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I agree. One of the main reasons I invested was the divi. 1.7% might not look like much but the track record is fantastic. In 2011 it was under 2p. Now it's about 16p. I don't see it growing as fast over the next 10-15 years but I would still expect c. 10% rises per year. Plus, they're basically debt-free now and cover is over 5, so it's almost zero risk. My main reason to buy is sp growth, but the divi is a significant factor.
Thank you for your informative message Seawitch65. The Board it seems have acted wisely.
"The Board has decided to continue this share buyback programme and extend the time scale until the end of July 2024."
I do hope the history of buybacks in recent months reflects the sp. IE when for no good reason the sp "crashed" buybacks were a good investment, now that the sp is at a realistic value no longer a good idea to continue the buy back.
RNS issued re buybacks.
More likely in my view that an acquisition has come into play and they've suspended the buy backs while it looks like they may need the cash.
Can anyone shed light on why the buyback program might have stopped? It was announced October 26 (up to £30mil) and they did a few buybacks up until Nov 1st but since then it doesn't look like they've done any more, with less than £1mil being spent. The sp has done well since then but isn't it a bit concerning that they've stopped the buyback so suddenly after announcing it? The obvious reasons would be either that they are short of cash or consider the stock is no longer such good value. Either way, this seems like a negative. Any thoughts?
Not at all bad considering the macro conditions, certainly a better performance than S4.
....and at last! A share buy back programme.
The market's clear approval is apparent, and I agree.
The price is being manipulated, but luckily we should see it stabilize around £6.
Despite potential economic weakness, the stock priced at £5.90 has reached a significant discount, suggesting a possible bottom has been reached.
The market's approval is evident, and I concur.
The market's approval is evident, and I concur.
Now we are above the 50dma this is definitely changing trend for the short to intermediate term. May go for a nice top up soon.
Broken £5.90 now looking at 50 dma.
Hopefully the bottom is in even if there is further economic weakness. This is selling at major discount.
Could be Robbie Burns, the Naked Trader - NT- have a look at his website'
Regards
Hey tobins….what is the ‘NT update’ you reference?
Quite a bit on this in the NT update which unusually hasn't resulted in the sp jumping. It seems one that can't find a bottom.
They want to keep the cash on the books. Also probably thinking what they can buy when the other companies hit the fan. With these interest rates that is a certainty.
I just cannot understand how the company isn't launching buybacks right now....it is truly insane. Really getting on my nerves - if only because they were the ones who suggested them at trading update when we were almost 20% higher. With FCF yields of 15%, they can well afford it.
Great to have you both on board on chat group! Definately a crazy one this given how sizeable it is and how little people seem to be following it. Always good to have Slater as a big co holder.
Soundman - I have to say, in terms of upside, I think its two different worlds. S4 in my opinion still looks super expensive...people talk about CFO and earnings multiples - but the company's FCF is absolute garbage, its much slower top line growth and lower margin. Definately one where people are basically saying its good because of Sorrell. Just my opinion but do not understand it at all.
Excellent anyway we are all on board here. I think at the very least we should easily be 2x todays current price - that would be a fair valuation. Upside from that point is very exciting.
I'm with you too. In this and S4 but agree this is the better company with more certain prospects of a decent return. I think S4 probably has more upward % return potential longer term from the current SP but definitely also has higher risk attached - I feel more can go wrong there and the last update was pretty poor.
If NFG goes sub 600 I'll certainly be brave enough to add more.
Gg and dis, good to note your comments. Nothing to add, but in there with you. Not sure will have "the bottle" to buy more should sp become silly.
Ha dissipline...you twits over at S4 have well and truly shafted us here today ; ).
NFG clearly being lumped in with S4 after apparent recovery which we had going last week! not too worried...in fact I almost hope it keeps dropping...will have some spare funds to top up soon.
good example of different ceo's here - Tim Dyson vs. Sorrell. I know which one I think comes across as much more down to earth.
my view is NFG valuation is compounded by back of any good research. really needs a solid comprehensive initiation report done on it given the amount of individual businesses that make up the group now.