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Iamald
May isn't over yet!!
Today, this opened 8p higher and accelerated throughout the day right through to a close of 68p higher. Quite unusual. More often than not it wilts in the last hour or so. 3.5% rise over last two trading days taking back nearly all it gave on results day. It is proving hard for those waiting for decent pull back to get in.
Director Schaapveld bought in day after results in '23 for a £10 increase. Bought in once again last week after results.
Currently 2,600 stores and plans to open another 4,700 and that's just Europe.
For most investors this is the holy grail: Growing company with market all to itself (Action), paying a growing dividend and directors and staff all invested (3i).
Management need to remain laser focused as any blips and the market will severely punish.
I might be right my original prediction was £30 by Christmas changed it to June. Up 2.4% today while ftse100 is down 0.22%.
My bargain was dealt yesterday.
My target has always been to beat the “market”. The market for investors with a balanced portfolio and reinvesting dividends expects that capital invested will double every 10 years. I’ve managed to double capital every 7.5years and 3i has certainly played an excellent part. FWIW, I expect the sp to double over the next 5 years.
Clearly SP reaction today was disappointing but not surprising, we saw the same response three months ago (at the announcement in Jan 24) only for the valuation to subsequently power higher.
1. Action is still going great guns with value growth of £3609m. Management said they have made 125X their initial investment. Assuming they still think they can get to 200X their original investment (highlighted in Nov CMD) that means the net asset value with rise by £106m x 75 or a cool £7.95bn over the next 2 to 5 years or £8.18 a share.
2. Royal Saunders is a keeper. This business is going to drive value for years to come, it increased in value by £256m last year.
3. European Bakery Group is beginning to show potential with value growth of £161m in last 12 months.
4. ten23health is also beginning to show potential with £60m value growth in last 12 months.
5. There were 9 value drainers should showed a value decline of over £20m each totalling an eye watering £452m decline. These need to be turned around or preferably sold.
GLA 😊
Profit taking nothing more.
Giving back a little post Action update share price gain
"That'll larn ye!" £30 by May...! 🤣🤣🤣
But if I had any cash, I'd buy; even though it's over 20% of my 11 holdings.
Agreed did buy some more yesterday anticipating a rise foolish me so bought more today at a 4% plus discount , my favourite stock is 3i for sure because of its steady rise progression, Also pretty sure it dropped on last times results so not a problem
Just to answer my own question, 3i received £375m in dividend payments from Action over the last year and paid out £541m to shareholders.
Agreed, very strong set of results. The SP is getting a long way ahead of the NAV which I think might explain the pullback this morning, opportunity to buy more because mid to long term this is only going one way, powered by Action.
They read well to me. Time to buy more as I like to average my holding up preferring to strengthen winners.
Annual results due tomorrow, 1st qtr update should follow soon. I keep meaning to check if 3i is now receiving more in dividends from Action than they're paying their own shareholders - I'll have a look tomorrow. New highs being set again this afternoon, that £30 is getting ever closer. Think these broker targets should be pitched closer to £35 now, given the potential for Action to expand it's business farther & wider...
I think £30 before May is out; be interesting to see what they say re dividends soon; which will affect the price.
It may be a nice surprise, @dividenddata says it was covered over 8 times.
£30 before Christmas? More likely June.
Update soon. Last year may 11th
Added a few more today, this time in a SIPP for my wife
Hopefully , ive done really nicely out of this one . Good luck .
£30 before Christmas and I think I am being conservative.
An indication of the well received Capital Markets Day to investors last week is when it leads to broker upgrades :
UBS raises 3i Group price target to 3200 (2800) pence - ‘buy’
Bank of America raises 3i Group price target to 3055 (2850) pence - ‘buy’
Great to see broker forecasts start with a 3 😊
Certainly outperformed all my other stocks, of which many I have held as long and longer that this. Only wish I had put more into this from day one.
Shame the CEO couldn't flip to Lloyds, but likely he prefers to not be attached to No 10's sting puller of whatever political persuasion that may soon be.
RBC raises 3i Group price target to 3,000 (2,650) pence - 'outperform'
Another very well received Capital Markets Day (CMD) with the SP up a stunning £2.20 today. Outperforming peers, new growth markets in Italy, Spain, Slovakia and Portugal. Current trading 21% ahead of last year with 9.6% LfL sales growth for first 11 weeks of 2024. The store expansion plan is on track with 32 stores added year to date. Cash and cash equivalents at €1.1bn. A strong business with favourable economics driven by a strong management team. The estimate of delivering a 200X return on the initial Action investment mentioned in the November CMD is still on track. This would imply a NAV of £29.67. The 3i Action juggernaut continues to roll…
Madness to invest in one share.
Hence portfolios.
...shares I have never complained about holding.
If ONLY I had put the money I have into Lloyds into 3i, which I purchased around the same time, I would be very comfortable. Held them both for around 15 odd years, and STILL down on Lloyds, with a b/e of around 60p, whereas have a b/e of around £2 or £3 pound, perhaps less on this one. AND this has always paid div's, not so Lloyds.
Still, I'm not one to grumble........................much!
Guess we all have tales of similar wrong choices..
SD235, for a single holding to represent such a substantial percentage of a portfolio, it suggests you either have an "all or nothing" approach or at the stage of building a portfolio with few holdings. I can therefore understand why you are a little twitchy. I have disposed of 2/3rds my holding in NVDA over the last 3 months, not because it is a poor investment, simply that the holding was skewing my portfolio - great on pigeon days but grim on the statue ones.
The performance record of III is exemplary and I am pretty certain that the share price will double in the next 5 years. I continue to add in my SIPP account (IHT planning).
Action is a seriously impressive discount retailer. I wonder whether they will eventually take on the UK? 3i is becoming a one company investment trust.