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I think we can agree that this share is not exactly a city "darling". I'd even say it is disliked for whatever reason, when it should be flying in the current climate. I think myself and others have simply put forward reasons why this may be and "unblinkered" in so far as to not believe that all their acquisitions represent a good investment.
Must admit, I laughed out loud when I read that ftse. Suggest you rewind the exchange to remind yourself of who had the blinkered view and who was challenging that view! His/her view is that acquisitions were & are are distraction and the company shows little growth. Both proven to be completely wrong when the July Results were issued and both will be double underlined as entirely wrong when the next set of results are issued. He/she refused to accept what was in print from the company and he/she even went to the trouble of asking for posts to be deleted, to cover that up! Then he/she was apparently right behind the company and long (again transparently posted for all shareholders to see here), only to sell up a week later. Hardly trust inspiring stuff from a poster, is it?
Can’t see how his/her absence from the board will make a jot of difference, other than to remove the untrue & unwarranted bleating about acquisitions being a distraction and little growth. Let the forthcoming results confirm who has called this right and only that will end the debate.
Chelsea11, surely the point of a discussion board is to encourage debate and challenge somewhat blinkered views. I’m that respect Alas_Smith did that and for that reason this board will be poorer for it.
There really is no need to be so vindictive to others who may have a differing view.
You haven’t been able to factually answer one single challenge, so no loss there.
Fear not. I will never contribute to this board again.
Hopefully, our paths will not cross in businesses in which I hold interest.
Sure it’s your decision. I’ve never once said it isn’t. Unless you want to point that out for me?
However one week investment psyche long term and confidence in management, next week sold out. All your own words in print. Now that is what you call perverse, obtuse and errr distracting.
Chelsea11, you really are perverse and obtuse. I want to own shares in this company for a long time, perhaps not the almost 45 years that I held Shell, but nevertheless for a long time. In the time that I have spent building up my portfolio, the mistakes that I have made include not cutting losses early. I therefore cut my loss early on BEG to put the proceeds to work elsewhere.
Essentially this is an accountancy company. It deals in companies that are in distress and once appointed makes decisions that have a strict rules. I am confident that the managers know when it is viable for a company to be re-structured and when to wind it up. What they are not demonstrating is the benefit of buying ancilliary businesses.
Please rest assured, I do not propose to engage further this futile justification for my decision to cut losses in BEG. I made a porr decision of timing and have put the proceeds to work elsewhere. That I wish to own shares in this company at a future date is my decision and will not be influenced by you or any other herbert on a public discussion board. If your or my comments are beneficial to others, surely this is healthy, but to be critical of a decision to sell smacks of flawed logic to me.
A_S. As recently as 27/07.
“My investment psyche is long term” Really? Not here it seems.
“I have confidence (well, no reason to doubt their talent) in the managers to manage their core competence” Really? If so confident, why sell up so soon after writing that then?
Why would you be bewildered when it’s clear you type one thing and then do the opposite? Maybe you can’t remember what you typed.
I find a distinct level of irony in the post from Chelsea11.
Regarding the acquisition, we have no details of what multiples were paid, or how it was funded, which I think is rather poor. Also could the headline names be approaching retirement age?
Somewhat bewildered with your caustic remark, Chelsea11. That I do not share the same contention that the spate of acquisitions are beneficial in the short term does not mean that I am wrong in my analysis or hypocritical in my wish to own shares in this company. That I invest for capital appreciation does not mean that I will not sell those that are not performing well.
I have made no bones about things, the decision to invest in BEG was made some time ago; that the price I paid for the shares was higher than it is currently is a mistake of timing. This remains, as far as I am conerned a business that SHOULD be doing very well with a market capital that is benefitting from business failures. That it is not is perhaps reflective of the competency of the managers directing the company and the decisions that they are taking and it was with that in mind that the decision to cut losses was made.
As far as I am concerned, todays RNS is beneficial to the company (and shareholders) to expand by way of acquisition of core expertise rather than speculative areas in which the company has little core competence. If this really seems to be hypocritical nonsense, I apologise.
The share price has had no meaningful reaction to todays news, and volume of bargains executed reflects this.
The level of hypocritical nonsense posted here, is truly astonishing.
At last, an acquisition that makes sense.
Don’t get me wrong, I want this company to do well, it should be doing well as company failures are a broad penalty made worse through squeezed margins, inadequate capital, tightened bank lending, rising wages and all the other negative elements that business juggle with on a daily basis.
As far as my decision to sell was concerned, it enabled me to put proceeds to work and begin to recover lost ground. Investing is not a race and has many influences. BEG remains a business I want to own shares in, but until there is convincing evidence that the market cap is growing, I shall avoid. I also have no problem in buying shares in companies that are at or close to a 12 month high. My purchase last week of shares in Alphabet followed on the heels of a purchase a month or so ago of doubling my holding in Microsoft.
I’ve covered this previously but I do think a factor weighing on this share is the constant issuing of new stock for incentive plans of directors.
Over the last 12 months 2.5m new shares have been issue which is the equivalent of of 1.6% on the issues stock.
Most other companies buy back stock to issue as share incentives, whereby the private investor isn’t affected.
I think you’ve answered your own question tbh. AIM stocks generally have taken a hit and this has rippled through BEG. Little to do with the performance of the individual company imo and a big mistake to crystallise a paper loss at this SP, as has been admitted to by one poster here.
It's very odd that this share is doing so poorly when they haven't put a foot wrong. Admittedly the div is measly at just over 3%, and they could afford to boost it by at least a third. Today they announced that FY results are expected to be ahead of expectations and the shares just sink further - over 3% today. What's even weirder is that there are examples I've noticed of several larger companies making losses and in deep debt. Yet the sp seems constantly firm even when those ones announce widening losses.
