Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
You’d think they’d do well in these ghastly times but alas the social distancing in place low cost funerals seem to be the norm and will hit the bottom line going forward , my father died last year and the company I used was not affiliated with dignity, Sadly listening to how they work put me off investing in here, and even if I got a discount on a funeral as a perk I wouldn’t ,!
How long can Dignity carry on and service their debt and invest in what they have?
Down she goes again....it will soon be sub £2.00 I guess the nearer we return to normal after the effects of the virus, the worse it is for the value of these shares. I bet the Directors are happy they bailed out!
Down she goes again......sinking like a lead battleship!
We don't want to hit 263 before 3pm
Starting to set up but it's like watching paint dry.
Candle just appearing above ichimoku cloud in 10min to 1/2hr charts.... May be a half decent finish to week.
Long way to setting up properly but a step in correct direction
Noheartss,
I agree that Dignity will unlikely see £20 again (at least for the next five years). But given where their share price is now, it needs to rise by £17.50 or 775%. I bet any investor would take this gain in a heartbeat.
I bought this earlier today at £2.55
Surely a small dabble will return a couple of hundred % long term.
The current death rate isn’t even a positive for Dignity as practically all will be the cheapest plan with no opportunity for up selling.
At some point the shares may be worth buying , after all if it wasn’t for the excess debt they are the epitome of a defensive stick, but people have said that for the last 18 months and are fixated on past share price highs.
They will never see £20 again.
Ever
People saying the same thing when Phoenix where buying at £10.
In fact they were practically boasting about it.
Phoenix aren’t a hedge fund anyway.
They are playing with other peoples money and while they have a decent long term record, charge highly for it. They have hits and misses. So far with a 27% stake , this is a massive miss,
Orangetree, found this in latest results, ' approximately half of the Group’s funeral properties and some of its crematoria are leased.
Most are held as security against the bonds - all but about 70 homes and 6 crematorium.
Thanks for the reply Londoner7.
I understand Dignity has lots of fixed costs. Plus, they will probably need to compensate some of their pre-planned funerals arrangements, if they can't promise what they will deliver.
My problem is why are these hedge funds, knowing that Dignity is in a dire situation would invest in this company. I know they own most of their funeral homes outright. As for the debt, the future interest expense will be lower than in the previous years. Also, they will be covering 20% on some of their staff wages, whilst the government help chipped in the rest by the end of April. They will probably dispose of some of their funeral homes to bring in cash.
The key warnings from Dignity are that operating costs are higher due to some operating staff being unable to work, with some branches closed and the fact that the current rise in the number of deaths due to CV will result in a lower overall number of deaths in future years.
From an investors viewpoint this isn’t good news in the longer term. The question is, to what extent current cash flows might compensate for lower future cash flows – if at all.
Most of Dignity costs are fixed (from memory c70%). Many services are not available – limos, memorials etc., so I’d guess that funeral margins are significantly impacted and crematorium margins are largely intact, based on normal volumes.
Today’s ONS data release to 3rd April is the first that gives some insight into the total number of deaths because of the CV crisis.
I won’t bore you with the detail but it’s my estimate that the total number of deaths is 2.13 x the daily CV reports. Apply that to current numbers suggests a peak weekly number of 21K-22K. Assuming this is the plateau then something over 20K can be expected through April into May. To put this in context the sector deals with 14K-15K during a peak flu season.
The interims will be an interesting read but there are too many moving parts, and unknowns, for me to assess and make an investment decision. I’d guess the hedge funds have better spreadsheets.
*In posting these comments I don’t mean to belittle the tragic consequences of the CV crisis. I’m assessing the investment case which surly is the purpose of these boards. But of course, the board also attract those with a beef that predates CV and others who will claim ‘sensitivity’ which makes me wonder what they are doing on this board it the first place.
Stay safe!
Do people know why hedge funds are investing in Dignity, if the company's outlook is poor?
If Dignity is warning the business will be crap, why are there so many hedge funds investing in the company?
I feel something isn't right or the shares are dirt cheap. The shares are the lowest since 2004.
So the next question, after hounding the Directors for the last couple of years about not buying the shares is why aren't they selling? If I were them, I'd do it quick before they reach £1. Will Mike Mc Collum have to inform the shareholders of the sale of his 93,000 shares? Hurry up Mike...…..get that 186, 000 quid in the bank before it sinks to £93,000. "Let the dead bury the dead"! Get the money in the bank mate!
Likely to be paid his full 12 months notice , even despite being unceremoniously dumped.
One last filling of the snout from the trough.
Just a reminder that he ‘earned’ a £400k bonus in 2018.
Most of this was for the 100% achievement of ‘strategic objectives’ - whatever the hell they were.
Can’t wait to see if he snaffled a bonus in 2019.
