Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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I think the problem is people are fed up with problems being identified after they have happened Mary. Good management identifies the risks and deals with them in advance.
Seems the fix is in and passed off as permanent and normal service resumes.
Cannot fathom what people expect?
There was a problem, it was identified, cost a bit to fix but this happens and the ledium and long term are on track to continue the recovery despite the hit. That is what effective management is expected to do. A rejig of directors and job done well.
"An improvement through May is being achieved by investing in material additional cost and resources, ahead of a system fix being implemented to permanently restore service to normal levels."
Certainly stablised and those who bailed on Friday must be at least unsure if they did the right thing.
Long term- eat drink and be merry !
Looking forward to the future, sustainable dividends and steady cash flow.
I can see where you are, and yes, maybe my nostalgia goes back to the C&C brown lemonade childhood days (yes, brown) ... it was a thing here in NI.
There is value here for me to hold for dividend for 1-10 years if necessary. During that time it will certainly be higher and temporary issues resolved and returns come.
No brainer at these levels.
I agree with that in principle Mary - but not with this share. Look at the charts. It’s crap, and it’s been crap for years, and it just seems to get worse with little investment in the brands - at least not in England. If I’d put this money in my other investments over that time, I would not only not have lost money but I would also of course actually made a profit, and be confident that my money was placed with a competent outfit. That’s the major issue here. This lot have screwed up, continue to screw up and are losing me money. There are clearly better places to park my money, but having said all that, I can’t bring myself to crystallise this loss, so I’ll leave what’s here here and see what happens. They don’t deserve my money though!
Each day is a new race, a different one and one day there will be a reversal.
Just need the patience to wait for that day.
If it goes to further down, just wait it out as some day if will recover and reward again. (I know if I sold it at 110p £1 or 80p and then saw it recover to £2+ after I had sold I would be sick as a pig.). Hold 4 gold even if you mistimed your entry as there is always a chance that the temporary loss will not come to pass.
NOR DYOR & GL
Constant omnishambles with this lot. Massively regret going against my gut instinct on this one. Once again it's demonstrated it literally can't organise a p*ss up in a brewery.
Sale over for the day.
(Sharecast News) - Analysts at Shore Capital have put their 'buy' recommendation on Magners cider maker C&C Group under review after the company announced the departure of its CEO and a €25m hit from problems implementing a software upgrade at its Matthew Clark and Bibendum (MCB) unit.
"We believe that there is a lot to take in with today's announcement, not only the continued Enterprise Resource Planning (ERP) system issues and the CEO departure, but also the difficulties the group has faced over the last year, with profit recovery proving more challenging than anticipated at the start of the year," the broker said in a note to clients.
It added that it was waiting for "greater clarity on systems issues and underlying trading development, with the full year results due next Wednesday".
"Even so, we believe that there is a lot to like in C&C, with leading brands and the unique proposition of distribution-led model, which arguably not being reflected in the current valuation of c6.5x FY23F EBITDA."
The company, which makes other ciders and also distributes China's Tsingtao beer among others, on Friday said CEO David Forde would be replaced by chief financial officer Patrick McMahon.
C&C said it had "encountered significant challenges" in implementing the ERP changes at MCB.
"The implementation process has taken longer and been significantly more challenging and disruptive than originally envisaged, with a consequent material impact on service and profitability within MCB," it added.
"There is expected to be a consequential increase in working capital in full-year 2024, however leverage is expected to remain within the group's stated range of 1.5x to 2.0x."
Excluding the impact on MCB, C&C said it was currently performing in line with management expectations for the full year and reaffirmed guidance of operating profit of €84m and a reinstatement of dividend payments to shareholders for the 2023 fiscal year.
The season is ahead.
CCR will be like a tree firmly planted by streams of water,
Which yields its fruit in its season
And its leaf does not wither;
And in whatever it does, it prospers.
Well I'm good at appearing unimaginative, and even foolish, for a sustained period so we at least have that much in common!
