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Scrub my previous post ... markets are indeed knackered !! Still maintain that sub 20p looks like good value.
or just one of the II's liquidising a few in these uncertain times ??!! My guess is the former ... so few shares in issue and signs that FIF maybe getting things together. T/O target maybe ... what are your thought here Mulledwine ?
Wooly - just noticed your post 6 Jul - nae alas it was not I - not in here but finger has hoovered a couple of times - may bite the bullet very soon.
Finsbury Food's shares were in high demand yesterday, and no wonder. The maker of cakes, bread and gluten-free bakery products pleased investors with a robust trading update, signalling better-than-expected sales for the year ending July 2011. The icing on the cake for us is that we said "buy" at 17.5p in July 2010. But even after yesterday's rises, the shares still look ridiculously cheap, trading on just 2.8 times forecast earnings for the 2011 financial year. Tuck in, suggests the Independent.
Todays RNS was received very well against a backdrop of global market uncertainty... strange that the director buys came so close to a market freindly announcement such as this one IMO ??!! Do I expect more from this company... YES, but with soft commodities in bullish form and not really showing too many signs of weakening any time soon, a cake & bread maker will have a right old battle on its hads to stay ahead of the 8-ball !! Nevertheless, some very pleasing numbers released this morning... well done FIF.
Good to see some interest. Notice that two diectors now hold zero stock and the new names have bought in one big time. Today buyers exceeded sellers significantly.
Hi woolyback, interesting to see you into this area and talking Uniq? Yes been waiting for this one to go up also. Mainly because in these sad times the girls at work are eating more cakes!! ... and it used to yield well above average with good cover. Interesting to see the directors risking their money may be they know something Bla bla bla.. Normal nobody talks on this company's page. Can we liven it up a bit?
Director BUYS were reason for the volume the other day ... good enough for them... bla bla bla !! Uniq just sold for EV/EBIT ratio graeter than x8 ... might value FIF somewhere nearer £30m rather than todays MCap ?? Why not more interest in here at these levels and when Directors buying large chunks of their own stock (Mystery to me) !!
Another big buy after the bell .... stakebuilding ??? Those two buys yesterday represent nearly 2% ownership of the business, surely the buyer must be close to declarable level now ... wonder who it is ... Mulledwine was it you ??
Looks like someone got left on the platform when the train pulled away last time ... ?? £115k BUY is rather tastey for this little cup cake !! Still represents good value at PEx3.72 (For those who are into Risk/Reward only though)... Dividend within 24 months maybe ?? Get em in your bag at anywhere near 20p (Don't say I didn't tell you so) !!!
Woolyback - I do belief you could be right!
Panmure Gordon maintained its "buy" recommendation for Finsbury Foods (FIF) with a 30p target price. The broker notes that the group has successfully returned its Cake division to growth, despite difficult trading conditions, and said the pipeline of new product development looks more promising. Balance sheet gearing also continues to improve, it added, and, while cost inflation remains the key concern, the rating remains "undemanding". Finsbury shares were untouched at 21.5p.
NAV - £39m MCap - £11m PE - x3.7 (Food Manufacturing sector typically runs nearer x12) Scope for Divi to be re-instated (50% EPS would be lovely @ 2.5p and managable IMO) Has previously muted that would consider sensible T/O bids ... albeai a couple of years have passed since then ?? Worth a punt at anything sub 20p ... good luck all (Especially you Rossie !!!)
