of the likely Arris deal. I sold, because I realised it was an arb play, and I had little upside from that.

      The shares have come off the boil since then. I don’t really know anything about Arris, so my sale was for the best from my perspective. It looks like the deal will go through.

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