Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
laughable, picking more up today at this price, cannot wait until May results. IMO, DYOR
https://www.telegraph.co.uk/sport/2021/01/07/fishing-given-green-light-continue-third-lockdown/
Fishing now allowed in lockdown. Nothing to do except fish and spend all that excess on money on fishing tackle with the only competitive online retailer.
Thanks. Is a matter of waiting. Tbh I’m hoping the price comes off so I can pick up more. I don’t think 150p is too bullish though. Just a serio. Lack of coverage and liquidity on uk small caps
Gango.. you're back. Bullish target... nice, round and easy to remember. Yes agreed we have a few tailwinds now supporting growth:
- lockdown is good for business
- although early days, the weather thus far is turning out to be very mild and relatively dry, which is also good for business. Last year was badly affected by the weather so here's hoping for a new year without floods or high speed winds
- the click and collect process seems to be working very efficiently. They incurred some rehandling and other costs earlier in the year but by now they will have optimized their distribution centre stock levels
Only a very small number of sellers today getting frightened due to disruption to UK imports. Reality is that the worse corona gets, the better it is for AD - partly due to people spending more time fishing, push towards online shopping, more spending money to put towards hobbies, more holidaying in UK etc etc etc. Supplies shouldn't be too effected, majority of fishing equipment is imported from outside Europe and Asia and regardless of this, AD raised capital earlier this year to bulk buy a lot of stock to meet demand, I assume with a sizable buffer. Very credible EBITDA growth this year, onward and upwards into 2021. Given growth rate, this should be valued IMO, Strong buy up to 150p IMO DYOR
I don't know why it decided to move today but I'm not complaining. That was sensible last post Gango hopefully you've been patiently waiting like me. Given the support that Covid has given fishing and that ANG is the market leader is a little surprising that this has taken so long to get past pre covid levels. And this even despite 400,000 shares sold recently by PDMR.
I just had a re read of that trading update from earlier this month, it really was quite perky. For a market cap of £55m, with £17 of that in net cash, that puts ANG on an EV/EBITDA of around 10x 20210 EBITDA. Its a little punchy but considering the turnaround from a £0.5m loss, the revenue growth and the consolidation and scale opportunities that come with being the market leader we could see improved cash generation and significant EBITDA growth in 2022
This has everything going for it, AD is a perfect play on covid-19. Rod licences have soared this year during covid-19 (https://www.chroniclelive.co.uk/news/north-east-news/lockdown-leads-boom-fishing-more-19190141), many young people new to the sport buying online, huge increase in people holidaying in the UK of which many will spend time fishing, those in work and unable to spend money on eating out or at the pub etc have more savings than ever to purchase higher value items. Smaller independents have been forced to shut during lockdown and are struggling to get hold of stock - this has accelerated the long term trend toward large scale online specialist retailers. Could potentially go a similar way to online cycling and running specialist Wiggle which sold to PE for reportedly around £180m. Will wait for results next year. Strong buy IMO, DYOR
Looking at their social media engagement with customer they really seem to be struggling with supply. A lot of frustrated customers and plenty unimpressed with their meagre 10% off Black Friday promotion.
Hopefully that means they have been selling plenty and aren't completely struggling to satisy demand.
Certainly not the most liquid of stocks! But they are a lockdown beneficciary arent they?
Consensus is one firm I believe - N+1 Singers - who have £1.9m of pre IFRS EBITDA for the year to January 2021 after they did £2.1m for the first half as per the presentation on the website. This forecast must build in incredible conservatism given that trading was +75% for the period post lockdown and the commentary since sounds very bullish.
I'm not sure what's holding the share price back given the massive cash balance and a profit number that is hockey sticking. May be market waiting for a full year of profits?
What I do know is interest in fishing is going ballistic and the business model where customers are coming back multiple times a week for bait makes is attractive. Loads of small shops to buy up which are run inefficiently.
Not the most liquid of stocks, a strong opening allowed a few large sells and someone may have been caught with their pants down. Looks to be recovering slowly now.
I can't fault the results, it was slightly better than I expected from higher gross margins leading to break even at the operating profit level. I think this bodes well for the future, that GM was achieved with what must have been a high level of stock rehandling costs and other disruptions as inventory was rapidly moved around to meet online demand.
They have said they expect to meet consensus, if anyone can point me in that direction I'd much appreciate it. Can't see it anywhere myself
WTF just happened?
Has Boris just banned fishing for next 6 months!!
Pleased with the result:
GM% of 33.5%, improved from 31.5% in previous half
Opex at £10.9 (just under £11m)
Operating profit (small loss as expected, but profitable after government grants)
Trading strong in second half and guidance in line with market expectations
All good.
