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More exercise of options yesterday. Thats all they do, feather their own nests. So you have to buy more. The dilution is slight but it seems to hack the meerkat off. Mano issues a slight warning yesterday, although they are more to do with litigation. They made the point that since their year end, government support for insolvency , furlough and the ban on tenant eviction has ended. In just a few weeks since their results they have seen an exponential rise in business and cash generationn. Could be the same for BEG. Way too cheap in not just my opinion but also Stockopedia.
I just don't understand why this is being trashed so hard as it is a great contrarian play in this economic environment.
I have registered to see all administrations and liquidations through www.business-sale.com and from what I can see it worries me slightly that BEG are picking up very few of them.
My only hope is they are being selective and going for the ones that have assets to pay for their fees....this one being a good win for them:-
13/04/2022 T L C INNS LIMITED Accommodation And Food Service Activities Essex £5,198,896
Ah, recovery loan scheme ends 30th June 2022
Isn't it being removed this month?
Whilst I am an optimist this share feels like a bit of a guilty pleasure as my economic hedge along with Barrick Gold.
Q3 update was a bit disappointing - but patience is the name of the game. Logic shows that the macro pressures will come to pass on the so called Zombie companies.
Having originally entered at £0.60 I've bought further tranches at £1.33, £1.12 and then yesterday at £0.98.
I just find all the extra issuing of shares quite frustrating and dilutive for LT holders....still the growing divi is not bad for such an acquisitive firm.
Just allocated some shares and it's being battered.
Back to £1 would be another buying opportunity imho
looks like jam tomorrow again back to £1 again
No change to Equity Development's forecasts and fair value of 165p/share, at a time of gathering UK economic headwinds
Read/hear new note just published on Q3 update :
https://www.equitydevelopment.co.uk/research/q3-trading-update-underpins-forecasts
https://www.insider.co.uk/news/ayr-coach-firm-plunged-liquidation-26305123.amp
"...broadly in line..." [ie less than the first half].
"Although insolvency numbers are inexorably rising, the market is still awaiting a rise in the larger and more complex instructions..." [ie we are still awaiting the collapse].
Bit of a disappointment, and the price may fall today, but we remain profitable and trading well.
I note today that Midas Group Ltd, a property company has filed for bankruptcy protection with some 300 employees losing their jobs. More misery in store for businesses, particularly zombie companies.
One of the best counter-cyclical stocks to buy?
Unfortunately the cost of living and operating a business in Britain is rocketing. It’s a scenario that threatens to send the number of corporate insolvencies through the roof. So I expect demand for financial services business Begbies Traynor Group (LSE: BEG) to remain strong.
The Federation of Small Businesses (or FSB) commented last month that “thousands of small businesses are on a knife-edge” following a tough Christmas period. It looks like things could continue to get worse before they get better, too, as energy prices increase and interest rates rise. As the FSB notes, Bank of England action this week “will heap pressure on many indebted businesses”.
This is particularly concerning as corporate insolvency rates are already ballooning. Government data shows that there were 1,486 such insolvencies in December, up 20% year-on-year and 33% higher from levels recorded in December 2019.
It’s no surprise that City analysts think Begbies Traynor — which provides insolvency services and other support to distressed firms — will remain busy. They’re expecting earnings to rise 28% and 10% in the financial years to April 2022 and 2023 respectively. Stronger-than-expected economic improvement could hit these profit forecasts and dent my returns as a potential investor.
I think it’s a great stock to buy for my portfolio, but not just for the near term. Its acquisitions have delivered strong profits growth for the past half a decade, and the company remains committed to expansion through M&A activity.
EO has long been a contentious issue. No great effort to get it stopped. It has effected the sp even thought the dilution is small.
The acquisitions they have made seem pretty fair to me and these days they always seem to come with a provisor about actually adding growth with these smaller companies which seems sensible and an incentive. Sadly there are staggering number of construction companies in trouble and becoming insolvent. Caught in triple whammy of material costs increasing, shortage of labour and rising wages, and end of furlough and VAT deferrals. All adds up to a lot of work for BEG which is pretty cheap on 13.4 PE and way down on summer high when the economy was looking much better especially for construction, travel and hospitality.
2x turnover is quite a handsome price to pay, IMO. With new information, investors can run a slide rule over things. My hunch is that the price paid is too much so the SP will fall further (3 months), but that the synergy from additional arrow in quiver will benefit the overall business on a longer time frame (5 years).
You can read about their purchase today of chartered surveyors Daniells Harrison here . Fair value remains 165p / share :
https://www.equitydevelopment.co.uk/research/bolt-on-adds-scale-and-profile-to-property-services
Addition of a surveying business, bought at less than twice revenue. Seems a good deal. Expansion continues.
While I enjoyed the joke (very 1970's), in all seriousness we face a new year with different optimisms and thoughts that are presented. On the plus side, we have several viable vaccines that are well tolerated and appear (as far as UK, Europe and US are concerned) to have been fully rolled out (2 x vaccine) to around 70% adult population and have around 30% with a booster jab. With the measures in place that make it rather more difficult for the not fully vaaccinated to live an unfettered lifestyle and with the mutation in place that has high viability but with lower mortality, I am pretty certain that the worst is now behind us and the emphasis will be to consolidate.
Consolidation for long established and well capitalised companies gives opportunity to cut out the fat. For companies struggling, time to start again and for a few, the opportunity to cherry pick those in both camps and cutting the excess at a later date. This bodes well, I believe for BEG.
While company failures are always disappointing with many more losers than winners, re-structuring , although costly has many more winners PROVIDED that the underlying business (not necessarily the managers) is viable.
Each Xmas break allows me to review without the pressure of work or market movements, my portfolio as a whole. Not the individual elements, but all of it. For me, the bulk is in ISA wrapper, split between self and wife. The next largest holdings are our SIPPs and general dealing account followed by a trust that was created in 2015 for IHT planning and that starts to fall out of our estate from the middle of next year.
The target that I have is to beat the market, which for the FTSE was 14.3% last year. I did, and added 16.54% to bring my average to 13.53% each year for the last 41 years. Plenty of holdings struggled in 2021, with many going backwards. Good luck to all in 2022. I doubt I will contribute much to debate in the future.
who ???
Rarely seen posters on here reminds me of the above tribe who were 4 foot tall pygmies living in 6 foot tall elephant grass and every now and again would leap up and shout "w'ere the ??????? WE.
The Market read these as flat.
While I am sure that your "research team" has much to commend itself, you are domestic in your choice of audience and will not attract interest that will actually move the market.
I am not going to bother to click on your link, preferring to follow my own counsel and rely on contributors such as Goldman Sachs and Morgan Stanley for their opinion on how the SME is likely to fare in the weeks and months ahead.
That aside, I have added to my holding in Begbie, not from the new information but through common sense. Zombie companies are expected to fail , but where economies begin to revive, so those that are at the top end of the M in the SME inclusion are the most vulnerable. What they ideally want is a market that is flat for organic recovery. These companies have the least effective managers with the flabbiest of thought. It is based on years of failure to evolve with minimual investment in innovation.
RMG is a good example and an excellent container. Captive monopoly of delivery, mature process for this, late upgrade to innovation, terrible management and a product that has never evolved since creation.
The H1 result @Begbies was impressive with 39% revenue growth + a pleasing 16% operating margin, and future organic growth looks well underpinned. We retain our forecasts and a 165p/share fair value: read and listen here
https://www.equitydevelopment.co.uk/research/building-further-share-in-key-markets
Fitch reports that Evergrande has defaulted on debt interest that had been deferred. Always the chance of collaterol damage when the prospect for business, however far removed, weaken