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Yes it would, wouldn’t it. Perhaps that’s the reason the price is dropping?!
It seems such a severe reaction one one negative review after a generally positive TS?
Granted the volumes here aren't massive so it's the retail investors who are spooked with talk of a covenant breach.
DWF advise other companies on avoiding covenant breaches so this doesn't add up to me. Their reputation would be in tatters if that happens?
Liberium are clowns, did exactly the same to NEX post results and the sp sunk 10%.
The same analyst had a hold at 80 just after results, and then downgraded the next day and the markets have listened and ignore Berenbergs very positive analysis.
This is purely down to Allen from Liberium imo
The Zeus statement seems much more bullish than Liberum, a small miss on sales and profit but improvements to next year and no mention of leverage or cash conversion challenges despite a ratio of 1.6x compared to the covenant of 1.75x. A dividend of 9% next year is high enough to suggest that this is not sustainable. I guess we will see, a temporary covenant waiver from banks would help, would they pitch a fundraise at below 50p given institutional backing? Otherwise next news in July
This doesn’t make sense to me.
The company seems sound, doing great things, gaining new business, positive trading statement, so why are we at historic lows and sinking fast.
Guess we will find out….
I hear rumours of a covenant breach and equity fundraising to remedy from a broker... sentiment here certainly seems poor, not helped by the delayed trading statement and the failure to mention profit... This share is close to covid lows right now which doesn't make sense considering the underlying performance and fundamentals of the business.
What are they hiding within that trading statement? Share price action suggests fundraising at 50p is imminent, can't really explain it otherwise. Whitelaw consideration shares subject to lengthy lock in so its not them, not sure if any previous acquisition shares are being sold
There seems to be some truly desperate selling here to be dumping at such a bombed out valuation
Almost 8% spread!
Thanks for the reply.
Strange volume/price action here. Not seen like this before.
I’m long so not an issue, but was just curious.
Big investment firms do not pay dealing charges, or stamp duty. Single digit trades on slow moving stock allow the bid and ask to be manipulated. You see on google, its gone up to 65p, but really it is just covering up £10k sell at 62p. Fictional example, didn't watch the trades yesterday.
Seems DWF is good value currently, though we do not know how much good value it is, due to lack of profit guidance, which was a strange choice. Happy to hold, dont expect it to move much soon.
Just wondering if anyone knows why on earth someone would buy 2 shares, or 4 shares?
The dealing costs alone wouldn't make it worth it?
Im sure I copied the text below from here:
https://dwfgroup.com/en/investors/shareholder-hub/financial-calendar
But seems that there is no longer a TU scheduled. Not sure why the company would do that given the share price.
Probably will be able to grab some in the 50's I think before FY results in July.
I continue to hold.
Just bought in for the long term.
I think this company has a great future and top management with vision, so I'm going along for the ride.
The spread is too big here, which is bound to put people off
Thursday 25 May
DWF Group PLC Trading Statement
There's no actual share price movement here, just tinkering with the ask on low volumes
I am still here, bought a lot down at this level.
Load up before the next published IC tip
It's odd that KGH has gone up so much and DWF remains unchanged, but for how much longer?
Am I all alone here? Surely time for takeoff soon? :D
A really excellent investment at these levels. Divis 6%, massively undervalued, tipped for 100p by IC. What is not to love? Load up load up
Good news and Fundamentally this share is way too cheap. It has been tipped by IC for 100p. .
Time to load up before it pops
only one problem here is long recession
DWF Group plc Employee Benefit Trust, 7.66% to 8.02% (27th Jan)
Ideas of the year IC 6th to 12th Jan (Issue 2/2023)
Price 82p, Fwd PE NTM 7, FWD DY NTM 7.7%, FCF NTM 8.2%, Ebit Mgn 12.2%
Six High Yielding Small caps IC 2nd to 8th Dec (Issue 50/2022) - similar numbers as above.
Master Investor write up:
https://masterinvestor.co.uk/equities/dwf-group-an-investmet-case-for-legal-outfit/
There are some 325m shares in issue, with the group’s Employee Benefit Trust being the biggest holder with 9.18%.
Other large holders include Premier Miton (5.84%), Cartesian Capital (5.48%), Abrdn Investments (4.75%), Sand Grove Capital (2.97%), Legal & General Investment Management (2.52%), Link Fund Solutions (2.48%) and Columbia Threadneedle Assets (1.42%).
(broker view) Their estimates for the current year to end April 2023 see revenues of £387m, adjusted pre-tax profits of £45.9m and earnings of 10.8p, together with a 5.4p dividend per share. For the coming year £430m revenues could see £54.2m profits, 11.9p earnings and a 5.9p per share dividend.
Master Investor rating - However, now at the current 76.75p and trading on a 7.1 times pe and yielding nearly 7%, I really do rate the shares as substantially undervalued. For early 2023 I am setting a new and very easy Target Price of 100p.
DWF doing my head in. I keep buying, cos this is going to break out. I wont have it any other way. I just keep buying and waiting. 90p coming. There is also a 1.6p Ex-dividend on the 6th Feb but I hope its broken out by then. Yawn.
For non investors chronical readers, this was in the top 3 tips for small caps of 2023 (I had already bought, but pleased to see that). Also holding KGH and RBGP as other legals. KGH results next week, might be the catalyst here, they should be good as huge buy from Ceo recently.