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Whopper of a treeshake today. Glad that I had better thing to do than watch my holdings plummet in value.
https://twitter.com/surprised_trade/status/1414867660010139649
another iii takes a 10% stake
https://www.lse.co.uk/rns/holdings-in-company-14olzv5wg6ndffm.html
https://twitter.com/surprised_trade/status/1412689219047276544
the opening up of foreign travel will add substantially to profits
'...there is huge untapped demand to holiday abroad when the UK government’s green list of countries is expanded, and Ramsdens is primed to gain market share and increase gross margin when that happens given there is far less competition following the demise of Thomas Cook (acquirer Hays Travel doesn’t offer currency exchange) and less well funded independents.'
While I never like it when facts get in the way of a decent story, my only caution with Downing having taken a hefty chunk of shares is that the IT was suspended in November last year just at the point when a recovery in their fortunes began.
Strikes me therefore that the managers (of that trust) are pretty binary - either right or wrong - their fund returned 38.7% between January and May.
Looks like Downing LLP would tend to agree - the business is largely unscathed by the pandemic
Jewelry sales save the day. Pawn broking and Forex should deliver in time
K
Bodes well for all of us.
Gl all.
Investors Chronicle atricle released tonight- extracts below....
Middlesbrough-based Ramsdens (RFX: 155p), a financial services group whose main activities encompass foreign-currency exchange, retail jewellery, pawnbroking and a precious metals buying and selling service, delivered a resilient first half trading performance in the face of two national lockdowns and restrictions on foreign travel.
Ramdens is well set for a strong profit recovery when the economy is finally free from restrictions and international travel restrictions are lifted. The investment case has not changed. House broker Liberum Capital expects a surge in pre-tax profit from £1m to £6.5m on 30 per cent higher revenue of £57.4m in the 2021/22 financial year, a realistic assumption given that a high proportion of incremental gross margin earned falls through to operating profit.
Moreover, with net cash of £15m (48p a share) on the balance sheet, the directors have ample firepower to make opportunistic earnings enhancing acquisitions ...Buy.
https://www.investorschronicle.co.uk/ideas/2021/06/22/upgrading-target-prices/
I have added a few more shares on the back of the news that was published following the decision that Downing Strategic Micro-Cap Investment Trust have bought a chunky stake. A niche company, but as disclosed in previous contributions, my timing was flawed. Don't you just love hindsight?
Downing Strategic Micro-Cap Investment Trust seeks to provide investors with long-term capital growth through a concentrated portfolio of UK listed companies, typically with a market capitalisation below £150 million. The company intends to take influential positions in businesses believed to be undervalued and that could benefit from strategic and operational initiatives to drive performance and unlock shareholder value.
https://twitter.com/surprised_trade/status/1407260722359418880
other's see a recovery too ....Downing Strategic Micro-Cap Investment Trust just took 14%
https://www.lse.co.uk/rns/RFX/holdings-in-company-muf1tau2eynz7wf.html
IC notes.....''although the Covid-19 disruption to business this year has sent the share price well below the 165p entry point in my market-beating 2019 Bargain Share portfolio, I fully expect to recoup the paper losses in due course. Bargain basement buy.''
Cash rich balance sheet to fund rebuilding of pawnbroking book
Strong gold price supports precious metals buying and selling
Set to capture market share in foreign currency exchange from weaker rivals
The share price rallied t to a high of 260p by early January last year, before giving back all those gains, and more, in the 2020 stock market crash.
The fundamental long-term drivers of the business have not changed even if the profitability of certain business division have been impacted by national lockdowns in the short-term. This is exactly the type of recovery play Ben Graham would be looking for to create a decent ‘margin of safety’ as well as offering prospects of a sharp rebound in profits when life returns to ‘normal’. That’s because Ramsdens’s market capitalisation of £42.2m is only 19 per cent higher than NAV of £35.6m even though the group has a debt free balance sheet and holds cash of £15.6m. Current assets of £38m are almost four times current liabilities of £9.8m, highlighting a strong liquid ratio and an ability to pay its bills. In fact, current assets are more than double total liabilities of £16.8m.