Is that you Warren posting on LSE as Capt Value? If so - welcome to the Board.
Hoping to see some diectors buy RNS later.
CV has assessed this is a Value opportunity @127p. I'm in.
"Some people are more subject to fear than others. It's like the virus — it strikes some people with much greater ferocity than others. Some people can handle it psychologically. If you can't, then you really shouldn't own stocks, because you're going to buy and sell them at the wrong time." (2020)
"During such scary periods, you should never forget two things: First, widespread fear is your friend as an investor, because it serves up bargain purchases. Second, personal fear is your enemy. It will also be unwarranted. Investors who avoid high and unnecessary costs and simply sit for an extended period with a collection of large, conservatively-financed (American) businesses will almost certainly do well." (2016)
"A 'flash crash' or some other extreme market fluctuation can't hurt an investor any more than an erratic and mouthy neighbor can hurt my farm investment. Indeed, tumbling markets can be helpful to the true investor if he has cash available when prices get far out of line with values. A climate of fear is your friend when investing; a euphoric world is your enemy." (2013)
"Though markets are generally rational, they occasionally do crazy things. Seizing the opportunities then offered does not require great intelligence, a degree in economics, or a familiarity with Wall Street jargon such as alpha and beta. What investors need instead is an ability to both disregard mob fears or enthusiasms, and to focus on a few simple fundamentals. A willingness to look unimaginative for a sustained period – or even to look foolish – is also essential." (2017)
JG68
Thought the title needed changed :)
Yes increasing working capital is a good thing provided it is a trend and not a one off.
My take on this is that the BOD decided to gets the news out ahead as well as the directorate changes while highlighting that all is on track and the dividends will be reinstated. Hopefully the last blip
This is a reset for the good for years to come and hopefully near the bottom.
The market is skittish to any unexpected news and uncertainty as to whether this has now been resolved going forward or another hit next year.
As the dividend is being maintained and there would be visiblity now as another quarter has ended, the release today seemed unnessary and if the idea behind it was to avoid a drop on results day then this has backfired spectacularly.
I will take the glass half full outlook and will aim to take advantage of this drop to improve my position by adding to trim later.
Best of British,
M.
Isn't an increase in working capital for 24 good for the company?
This suggests the company will operate efficiently and will have good cash generation, no?
Re MAB I travelled and exited at 210 and more than happy to leave it for others.
The Warren Buffet way -
A climate of fear is their best friend. Those who invest only when commentators are upbeat end up paying a heavy price for meaningless reassurance." (2009)
I added 19k in 3 tranches to hold forever my average is just above 140p so contents to collect for dividend for as long as necessary.
The share price is just silly at this stage and in the bottom drawer. If it takes 6 months 1 year of 2 years the should still be a better upside at these levels that a 4% return in a bank.
150p is a 20% return so risk reward is there for me.
I ended up doubling down but I don't really trust a board that would announce thus a few days before FY update. The dividend is forecast to be approx 4.7p, it has been previously announced 3 times and imo can't see that making much difference next week.
Could also be the board member deciding to just leave.
Peed off with myself because I chose this over MAB because discount at the time, much lower debt and the dividend intention at beginning of the year, and turned out to be the wrong choice.
The other problem here is volume is usually low so will take something big to recover this short term.
JG68 trocky one this did you sell out? sit on hands or add or wait for another leg down.
Tricky to decide so I added at 126/7 and hedged my bets that the overreaction will recover later in the day / week / month.
This has to be a good entry point - pulled the trigger - put away for long term in the bottom drawer and collect the dividend is the plan.
Not a recommendation of course but 126/7 seems a good risk reward.
Let's face it - those who sold the 50k at 131 were too late to sell except at a significant loss unless they expect a falling knive.
They will be regretting it now.
The markets make fools out of the best and days like this are usually good to sit and wait.
Or up at 170p as the news confirming dividend is key.