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I struggled to buy this morning but managed to get a few for 249.
So far looking good.
I believe we've seen a fair degree of market manipulation this past month to get some cheap stock for a few insiders ahead of the results announcement. I'm still expecting something around 100m revenue and 7-10m profit for 2021 with future growth predicted for 2022 ... at those levels I think we should return to 275p by 8th Sept ! Happy to be overweight ALU in my SIPP
Can anyone tell me why I cannot get a live price and buy this stock with HL. Tried a few times and just keep getting 'unable to retreive a live quote', but there are deals being quoted on this site. Confused.
Anyone care to take a view on the downward movement in the share price in recent weeks? 30% movement is quite a drop. Was it overvalued at its high? Accepting it’s moved up significantly over the past 12 months.
Still feel this companies focus on sustainability leaves it differentiated. It also manufactures much of its own goods so not subject to bottlenecks to the same extent as others.
Worth a buy at £2?
PPercy - don't think this will be showing a p/e over 40 when the full year results are in. H1 net profit was 4.8m and the latest trading updates have suggested FY results will be better ; so we might be around a p/e of 10 !
ive owned this for many years and bought prior & post crash and have a nice avg of 105. However I think the price is now high for this share. A pe of over 40 for a building supply company & some niche manufacturing screams overvaluation to me.
Ridiculous market manipulation this morning. Price dropped from 276p to 242.5p by 9.30am this morning then went from 242.5p to 182.5p and back to 242.5p over the course of the next hour !!! This sort of stupid price action is why I no longer use stop losses ... better to monitor movements and make decisions with a longer term perspective in mind.
With the year-end on 30th of June, last year we had a a trading statement on the 23rd of July. Looking forward to that.
Looked at it last year in April at about 70p and didn’t buy! Still I bought this May and I’m up 18% already. I particularly like the specialism in solar shading and architectural screening, which could become very very popular. Another quiet one, a silent killer! Like Cerillion for me, which has been fantastic. Love the quiet ones, with quiet boards.
Made my first purchase here back in Feb '18 at around 160p ... thought it had every prospect of rising to around 250p as well as providing a good dividend yield. Certainly been an eventful few years - lost 1/3rd my investment within a matter of weeks but kept the faith and kept averaging down all the way to buying at 66p last Summer. Past 6mths have been very satisfying and I think FY results in July will be very impressive ... can't wait to hear what the dividend will be, but sadly I don't think its going to translate into quite as many shares being drip'd back into my SIPP as last year
Hi Uh-oh,
Thanks for your reply and I agree with your synopsis. The only thing is I am fully invested again. PUR was so oversold so have been piling in there and HE1 for the drill. When I take a slice off PUR I will look back in.
As for ALU it’s ‘safe as houses’ will do very well but wont move as quickly as some of the others but then it’s also a much safer play.
Good luck with your investments
Trek
Hi Trek. I think you need to put your hesitancy to one side and buy ALU, even after the strong rise this year.
The reason for my optimism is based upon the strength and recovery in trading and trying to estimate what the full-year results in the autumn might produce. For this, if you take the 6 month earnings of 13.4p and, crudely, doubled them (i.e. 26.8p), and put the shares on a 10x price earnings multiple, which would be fair for a construction related company, it gives you 268p. However, this is a company growing very fast, partly from depressed levels linked to Covid, and so a rating of well over 10x would seem fair. Cash flows are also very strong, with debts almost paid off and a dividend payout restored, and margins have risen appreciably.
In short, at c.220p, the prospective rating could be as little as 8x. That looks to be very cheap in my view.
One of the problems in feeling completely confident is that this remains a small company, with a market cap. of only c.£80m, and research articles are few and far between (i.e. I've not seen one!). Therefore, it is important not to assume too much because its operations may suffer disproportionately if economic conditions slow down again into 2022.
This one has been on my watchlist for a while. A great recovery play. It gives access to economic growth in many sectors through a single company.
Great set of results and should move quickly to £3 imo.
I am not a buyer yet but likely to as funds become free.
Trek
Mickey - sometimes you want quiet BBs ... too many are full of drivel, ramping/deramping and useless "non" information.
ALU is operating under the radar and going about its business steadily. My Jan prediction of 100m revenue 10m profit looks quite achievable after the interim results and steady growth from there should continue. Given my average (below 100p) I'd like to see this providing a stream of 10%+ dividends for many years to come and a little sp growth on top
Great to see this go past the £2 barrier. Quite on these BB’s. Some chatter on Twitter. Either way it’s doing it’s thing quietly. Talk of M&A activity in the last results so hopefully some acquisitions to build more scale in this business. Exciting times.
Trading activity has really picked up in recent weeks with a corresponding increase in price. Know king on the door or £2+. Global focus on infrastructure and sustainability serves Alumasc perfectly. Strong exports (outside of the EU) is a big play here.
Has anyone else noticed the large buy towards the close on Friday? By my reckoning that’s circa 0.5% of the company. The share has been very stable over the past couple of weeks when I might have expected a slight pull back. I wonder whether this position was being built. I guess we shall see.
Poor attempt to de-ramp 50glass!!
Poor attempt to de-ramp 50glass!!!
Not sure we have the financial firepower for any significant acquisitions, so anticipate fund raising (rights issue?) later this year.
Very positive indeed. Dividend date I see is more than expected. I’m particularly pleased about the reduction in the pension deficit which has been an overhang for a long time. £2+ will not be long coming!
"The Group's substantially strong performance of an 11% increase in revenues, 23% increase in export sales and more than 100% increase in underlying pre-tax profit during the period, reflects the successful execution of our repositioning strategy launched in 2019. This has been achieved by the hard work of the employees, for which I would like to thank them."
"Pension deficit at 31 December was £12.8 million (30 June 2020: £19.3 million), benefitting from a strong investment performance....An interim dividend of 3.25 pence per share is planned for payment in April 2021, reflecting the Board's confidence in the underlying strength of the business and strategic growth opportunities available to it. This would be an increase from the 2.95 pence per share interim dividend that was planned for April 2020 but which was cancelled in light of the Pandemic's onset."
Also new CFO is stressed to have M&A experience. Very upbeat!
Results due tomorrow. RetiredBanker what are you expecting? Given the recent trading announcement I’m expecting no surprises. Confirmation on the exact amount of the dividend will be new news. Any guesses on that? Looks to be steady and resilient ship now even with external influences.
Pharmhall - if you're referring to one of my previous comments about "insider leaks" then please remember it was from almost 2yrs ago ... quite possible management have changed attitudes in the interim. I entirely agree that today's movement is driven by the H1 numbers. I also feel that Mickey's belief this could rise to 200p is quite reasonable. This year could well end with Revenue around 100m and profit around 10m ... a p/e of 8 would see the 200p mark achieved !
While I agree with you that it is good to be cynical, I cannot agree with your comment today regarding the share price movement. The shares have been very stable for over one month and were modestly down yesterday. The movement today is attributable solely to the 1H trading statement released at 7.00am, which stated that sales are up 11% and PBT will be £6m, way ahead of market expectations. Its broker has a PBT forecast for 2021 of £8.9m. Given that the outlook statement is very positive, this forecast looks very low, hence the share price movement. This is not insider movement before an announcement.