The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Https://www.youtube.com/watch?v=im0jnSNYB1U
11 mins in
Medivet has ambitious plans to expand so are obviously not too worried about outcome of CMA Report
I think this is shorts taking advantage of low volume through their algo sells, they are the 5cum of the earth imo
Just a reminder as the share price appears to have forgotten CVSG is in excellent shape 👍
Revenue increased by 9.8%, to £608.3m from £554.2m,
The Group delivered adjusted EBITDA growth of 13.0%, to £121.4m from £107.4m
Profit before tax increased by 49.7% to £53.9m from £36.0m
Proposed dividend per share (p)7.5p+7.1%
Cash generated from operations (£m) £107.9m+15.9%
https://www.cvsukltd.co.uk/wp-content/uploads/2023/10/CVS-Group-plc-2023-Annual-Report-and-Financial-Statements.pdf
The whole market is up - even Aston Martin...
Yet CVSG is down... what the actual!
What do they know we don't - or what do we know they don't...
Hopefully it's the latter
I might half jump off at 1700p...
It is moving up because the SP is so undervalued and the CMA debacle will evaporate. Just don’t forget to jump off at 1700p .
Not just that - many of the Covid pets are breeds that are problematic...bulldogs for example. Anything with short noses or lots of flappy skin...
OH is a vet, if I haven't mentioned that before ;)
The big money is in referrals - she went to visit Dick White's referral centre last week - HUGE referral business at Six Mile Bottom near Cambridge.
Agreed, Covid pets will only just start needing more than the usual treatment in the next year or so overall I suspect.
Any ideas on why the price has show up in the last hour?
Of course smaller dividend means more to reinvest. The *theory* is that dividend payout % has little effect on overall long term return to the shareholder. But a small % payout does make it less attractive to some investors..
I'm quite happy that they keep the money to reinvest as demand for vet services is only going to increase...all those Covid pets getting to ages when they start to need more expensive treatments
This all started with the fear of the CMA enquiry. Price is now not reflective of the business IMO. Results look solid, only thing is the Divi is tiny % which wont help, other than that just need some good news (or the CMA to sort itself out) and this will fly back the other way.
I bought back in here again today, great Business. I would not worry about parking your cash in here if you are going long. I am hoping it will be pushing 1700p in the next few weeks.
Sold 560K, bought 1.74M. Suspicious how SP could drop 4% today
Maybe general market decline of up to 10% hasn't helped...
Becoming a target for a takeover?
Have to sit on my ~£4k's worth of shares for now...
It's getting silly now 🤪...2100p 6 weeks ago to 1400p today in company that is sound and as stated by the brokers ' the Competition and Markets Authority’s review is unlikely to result in a negative outcome''
Nope! seems scared to leave 1500, like a child clinging to its mummy.
i have no idea what the trading in this means. beyond my understanding.
daresay it'll get back to the old level at some point but what triggers it, beyond a buyout...
Most broker targets are still north of £21 so...
No sign of BoD buying even though their historical buys seem to have been around 1800?
bounce almost happened, up to 1690 then fell back and trapped a few, i'm sure. at least it moves slowly so plenty of time to decide what to do but, still... odd!
Obviously there are concerns that the CMA review might create a few headwinds. That said, the figures don’t lie and this is a well ran company serving a lucrative and growing market. When it dips below 1450p, rinse and repeat.
Https://www.thetimes.co.uk/article/share-tip-cvs-vet-chain-should-keep-investors-purring-8nk25d037
''Shares in CVS Group — which owns about 500 veterinary surgeries in the UK, the Netherlands and Ireland — crashed 36 per cent last month when the Competition & Markets Authority (CMA) announced a review of vets’ fees “amid concerns that pet owners may not be getting a good deal”.
The market has bet that CVS, as well as rival chains such as Pets at Home, will face regulatory action. And so Aim-listed CVS, whose shares were changing hands for more than £25 apiece in September 2021, is now priced at about £16. This left the firm’s chief executive, Richard Fairman, in a strange position last month: presiding over CVS’s full-year results, he had to play down profits that he would ordinarily have shown off.
The numbers were good ... CVS’s revenues, which stem from labs for diagnostic services, pet crematoriums and an online pet pharmacy business, as well as vet practices) rose 10 per cent to £608 million for the year to July, while pre-tax profit was up by 50 per cent to £54 million..He dismissed fears over potential intervention by the CMA, claiming it was a shortage of vets, pushing up wages, that had sent bills soaring, as well as inflation.
Analysts agree, seeing the sell-off in the wake of the CMA’s announcement as overdone. Seb Jantet at Liberum said: “There is a good chance the CMA will conclude that there isn’t a case to answer …
The shares are trading at a forward price/earnings multiple of under 16 for 2023 — lower than historic averages and also throwing open the prospect of an opportunistic private equity bid.
Buy CVS.''
"The industry remains very buoyant and likely to continue to be very recession proof despite the obvious challenges due to tough economic background".
Precisely. The Covid pets are only just starting to get to the age where more serious problems only just start to appear. Demand for vet services will only increase over at least the next 5 years
The industry remains very buoyant and likely to continue to be very recession proof despite the obvious challenges due to tough economic background.
CVS are very well placed and even though they often have concentrated sites around certain city locations that us for historical reasons and buying of large chains of Practices.
The fact they are still looking to buy in U.K. is a very good sign and even the last CMA enquiry into CVS was brought about by them buying The Vet ( who were very spread out ) so an acquisition so they are unlikely to go down that route again.
Plus the setting up of Southport is indicative of a new way of opening and I understand more new sites are planned.
I can think of many of the other corporate groups who would be worried about divesting based on geographical concentration
Time in the markets rather trying to time markets is a sound approach for most, anyone will do well to time this in the very short term :-)