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I didn't mean any offence to you Everton and it's good of you to post. It just make makes my blood boil that these so called industry experts get media inches and bring nothing to the table other than stating the bl**din obvious. Motley Fool wrote a very good book years ago and built a good business for them from it from them but really.........
I agree, you can’t slavishly follow the Fool's share tips, partly because they are often self-contradictory, but it carries some interesting and thought-provoking articles - which are at least as useful as anything you’ll read on this BB - and which can stimulate and complement your own researches.
I was only posting it in case others might find it interesting. I wasn’t trying to pass it off as Buffettian wisdom.
Wow support from motley fool ...... that’s alright then. Another post like vox stating the bl**din obvious. A good job they don’t charge for these pearls of wisdom. !!!
Positive piece from the Motley Fool today:-
“I bought Tritax Big Box REIT and Clipper Logistics last year to make money from the e-commerce explosion during and after the Covid-19 crisis. These UK shares provide logistics and warehousing services to help businesses get their product direct to their customers. I also think DX Group (LSE: DX.) could be a great way to ride this theme.
Okay, DX might be a little fish compared to those other two. But it is expanding rapidly to exploit the fast-growing online shopping market, and has opened new depots in Dewsbury, Luton, Verwood, and Burnley in the last three months alone. I’m confident that the company’s solid cash generation should pave the way for sustained expansion too. DX Group trades at 29p per share, and I think it’s a top buy despite the threat posed by HGV driver shortages to its operations.”
Very encouraging with some positive forecasts from Liberum and finncap (first posted on ADVFN)
hTTps://masterinvestor.co.uk/equities/mid-week-small-cap-round-up-featuring-cake-box-dx-group-and-inland-homes/
Yes Sister, a delayed trade. Good spot!
Can confirm it wasn’t me :-)
interesting half a million share purchase today for 155K
I think most of us are saying pretty much the same thing. Results good, evidence of progress and forward plan but unfortunately at this time, somewhat outweighed by current climate and market sentiment.
My view? It won’t take anywhere near 3 years for that balance to change resulting in a rise in the SP to 50p+ (or buyout). I do though fully agree that patience is required beyond end of 2021 and not all investors will have that.
Absolutely Pianista. I often wonder who would invest in DX. There is a good list of institutional holders, directors with a good holding and 5 or so regular posters on this board. Compare that with companies who are scratching around in the dirt for a fortune, awaiting a fortune in the covid space with test approval, etc, etc and those companies consistently losing money and constant fundraising, share dilution etc. Many of these companies have hundreds of posters and posts a day and the vast majority moaning about how long it takes to achieve their stellar return. Dx have a clear proven strategy that works although going through choppy waters. The private investor generally won't wait 3 to 5 years plus they are far too impatient. Dx could finish this calendar year 10% -15% down despite a good year so some investors will walk away and that would only attract a considered thoughtful private investor who understands the strategy. How many of those are around investing in the AIM.
The morning after those 'fantastic results' and the market remains distinctly unimpressed...
ports – I’m seeing that a lot these days (great update, muted market reaction). Chemring is another example: a solid company loved by the analysts (and me!), where the SP initially responds favourably to invariably good news from the company, but it never holds. Not a problem if you believe in the company and can afford to wait before realising your investment.
Pianista, I didn't really have any expectations of any of the metrics. The most pleasing for me was the margin. It remains to be seen if they can sustain this this year with all the inflationary pressures in the system for a while. Who knows what the SP will be, director buys will undoubtedly help though and a trading update if positive at the AGM. For me market and sector sentiment is the driver so the SP response doesn't surprise me and the I don't think you can say DX is undervalued based on the figures but If they follow the trajectory and start to achieve their objectives the analysts targets of 50p + would be about right even conservative. I think the figures though and mood music will please the institutional investors.
Good results doesn't always generate sp movement.. you've only got to look at SCS perhaps the generally accepted most undervalued dividend paying share out there who announced excellent results recently and SP falls.
Sometimes the face doesn't fit regardless of the metrics.
Liberum have increased their target price from 50p to 55p
ports - I don't know what you were expecting for adjusted EPS, but I was expecting no more than 1.5p, whereas it came in at 2p, an uplift of no less than 33%.
