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The trading volume graph shows a fairly hefty uptick in activity at the end of last week. What's that all about?
Normally it's rather quiet at FLO, although not so today, with its strong rising.
I don't know. It depends on how/when they try to sell it I guess.
I just noted it here because it's a topic under Ramsdens too, when they seem to be selling into the market.
Jerry what effect due you think the liquidation will have on our sp?
9.5% held by Downing Micro Strategic, which appear to be liquidating.
Will you be giving out advice on sucking eggs next?
New Investors don't really understand "spread". With a highly traded stock, like Greggs, what you see is what you get. There's not much difference between what people want to pay and what some people are willing to sell for. Flowtech is a small cap share. There are two share prices and people confuse them. There is the price someone is willing to pay, and the price someone is willing to sell. Two sides, taunting each other, waving share certificates or cash while a giant clock in the background ticks off the seconds, each beat chilling the heart of those involved.
A larger spread, between the selling price and the buying price (to be clear, the value of a share is what people are prepared to pay and also the value that people are prepared to sell at. Shares have no inherent value) is probably down to low volume.
Most Flowtech shares are held by people involved in Flowtech. A small percent of shares are held by independent investors.
So, a big jump might indicate someone on the board buying up shares they see as cheap. Or Someone on the board trying to reinforce the price. But that big jump isn't actually as big as you think, if there is already a 15 or 20% spread between the established buy vs sell price. The spread is shown right here on LSE. Pay attention to it.
Makes you realise it doesn't take a lot of money to shift the price on these small aim sticks.
Does anyone have any idea what caused the flurry of buying and price jump at the end of the day?
I have great confidence that the new CEO will make a big difference here, expecting good progress over the next couple of years.
It got my attention.
I have a small position here as I do with several Harwood owned stocks so I can keep an eye on SP movement and progress of the turnaround after Mike England was brought in.
With Harwood owning 27% ish, Downing holding 9% ish and Gresham and others also in here I'm wondering if it would suit them for FLO to be sold off as has happened with several Harwood owned stocks in recent times.
There was a situation at OTMP (which I held and Harwood and Downing had decent stakes in) which had low volumes of share trades until a few days before the buyout was announced when there was a flurry of buying and the SP started to rise. This looked like some had insider knowledge of the impending sale and were taking advantage.
Maybe not what is happening here but one to keep an eye on for sure. Will see what happens tomorrow. GLA
FLO; starting to look interesting again.
Can move in strong strides.
...offers a good buying window I feel. FLO is quite cyclical and offers a slow but steady increase in SP from here.
I'm sure that 120p is not far off.
New CEO Mr England will transform the business and drive growth…….
Judith Mackenzie (Downing) on FLO on Vox Markets : minute 39:28
HTtps://www.**********.co.uk/articles/vox-markets-fund-manager-series-judith-mackenzie-of-downing-asset-management-f6461eb/
downing-strategic-micro-cap-investment-trust September Factsheet :-
Flowtech Fluidpower (+6.6%) delivered a reassuring set of interim results which demonstrate a recovery in trading post widespread lockdowns. We remain of the view that guidance is set conservatively and the business ought to upgrade earnings. Longer
term, the prospect of an e-commerce platform to generate customer synergies and scale is attractive and could drive a more premium rating than the business has achieved historically.
HTtps://www.downing.co.uk/investor/offers/downing-strategic-micro-cap-investment-trust
Comment from ODYSSEAN INVESTMENT TRUST PLC annual report :-
Https://www.investegate.co.uk/odyssean-inv.-trust--oit-/rns/annual-financial-report/202105281145532194A/
FLOWTECH FLUIDPOWER
Leading UK distributor of hydraulic and pneumatic components.
% NAV: 7%
Sector: Services
Performance in period
Flowtech is one of the more cyclically-exposed companies in our portfolio and as a result saw a material drop off in demand as COVID struck. Pleasingly, the business managed to trade through the worst of the pandemic whilst maintaining a full service to its customers and remaining cash generative in all months. We believe this strong performance allowed the group to marginally gain share through the period.
The group managed to continue to deliver on its operational improvement programme through the crisis with significant cost savings delivered and further cash recovered from working capital, this supported the group in driving down debt through the period despite the lock down headwinds.
Outlook
Flowtech has gone through significant change in recent periods, with a strengthening of the board, increased focus on delivering cost benefits from legacy M&A, improved investor disclosure and the identification of significant digital channel revenue opportunities.
Although COVID has been a serious headwind, we see these issues now receding and the group is well placed to bounce back should the UK stage a strong recovery. In this instance the stronger operational platform the group is building stands it in good stead to deliver improved profitability, and opportunities in digital channels offer the opportunity to accelerate growth and build share.
...by a NED, (even though it was shown as a sell).
will give him a nice earner when the divi drops!
Nice to see the Divi back. As mentioned, this is a 'below the radar' share, but is a good earner in normal times and will do well long term.
Tomorrow 20th April, plus a presentation.
This week or next. Topped up in anticipation that things have not been too bad and returning to normal, plus a reinstatement/payment of final dividend.
This is not a very liquid share and overlooked by the masses, but seems a solid business and good value at these prices.
Any ideas what is behind recent weakness?? Looks very cheap as covid recovery in sight even if not here yet.
Downing has been topping up!
Just taken the opportunity to average down. Results pretty good. Debt paid down. 2ND HALFlooks preey good