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This is intriguing... An earlier post mentioned that the trading businesses haven’t yet filed their statutory accounts, yet the PLC has. In looking at this company in greater detail, I also note that 2 directors from an aquistion made last year have since resigned..? (Bell Finance) but with no explanation. I wish I had a proper angle on this stock. With regards to SP consistency and stability, it appears to be out of sync with results and news. I’d like think that a further purchase would be a good bet, but can’t make my mind up. Any thoughts...?
I’m intrigued... The current SP standing and performance suggests otherwise. What do you base your foresight on.. Calculated research or optimism?
Crazily undervalued. Should be around the 60p mark at least!! Imho, in 12 months time sp will be around 70-75p mark...
Yes agreed, and the `robust levels of demand across the group` due to the flexible model of acting as both funder and broker probably helps too.
Way undervalued, a good one for the bottom fishers.
The former. Unless as discussed with Meg, i am missing something, this company is hugely undervalued and so it is to be expected that as markets recover, this company will follow suit.
Odd that there was such a rise in share price yesterday for it to just level out today with no real movement. Was it just oversold and returning to the correct value or is there news on the horizon?
You are quite right, it is only a guess about ex director sells. While I think the company is undervalued, the market agrees with you Mega and so it may well be that i am missing something.
I agree with you in the main. However, I do need full accounts to do a detailed analysis. The shareholder pack alone can only provide high level observations & I note that not all the businesses have filed their year end statutory accounts 🧐. Also a 1% bad debt in this sector is unheard of - so I question that everything is declared. Maybe a postponed reserve.
There are a lot of comments that this is an undervalued share, based on what exactly ? At some point a consolidation will happen (&/or a market downturn?) At which point the good news will slow. It’s make hay while
sun shines and if you feel brave, then take a punt on the low SP. But beware, I see no confirming evidence that the ex retired director is selling the balance of their shares. So glad I sold a chunk when on a high as not sure when the next one will be 🤔
Positive news this morning. Acquisition performing very well...
Mega, you don't need inside info to do detailed analysis - the recently published accounts have all the info you need.
I don't know if the ex Director is still selling but he had started reducing his holding shortly before retirement. Shareholders were informed as all transactions by directors are reported. However, if i had just retired and had several million concentrated in 1 share holding, i would be looking to reduce my exposure because the risk is just too high.
Fact is, this is a small cap stock with limited volume of trades and so it doesn't take much to move the SP either way. A few people get nervous because of Brexit and whatever else keeps them up at night and before you know it, the SP is do2n 10%. Same applies to all small listed companies and if one has the confidence to stand by your own analysis then these periods just have to be ridden out.
Agreed that this price looks very tempting, if we touch anything below 45 then I'm topping up as it just seems like a no brainer. The results were good and there is a really positive outlook which I doubt has changed over the last few weeks!
I believe it's the retired directors stock overhang of 6%...plus current AIM meltdown... Baffling though why sp didn't initially move higher after results...
Hi all, been looking in to 1pm and couldn`t work out why the sp had fallen on positive news. So thought I`d visit the discussion to find out what people are saying.
All I read is participants being equally baffled!!
But then I spotted the IC article posted on 13th Sept....and bingo!
Ever since their bullish report the price has plummeted....so the dreaded IC recommendation strikes again!
It does seem daft to link the two but it happens so often that its almost like the dreaded backing of a football manager by the board when their position is in question by disgruntled fans.
So there you have it....that`s why this stock has fallen.
ps the close of a trading gap at 46p today looks very tempting for an entry.
Close watch for tomorrow.
I can’t do a detailed analysis as I don’t have any inside info. My observations are purely based on the SP’s reaction to good/bad news. Then it’s sustainability. What just doesn’t sit well with me is that a great set of results followed by a positive prediction to buy, has resulted in a 25% drop in value in 2 weeks. I understand that you believe an ex director is selling their remaining holdings (do you know that this is the case?), but if the SP is more reactive to an individuals actions, than the company performance, then is this not a very risky and unpredictable bet ?
Global economic downturn. Not just OPM. Many stocks taking a pounding...
Maybe the doubters are on to something. I am dumbfounded by the recent drop which gives the company a pe one would expect from a company going bust.
I didn't think we would see sub 50 after the last set of results and outlook for the next few years. If this drops back below 45 then it is a clear no brainer to top up here!
Relatively positive? He suggested a 50% rise would give a normal valuation. Sounds very positive to me
Not in, but noticed a relatively positive write up this month in SCSW. I imagine the sp will bounce on Monday morning
GS
Because it could also be that a retired director with a substantial holding is selling out, as anyone in retirement would to diversify and reduce risk. Once this selling pressure releases the SP could rebound, reach record highs and still only have a pe of 10.
Just interested in hearing about your own analysis and insight into the company based on the work you must have done to arrive at your conclusions.
My opinion based on extremely good news failing to sustain a strong share price. What else needs to happen!?!?!
What makes you say that?
The SP price will be at 40p again soon, there is no sustainability in the company. Makes you wonder what the ‘good’ news is actually based on as the market doesn’t agree.
Sad to say that my prediction of dropping after excellent results has definitely come true. If and when this eventually gets back to 60 then I am officially out.