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Started: EquityDevelopmen, 9 Jun 2022 08:47
Last post: EquityDevelopmen, 9 Jun 2022 08:47
A great job still being done by the management.
After today's positive trading update and a confident outlook Equity Development increases EPS forecasts materially + fair value/share moves up to 249p vs last night’s close 193p.
Read detailed new research note with audio summary here (free access):
https://equitydevelopment.co.uk/research/strong-growth-momentum-continues
Started: x54v, 22 Apr 2022 10:50
Last post: x54v, 22 Apr 2022 10:50
Excellent Capital Markets Event. It gives you a real sense of the growth potential here. Well worth a watch.
https://webcasting.buchanan.uk.com/broadcast/621e395725681c6aa1cdcb45
Started: x54v, 21 Apr 2022 10:34
Last post: x54v, 21 Apr 2022 15:16
Seems to have kicked off a flurry of buying and the price is now breaking out after a wide consolidation.
Can move pretty quickly once it gets going as the rapid move up from August last year shows.
Harwood Capital keen buyers at the current price
https://investegate.co.uk/northbridge-ind-serv--nbi-/rns/director-pdmr-shareholding/202204210847068867I/
Started: EquityDevelopmen, 12 Apr 2022 16:00
Last post: EquityDevelopmen, 12 Apr 2022 16:00
With a refocusing of the group on the rapidly growing Crestchic Loadbanks / strengthening of management team / disposal of oil services division / huge testing needs for energy transition and data centres....no surprise that shares in NORTHBRIDGE are up 80% in the last year.
More to come? You can read about exciting prospects in new note here: https://www.equitydevelopment.co.uk/research/further-upgrades-to-forecasts-and-fair-value
Started: lavenonews, 12 Apr 2022 11:45
Last post: TheTrotsky, 12 Apr 2022 13:31
I noted that there were some exceptional redundancy and closure costs; so this issue may already be in the process of being addressed
I always enjoy watching Peter Harris's face during Paul Hill's interviews - this was a much less excitable episode, which made for better and more balanced viewing.
Long term holder myself and no intention to change that.
Good to see they are looking for operating efficiencies, but I think the 'group' cost line is too high and far too many bodies at Group level once Tasman disposal is completed. This needs some scrutiny.
Started: x54v, 22 Mar 2022 19:34
Last post: x54v, 22 Mar 2022 19:34
A breakout to multi-year highs with good volume. Positive recent trading update. Directors buying.
Looking good for a strong move up from here.
https://www.tradingview.com/x/JxJIwIIb/
Started: EquityDevelopmen, 11 Mar 2022 08:13
Last post: EquityDevelopmen, 11 Mar 2022 08:13
With an update on positive trading plus intention to change name and pay a dividend, Northbridge has set out detailed plans for expanding Crestchic at a Capital Markets Event.
Read new note / hear our analysis:
https://equitydevelopment.co.uk/research/capital-markets-event-maps-out-exciting-future
Started: EquityDevelopmen, 21 Feb 2022 07:54
Last post: EquityDevelopmen, 21 Feb 2022 07:54
New note out after Northbridge's positive update on trading in 2021 with 20% y-o-y growth at Crestchic + contracts exchanged to sell bulk of Tasman.
Analyst excited by prospects and for now conservatively retains a 189p fair value/share.
Free access to hear summary/read note here:
https://www.equitydevelopment.co.uk/research/a-flurry-of-good-news
Started: lavenonews, 5 Nov 2021 07:27
Last post: lavenonews, 11 Nov 2021 09:58
That happened quickly.
Interesting the date was 5th Nov when the change of Gresham to Harwood at the Gresham Fund was supposed to go unconditional. So, did Gresham sell when they could still act and control this?
Wonder who took this stake on? We'll no doubt see fairly soon.
Seems to have happened more smoothly from an NBI perspective than I thought might be the case!
