The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Public companies use share buybacks to return profits to their investors. When a company buys back its own stock, it's reducing the number of shares outstanding and increasing the value of the remaining shares, which can be a good thing for shareholders.
Sure sign it will go even lower now that I have 😆
I guess with buybacks ongoing a depressed share price is a good thing.
I’m in at just over 68 pence.
Look at the share register, it's been mostly retail buying since IPO, 'they' were probably hunting for stops as most of the drop was on low volume. Not saying it's going up but look, I tried catching a turn after results & took a 1% drop today trying to reduce my average & may as well have not bothered. Will try again tomorrow but could just be paying stamp duty & broker fees for my troubles as I'll have a tight stop.
Just noticed approx 10 million bought & 1 sold today.
& SP down 2% now.
Can anyone explain how this might have come about ?
If more bought than sold, I would have expected SP to go up.
I think the weakness in e-powertrain is due to Chinese ev's taking market share from European competitors as well as a shift to bhev's. https://www.acea.auto/pc-registrations/new-car-registrations-13-7-in-april-2024-battery-electric-11-9-market-share/As you can see in the link.
I attended the AGM this morning. Management was more upbeat than I had expected. Yes, there is a slowdown on ePowertrainbut as they said the other parts which are the majority is doing well. Sales down, margins up; that could still lead to maintained or even increased eps for the full year. Don't expect a sparking set of H24 results but I got the impression that the story is still intact. Quizzed the CFO and cash conversion is still coming through nicely and may well be even better in the second half. I bought a few more when I got back home.
First purchase made today having done OK on Melrose for a while before the split and not doing so well on GKN before that!
In my opinion, it will take a while but with divi and buyback in play, this won't be kept down for too longer period. The 140 listing did seem like the Melrose board did a rather good job.
A bumpy road indeed, but not really unexpected in terms of exposure to the BEV market. However, I think it's a sound business which will prosper again as economies regain confidence and the benefit of lower interest rates.
Doesn’t read well, does it? 🤔 below 70 looks attractive for a top up though, I’ll wait till EOB for a proper shake up before chipping in
O K, just thought I'd share this with any holders; Price may look weak and there is a q1 update coming in the near future which may have people worried. I think Dana sales were basically flat, with margin expansion & inflation pass through driving growth, linemar also hinted at some pass through effects in their earnings update and Cummins -1% in their light vehicles segment. Reads to me that you should expect an inline update with the sector already passed fundamental lows. Operating cash flows here are 1/3 of market cap w/ divvy + buyback approaching a 10% annualised return. This is where the large share blocks are traded, below 80, so while share turnover is high with large holders looking to exit I don't think it's for fundamental reasons and while it may take some time for shares to accumulate towards long term holders I believe the medium term outlook remains positive and also believe the debt should get cheaper with a decline in the $ if the US economy starts to slow. Just thought I'd throw that out there.
Melrose? They sell aircraft bits, what a clown. You should be tracking vehicle sales and Dana in the US, which is their nearest competitor eejit.
Double trouble - broker price downgrade to 100 and read across to Melrose where revenue stalled due to lower demand for components. IMO already factored in ...
Dear Headder - I'm not smart but even I know that. Uptrend? I'll give it a try , thanks GLTA
Timing? I suggest you read the AGM & ask yourself why you own this stock. Shares don't just go up because they went down. Maybe you would do better ONLY buying stocks in an uptrend?
Well, I'm about 10% down - guess I got the timing wrong this time. You cant get them right all the time.
I may add but want to see what happens after the ex dividend date. Not expecting a whole lot from the buyback, from the first day, looking at the increase in ordinary trades, would seem it may offset the algorithmic selling somewhat. Do you have a relevant Buffet quote to share which applies to the situation here W.B Junior?
It’s going to be a good day today just wish I had bought a few more yesterday !!!
Where do we think they will start the buyback of shares, should have a positive impact on the price?
They are getting them cheap!!!
Was just looking at trades after hours. There were some enormous trades that went through...
I'm looking to add.
Well, they did slip a bit further and I bought half a unit at 81.35p. There is only one thing worse than backing your judgement and that's not backing it ! Half a unit because DWL may have further to fall and I can average down. I am taking a year's view here; it doesn't have the the quality to be a long term, core growth stock.
A fair summary of this morning's webcast there Mr Picky.
From what I could hear of the Q and A I picked up that the new site in Hungary has 10 production lines in operation and has been given audited the green light by our German partners and others.
The non cash write down of powdered met lowers the mid term horizon somewhat but it had to be done. As they said, they still feel the business has excellent growth prospects for the long term.
A £1m buy went through off the book at 14:11pm, so somebody thinks this is cheap.
aimo
Indeed, still one of the few potential double baggers alongside PRU, 888 and others
I dialled into the online presentation. The sound broke up halfway through the Q&A session so I may not have got everything. It was a good year but so it should have been given the bounce back in industry sales. Their growth was actually below the global rate. Liam Butterworth (CEO) was positive about what they had achieved and would achieve going forward, I couldn't get excited. By Division Automotive: steady progress and the plant reorganisation is done. Powder Met(alogy): the long term profit projections have been down graded, hence the write down, but it is still a growth market in their view, Hydrogen: They need a partner or a sale, expect continued loss and cash outflow. Balance sheet is OK, gearing at 1.4x is within their self imposed range and this year's cash flow will cover the buy-back and divided so no increased gearing (Note: There cant be any projects that give a better IRR). So with small a revenue increase all be it second half 2024 weighted, and better margins, eps should be modestly up this year say 15p which puts them on a prospective p/e of 5.8x and yield of say 5.1% . This looks cheap to me but such stocks have a habit of remaining cheap. If they slip much further then I might buy a few.
Good results, nice divi and buyback. Shame about powder impairment, did not see that coming.