Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Will the fundamentals of the business about to be published in the results on the 27th shake off the wider market malaise? I think so, I think we may see some positive movement over the next two weeks in the run up.
What sort of numbers do we think they will show?
it's not specific to AAF, mainly just people and funds dumping UK FTSE tracker shares (due to UK risk), which means those funds offload their index shares proportionally. AAF actually doing better than some
https://www.thefastmode.com/technology-solutions/28144-american-towers-airtel-africa-partner-for-greener-towers
300M investment in green energy.
Barclays recon on a 32% SP upside (Oct 4th) - not today though.
....this is beginning to look like really good value: can't see how the UK's malaise will impact here. Sold up at 1.65 a few months ago to free up funds for something else, but tempted to come back.
That looks a very promising partnership, but I'm surprised that there was no RNS, I wonder why? Perhaps tomorrow, and thanks for the link anyway.
Looks like a LTH imo. Debt situation is improving, riding a very positive demographic wave, market is not in Europe! and strong sales growth year on year. The PE ratio is 10 so it's not overpriced. I've taken a punt. GLA DYOR
Dropping with the rest of the market but the decline since july isn't good.
Fear it is a hyped share and won't get back to the 130-160 level.
Check out ...shortdata ...no shorts over .05% showing just usual trading swings .....no big deal
Who knows.
The markets are clearly buggering us around - lure us in with a rise across the board and then drop the prices again.
Roofer61,How come dropped 5% with few minutes of opening? Must be the sell orders?
Strange .......showing no shorts open here .....unless you know better......odd
After few days of raise, shorts are piling in this morning.
Hello AAF PIs.
I'm thinking of buying in and just crunched the numbers from the '22 financials. There's lots to like:
Sales growth of 20%, tasty gross profit > 60% and operating margin around 30%. Very nice. Asset heavy but return on assets is pretty decent at around 20%, so they're sweating them reasonably. Debtor days is only 17 which shows they are good at getting paid and generating cash, and then they take 6 weeks to pay their bills. So, a bit of muscle in how they manage cash.
The thing I don't like - as Alessandro raised in the Results thread below - it their low liquidity. Current ratio is only 65%, which is a bit of a red line for me ... unless there is some explanation for it?
What is that explanation? That is my question for this board?
Thanks for any insights.
GLA
Robina.....looks like quite few buyers agreed with you ....5 million against 1 million sellers...growing customer base bodes well for AAF .....held off buying to trade today myself.... ATB
I'm in at 136. Dunno if it's a complete gamble or a good investment...
Took again batch in a sea sellers and market gloom ......Bt n Vod heading south...Altice/ Patrick Drahi doesnt have to sell their 18% stake in BT , stated in papers today... lastest telecom news
Newboots,Forever..... good one .... high buy vols here, also at Vod/Bt today.. bodes well ...give it a few weeks be rising again Gla
Good discussions.
I've just brought in. The growth is compelling, the ROE and ROCE for me are key elements that is showing a company still geared towards growth.
They are ploughing money back into the business and getting great returns from this, with a low PE I see this as great growth opportunity. Not many companies out there doing what they are achieving at the moment
Newboots, I am not de-ramping Airtel and not 'insinuating'. I don't think a comment from some average Joe can have any influence, even on the smallest company. Mine was a genuine question. I looked at the quick ratio <<1 from different angles. I don't expect a company to have cash reserves equal or greater than its current liabilities, but I feel more comfortable with a quick ratio of at least 0.8, just as I don't understand in depth how financial gearing is managed in times of recession, increasing interest rates or more aggressive competition. I consider mobile operators unable to offer a product at a premium price since mobile bundles are commoditised to an extent, so it is somehow a race to what company can provide services at the lowest price. That being said, Airtel managed to be the third biggest network provider in Africa and I hope the good momentum continues, in terms of acquisition of new customers and reduction of debt (which as you say is on a good trajectory). If you think I am de-ramping, give more power to me, so you can load more shares (and so would I).
Also accumulating. It feels odd to want this fall, so I can really load up.
Alessandro - I see you've raised the same query on the "other" board. Your insinuation that AAF is cash light is either a misunderstanding of the financial position or a deramp. On the assumption it's the former - most company's hold inadequate cash at any point in time to meet their liabilities due over the proceeding 12 months. I've just done an assessment exercise for housebuilders in the FTSE as an eg - not one had enough cash. AAF's current and non-current liabilities is on an improving trend - both because debt is reducing and because revenue is increasing.
No doubt people will have their own view on debt - but in my view it's a nominal risk, and one the business is managing.
Drop looks over done now...started to accuminlate again after recent highs....GLa
How does Airtel manage debt, with about 2 bln current asset and 3 bln current liabilities?
Nice progress off the floor today. An attempt back into the 160's next week?
- I'm thinking so... :)
In the absence of any fundamental bearish news, I too could only come up with it's a case of 'buy on the rumour and sell on the news' as I too was contemplating selling all this week (and in later days/weeks rebuying :) only because the SP was Overbought condition and the near vertical climb was at odds with worldwide stock markets and geo political events casting gloom over the world's major markets since February this year. It's been impossible not to be in profit whatever date an investor bought unless it was in the past week or so. I bought late October with the intention of a buy in November and sell in May Strategy, but it's a keeper :)
In one day the SP has descended out of Overbought condition so now a case of seeing if the rate of descent slows or not as my thinking is it may well in the coming weeks do the opposite and panic may drive the SP into a case of Oversold sellers, and that would be the cue to top-up.
But first let's see if this pullback peters out quickly or not.