Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
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CARD Mkt Cap still only £370m ; MOON (even with sp down to 150p) at £520m. CARD has to at some point pass MOON if there is any concept of 'rational markets theorem' left in the financial industry. Further 30% rise from here and we might need to start thinking about fair value ... but only if this wasn't a growing company. Add in the targetted 10% per annum growth for the next few years and we really should be well north of 150p
I've had a chunk of these from the high days of 20p divi. I hung onto them through these difficult last few years but now the Divi has been restored this makes a continued long term hold for me. The company has certainly turned the corner and is going in the right direction. The price will settle down in the next few weeks once the day traders have stopped messing about with it !
I’m adding more also but I’m waiting for the 1.00 mark which part of me hopes doesn’t happen but who knows what with this.
Waiting for Peel Hunt to say something now…
Well, I liked the update and so have taken a small, maiden position here, this morning.
I assume the potential institutional overhang, as mentioned by others, is probably the reason why this is not up 20% today.
I need to do a lot more research here first of all, but plan to add further tranches if we remain in this range.
Am hoping for a retest of the 200 DMA in the days ahead, but think that might be wishful thinking.
A more realistic scenario IMO might be a revisit of the 101/102p ish perhaps. Subject to said overhang.
Unless we see a big market sell off, of course.
Will take a view if/when 140p arrives. GLA.
Anyone on the call able to pay summary? I can't seem to join.
Sorry between 2 and 3
Won’t sell mine as my yield at my average price is too healthy. I’m thinking go this could be like IAG which had great results but took a week or two after announcements to get going… at the same time we’ve seen cars go from 1.10 to 90p so many times now… but hopefully the divi will keep us stable.
I’m thinking perhaps the lack of significant move upwards is the divi was on the low end of the scale? An earlier post talks about hitting a dividend cover of 3.1 whereas card discussed a cover of between 3 and 3? Any thoughts anyone?
@Amateurs:
don't be spooked into selling cheaply, I've been in this stock for 9 years, with a fair chunk, this sp will rise above former levels now the dividend is implemented.
The ii's are scooping up the weak.
We are on our way to back to a pound at this rate… what a joke
Overhangs usually create the best opportunities, my view is that new II's coming in will clear out Teleios over the coming months and cause a re-rate. The market isn't renowned for rewarding impatient profit takers who sell what is obviously good news, to make money here you've got to ignore the noise...
Yup, they've sold 24m in last 12m (ft.com) but still hold c40m shares (11%). JP Morgan have been aggressive buyer during the same period buying c15m shares, but clearly the selling pressure has been tremendous
This will just be Teleios selling into the liquidity. Not surprising really. They have been doing it for a while now.
Noticed a huge sell of 500k worth of shares… disappointing when large holders lose faith but I guess everyone has their strategy. So far the movement has been a joke… what does this business need to do?????
I explained the context of the large seller Teleios last week - they bought 37m of Woodford / Invesco's holding pre Covid in the £1.80 range, so were hammered when Covid hit and shares went to 30p. They doubled up down there and then started reducing this time last year. I'd be very surprised if they don't run a good part of their holding back to £1.80, especially with a 4.5p dividend on their holding compensating them nicely...
Given the strong results, reinstallation of dividend, and positive trading outlook, am surprised that the sp is only up 7%....the team clearly have a lot more to get over the merits of the business model to investors. If these results had been posted by Moonpig, it hard not to speculate that the sp would have moved more consequentially...perhaps Darcey should have mentioned the magic letters "AI"
Yes I agree with the history but I think since covid all bets were wiped off and players like card have to go more than the extra mile to appeal… but on the bright side the divi will increase as time goes by and hopefully we will get some positive publicity to attract more shareholders… we still have sellers which i find odd bearing in mind the yield…but perhaps there’s more attractive shares out there I don’t know about ! Personally I’m happy to hold this out at least another year
"The Board confirms that it has decided to recommend the payment of an ordinary dividend. Whilst any dividend will be dependent on, inter alia, the performance and prospects of the Group, the Board will target a progressive dividend policy, which it expects to deliver a dividend cover over time of between 2x and 3x Adjusted EPS"
So if we take their £650m FY27 target & 14% PBT margin and assume 25% tax, that would give PAT of £68.75m and EPS of ~20p, so based on the 2-3x cover, that would be a 7-10p divi.
Astonishing that it's trading at just over 5x FY27 forecast EPS, particularly when FY27 is the year end Jan 2027 and is therefore within the standard 3 year forecasting period. I can't ever remember finding a share that pays a material dividend, has virtually no debt & generates huge recurring cash flows valued at 5x forecast PE.
I would imagine this update will generate more interest from II's, great update, not entirely expected given the unusually placid SP in the lead up to the update......well done all LTH's, GLA
Firing on all cylinders with growing revenue and profitability, reducing debt and the reinstatement of a dividend on top.
Average FTSE250 yield is 3.38% according to google, and CARD already smashes that without including any interim.
CARD results stated the intention to pay dividends with between 2 and 3 times div cover, and this 4.5p payment is covered 3.2 times, so there is already available scope to increase the div level in the not too distant future if results continue along the same path as now.
Also remember that CARD previously had a habit of paying special dividends to distribute xs funds with 2018 and 2019 having special dividends of 15p and 5p respectively.
The trick now it not to get excited and sell too soon. With the dividend coming and likely to increase over the next few years this should be close to 150p before end of year.
Bhaveen, the last time it was paying a dividend and not trading was this good, shares were well over £2...
I wouldn’t put us past 1.15 at this stage just because we hit that in prior periods and a 4.5p divi from a yield point hits 4 percent which I think is attractive… at the same time I’m trying to manage my own expectations! I don’t know what the average yield in a small cap or a ftse100 for that point … anyone know?
Yep im guessing 120p today, then moving on to 140p over the next week. But hey, who really knows!
Great update! If this doesn’t gain traction now the only reason I can think of is is trading in line with expectations so far as opposed to being ahead (as they have announced in previous updates) but hopefully investors will understand that trading in line means we are in track for the huge 650mn rev target…let’s see what 8am brings!