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Why? What did I miss?
I'm guessing that because Rathbones (not the bread people :)) and Investec have merged their asset management / Wealth Management businesses, and they released RNS declaring that Rathbones now holds ~ 6.4% in NICL. Since the RNS (25th September), there has been an increase in trading volumes and I am guessing that Rathbones are reducing their stake to below 5%, which would mean a sale of ~ 5000,000 shares. Maybe that is causing a little indigestion.
Either way, at 936 (with very narrow spread) I decided to add some more, even though I am slightly wary about the potential for SP appreciation pending next set of results.
That should read 500,000 shares.
Interesting news re share holder sticking his head over the parapets with a 3.09% stake. Initial skunk works only reveals that his (and his wife) seem to be Hoteliers, and own (or at least control) the Y Talbot in Tregaron; very nice hotel.
I wonder if their shareholding came from James Nichol (Grandson of founder), who recently resigned from the business to pursue other interests. Maybe he also wanted to sell up. Getting ~3% of Nichols shares is not easy in the Market, so likely to have been via a corporate or family member.
Also noted that he resigned his Directorships from various Nichols subsidiaries aligned with the OoH business (the business unit that is currently being restructured), not before time in my opinion. A new Director of these business units took over, and she is Sarah Louise Caddy. Although she has not been named as his replacement as one of the family Non Execs.
Either way seems something interesting is afoot.
But still festering in the same sp range...
Some steady buying lately, clearly many see the recent sp as a buying opportunity.
Agree...circa 9.00 is bottom, but needs a great kick to shift up to £15 s imo.....no ideas where that will materialise.
The key issue for the trading update to see if they update on write downs for OoH business. The Vimto packaged business is pretty bullet proof, and any six year could run it profitably. However, it seems current management have have got a grip of the OoH business after years of laissez faire management, and signalled that more write downs expected second half 2023, but benefits in 2024.
Other interesting issues to consider (although unlikely to be in trading update), are founders grandson resigned (he ran the OoH business), maybe disagreements on restructuring. Also, recovery of bonus's paid to management, as £4m write down taken last year as HMRC case settled in favour of HMRC. Will NICL really recover that amount from past and previous management ?
There is your answer !!
Nice solid base from which to build on there. I still think they need to explore different avenues and new ventures to really give the company a boost.....oh to be a fly on the wall at those family gatherings !!
Hi Fred
Happy new year, hopefully a prosperous one.
Yeah, I reckon it’s a decent update. Good cash flow given high inflation. No sign of acquisition so far, maybe they will consider a special dividend or possible buy back, given strong cash position.
Either way, things are looking up now they are sorting OoH business out , with a bonus that international businesses looking strong.
Anyone explain crash in the sp. At this value maybe time for a share buy back ?
My guess, ironknut, is that the weakness is little more than an investor trying to sell a tranche of shares. As you will appreciate, there is very little liquidity in most AIM stocks and so when there is an overhang, price movements on the downside can get overdone. Indeed, the more the shares fall, the more fear creeps in and buyers go to ground. We know from a recent update that the company is trading perfectly well. On fundamentals, the rating is not that cheap, but then better quality AIM stocks rarely are. With a little patience, I foresee the shares recovering.
Well Uh-oh, i think you are correct. The company is indeed trading well. The results to-day certainly justified a boost in the sp. an Aim share to stay with for a steady long term investment and there are few of those about!
Having gone ex. divi. the sp has slumped again. I can see no reason for the market being so negative to this company !