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Surely there should be a RNS on this divestment, it is arterial transaction ffs.
As is probably evident from some of my previous posts, I'm not enthusiastic about Knights, but this is probably a good move, and at least indicates a strategy to focus on more profitable areas....
https://www.lawgazette.co.uk/news/knights-sheds-conveyancing-business-to-scottish-incomer/5113028.article
99p bid now
Forensic - I would not compare Knights to Gateley. Gateley is a quality outfit with high quality lawyers and good quality clients willing to pay a premium for quality advice. Knights is a collection of bolt ons (most of which had a couple of decent rainmakers near retirement who just wanted out) so the model carries with it an inherent lack of consistency of quality and little coherent legacy. Gateleys clients are likely to be loyal and stick with them despite inflationary increases. In my humble opinion Knights will be much more exposed to pricing pressures and competition from the vast number of middle market law firms who are going to be competing for an increasing small piece of cake.
Calms my nerves a little!.
Ameriprise Financial, Inc have doubled their investment to 10%. Big move...
I agree darientaylor. KGH is very similar to Gateley. Gateley is valued at £247m. KGH at £74m. The market really should close that gap, its simply not right, imho. Gateley probably overvalued but KGH very undervalued. I have added significantly today. Always DYOR of course but this could easily be back up to 130-150p before too long.
Back to 140p in next 3 months
" With reasonable profits what chance a dividend here? ."
well depends on H1 results...probably pretty small for an interim
Yes indeed. Let's hope things are at least keeping steady . Still kicking myself for not cutting back a bit at 150 and taking the loss and with the benefit of hindsight of course I would have sold the lot. With reasonable profits what chance a dividend here? .
I would forget the full year results - the year ended end of April
The market is now looking more at now and Q1 which started in May..... any recession wont help if you have taken on a load of new acquisitions...they still have acquisition payments to meet and now more mouths to feed
There will of course be benefits from the acquisitions ..but...the market is being negative towards the current revenue/cost outlook with UK economy not really growing
Depends on their revenue outlook for the next 6 months I guess ....not the last year
IMO
Market Cap. here now £72mn with pre-tax profit already guided to be 18mn+, yes there's 22mn of debt but even so this looks very cheap. Rose to 150p after full year trading update and all the way back down again and 450p high in past year. I'd be buying more at these prices if I had the cash, in at near 200 I'm afraid. The piggy bank has been sorely bruised these past six months.
Just what I was about to ask!
Getting tempted!
any specific/particular driver (other than general market ) for this mornings 10% move down ??
It maybe something to do with the major shareholder and directors of the company selling huge shareholdings shortly before dumping out horrible RNSs, and then blaming Covid for poor performance when every other law firm worth their salt was having record profits throughout the same period. Maybe. Re the leadership “buying in” - a token gesture and sop to the market? Maybe. Look how many shares they dumped beforehand. What they’ve bought back is a fraction. I do not see that as an indicator of confidence in the business - but that’s just me.
Been looking at listed law firms for a while and KGH is an enigma.
In terms of fundamentals, it looks undervalued but the mood music around the employees, some of which has been looked at in this chat, makes uncomfortable reading
The leadership team are buying in - albeit not successfully.
CEO bought £1M shares on 19/5 @106 (causing a big bounce)
Company secretary bought 41k of shares on 19/5 @120
Director of client services bought 70k of shares on 23/5 @141
Non exec bought 10k of shares on 25/5 @138
Chairman bought 10k of shares on 09/6 @129
Despite repeated management nibbles, the price keeps sliding. Why does the market not like this stock?
Same here this morning, thought it had done it's thing but still rising ....
i did not see over 30% here today ,ah well maybe next time
Those profit margins of Coffin Mew are poor.Reading between the lines looks like there could be a lot of non profitable deadwood that needs to go which could be a time and cost consuming business.
On the plus side the directors buys are significant and a vote of confidence.
Knights are a big exposure to commercial property sector so they are a play on the commercial property market remaining in good shape.Dust off those crystal balls!
I’m genuinely please for those who are recouping a little bit of their losses here today, but so far as I can see, nothings changed. Same strategy as before. Buy middling firms with a few rainmakers who can’t otherwise see a way out, and take on more huge fixed overhead when others (the good ones anyway) are looking to reduce theirs. If you bought in yesterday, very well done indeed. Otherwise, let’s face it, this remains a massive car crash (albeit some potential short term gains for the brave). All in my humble opinion of course.
Beech sold £50m at £4 a share. Good to see him generously support putting 2% back in….not.
well £1m buy from the man himself.....looks like he agrees
Just me I guess, but I'll share my thoughts from before:
Been watching this one dip for a while
£18m PBT and 5% organic growth FY23, for currently under £100m. that's a P/E of around 5/6x.... which is incredible
Should really be at 10-15x , so SP range should be between £2-£3.50
The SAYE scheme exercises are at £3
Covid related disruptions should be done, macro backdrop is across all sectors
Can only imagine there's been a few big sellers without much buying interest
Should get a full year update in May, let's see if dividend exists
All IMO
Will say it again.... dirt cheap just had no volume
2m lower debt, a more bullish statement and nice acquisition, should rebound nicely
All IMO