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This is a share which is a brilliant one for private investors able to take the choppy waters, top up and be patient because its lower end is purely related to global factors of buying or selling the FTSE250 and huge globals financial institutions deciding to buy or sell "European Banks", the strength of the dollar, US interest rate expectations etc, I've stopped trying to predict or evaluate them. Substantial share price moves are completely unrelated to BGEO profitability and simply based on whether the sector is unloved or very unloved.
The posters here, the Shares Magazine and Motley Fool commentary are spot on, it's frustrating at least at present for shareholders and management not to see that reflected in the share price, and for me not to have much in the way of spare funds or dividends to take advantage.
BGEO just gets on with what it knows best, doing well with TBCG as duopoly in its own niche market of Georgia, in spite of Russia next door still less controversial than flashy MTRO and other supposed niches with their spin and failings making them predator targets for short sellers. The end markets for Bank of Georgia and regional underbanking enable earnings, growth and margins without PPI distractions in the middle of a downturn that the likes of LLOY and BARC could only dream about. Massive value must come out in the end, and I'll enjoy excellent rising dividends while I wait.
Well it’s broken below 13 again but I’m not concerned. If it drops further I’ll be in again for more as this is a long term hold for me for dividend and hopefully share price rise over the coming years.
Hoping we stay above the £13 mark seems to be a level of support but wouldnt be good to break below. This morning a good opportunity to top up, unfortunately no funds to add. PE of 4.9 unbelievably cheap.
...a few more today for my long term, dividend stash when it dropped below 1300
Thought this and TBCG would be following the British banks and motoring on. Seem to be in the doldrums the last while.
Exactly mirrors my own view still as loyal holder, it almost feels as if trading is based on interest rate expectations in other areas rather than actual earnings and prospects in Georgia. I don't like extracting too much but so worth repeating and it's high up on my "top up from all dividends received by portfolio" list at this price:
(Start quote) As one of the biggest banking operators in the Eurasia region, this particular one can be confident of producing strong and sustained profits growth as population levels rise and GDP growth clicks through the gears.
The firm’s robust earnings potential was illustrated in the first half of 2019 when pre-tax profit ballooned 36.9%, a period when strong trading at its retail bank helped the loan book swell 30.5% year-on-year. Even as issues like rising competition and tighter regulation bite, it’s clear Bank of Georgia is capable of delivering some truly stunning profits growth.
Yet despite this, the FTSE 250 firm currently boasts a dirt-cheap forward P/E ratio of 5.4 times, suggesting (to me at least) it’s being shockingly undervalued by the market. Combine this with an inflation-bashing dividend yield of 6% and I reckon Bank of Georgia is a top buy for contrarian investors.(End quote)
https://uk.finance.yahoo.com/news/cash-isa-poorer-d-rather-075758236.html
Good news this morning, continuous steady tech progress as essential in Georgia as in the UK to improve the breadth of product range and tools for modern life.
I’m not invested in CGEO but i am in here and also TBCG.
Both I feel are currently better value than British banks especially at current share prices.
https://moneyweek.com/512806/adventurous-investors-should-head-for-the-frontier-in-georgia/
Essentially (rare) coverage of CGEO but in passing backs up my investment case and touches on the risk/reward for BGEO as well, even after the rise since last writing still plenty of scope for re-rating, ironically the quality of earnings and margins remain much better than its British-orientated counterparts, value will out in the end.
https://uk.finance.yahoo.com/news/ftse-250-growth-stock-beat-113925321.html
A lot more secure than my Aviva (AV.) on this horrible market day, still needs more PIs to find it, significant part of my portfolio thank goodness. My financials are these, CGEO and TCAP, LGEN is on the watch list.