Looks like Gresham House Strategic are following an orderly 24 month wind up and disposal of their assets from their announcement today.
As 17.5% holders in NBI - the biggest shareholder - this is going to create an event of some form in the next 2 years and quite possibly a ceiling on the share price until such times. i.e. don't expect much upside short term but the potential for this to change within 24 months.
Gresham will not be giving their assets away so fair value on NBI should emerge.
I don't think NBI is big enough to attract enough institutions to take on the stake across the public markets, but that's just my view. And I think Crestichic will do far better off the public markets, allow Peter Harris to retire and so on!
If there is a different interpretation then I would be keen to hear it on any message board, as this is only my initial view and happy to think differently about this!
Started: EquityDevelopmen, 30 Sep 2021 08:50
Last post: PhBrown, 1 Oct 2021 12:33
ST just covered in his article and increased his forecast to 200....very much achievablele
What’s not to like! Great update, ahead of expectations, reducing debt, profitability up! Definitely one that has the momentum at present!
Good to see srong interim results + ‘momentum expected to continue into 2022’ - that means Equity Development's estimates rise sharply - again . Plus the Board plans to return to dividend list.
ED's fair value/share rises to 189p after EPS upgrades - you can see full new note here, free access : https://equitydevelopment.co.uk/research/another-significant-increase-in-our-estimates
Started: Trendz, 7 Sep 2021 12:21
Last post: Uphillnow, 29 Sep 2021 20:26
Power supply issues in China as they try to pivot away from coal powered stations this coy likely beneficiary of this. People don’t like getting stuck in elevators for hours.
Ahh that explains it. My price target is 250. ST at 180 (quite conservative if you ask me) still leaves 25% upside. I won't be selling at 180 but image that many of the ST punters will. Perhaps a rerate to 180 then consolidation...
Bid rising, not much stock available
ST tip at IC.
t/p 180p
Great question, could be sale of Tasman? Re-rating from article somewhere? Hopefully someone can shed light…
Started: lavenonews, 23 Aug 2021 19:56
Last post: Uphillnow, 1 Sep 2021 12:02
I really wouldn’t be surprised if someone made a bid for this company. I usually dislike posting t/o conjecture but there you are. It just seems such a small market cap for such a useful niche business in need of capital to move to the next level. Let’s see.
Article in FT about high volume, actually a "deluge" of container ship orders going in for the first time in years. Back in the days before data centres and renewable power were all the rage, loadbanks were needed in shipyards to test back up power on ships, rigs etc. If this demand source is making some sort of come back then that would be another positive for Crestchic sales and rental rates. There really are so many opportunities for Crestchic. Now just get the factory expansion complete asap. And Tasman into new hands.
Started: TaltBong, 12 Aug 2021 08:56
Last post: TaltBong, 12 Aug 2021 08:56
From yesterday's trading update: "Additionally, we have won our first significant order to supply loadbanks to a major ecommerce retailer." Can't be bad.
Started: TaltBong, 11 Aug 2021 23:54
Last post: TaltBong, 11 Aug 2021 23:54
Peter Harris, Executive Chairman of Northbridge discusses their positive pre-close trading and strategic update with Justin Waite on V o x Markets
Started: EquityDevelopmen, 11 Aug 2021 08:48
Last post: EquityDevelopmen, 11 Aug 2021 08:48
The pre-close H1 update reports strong trading at Crestchic plus a positive order book. Equity Development upgrades PBT estimates for FY21 and see a conservative fair value at the moment of 152p/share
Read that new research here, free access: https://www.equitydevelopment.co.uk/research/group-hits-strategic-targets-our-forecasts-rise
Started: L3Trader, 1 Aug 2021 14:58
Last post: L3Trader, 1 Aug 2021 14:58
"These new facilities have also already enabled us to offer to redeem the Group's £4 million convertible loan notes, the interest rate on which was set to rise to 10% on 1 July 2021. The Company is pleased to confirm that all bondholders have responded to our offer and that they requested that £3,056,938 of the loan notes to be repaid in cash and £943,062 to be converted into Ordinary Shares in the Company.
