Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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@alwayswrong the name suits you the house building sector of Galliford was losing money that's why they sold it.
See your predictions slightly off Buhahaha
This is a share I would definitely avoid for the following reasons...
1..They sold the profitable high margin housebuilding arm and maintained the extremely low margin construction side of their business...one big contract to go wrong is all they need to put them out of business just like Carillon.
2.. Net tangible assets are negative ..I prefer Non current assets that are tangible i.e. that I can 'kick'
3..Covid and it's impact on a business like this which runs on extremely tight margins even in the good times.
I been looking into GFRD thinking of maybe investing they don,t actually in real money have 197 million in cash in so many words.
Total assets of 656 which 245million in tradeable that they are owed and 197 million in cash and 156 million are intangible assets of which 40 million is ppp
Total liabilities 505 million which the big one is Trade and other payables 458 million.
Total net cash/debt is 120 million but then if you think about it out of the 157million intangible asset it is not real money so you could argue that they have no money or maybe 20 to 30 million depending on ppp investments if I have understood it correctly.
Carillion had 1.5 billion in intangible assets 2 billion in total Total non-current assets it counted for nothing when they made a huge loss and went bust.
I know GFRD is nothing like this but if GFRD makes a loss for a 5th year in a row in real terms they will have to borrow.
70.00
I think if it gets too 60ish sp I might invest some into GFRD depending on what other funds are doing tho I do not think this will happen it should not happen Greed v risk v reward.
You could argue with that 197 million they could afford a few bad years to try and get things sorted to get that 2% returns
I think with a track record of losing lots of money every year since 2016 between 15 and 80 million per year like on a post I did few pages down, even tho a few of those years they said everything is looking good and then another write-down.
The target profit margins of 2% been put off until 2022, I am guessing their target is 1% for next year, I think I read somewhere that they intend to pay a percentage of the profits out in dividends.
With 197 million cash this must truly feel like a money trap.
A possible 10 to 15 million profit v just 1 project going over budget or being sued or something going wrong and losing 10,s of millions again.
No statement from the board
The board from what others have said are on pay structure from when it was GFRD group which means they could end up owning % points of the company with there share bonus schemes due to the value of the company tho this is here say I have not checked this, all the time while they hoard the 197 million cash.
Is GFRD going to go bust no
Is GFRD ripe for a take over yes will it happen who knows.
It's just dire. This thread unfortunately gets updated every day it seems...
All the construction companies are getting battered. KIE - 52-wk low, COST and MGNS not far off. What I don't understand with GFRD - we have enough cash, no debt, winning contracts, board are happy with directions. It's not as if construction activities have stopped. It's not as if raw materials/labour has gotten more expensive. It's not as if we are getting less than what we have been on these contracts. Ok the macro economics might not be great at the moment, but the operational environment hasn't changed. I just don't get it. If anyone can enlighten me on this...
And a new 52 week low again. Will it break 70 ?
Down more than 10% on the week.
70.42
I was thinking surely it can not go under 70 and into the 60,s and lucky enough it rallied, if they can get a few more contracts which can make them a few million this will fly as long as they are not the bottomless money pit road contracts.
wish I had a crystal ball.
Yes I added a few a couple of days ago here to bring my average down. I also bought BP. at 195p which was a 35 year low I think. First time in 20 years I have bought a big oiler. Plus a few more NRR. Not with the greatest of confidence on any of them but I had some spare cash from some of the dawgs I punt in going mad.....crazy really that some miners for instance are valued at a mkt cap of 100 million plus and its all just vague hype. Still, what do I know?
Looks like we’re moving away from that 52 wk low now. Let’s hope that was the bottom and a change in sentiment can drive a meaningful rerate.
Yes indeed.
71.01 low today. May go below 70p today. No support for this stock despite a ton of cash.
This could become a daily post for a while longer yet. No sign of any change in sentiment.
72.41 low today.
This is getting ridiculous. Every single one of us are in the red. Thought we turned a corner last week but here we go again
Another all time low...closed at 73.20p.
74p today.
Well undervalued but likely to continue to fall. Some company my consider a T/O but not yet.
74.15.
On a strong day for the mkts. A weak day will see this below 70p.
74.28
74.80. I expect 70p to be broken shortly
74.88
scaling in. This is looking far too cheap
75.28p.