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Agreed...very happy holding this and Tbc bank for the long term.
Excellent dividends and potential for substantial share price growth as the business and economy of Georgia grows.
Will anyone be joining the conference call ? Be interested in any feed back as I won’t manage today.
excellent results and future looks bright as well
Very happy with results this morning, market is so far and in the £13.80s as I write though LSE is of course delayed by 15 minutes. As stated here before, factors in play that UK retail banks could only dream of :-)
If the markets want to zoom in on some negative factor (eg depreciation of GEL against USD) then a few of us here who are private investors will keep this as a hidden gem and its true value, and top up as funds come available. If the positive factors cause an overdue rerating (who knows with BGEO?) then we have some capital gain to go with our dividends as reward for our patience.
No Georgexit worries and at this afternoon's prices very willing to pay a florin higher for another bite of the cherry:
25-Oct-19 16:14:58 1,275.9893 215 Buy* 1,274.00 1,276.00 2,743 O
25-Oct-19 16:14:32 1,275.9893 261 Buy* 1,274.00 1,276.00 3,330 O
Mine is the lower one, as the top one isn't from a computer someone else must've been very fast watching a live screen for late trade direction and done a copycat, as there was then a gap for almost 7 minutes :-)
I look forward to my 72.1623p approx or perhaps more next June, somehow I don't think Lloyds will offer that 5.66% any time soon in my deposit account.
Still has all the plus points of months of postings even after another retrace, this must be the only share on LSE where this happens and there are no derampers telling us how obvious the stormclouds are and clever they are :-) All of my other holdings I know 90% of the factors causing the charts - this one 9%. All I can say is keep faith, the fundamentals IMO remain excellent as hidden gems where only a few are aware, and average down if you can. I have! This one is my buy coming through soon, I was three minutes too late for £12.64:
25 Oct 2019 14:27 1,266.02 229 £2,899.19
Wise owl, exactly the conundrum I posed three postings down, in several years I've not seen any really conclusive explanation either but happy to hold and collect the dividends, with all the positives I've bored readers here with.
Obviously BGEO moves based on actual profitability and prospects, not as much as it should of course but I'm biased! It seems to move mainly with the popularity and interest rates of European and UK banking sectors, but also the GBP and GEL (Georgian Lari) exchange rates to USD and between each other. Lesser factors are generic "emerging market" experiences, and ups and downs of Russia as neighbour and trade coverage. Shares Magazine and several Motley Fool analysts are usually positive, indeed they should be, part of their role IMO its to guide their readers away from obvious banking paths into lesser-known areas with (IMO) more stability and good prospects (and good price spread!), without being slanted by own commission aspects.
If anyone pinpoints any more than this or works on the question with data and produces a chart, please let us know results!
Was the gain today due to uk banks performing well or is it more to do with Fx movements? I often see this up or down 3-5% but there is never any articles online to explain why. The chart for this looks like it shares a relationship with the GBP/USD so I wonder if the bank revalues with the USD?
Just opened a position here (thx Alan for the heads up via ITV) hopefully some quicker returns than my UK banks !
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?