I've said it before - Lightbody has brought nothing to this company. He's like my granny's cat - all w**d and p**s - he talks a good game bur delivers nothing. He's too interested in looking after his own company. Time he was out!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
so, if genius does exercise the option, it takes the whole of FIF's 'fastest growing area of our business' that the JV is expected to 'drive forward our market leading position for the longer term' what hope the longer term of the fastest growing area of our business if the UCB and Livwell bits are gone for less than 1x current annual sales?
the finances of FIF are acceptable risk if u're willing to invest(not daytrade). if they were great, the shares wouldn't be so cheap. and looking back at finances the last 2 years, it does look like FIF are making progress/turning around despite what the magazines say - i wouldn't listen to them, tbh. just take note of how many recommendations they make and how many of them are wrong/miss targets, you would understand what i mean. all of them have hidden intentions(just like me, for that matter)...i wouldn't recommend shares i have not been willing to put my own money in(after my own research, of course). but others can just either follow or do the whole research on their own! =) doing your own research is the best way to invest, of course, because once u are convinced, confident and convicted of a share, you would have an idea of how far/how long the shares will climb or if they will climb at all! lol... if FIF are going downhill, London Finance & Investment Group(LFI) wouldn't be a substantial shareholder here. then again, FIF's non-executive deputy chairman also sits on the board at LFI :- http://www.finsburyfoods.co.uk/people.php?psn=marshall
I saw an advert for the Genius 'gluten free' bread brand on tv tonight. Normally a brand would invest 10% of its retail sales value (RSV) in marketing. This therefore is a disproportionate spend to the size of th current sales level, or maybe an indication of anticipated futre growth. Either way FIF are sacrifcing short term profit for longer term growth in a category they already monopolise...intersting move by a smart management team....this will come good imo.
Thanks for the info Might look into buying myself a few shares then, ive heard a few people tipping this share, but wanted a bit more info before buying after reading the times article
BTW: I hold these shares...in case you hadn't already guessed. DYOR.
All good... http://www.britishbulls.com/StockPage.asp?CompanyTicker=FIF&MarketTicker=Consumer%20Goods&TYP=S
Good idea...more for me to buy then :-)...seriously this is a tunaround that has so far recieved little attention. This management team I assure you are top draw, this is a great price at 3x PE. I haven't read the Times article but the essence of this company is Premium Cakes and Bread which are having a hard time in the recesssion, so they diversify into the 'Free From' category. A new category in all of the top four multiples. Its not an exciting category no real brands no heavy promotional activity and some joke it's 'free from customers'. But it serves a functional need, the number of people with intolerances is growing that's why the top four supermarkets have made room for it. Its not a fad but a long term solid trend...one you could argue is recession proof..has low compeition..great margins and gives FIF a financial umbrella. So the Times might **** off the category but it makes a lot of financial sense...loook at the growth figures in the preliminary results report. Oh and this company has been aquisition hungry.....they are in a strong negotiating position... Zelda
Analyst in times recommended avoiding these shares, their products were out of favour and they were cheap for good reason, anyone shed some light on this? Do you think they will drop further before rising?
will continue to add to multimple longs only and share my opinion with anyone that knows how to buy a share or lets say likes the idea of 19.99 - again I bet you all I get my Limit Order as your SL's Burns out...... just a game @ your expense :)
hi syntaxity, just thought I,d pop up on here for a change. Quite agree with you , one of the things that makes Iqe so reassuring is the corporate governance. The board working for the good of the company, the shareholder and so on. I hope Fif is of a similar ilk. Sods law, for not the first time I bought some new shares only to see then go down within mins or days . Funny old game, init.
the only risks i see are :- 1. first decline in sales of cakes, mitigated by growing Genius gluten-free bread and management statement saying revenue will rise again in 2011. 2. market capitalisation more than debt, mitigated by support of banks due to higher/improved earnings and banks like to see this, cash rich customers who owe FIF £21.4m out of £36.546m debt, retained earnings of £10m, owned freehold sites. 3. warburton entering the fray for gluten-free bread, mitigated by Genius being the "face" of gluten-free products and current monopoly. 4. albert einstein suing for defamation well, if no.4 happens, i'll blame it on the booze. =) anyway, that appears an acceptable amount of risk to me due to the mitigating factors. with improving financials and at current P/E of 3.5, FIF is just too cheap.