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Diversity in opinions is great, being open minded to all angles of argument is important. I shared my opinion about CPI's future and because it didn't fit someone 's narrative, they attack. That is very shallow and narrow mindedness.
elegise - Im not sure that you know how to read a set of accounts if you believe that!
£290M debt and falling with more disposals is absolutely nothing for a company with over £3 Billion turnover!
They have written off £92M of Intangible assets (Goodwill) in H1 2022
With revenues growing most falling to the bottom line, EBITDA is showing serious growth (£123M compared to last years H1 of £100M)
But if you have an agenda and don't want to read the facts, then so be it - but these are the facts
Free Cashflow is increasing and interest rates are extremely small - however, if you knew about CPI you will know the debt that is being paid off was the high interest debt they took when in financial trouble
This should be 50p easily and will be before the year is out (IMHO) - no offer below 80p would be considered (again IMHO) but I have also stated many times that I don't see a buyout as a reasonable option, because PE would only get the benefit of stripping down some of the corporate costs and don't really see how they bolt anything onto CPI and what could be their exit ? IPO?
Don't see a buyout and never did - but of course it could always happen
GLA
Honestly, the only positive future for share price I see is probably a takeover otherwise a flat or fall. With Household energy set to be 4k by January, Workers will demand payrise, inflation high , high operational cost, debt still high with higher interest rate. Looking at their performance so far, I don't think they stand a chance.
IMO the reason for the sell off was because of the bad press/marketing and the confusing RNS, It wasnt very upbeat on the good news and the explanation for the big losses from before wasnt made clearly enough and was used by others to make it seem alot worse than it is,
things are actually doing ok considering the global recession fears effect on the market, the sp took a beating but still held up above 25p and is looking to make a recovery, so everything is going steady, dont expect it to shoot up, but a slow rise over the next 6moths should see this back to 40+
we only traded 13M shares on Friday and under 10M Monday
We had 43M and 47M days on other big news - so many of those that bought in low 20s will have been the ones selling Friday and Monday - the IIs are not going to be the ones selling on this news - so, Sept/Oct I expect to see us to mid 30s or even low 40s
When institutions come back in, this will be one of the markets winners IMHO
GLA
Sorry guys, I was out ATV driving Friday and on a boat drinking and playing all day Saturday and Sunday!!
CPI have been very clear that H2 is where the profit is - but H1 is decent - EBITDA of £123M for 6 mths may well be over £300M for the year - if that is confirmed, we are currently valued at 1.5 times EBITDA!!
We just sold a business for about 12 times EBITDA!
Pre IFRS 16 Debt is now under £290M - down £140M in the last 6mths!! (edited)
That is cash owed to lenders rather than rents and car leases inc in debt (which is nonsense)
Head Office costs are being reduced and although some profit will be lost when business units are sold, the returns they are getting are very reasonable
The sell on news boys drove the SP down end of last week and today, but the base is stronger now and I still believe we will get our rise in September after the holiday period
I saw @eatsnails [eatstocks] comment somewhere that large funds will indeed have to come back into the markets at some point - the last 6 mths has been to test PIs - expect another month or 2 is my opinion, then (another major world event aside) then I think they will start to buy and we will see shares like CPI do very well before before Xmas