Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRoc. Watch the full video here.
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A reminder of an excellent article by Martin Flitton back in Feb when he met John Rigby. Shares are down 30% since then but it makes little sense.
https://martinflitton1.wixsite.com/privatepunter/post/k3-capital-looks-well-plced-for-growth-11-02-22
I'm actually very comfortable with this management team. Speak plainly, always buying stock, can't ask for much more. I think overly frequent updates come across as a bit artificial and insecure.
Have a note that reads Strong start to H2 in the Interim Report of Feb 7. Last year K3C gave the markets on Apr 14, a follow up to a TU issued in March strong start, confirming that the trend had continued. Also giving us expected revenue numbers and EBITDA for the year ending May 31. If the trend has continued this year, I believe an Update would have been issued by now. What we have instead is fear and uncertainty along with a change of adviser. The share price continues to fall, if all is rosy, why not inform the market, as to how the Group is performing?
That's useful input, thanks. Worth remembering that K3C is not all about M&A these days though. The recent red flag report from BEG suggests the Quantuma might be getting busy before long.
Ciesco a M&A company reported activity up 17% in their Q1 (Jan-Mar). However, they reported that the quarter started very well, up 48% in January, but has fallen in March. They are citing inflation and the war in Ukraine as the main reasons. Looking at their January number, activity in March must have been quite negative.
There are also worries regarding rising interest rates, not only with regard to taking on new debt but also how they and inflation could affect the businesses involved. The recent fall in sp is likely to be related. K3C might issue a TU with reasonable numbers. Though any mention of headwinds regarding the current worries going forward, is unlikely to boost the sp. One has to bear in mind, that last year was a record year for M&A activity, therefore the fact that the sp falling now is not unusual.
I've added this morning. Economic uncertainty seems to weighing on the stock but given the positivity of the last update and the recent fall of the shares, I think risk/reward looks very attractive here.
Given what a wonderful company K3C is it has to be one of the strangest drops in share price I have ever seen.
As W Buffett would say "The stock market is a device for transferring shares from the impatient to the patient."
I've topped up the ISA at 233p and K3C is now the #1 share in my portfolio. I'm a long way down at the moment but I'm keeping the faith that the company is severely underrated. Fingers crossed for great results next month.
This looks like a high quality appointment.
I'm confident that K3 Capital is growing quickly and diligently but, like other investors, I'm disappointed in the shareprice drop in recent months. However, just 2 weeks ago K3C named Numis as their new nominated adviser and corporate broker. Amongst the broker's roles is advice on market conditions and generating investor interest so I'm hoping and expecting that there is an improved marketing effort to explain to a wider audience what K3C are achieving and how bright their future prospects are.
K3C issued a Trading Update 'significantly ahead of market expectations' on April 14th last year and the shareprice climbed 15% in the following few weeks. Something similar this year would be welcome and not unexpected as the acquired businesses bed in and contribute morede to the bottom line.
I topped up on K3C in Mrs W's ISA at 259p.
Well we're up 1.5p today. Things might be looking up?
Maybe sell if you haven't already then as you seem a bit down about this stock. I suspect we will see a decent bounce at some point, but most fast growing growth stocks are still well down from their ATH, and this is in a similar boat. If they keep doing what they have been doing it's just a waiting game and the market will revalue.
K3C not benefiting from the recent market rally. Still feel this was overhyped.
Interesting that K3C have dumped finnCap. I sold my holding of FCAP earlier this year as I started to doubt their advice. Particularly with the high level of dividends for growing companies. My feelings are that more cash being retained for investment, increases the asset value of the company and requires less shares to be sold in any necessary fundraising placing for acquisitions etc. The result being, the share price is likely to grow more.
added a few extra to holding at 2.54p ....
Well there you go, a rational explanation for the decline since December. So either sell out, put the cash somewhere else you think might be a better bet and stop moaning or just take a chill pill and relax.
It's been declining since December. Firstly due to inflation and investors favouring established stocks with a good earnings history and now we've added WW3!
Or a nickel hat see 3NIL today wow
Errrr. Are you living in a bunker with no TV, Radio or Internet? Look around at what is going off at the moment! Nothing is a good investment under present circumstances with the possible exception of defence related stocks like BAE Systems or Oilers. Oh and it could get a whole lot worse in the coming weeks so perhaps you should invest in a tin hat LOL.
Well what a good investment this has been.
Https://masterinvestor.co.uk/equities/take-a-look-at-cnic-eog-iog-bms-getb-and-k3c/
"K3 Capital Group (LON:K3C) – latest acquisition strengthens shares
Yesterday this small cap mergers and acquisitions business declared its latest purchase. It has taken over professional services marketing agency, JE Consulting, for an initial £2.32m plus a £2.25m ‘earn-out’.
It looks to be an excellent fit in with the group’s expansion strategy. Both Canaccord Genuity and finnCap rate it as an attractive deal.
Last year JE had £1.5m revenues, most of which were annually recurring, and had an EBITDA of £0.4m. It is an earnings-enhancing move.
Canaccord Genuity have a 414p price objective, while finnCap goes for 477p – the shares closed last night at 305p, up 15p on the announcement.
Hold very tight."
''target price 477p, representing a potential upside of 64%. Value-enhancing acquisitions and strong operational performance remain a core feature of this attractive diversified group’s investment case. - Our view. The versatile K3 platform can be applied to multiple layers of services currently offered by the group, solidifying the increasing demand from SMEs at different stages of their business development. Today, once again, highlights management’s well respected strategic vision, and we remain upbeat for the future given K3’s recent operational performance. ''
https://twitter.com/surprised_trade/status/1498566342940762112
part of the article
'...On top of its strong earnings growth, the firm pays a generous dividend which based on the current share price equates to
a yield of more than 4%.....
.....Rigby has ambitious growth targets for K3 he forecasts EBITDA from the existing businesses will increase from an estimated £16 million this financial year to £23 million by May 2023 and to between £33 million and £36 million by May 2026.
In addition to this more than doubling of organic earnings, he envisages adding another £10 million to £17 million through
acquisitions, taking total EBITDA to between £50 million and £53 million, which makes today’s circa £200 million valuation look very cheap. '
https://twitter.com/surprised_trade/status/1496752064663326720