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Thanks Riffgo, your opinion is always appreciated. Yes i was lucky, one advantage of being furloughed I guess. Think I will leave it for now, like you no hurry here.
Dartron, good call. I can't watch these things daily, so I tend to look long term. I was a big holder in Biff from a time after the float, but sold as it approached £3... mainly because of the debt. Now it seems to me that they didn't raise enough capital. They just don't generate enough cash at the moment. I would expect this to rise to 2.20ish before the long decline begins. Hope I'm wrong, but this seems to me to be a classic spiker. I'll look in again next year sometime.
I did manage to sell just before £2.50 (and trading update). Might have another pop at this if it does get down below £2.00, slowly build a position over the next year.
Hi Riffgo, I am not as bearish. I think we have seen the bottom of the SP. As I said before, the price here reflects the potential for this business in a few years once the EFW facility is completed. They are also now running the PET facility. I think the results next month will be very promising. As for debt - we are all going to have a lot more debt after this, as long as they are operating and continue to build the EFR facility, I think the market wont mind. I think it was worth a punt under £2 which I did at £1.79, but £2 is long gone now. Maybe wont go back to £3 soon, but I see £2.50 as reasonable.
It was floated at 1.80, you are absolutely right, but then it immediately dropped to 1.68. I should have said: price at floatation. Anyway, recently it dropped below that low to 1.65 before bouncing back up. That lower low put me off, even though it has gone back to £2. I like this company, but it has too much debt for this market. I think they will be getting on top of that for the next two years, so no dividends. I see the current price as a top, not a bottom. In other words, the old highs aren't likely to return any time soon. But I've been wrong many times before! It's just that there are good companies out there with a lot less debt... and they're the ones I've been targetting recently.
I just googled the float price, it was £1.80. I think a lot of the Biffa share price represents the growth potential of the EFR and the PET facility, so cant see it going much lower? Thoughts..
Biffa's high debt is going to make this a tricky time combined with an almost total loss of commercial income because of the shut down. No wonder they were quick to cancel the dividend. Not sure where this will stop, so I'll wait and see if it gets nearer the float price.