As per the original terms of the loan notes, the redemption is subject to a 25% early redemption premium and a total redemption payment of £3,821,172.50 will be made today. The early redemption penalty included of £764,234.50 will be disclosed as an exceptional interest cost in the half year report."
So, a 25% penalty for early redemption. With interest rate at 10% that is 2.5 years of interest. Should have kept the loan. Is the board working for all shareholders or just for the shareholder that lent the money?
More of the gravy train: LTIP...
https://ir.design-portfolio.co.uk/viewer/22/12845
typical of an AIM company when things go wrong for the PIs...
Started: TaltBong, 23 Jun 2021 08:08
Last post: TaltBong, 23 Jun 2021 08:20
Discussed in Paul Hill interview with Laurence Hulse of Gresham from about 23mins in
https://youtu.be/Ppt16lTCZ9g
Increasing their position
Started: Crusty1, 15 Jun 2021 10:29
Last post: lavenonews, 15 Jun 2021 10:53
yeah I know Crusty, that's why I hold quite a few shares, but sometimes you have to stand up and point things out (won't have any impact but makes me feel better!!)
Just listened to Paul Hill who could actually use his platform but as usual dodges all the tough questions. 25% early redemption fee versus one more year of 10% interest might have been worth a question! Iwan Phillips and his grown up facility... go on Paul, think there is a bit of follow up there, or no that would not suit your narrative. Peter Harris can barely keep a straight face during these interviews!
Agree with you Lavenonews, but even a company such as this which seems to be run for the benefit of management might be a good investment. Going forward the stars are aligning nicely for Crestchic - pity about the name. Meanwhile any announcement about the disposal of Tasman could give rise to a surge of interest. Hope they have some sort of moat, but the next 12 months will be interesting.
Started: lavenonews, 15 Jun 2021 09:15
Last post: lavenonews, 15 Jun 2021 09:15
I am a long standing shareholder based on the underlying two operating companies, both of which are standalone good businesses. However, that does not stop me from highlighting the unreasonable rewards at Group Board level (who rely on their NOMAD for cover - Shore also stated that the Loan Note actions were reasonable as well, so that fairness opinion is a waste of paper to any critical thinker).
We are handing out 10% of the equity upside to this group via the LTIP. Last year, this same group of directors (minus Eric Hook) waived through the extension of the Loan Note by a year. Any reasonable amount of research into the liquidity at corporate banks would have suggested it was worth waiting. Had they done this, the Loan Notes would have matured this July and there would be no 25% penalty as disclosed today nor any shareholder dilution at all.
It is noteworthy that HSBC managed to turn this around very quickly - hardly surprising given the asset backing and underlying prospects that left most critical observers scratching their heads at the Loan Notes, even at day 1 in 2018. This was always a bizarre set of terms on the financing, even in 2018, yet the FD is still here and now being rewarded with equity upside!
Whilst Crestchic and Tasman (and the share price) have great potential as operating businesses, it is wrong that this group of Directors is being handed equity upside for navigating their way out of their own errors. Crestchic has been starved of capital for years, and that was a Board level decision. Now we are handing upside over for the decision to realise the potential in this business. I know most people on here are traders but I cannot believe I am the only shareholder who looks at this in disbelief.
Started: EquityDevelopmen, 15 Jun 2021 08:45
Last post: EquityDevelopmen, 15 Jun 2021 08:45
Another encouraging update from Northbridge with activity at Crestchic much higher. A restructured balance sheet + redemption of loan notes means Equity Development ups its adj. EPS projections by 5.6%.
The shares remain too cheap vs peers, as per updated research note here (free access) :
https://www.equitydevelopment.co.uk/research/good-news-from-crestchic-and-on-refinancing
Started: lavenonews, 11 Jun 2021 08:35
Last post: lavenonews, 11 Jun 2021 08:35
This really made me laugh (I've already given up getting worked up by the Board level lack of any accountability to shareholders other than Gresham at this company)!