Pure coincidence, I finish my posting and return to market detail and a commentator far more eloquent than myself is there with some similar sentiments, interesting:
https://uk.finance.yahoo.com/news/looking-stocks-buy-think-ftse-105946340.html
Nicely done on the interims this morning and a prompt "add" reiteration and target from
Bank of Georgia Group BGEO Peel Hunt Add 1,354.50 1,331.00 1,900.00 - Reiterates (when 1331.00)
Shame this FTSE-250 stock is off the radar for many PIs who are very knowledgeable on the UK big four banks, I'm happier to stay here even with the paper minus since my previous posting. Between results, institiutions seem push this up and down based on Fed interest rates, European recession, trade talks, TBCG comparisons, poor early morning liquidity, algorithmic momentum trading, general attitudes of emerging economies either in favour or not. I'm happy to be a longer term holder and secure good safe dividends and good growth prospects from a well-run company with GNP growth in Georgia which is underbanked at present, of course some of the factors above could return to favour also. The main hazards are priced in already at this price, I sleep sounder here than when I had pure UK banking investments.
Even better value this week, though the unfortunate news affecting its competitor shouldn't justify taking money out of Georgian investment en masse, or rather if it does the enlightened can potentially take advantage if temporary. Particularly as the rule of law in Georgia is clearly showing its hand and no BGEO earnings or officers should be affected negatively. Whatever the graph I should be nicely compensated long into the future.
I made my first BGEO investment 15 months ago as I like the earnings for my GBP, the Georgian GNP rise annually and good reports in person from Tblisi by my former manager. Also I will only rarely invest in UK-focused banks after being burned and seeing risk/reward profile at present. After timing things well for BGEO on 18 and 26 June I topped up yesterday after a little top-slice SIPP/ISA profit-taking in GLEN and recycling back into BRD, AV., BGEO, PDG - and what was left back into GLEN (no stamp duty) later in the day, the BGEO were:
535 @ 1496.985p £8,008.87 @ 11:11
500 @ 1473.4645p £7,367.32 @ 13:45
Even with normal market size (NMS) of 1000 shown on this site, the market-makers didn't want to part with the stock easily on the first deal, I had to come back after a short time to organise the transaction on PC. The stock is IMO a gem that only a few private investors find and research, most is algorithmic trading by professionals, curiously often with very little done early, I assume that it time-zone related.
@ 1484 looks as good as any so far today .
The trades shown here more then 30 mins behind real time .
I would assess as solid but not startling........the additional employee expenses (termination of previous CEO etc) has reduced profits slightly.
I think the eps maybe does not register the fact they have lost the property development side of the business. I wish they would not say their goal is 20% increase etc. etc., the results are good but why set yourself up for a fall?
but it is all a case of whether expectations were higher.......
Anyone have any views?
Archil Gachechiladze, Bank of Georgia's CEO commented: "I am delighted that Bank of Georgia will continue to offer its superior wealth management services from this new office in the heart of Tbilisi. The opening of the office in such a historically significant and symbolic building in the capital coincides with a creation of a new brand identity of Bank of Georgia's Wealth Management business, which is grounded on the virtues of both Georgia and the Bank. The country has superior qualities to offer to investors: it is politically and economically stable; it has an exceptionally healthy and profitable financial sector, and it is one of the best countries in the world to do business. Bank of Georgia is innovative, experienced and a highly trustworthy financial partner in Georgia - all of which makes it best suited to become the regional hub for private banking."
Big Increase on Friday and fall today with higher volume. Not sure on the reason unless its institutions buying position.
Day, any clues as to the reason for quite a hefty drop
Now, that loan of circa 50 million pounds was taken in GEL and not dollars, perhaps they saw this coming and was a shrewd move
It has not performed since the reorganisation and now banks have been hit by trade wars. Detractors were perhaps right to be worried and if Erdogan doesn't change his tune maybe BGEO will struggle even though Georgia GDP grows the banks may have contagion from the Turkish Lira
Think this has got caught up in the US sanctions on Turkey and Russia. Hoping for some good 1st Half results on Friday, but may be waiting a while for it to recover
That was a f*****g ****e day, wonder how long it will take to recover, if it ever does.
I think it's an F.OFF to Trump and his dollars, hope it's a good move.I'm not an expert in FX, but I guess it make sense if that's what your customers will be repaying it in.