Also the company is "confident of further progress over the new financial year", so much so that it's announced a further £20m - £25m investment programme, and it's shortly to announce its dividend policy.
So on the face of it the subdued market reaction so far is a little hard to fathom.
However, echoing wiseys point, unusually because of the excessive delay in announcing these results, we are now only two weeks away from the AGM, which will provide a better (i.e. slightly later) opportunity to give a more detailed statement on current year trading. No doubt the market is waiting for that; also observers of the usual price action on DX immediately following a positive update have perhaps become wary of piling in to create a spike, followed by an almost equally rapid collapse.
All in all, I think the SP is set to steadily move ahead over the coming months - economic backdrop willing - but it wouldn't surprise me if at 31/12/21 it falls short of the magic 40p; that milestone may have to wait until the first trading update of the new year, unless other positive news comes along in the meantime.
they wouldn't give forward guidance at the results. That will most likely come at the AGM end of this month as they did last year....expecting a repeat of year end rally
Unsurprisingly the SP has done nothing today. The results were as expected although a bit better than the markets expected but not great enough to change sentiment so it was priced into some degree. The results have also been announced into the worse sector sentiment there could probably be. The figures are good although my well documented concerns are still there. The balance sheet is a bit stronger which was and is needed especially with the continued aggressive growth strategy. Looking for Director Buys, Depot Openings or Trading Update to see any SP growth.
Reading between the lines I think this financial year will be difficult. Last update they said this financial year was trading in line with expectations.... today there is no mention of trading in line with expectations as far as I can see but there are trading challenges which I take to read is slightly worse. ( just my view).
The directors have done and continue to do exactly what they have said they will do and are to be congratulated. If they achieve all they have set out to do in the next few years then I for one will be slightly surprised but happy share holder..
Minimum three year play for me.
Tep1 - re expectations, I really hope you are proven right and me wrong!
The headline figures are certainly impressive but the business growth and profitability is substantially driven by freight. The express division has significantly reduced profitability down from 22.9m to 12.4m on the same turnover and I'm not sure the drop off in exchange turnover is solely responsible. Despite the uptake in parcels in express it isn't very profitable at all. Bearing in mind there is 20/25m expansion plan together with funding for possible aqquisitions I wonder if it can all be funded from existing resources and future profitability Thats a big question for me?. I'm not so sure it can.
As someone said why on earth aren't they focussing on freight especially with a major competitor exiting the business and there are such high barriers to entry. They can completely dominate this field especially as more businesses are beginning to stockpile stock in the UK because of world wide supply chain problems as DX state said.
Not really surprised where the SP is today we knew the figures would be good. Maybe it will come if the Directors buy in the short term. As ports said they talk a good game... will they back it up?
I agree run1. They need to reinstate the dividend.
I think that a takeover would be a bad scenario for holders here. The money is to be made by compounding %s over the next 3-5 years on an increasing share price. For me, at least, a one-time profit on a takeover event would be disappointing.
Interested to see how you derive your share price expectations here chelsea? DX. have exceeded market analyst expectations and share price has moved between 33-38p based on these previous expectations. I assume these same analysts will be penciling in revised future earnings forecast. I would expect shares to move into 40p+ bracket at a minimum now. I would be very surprised if it will hang around at these levels for long.
I think you’re likely right Mr Cautious. I’m not expecting a big spike in the SP either but a good set of results that should arrest the slide seen since the beginning of September. Some of us spoke about 40p by year end earlier in the year but maybe somewhere between 35p and 40p is now more realistic - upper end not impossible with more positive news.. In the context of where the SP was less than 2 years ago, a complete turnaround and momentum continues to build.
well, I'll have a good look at the figures at lunchtime. Dx continue to talk a good game and are intent on following the strategy.No real update apart from trading challenges currently in labour shortages and customers being short of stock due to supply chain issues. I fear this may the point that reflects sentiment today so we may not have much sp movement. Who knows.
You know me though... Mr Cautious. !!
Stunning results driven by an exceptional performance in Freight. Worth waiting for!
This was despite a reduced contribution from Express due to the impact of lockdown; however, with that now behind us, and the company focusing on investing to turn Express around, there is plenty of scope for even more good news to come…
It will be interesting to see how the market responds.