Market's view on RWS Holdings
Published on April 2024
- Concerns are raised about the possible shrinkage of the customer base.
- Comments on the sale of Patbase, noting it used to be a significant part of the business and its sale seems contradictory to company statements about servicing clients across the IP lifecycle.
- Stock watchers express surprise and disappointment at the stock price drop, with shares purchased at significantly higher prices now valued much lower.
- There is criticism of the company’s apparent lag in adapting to AI technology which could be impacting its competitiveness.
- Discussion on the extensive mention of AI in company statements, questioning the sincerity or effectiveness of the strategy.
- Observations on the financial cuts in regulated industries like financial services, which could affect the demand for verbatim translations.
- Interest is shown in a new AI product introduced by the company, described as a potential game changer.
- Discussion around why the share price has dropped dramatically, with emphasis on the company’s cash-generative capabilities and expectations of a recovery.
- Speculation about significant trading volumes suggesting insider knowledge of upcoming financial reports.
- Analysis of the 2023 accounts indicating a high-tech shift in the company’s operations, with a broad operating base primarily in the US and significant admin costs due to reorganisation.
- Suggestions that RWS could be an attractive takeover target due to its undervalued state and lack of tech recognition.
- Statements about the potential explosive growth of RWS once there is broader recognition of its value, especially post-Brexit and with booming UK business.
- Expectations of share price volatility pending the upcoming trading statement.