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27m shares in issue
at 50p the mcap still just 13.5m
yet 16.4m sale of warehouse!!!
mcap should be around 25m surely = sp of 90p
oh and the company pays a divi:)
very few shares and news not really hit yet ...
-- BB --
Cash in bank is now around 19m pounds, market cap less than 12m pounds. Price should go a lot higher as market cap too low after this news. You can't buy stock presently on 48p
rising
moving now
should be 100p on that RNS.
lets see
taken a position.
very hard to buy!
no brainer after that rns!!:)
Not just that but had cash of almost 3m before , is debt free and pays a dividend. No wonder the price is taking off.
I think an uplift is in order!
-- BB --
..
It's certainly possible that this could drag on for years. The question is for how much longer the Chairman, who by the way is 68, wants to continue running a loss-making business which is nibbling away at the value which he so impressively managed to build up over many decades, and in which he has a 60% stake. AIM application, August 2013: "The Board's strategy is to continue to develop the core business in the UK whilst aiming to protect margins and existing market position. Where opportunities arise to generate accelerated returns to shareholders, corporate M&A activity will also be considered." Annual Report, October 2013: "I am unable to give a clear view on the immediate way forward for the company... the Directors are in a position to maximise whatever opportunities arise."
why not steady state? ..sure if there were a liquidity event, then you should do v well ..but how can you be sure there will be?
Net Assets: £22.8m. NAV: 80p/share, including a heavily depreciated office building which might be understated. All assets are tangible and easily understood: freehold property, inventories still being sold at a steady margin over cost, receivables and cash. Contracts and lists of suppliers and customers might have value to competitors, but aren't included in NAV. Most recent annual pre-tax loss: £1m, or 3.5p/share. Management has a heavy stake in the business, and has shown admirable willingness to cut costs in the face of declining revenues and profitability. Let's suppose that there are two more years of 3.5p/share net losses, and that the sale/liquidation is then disappointing in the sense that costs or discounts result in only 70p/share being distributed to shareholder. That would be an 84% return in two years over the current offer price of 38p, with not much risk involved (no debt, steady margins, low operating costs versus NAV). There is plenty of uncertainty in how this will play out, but this strikes me as an extraordinary proposition. I am long, bought my shares at a lower price, and might sell or change my mind at any time. DYOR etc.
may boil down to discount rate/opportunity cost ...even if sum of Fv>>40p...what is the PV? ...and risk capital tied in here could be deployed elsewhere ...aaoo
I do think NAV is decisive. It's being run in such a manner that NAV is making only modest declines despite a horrific market environment. The NAV itself is based on asset values which look to me as if they have been conservatively depreciated over the years. I find it difficult to imagine a situation where management could fail to return significantly more than 40p/share to investors.
maybe...don't see that nav is decisive here...so depends on your view of the market and management ....loss making and "the sector predictions do not offer any forecast of an early upturn in P.C. sector profitability"
Don't you think it's worth considerably more than 40p?
Jolly wise
for 15% profit
patience rewarded
Interesting!
Balance Sheet We have reduced our working capital elements so that stock, debtors and creditors are all lower than they were either at 30th June 2012 or 31st December 2011. The current ratio has improved from 2.5 to 3.0 times year-on-year. Although the extraordinary pressures in the economy are unavoidable, the strength of the balance sheet remains very high and places us in a strong position vis-a -vis our vendors and customers.
We are very disappointed by the difficulty in covering our costs and we are focused on correcting this. I did caution in my quarterly report for last September, that the movements in the channel to economise and rationalise may well impact on the market generally. In view of the high level of uncertainty in the economy and most especially in the ultimate commercial user customer base, until there is more positive confidence in the economy, regretfully it is not possible to be positive about the immediate future. We are fortunate to have deep strengths in our balance sheet and capable of withstanding pressures. Coupled with the ability and willingness to detect and act quickly and decisively to changing circumstances, we are best placed to benefit from any commercially viable opportunity that becomes available that do not overly risk our custodianship of our shareholders asset base.
droop...
holding rns?