The recent rise seems to anticipate good results so they will need to be very good I think. I think this is a decent medium term hold whatever happens tomorrow. Very little international travel will happen over the next 6 months and local fishing could be one of those activities that benefits. We already know sales are £32m for H1. What I would like to see is:
- a bullish tone
- cash still in excess of £20m
- further positive update on trading in the 2 months since the mid August update and any indications of the order book for the remainder of the year
- gross margins - anything more than 32%
- opex: the last half was £10m. With the acquisition and covid costs we are probably looking at around £11m but there could be a surprise on this either way
- operating profit: small loss but last year was a small profit so will depend on covid costs and GM%
I can't see any consensus forecasts so no idea what expectations are but I have forecasted sales of £72.7m for FY2021. That seems pretty bullish now looking back on it!
Will we see a big jump on tomorrows results and trading update?
Or is the recent rise from 60p to 70p factored in already?
Looking at the figures recently the fact is that this is a sound business to be in at the moment and the only way is up.
IMHO
I'm not really that annoyed by this. Its how the market works. At the time it was a buyer's market. Everyone was panicking and bolstering balance sheets in expectation of the worst and shares were sold at large discounts all over the market.
Timing was highly unfortunate, being just before sales took off in Mid-June after lockdown was eased. But I think the expanding order book had a lot to do with it, they needed the cash for new stock and to reassure suppliers that they would get paid. And they needed it FAST to take advantage of the situation. And Blackrock knew it.
Since then a number of companies have been allowing the same terms to PIs to institutions but the cost and time can be an obstacle to getting this done quickly and efficiently. I think the advantage of them being able to secure a large amount of stock leading into a once in a lifetime sales period can partly justify being left out of the raising. No doubt many of its smaller unlisted competitors did not have the same luxury
This company looked promising. However I just saw this RNS: https://www.lse.co.uk/rns/ANG/result-of-placing-kyf5qz8866anv8h.html
> The Placing Price represents a 15.3 per cent. discount to the closing mid-market price of 59.0 pence per Ordinary Share on 10 June 2020, being the last practicable trading day prior to the announcement of the Placing.
Every SINGLE shareholder in this company should be angered by this. Basically they are giving a massive discount to blackrock and other investment firms and ****ing over the average public shareholder.
I would strongly recommend everyone here to message the board and ask why this is.
Awful practice and should be illegal. Not every shareholder/share is equal it seems.
https://www.thetimes.co.uk/article/city-chiefs-demand-fair-shares-for-equity-raises-hr9fhzzb8
In the words of Mr Crabtree “Now here’s a likely spot Peter, you see the way the money is all flowing in one direction after being held up by the bank, well this is where there could be a big Chubby profit lying .
Someone is buying in the background, unless Izaak Walton wrote 'The Incomplete Angler' together with Issac Walton's theory of anti-gravity. More sales should equal a lower SP when an unequal amount of sales do not equal an unequal amount of gravitation on the SP then there must be other forces in action.............. the float just dipped? ..... STRIKE !
I guess we are bound to see some of the 50p placees flipping for their 25% around now.
The Sp is back to around pre-covid levels but with better prospects due to a captive domestic market. If they can maintain the current growth trajectory 100p is possible in the not-too-distant future
I've taken the bait here artrader. New position for me. Companies with a strong domestic focus, staycationing, hobbies, diy, homewares etc have been recovering strongly and should continue to do very well over the next 6 months.
ANG has revenue momentum, an industry leading position, international growth profile, a net cash balance, a strong e-commerce proposition and is on the cusp of generating some decent profits. And all at a pretty reasonable valuation of < 1x revenue. Being under £50m MCap its under-researched and hence the opportunity. The chart looks a little weak but I believe the SP will at some point over the next 12 months enjoy a re-rate as the company looks to generate a maiden profit.
This has to start multiplying as they are reeling in the customers. Their margins are clear and the ground baiting has been laid and that’s why people are beginning to bite. It’s a keeper for me and I can see profit in the latest figures.
The last six month figures are well up and that’s during lockdown.....time to strike!
very nice article in the Times today on angling...talking about stars like Rita Ora, Beckham, Prince William and George enjoying the sport. Rod licences are up 114pc year on year accotding to the Angling Trust
One club in Beds has membership soaring from 700 to 1100
Someone had to grab hold of the biggest sport in the world and shake it up, onliners were doing so well in their small way but retailers were closing because of the competition as margins were being squeezed and who wants to breed worms and maggots? but a combination of the two, buying up the independents gave buying power and less competition (more buying power). A name that means quality is being built and I have every faith in the idealism, perhaps getting a few experts on board from the retail world would skyrocket this business tomorrow... its bigger than football but where's Lord Sugar........ he is probably in Le Touquet eating seafood at Perards?
This imho is a keeper (pun intended).
Angling is a growing global sport so could well be a takeover target or they may expand further in UK/Europe before attracting a US/Japanese buyer?