Margins are tight with low interest rates. If the recent rate rises in the States starts rises elsewhere - OPM will become a better proposition. I don't think this is a quick buck. I'm holding these in an ISA for a student - reckon when he quailifies in about 18 months with his degree the rise wll be starting to take hold.
WeWillWin - I remembered your post from last October after reading about yesterdays news.
"If you look at the company’s RNS history, prior to mid-2014, we used to get frequent updates when additional funds were raised. Between Jan 2013 and Jun 2014, there were 9 RNS’s talking about increased funding lines. During this time the share price (adjusted for post-consolidation) went from about 18p to 84p. Between July 2014 and now, even though the company has continued to raise significant amount of funding, and at lower interest rates than before; the number of funding related RNS’s has been 0! In that period the share price has stalled. This might simply be a coincidence but I find it quite striking. In the last couple of years, the main communication with the market has been the 6 monthly results updates (and to some extent the Pre-Close trading updates) but not much in the intervening periods. So, the investors have no idea for almost 6 months as to what the company is doing. I am excluding the acquisition related RNS’s as these were one-off events."
News that OPM have acquired a profitable company and partly through the issue of newly issued loan notes should be a boon for growth. Ofcourse whether the market sees it that way is another question entirely. Will be interesting to hear what brokers have to say about the news
I always seen to follow the wrong ST/IC buy tips. Buy the ones that go down, ignore the ones that go up. I broke my own rule thinking this would be a quick in and out because it was pumped in the magazine. Wrong! Discipline AP, Discipline!!
The problem with the interim figures is that whilst turnover has risen by 52%, EPS has only risen by 5.8%. The question is why have there not been any economies of scale?. I hope it is not because the directors are the ones reaping the rewards.
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