Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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FY results look good to me. Quite impressive in the current climate.
@Yuri, this is a technical trade for me; I just watch the chart/volume. Only time will tell the level!
Given their financials over last couple of years and base interest rate (consequently required return) where's this attractive level sitting at? 30p? 20p?
Starting to get back to an attractive level for another trade?
Yep, momentum here has died, along with that in most other legal firms. DWF looking especially nasty, with lots of gearing. I won't be touching that one.
It looks like the momentum has faded. Almost everything in the sector is now looking bearish, so I've closed 80% of my position.
There was a broker note out from Liberium, highlighting how close to the debt covenant DWF was, and the note even forecast a placing. The fact that DWF did not inform the market on profit, was a red flag. I am inclined to agree with the broker note. While, they may not need a placing, its not sounding great over at DWF. The free broker note from Zeus talks several times about cost savings providing upside, so again not a great proposition currently. I hold a fair chunk of DWF, and for me it is now a hold, rather than a buy. I will wait and see. I have also reduced my trust in the company due to the lack of transparency from the TU, which was deliberately vague, and did possibly more harm than had the truth been stated.
The situation does remind me of Knights back in February, with the SP selling off mainly due to debt and lack or organic earnings growth. However, Knights were not close to the debt covenant IIRC. DWF really need to get the debt under control, by possibly reduce the dividend or suspend it. Another slight pain over at DWF is that it incurs stamp duty as well, so makes it more expensive to buy.
Interesting reaction to DWF results last week- mkt now perceiving that as being in a worse predicament than KGH?
So in the half year they’ve paid down net debt by £6.5m after payment of dividend and acquisition of Meade- that’s really quite impressive if it’s not timing differences
Tone of the outlook is also good- I’d say this looks to be on the right track
“We enter the new financial year well placed to deliver organic growth from our increased network of integrated regional offices, with positive momentum across the business from new client wins and a strong pipeline of partner hires”
100k buy above ask gone through..
Good update IMO. The progress continues, as does the share price. No rush here, as CT said.
100p is coming! :D
100p anyone? The results massively show the share price is massively undervalued. This will move today
Looks cheap but they have certainly missed the revenue forecast (£146m) and the PBT forecast by a bigger margin I believe. They've only doubled H1 revenue despite Meade King contributing in H2
I see no reason at all that the sp can't return to 200p at the very least, but 300-400p is achievable over 1-2y if profitability is maintained and debt is managed. I have no interest in grabbing a 20% gain and it makes no sense from a RR perspective.
Results look good to me; revenue/PBT up; plenty of room left in the RCF. New revenue streams coming online. I was expecting a technical pullback after RSI spiked, though granted it was a bit bigger than I thought. There's lots of upside remaining.
Looks too cheap to me on that update at 80p, struggling to see the issue here for this low value but I'm also seeing 200p+ near broker values. Very interesting.
Depends on the trading update tomorrow. bet it moves 15p - 20p, but which way!
Closed my long and sold my shares. i was a bit late and didnt get a good price. was hoping for KGH to push past 100p and go to 120p, but it didnt have the legs
Well this is a nice surprise this morning.
Looks like bigger punters are coming in - Brilliant run-up so far.
Its done a really good climb on virtually no volume. Very good sign that sub 80p there are not any sellers left.
Historically this stock has always moved fast from 85p to 95p. Could be building back to £1 before update IMO.
Full year trading update for year ending 30 April 2023 - May 19th.
Look at how RBGP has done 48% over last 30 days. DWF next. Shhhhhh! I'm still buying.
Beg did a move today too. I think the sector might bounce back from over sold. IMO.
I don't understand why KGH has popped slightly and DWF has remained in doldrums.
Both great buys and DWF is now ridiculously cheap!
FYI the full year trading update is on the 19th May (per their website)