This heading for sub £2
Dignity will just leave limos in the funeral homes where the normally park, Total Greed in better times started their problems
Every time the added funeral homes to their company it spawned more less expensive independents A few yeas ago independents where slipping away which made it better for the likes of dignity but regained a position in the last few years with the cheaper funerals. Dignity is now stagnant it cannot expand, it will struggle to compete as its overheads are way to high, You can do all sorts of things with figures but going forward dignity will have to a massive revamp and rethink about where it is. COULD there be some kind of sell off, when a company like dignity are stagnant and stop expanding they cannot survive and especially when they cannot continue to maintain market share, I said in a earlier post Dignities directors/ Managers do not know what is really needed. The virus has added to their problems , THEY have lost control at the grass roots.
Dignity is losing most of its limo service, it's getting mothballed for quite some time it seems, that has a cost for storage, preparation, deprecation, insurance car tax etc, it's employees are taking time off worried sick they might catch the virus,
That 2020 revenue stream will or should collapse from now onwards I think, even dignity don't know what's going to happen here, yes people will need a funeral service ok, but probably straight from the hospital to the grave yard or crematorium I suspect,
Most of the other we money earners for them will also disapear, wreaths memorals etc, will stop, + many of the deaths of the elderly from coronavirus would be taken out of further future years death rates, these very sad early deaths will be quickly cremated straight from the hospital under government guidline instructions, this is a very sad fact of the horrendous problems society faces around this pandemic, though I fear India will see the biggest worldwide death toll, by virtue of the 1.4 billion population and widespread poverty in the country.
Yes 1.7 billion in dignity assets should see it through its worst difficulties, though I wouldn't expect any or much of a profit for 2020 and possibly beyond that, you also have set key personal leaving at a time like this !!! Strange to put it cautiously !!!.
There might be a good opportunity to get in here if taking a long term view, but that opportunity only relates to a jump in the share price, not any great earnings enhancing funeral pricing jumps.
Good luck to any brave investors here who takes a gamble on this one, at around this price long term ,,,,MAYBE,,,MAYBE,,,
Now we know why the Chief Executive Director wasn't buying any shares in the company......he was planning a dignified exit! And now he is probably planning a dignified retirement in the Bahamas. I wonder what sort of retirement most of the shareholders will have?
True, 550m depts but also has assets of 1.7b, current revenue of 338m with a 10% profit margin at 34m (Dec 27 2019). And its share price vs. fair value is currently undervalued by about 66% according to simply wall st. So there should be plenty of room to get this back on track?
The SAIF are putting out a conflicting message, but government guidance is:
Handling of deceased persons potentially infected with coronavirus (SARS-CoV2) should follow the SICPs and TBPs set out in the HSE guidance, apart from the use of body bags, which are not required but may be used for other practical reasons.
https://www.gov.uk/government/publications/covid-19-guidance-for-care-of-the-deceased/guidance-for-care-of-the-deceased-with-suspected-or-confirmed-coronavirus-covid-19#general-information-on-the-risk-of-covid-19-from-deceased-bodies
Dignity has around £500 million of debt, a consistently falling share price and profits in the last number of years, even dignity don't even know how much it's profits will be impacted by the FSCSR review, and now even that review is on hold because of the coronavirus pandemic,
Dignity has borrowings of £500M and that must cost 10s of millions to service each year ?
I'm not surprised at the rapidly falling share price, the pandemic I believe will have a very serious material impact on the income dignity recieves, normal funeral service's and needs may not apply here , quickly arranged burials and cremations would be sought to avoid most of the bereaved getting the coronavirus, all these drastic changes may bring dignity to a level to just service it's huge debts. And not much more. I have always wondered why dignity allowed this debt to spiral out of control, surly they should have reduced it by issuing new shares when the SP was sky high !!! And now there is always the possibility that the banks could pull the plug if dignity breaks it's banking loan covenants.
This really is for the brave hearted, though if it gets through this pandemic and past the FSCSR review unscathed , then it might still pardon the pun live another day, though I'm quite sure the capping of funeral prices will make dignity in the long run a tortoise moving share on the stock markets.
Good luck to all its investors, I'm thankfully not one of them .
Zaaaaaaaaaaaaaaaa boom! Another 5% of the share price! It is really interesting to observe how the roulette wheel of the stock market works! This boring trustworthy share is definitely going down, but very very slowly! I think this is ultimately going to happen to some of bigger more solid companies. I could have so easily piled into this share at £6.50.....then £5.50...…..then a lot more at £4.50...…..but here we are at £2.50....its so insidious! But I, like the very shrewed Company Directors, are still not buying!
local councils generally contact funeral homes at back end of year to check what capacity they have to store bodies this normally happens if a large flu epidemic is suspected, most funeral homes have a code of practice for dealing with contaminated bodies, and sometimes collect same, which the nhs double bag and label not to open.