The justification for handing 10% of the equity upside to a group of people who largely destroyed value for the last 5 years is:
"...to align and incentivise the whole Board of Directors to work collectively to deliver both growth and increased returns on investment..."
So, putting to one side that this is actually their job for which they receive a salary, I think what they are saying is that without this incentive the Directors would not work collectively and not be too worried about maximising returns for the shareholders they are meant to be representing.
Given that in the past they have so badly misallocated capital, signed up to ridiculous 10% financing costs for a secured line of credit and so on, that is not too unlikely! The conclusion can only be that this incentive will sharpen up their minds in a way that pride in their job or a salary didn't seem able!
On a serious note, I'm all in favour of sensible incentives that align the outcomes for all, particularly for Chris Caldwell, but most of these Directors should not be incentivised this heavily to redress their own past failings.
If they are having to work harder and commit more time to right the wrongs of the past, this should come through salary adjustment not greedy capital returns - none of what they are doing is rocket science, and therefore the upside to them of doing their job properly should not be structured in this way.
Started: lavenonews, 16 Apr 2021 09:04
Last post: Uphillnow, 25 May 2021 22:41
Heatwave in south China causing power outages. Probs caused by everyone crypto mining etc. CEOs on risk management meetings talking about testing power banks for sure. Don’t want to lose there jobs!!
Stephen yap buying with real money at this level is great. As Paul hill annunciates so eloquently. NBI great value and should run to £2 with ease.
When they get the planning permission and announce this, I want the company to state the impact of the super-deduction tax relief on CAPEX.
Investments into cranes, factory equipment etc should be set off 130% against Corporation Tax, so expect Crestchic to benefit from this.
Note for that Paul Hill character - what an opportunity you have and you are not making the most of it. Calm down for goodness sake and ask some more detailed questions like this (or how about if Tasman's hard operating net assets are £14m with no intangibles into a cyclical upswing, is that a fair expectation for value of a disposal? If so, what would the company do with that cash - any element of special dividend?) and so on and so on.
That aside, very interesting year coming up, if Management deliver on the vision then they have a lot of options for shareholder value creation.
Started: lignumvitae, 16 Apr 2021 07:45
Last post: lignumvitae, 16 Apr 2021 07:45
Does the late reported sale of 191,796 on 14 April represent the final clearing of the stock overhang ?
Let us hope so & that we can look forward to a steady rerating.
Started: lavenonews, 13 Apr 2021 09:18
Last post: lignumvitae, 14 Apr 2021 18:31
Quite agree laveonews:
In my opinion a significant re-rate is beginning. This is a company that exits the pandemic period in a stronger position than it entered it. Clearly there has been a stock overhang that looks as though it is close to being cleared.
IMO a buy & long tern hold.
None of this was rocket science and finally NBI focuses on ROI, stops misallocating capital and gets out of the ridiculously expensive line of credit from Gresham (albeit by diluting all of us if they convert at the ridiculous 90p).
Hopefully they can get an attractive offer for Tasman, it's time will come and NBI should get some reflection of that.
Then expect them to change their name to Crestchic now Hook has retired. Northbridge has no meaning and Crestchic deserves to be rated on an altogether different multiple.
It's all going to take time but investors with a decent time horizon should see £1 as a very attractive entry point.
Started: EquityDevelopmen, 13 Apr 2021 08:52
Last post: EquityDevelopmen, 13 Apr 2021 08:52
FY results read well + Board is now examining disposal of Tasman. Crestchic is set for further growth and looks cheap vs hire service peers. Scope seen for a re-rating as investors focus on prospects and a ‘greener’ NBI.
New research note here: https://www.equitydevelopment.co.uk/research/increased-confidence-and-strategic-review