I've noticed most AIM stocks are right out of favour and have been ever since Covid, and that includes the few I know about that have been doing well. So it could just be that AIM stocks are now seen generally as something to avoid at all costs by most investors. I can still sell BEGB at a decent profit having bought in 2020 and 202. But that profit is dwindling fast.
Notice of AGM expected in September (and on past form, a complimentary update on trading).
https://www.bournemouthecho.co.uk/news/23737237.begbies-traynor-shows-bournemouth-businesses-financial-distress/
Not a time to be throwing in the towel here imo.
The main problem for me has been the incentive plans for staff . Not wholly against it , but some companies tend to be rather more generous than others. It seems noticeable in pegging back this sp . The other problem maybe performance related takeover bonuses. All seems a bit too cloudy for my liking. The shareholder is the last to benefit
Sorry to see you go Alas_Smith, I enjoyed your unblinkered analysis. I was lucky enough to buy my first tranch in Q1 2020 when Covid hit at 61p, if I recall. This has helped my average. I only hold currently because it is a contrarian investment with growing dividend. I'll be looking to exit in the next 12-18 months by which time I hope the economy will have some green shoots.
Although I have now disposed of my shares in BEG at a loss, I maintain an interest in this company. Has all the implied hallmarks that it should be thriving, but it is just not reflected in the share price. I’m sure the article below will have been seen by many. FWIW, my holding in RFX is not looking too bright either but at least it is in positive territory.
https://www.theguardian.com/business/2023/jul/11/zombie-firms-uk-interest-rates-insolvency-begbies-traynor-profits
Despite the doom and gloom in UK and Europe with rising interest rates, inflation and continued mutterings of recession, press reports and statistical “evidence” for increasing business failures are not translating to a rising share price in this company.
Looking at the 2 year chart, at best the share price is treading water. This seems illogical for this business whose core competence should find the business environment a sort of goldilocks time.
I remain of the opinion that recent add-on businesses have been a distraction but I do believe these should be helpful in future years. Quite content to take a loss on the chin to put the proceeds to use elsewhere. Always disappointing when an investment sours, but my faith in the managers to take advantage of the poor business environment has rather evaporated.
Good posts, Alas. Thanks.
The message coming from Europe is in anticipation of banking defaults.
https://edition.cnn.com/2023/07/27/business/europe-banks-brace-for-loan-defaults/index.html
And while this is NOT at the domestic level, it has all the hallmarks to benefit BEG. And as tasteless, heartless and callous as this sounds, it SHOULD benefit shareholders in BEG.
A paper profit or loss has no merit until converted to cash. I have reduced my holding in NVDA, taken a full profit on UEM and sold my holdings in a few others at a loss. Am sitting on 15% cash after todays activity. Odd that it might seem, I feel that my exposure to European markets needs to be beefed up. I have chucked some cash at HEFT and am contemplating where to invest the balance. Of course, this is not investment advice simply my broad reading of entrails. India is also of appeal.
Putting my cards on the table. My investment psyche is long term. I've made plenty of mistakes in the past but those I make these days tend to be limited to timing. BEG is a good example when I bought shares in anticipation of a worsening economy to cause an increase in UK companies in distress. And, I believe I was spot on in such decision, and, despite the overall decline in the value of my investment, correct in the timing to buy.
Long term is 5 years or more (in my book) with medium of 2-5 years and short term everything else.
My reading of the entrails when playing "pin the tail on the donkey" for BEG was that having 6 months of high inflation from the invasion by Russia into Ukraine, that was the trigger for consumer spending to dry up (despite the desire for freedom from the shackles during Covid) and in turn those companies that were poorly capitalised would fail. They did. In ther 6 months following the beginning of the tightening of credit and the increase in interest rates, the next tier of companies would seek relief through re-structure. We are firmly in that stage now, I believe.
The eventual stage will be seen in the next 3 months with the start of recession and expect to last 12 months as businesses contract, close and the reposession of property happen in advance of foreclosure by banks (deliberately to be delayed by current Gov't) until June 2024 (perhaps the countdown to next General Election).
BEG share price should have begun to reflect these things, but it has not and I genuinely do not know why. I have confidence (well, no reason to doubt their talent) in the managers to manage their core competence, business restructure or closure, but the route for acquisition has not presented any real value to shareholders (yet). Companies failing continues to rise and the number as a percentage is actually increasing. So that SHOULD be very beneficial to BEG.
Long term the strategy to have the add-on businesses is terrific, but the immediate past in which these have been announced are that these were poor choices. I hope therefore that now, as the pace of interest rate rises slows, (and it sounds cruel) that good businesses need re-structuring and BEG win a slew of orders to begin to take advantage of the recent add-on companies to profit the ledgers and in turn reflect in the market capital for BEG.
Begbies Traynor Group plc (AIM: BEG), the professional services consultancy, conducted an Investor Presentation covering their final results for the year ended 30 April 2023.
Ric Traynor (Executive Chairman) and Nick Taylor (Group Finance Director) talked through the performance in their key business areas of insolvency, property advisory & transactional services, and also outlined their future plans. Management then answered a wide range of questions from the audience.
The full presentation video has been divided into chapters as below:
0:00:03 Introduction and results highlights
0:03:19 Financials
0:13:15 Strategic Review
0:25:52 Summary
0:26:45 Questions & Answers
Link to full video: https://www.equitydevelopment.co.uk/research/fyresultspresentation-19july2023